Skipper Limited — Q4 FY26 earnings call

Call held 28 Apr 2026

Management summary

Skipper Limited delivered a record Q4 and full-year FY26, with revenue growing 29.4% YoY in Q4 to ₹1,666 crores and 20% YoY for the full year to ₹5,552.8 crores. Profitability saw significant expansion, with Q4 EBITDA up 40.2% and full-year PAT up 42%. The company achieved its highest ever order book of ₹8,501.9 crores and is expanding capacity to 450,000 tons by June 2026. Despite a conservative 15% revenue growth guidance for FY27 due to export market challenges and execution constraints, management anticipates a return to 20-25% growth from FY28.

Highlights

  • Q4 FY26 Revenue reached a record ₹1,666 crores, registering a growth of 29.4% year-on-year, driven by strong execution across business segments.

  • Q4 FY26 EBITDA increased 40.2% year-on-year to ₹173.4 crores, with margins expanding to 10.4% compared to 9.6% last year.

  • Q4 FY26 PAT increased 70% year-on-year to ₹75.6 crores, with margins improving to 4.5%, underscoring benefits of scale and improved cost structure.

  • FY26 annual revenue reached a record ₹5,552.8 crores, representing a growth of 20% year-on-year, with PAT growing 42% year-on-year to ₹207.3 crores.

  • The company closed FY26 with its highest ever order book of ₹8,501.9 crores, supported by record annual inflows of ₹5,678 crores, and a bidding pipeline of over ₹33,000 crores.

  • ROE improved to 14.1% compared to 12.3% last year, and the company is on track to reach 450,000 tons per year capacity by June '26, with utilization levels above 85%.

Concerns

  • Trade receivables increased to ₹1,485 crores in FY26, partly due to a technical delay of ₹260 crores received in April 2026 and a higher share of domestic revenue with longer realization cycles.

  • FY26 saw temporary moderation in ordering due to execution size constraints, including challenges with right of way, forest clearance, and extended delivery cycles for critical equipment like transformers and HVDC.

  • Export growth was a concern in FY26 and continues to be a concern for FY27 due to ongoing geopolitical challenges and increased sea freight costs, leading to a conservative 15% revenue growth guidance for FY27.

  • Project timelines on the ground are getting extended due to ROW constraints, impacting the scheduled execution of existing healthy order book.

Key financials

  1. Revenue ₹5,552.8 Cr +20%YoY
  2. EBITDA Margin 10.3%
  3. PAT ₹207.3 Cr +42%YoY
  4. ROE 14.1%
  5. Debt-to-EBITDA 1.6×
  6. Trade Receivables ₹1,485 Cr

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

Share of Revenue (FY26)
₹4,859 Cr Total
  • Engineering Segment ₹4,359 Cr 89.7%
  • Polymer Segment ₹500 Cr 10.3%

Order book

high confidence

Total value

₹8,501.9 Cr

as of 2026-03-31 quantified

Inflow this quarter

₹1,029 Cr

Composition

Mix 2 geographies
  • Domestic 90%
  • Export 10%

Share of order book by geography

Pipeline

qualified rfp

Bidding pipeline for future order inflows

The order book is at its highest ever, supported by record annual inflows, and remains well diversified with a strong bidding pipeline for future growth.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹250 Cr
    For FY '27, our capex guidance will be similar to previous years. It will be about INR250 crores.
  • Debt 1.6× EBITDA
    Debt-to-EBITDA remained stable at 1.6x. Debt equity at 0.62x, indicating controlled leverage.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY27 · Medium confidence 15%
    For FY '27, we are giving a guidance of 15% growth on revenue and approximately a 30% growth in bottom line.

    — Sharan Bansal

  • Revenue Growth Rate Revenue · from next year onwards (after FY27) · Medium confidence 20-25%
    from next year onwards, definitely -- like I mentioned, this year, we expect the bidding activity to be very, very robust. And obviously, we also expect that the export markets, they will open up again towards the later part of the year. So I think with both the things opening up, for sure, we can expect to come back to the 20% to 25% growth run rate from next year onwards.

    — Sharan Bansal

Profitability

  • Bottom Line Growth Profitability · FY27 · Medium confidence 30%
    For FY '27, we are giving a guidance of 15% growth on revenue and approximately a 30% growth in bottom line.

    — Sharan Bansal

Margin

  • EBITDA Margin Margin · Long-term · Low confidence 12%
    Obviously, our effort will be to continue to improve our margins and achieve our long-term aspirational margins of 12%.

