Skipper Limited — Q2 FY26 earnings call

Call held 7 Nov 2025

Management summary

Skipper delivered a strong Q2 FY26, continuing its growth momentum with record revenue and profitability, driven by robust execution in engineering product supply. The company's order book reached an all-time high, supported by significant order inflows and a healthy bidding pipeline. Strategic capacity expansion and a focus on international markets position Skipper for sustained multi-year growth, despite temporary monsoon-related execution delays in Q2.

Highlights

  • Q2 FY26 Revenue reached INR 1,262 crores, marking a 14% year-on-year growth.

  • EBITDA for Q2 FY26 was INR 131 crores, up 16% year-on-year, with margins expanding to 10.4%.

  • PAT before exceptional items for Q2 FY26 stood at INR 45 crores, demonstrating a 32% year-on-year increase.

  • H1 FY26 Revenue achieved INR 2,516 crores, a 14% year-on-year growth, with export revenues growing 27% to INR 523 crores.

  • The order book reached an all-time high of INR 8,820 crores as of September '25, with H1 FY26 order inflows at INR 3,221 crores (up 33% YoY).

  • New 75,000 tonnes capacity is fully operational, with plans for an additional 75,000 tonnes expansion, targeting 600,000 MT/year by FY28 end.

  • An exceptional item of INR 10.6 crores was recognized for a one-time entry tax settlement.

  • Management reiterated a target of 25% revenue growth for FY26 and an order book of INR 9,000-10,000 crores by year-end.

Key financials

4 periods

Headline

  • Order Book (Sep '25)
    ₹8,820 Cr
  • Debt (Sep '25)
    ₹1,268 Cr
  • Debt Equity Ratio
    0.61

Q2

  • Revenue
    ₹1,262 Cr
    YoY +14%
  • EBITDA
    ₹131 Cr
    YoY +16%
  • EBITDA Margin
    10.4%
  • PAT (pre-exceptional)
    ₹45 Cr
    YoY +32%

H1

  • Revenue
    ₹2,516 Cr
    YoY +14%
  • Export Revenue
    ₹523 Cr
    YoY +27%
  • EBITDA Margin (standalone)
    10.3%
  • Order Inflows
    ₹3,221 Cr
    YoY +33%

H1 FY26

  • Finance Cost % Sales
    4.1%

What they filed

Q1 FY27: revenue up 4.5%, net profit up 26.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,110 1,135 1,288 1,254 1,262 +14%1,371 +21%1,667 +29%1,310 +4%
EBITDA111 111 124 127 131 +18%141 +27%173 +40%140 +10%
Net profit33 36 48 45 37 +12%53 +47%78 +63%57 +27%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Polymer Business
    ₹242 Cr H1 Revenue21.6% H1 Revenue (YoY Growth)

Guidance & targets

Revenue

  • FY26 Revenue Growth Revenue · FY26 · High confidence 25%
    we are well on track to achieve the balance required revenue to deliver an overall 25% growth for this year.

    — Sharan Bansal, Director

Margin

  • FY26 EBITDA Margin Margin · FY26 · High confidence 10.3-10.5%
    for the full year also, we are expecting to deliver margins in line with this [H1 10.3%].

    — Sharan Bansal, Director

  • Longer Term EBITDA Margin Margin · longer term · Medium confidence 12%

    From 10-10.5% today

    Long term, we do aspire that our margins should move from the current 10%, 10.5% level to 12% level in the longer term.

    — Sharan Bansal, Director

Order Book

  • FY26 Closing Order Book Order Book · FY26 end · High confidence INR 9,000-10,000 crores
    We expect that this should be somewhere between INR9,000 crores to INR10,000 crores as a closing order book by the end of the year.

    — Sharan Bansal, Director

Capacity

  • Total Capacity Capacity · FY28 end · High confidence 600,000 tonnes
    By FY '28, we do expect to double our capacity to 600,000 tonnes.

    — Sharan Bansal, Director

Order Inflow

  • FY26 Order Inflow Order Inflow · FY26 · High confidence INR 6,000 crores plus
    For the full year, we have guided that, okay, we will be we are targeting an intake of INR6,000 crores plus.

    — Sharan Bansal, Director

Export Mix

  • Domestic to Export Order Mix Export Mix · next 2-3 years · Medium confidence 50-50
    Our internal aspiration is that long term, we should be having an order mix of 50-50, 50% of exports and 50% of domestic. But I think it will take us at least 2, 3 years to get there.

    — Sharan Bansal, Director

Polymer Business Revenue

  • FY26 Polymer Business Revenue Polymer Business Revenue · FY26 · High confidence INR 600 crores odd
    for the full year, certainly, I think we can look at a number closer to INR600 crores odd in this division.

    — Sharan Bansal, Director

  • Long-term Polymer Business Revenue Polymer Business Revenue · next couple of years / year after FY26 · Medium confidence INR 1,000 crores
    We do believe that we can make it INR1,000 crores brand in the next couple of years' time itself and certainly target a double-digit EBITDA margin at those revenue numbers.

    — Sharan Bansal, Director

Finance Cost

  • Finance Cost as % of Sales Finance Cost · FY26 · High confidence closer to 4%

    From 4.7% today

    in this present financial year, we should be able to bring it closer to 4%.

    — Sharan Bansal, Director

Risks & concerns

  • Temporary execution delays due to heavy monsoon

    medium

    Exceptional heavy monsoon in Rajasthan disrupted logistics and civil works, leading to temporary execution delays and deferment of revenue recognition in Q2 FY26, but projects are now back on track.

    Management acknowledged

  • Volatile and falling commodity resin prices impacting polymer business

    medium

    The polymer industry has faced challenges from volatile and falling commodity resin prices, which affected value growth, but management believes prices have now bottomed out.

    Management acknowledged

Areas of evasion (1)

  • Specific numerical contribution of HVDC projects to the INR 30,000 crore bid pipeline

Q&A highlights

3 direct
Pace of new order inflow and Q2 slowdown Direct
order inflow can never really be uniform on a quarter basis. For the full year, we have guided that, okay, we will be we are targeting an intake of INR6,000 crores plus.

Addresses concerns about quarterly fluctuations in order inflows, reassuring investors about the full-year target and overall business outlook.

Asked by Navin, ICICI Securities Limited

Long-term export vs domestic order mix target Direct
Our internal aspiration is that long term, we should be having an order mix of 50-50, 50% of exports and 50% of domestic. But I think it will take us at least 2, 3 years to get there.

Highlights the company's ambitious strategic shift towards greater export diversification and provides a timeline for achieving this significant change in business mix.

Asked by Navin, ICICI Securities Limited

Polymer business revenue and margin targets Direct
We do believe that we can make it INR1,000 crores brand in the next couple of years' time itself and certainly target a double-digit EBITDA margin at those revenue numbers.

Provides specific financial targets for the polymer segment, indicating management's confidence in its growth and profitability potential, especially with commodity prices believed to have bottomed out.

Asked by Rahil, Sapphire Capital

2 min read 6 chapters

Detailed narrative

Strong Q2 FY26 Performance and H1 Growth Momentum

Skipper reported a robust Q2 FY26, achieving INR 1,262 crores in revenue, a 14% year-on-year increase. EBITDA grew by 16% year-on-year to INR 131 crores, with margins expanding to 10.4%. PAT before exceptional items rose 32% year-on-year to INR 45 crores. For the first half of FY26, revenue stood at INR 2,516 crores, also up 14% year-on-year, with standalone EBITDA margins improving to 10.3% from 9.9% last year.

Record Order Book and Robust Bidding Pipeline

The company's order book reached an all-time high of INR 8,820 crores as of September '25, comprising 89% domestic and 11% export exposure. During Q2 FY26, Skipper secured INR 1,243 crores of new orders, contributing to H1 FY26 order inflows of INR 3,221 crores, a 33% year-on-year growth. The bidding pipeline remains strong at over INR 30,000 crores, providing significant visibility for future growth.

Strategic Capacity Expansion and Operational Enhancements

Skipper's new 75,000 tonnes capacity is now fully operational, and plans for an additional 75,000 tonnes expansion have been initiated, aiming for a total capacity of 600,000 metric tons per year by FY28 end. The company also inaugurated its second test bed facility and signed an MoU with IIT Kharagpur for R&D, alongside progressing on SAP S/4 HANA RISE implementation, enhancing operational efficiency and global competitiveness.

Ambitious Export Diversification and Market Entry

Management expressed an aspiration for a long-term 50-50 domestic-export order mix, expecting to achieve this within 2-3 years. To support this, Skipper has established three new foreign marketing subsidiaries in the U.S., UAE, and Brazil. The company is actively pursuing growth opportunities in developed markets like North America and Europe, in addition to existing strongholds in the Middle East, Africa, and Latin America.

Polymer Business Outlook and Targets

The polymer business recorded INR 242 crores in revenue for H1 FY26, up from INR 199 crores in H1 last year. Management projects FY26 revenue for this division to be around INR 600 crores. The long-term target is to grow the polymer business into an INR 1,000 crore brand within the next couple of years, aiming for double-digit EBITDA margins, as commodity resin prices are believed to have bottomed out.

Financial Health and Margin Improvement Trajectory

Skipper maintains a comfortable financial position with a stable debt-equity ratio of 0.61 and a total loan of INR 1,268 crores as of September '25. The company has successfully reduced its finance cost as a percentage of sales to 4.1-4.2% in H1 FY26, down from 4.7% last year, with a target to bring it closer to 4% for the full year. Management also aspires for overall EBITDA margins to move from the current 10-10.5% level to 12% in the longer term, driven by better quality contracts and HVDC projects.

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