    — Sharan Bansal

Capacity

  • Total Capacity Capacity · by June '26 · High confidence 450,000 tons per year
    Our capacity expansion of 75,000 tons is progressing well, and we are on track to reach 450,000 tons per year capacity by June '26.

    — Sharan Bansal

  • Total Capacity Capacity · by FY28 · Medium confidence 600,000 tons per year
    So by June end, I think we'll be around 450,000 metric tons capacity. And I think you mentioned that by FY '28, we'll be targeting to reach 6 lakh metric tons. Is that correct? Correct. That's right.

    — Sharan Bansal

Capex

  • Capex Spend Capex · FY27 · High confidence ₹250 crores
    For FY '27, our capex guidance will be similar to previous years. It will be about INR250 crores.

    — Sharan Bansal

Export Order Book

  • Share of Export Order Book Export Order Book · Long-term · Low confidence 25%, then eventually 50%
    So I think all in all, our long-term trajectory of increasing our export order book to about 25% and then eventually 50%. That's very much our long-term target.

    — Sharan Bansal

Polymer Segment

  • Polymer Segment Margins Polymer Segment · at ₹700-1,000 crores revenue · Low confidence Double-digit margins
    As we get closer to, I think, a number of INR700 crores, INR80 crores INR1,000 crores, definitely, we will be much closer to the double-digit margins, which is our aspiration.

    — Sharan Bansal

What to watch in Q1 FY27

Trade Receivables Normalization

next quarter
Current ₹1,485 crores (FY26 end), with ₹600-700 crores realized in April
Target Normalization of receivables and sustained realization of delayed payments

Why it matters

To ensure working capital efficiency and confirm that the increase was indeed temporary and not indicative of sticky debtors.

already realized close to about INR600 crores to INR700 crores of debtors in the month of April itself out of this debtors which you are seeing in the month of March.

Risks & concerns

  • Increased Trade Receivables

    medium

    Trade receivables increased to ₹1,485 crores in FY26, partly due to a technical delay of ₹260 crores and higher domestic revenue share with longer realization cycles. Management stated ₹600-700 crores were realized in April.

    Analyst acknowledged

  • Export Market Challenges

    medium

    Geopolitical issues and increased sea freight costs are impacting export execution and causing customers to delay decisions, leading to a conservative FY27 revenue growth guidance.

    Management acknowledged

  • Project Execution Delays

    medium

    Right of Way (ROW) constraints and critical equipment shortages (globally) are extending project timelines on the ground, affecting execution velocity despite a healthy order book.

    Management acknowledged

  • Moderation in Bidding Activity

    low

    FY26 saw some temporary moderation in ordering due to execution size constraints and critical equipment delays, though bidding has rebounded in April and is expected to accelerate from FY27.

    Management acknowledged

Q&A highlights

7 direct
Increase in Trade Receivables Direct
due to a technical reason, close to about INR260 crores of funds, which was supposed to receive on the last week of March was received on the 1st and the 2nd of April. And because of that, we could not show it, obviously, as realized debtors in the month of March. So that inflated the debtors by INR260 crores.

Analyst questioned the significant increase in trade receivables; management provided specific reasons and confirmed a portion was already realized post-quarter end, alleviating concerns about sticky debtors.

Asked by Balasubramanian from Arihant Capital

Conservative FY27 Revenue Growth Guidance Partial
In terms of execution, we are obviously, see exports are a concern right now as because of the ongoing geopolitical challenges, export growth has been a concern last year, and it continues to remain a concern, though the opportunities in export markets are very, very large, and we are obviously in discussions with many large contracts in the export market. However, the execution actual execution of those will likely probably not be coming this year. And so that is one of the reasons why we have a conservative guidance of 15% on the top line.

Analyst challenged the lower-than-historical growth guidance for FY27; management attributed it to export market challenges and execution constraints, indicating a temporary blip rather than a structural slowdown.

Asked by Disha from Sapphire Capital

Impact of Geopolitical Issues on Export Markets and Margins Direct
No, the freight cost again, the freight cost doesn't impact us because; A, our export is only about 10% of our order book. And on top of that also, we have a healthy mix of FOB and CIF contracts. And because even the CIF contracts with force majeure conditions, et cetera, we are able to renegotiate the ocean freight. So we don't expect any hit to us on the account of the ocean freight.

Analyst inquired about margin pressure from increased freight and input costs due to geopolitical events; management clarified that their contract structure and product mix protect margins from these impacts.

Asked by Abhijeet Singh from Systematix

Pace of Capacity Expansion Direct
Well, I think, see, we are increasing capacity in tune with the execution capability also because see, our business is very involved in terms of engineering output, and it is very manpower heavy. So I think it is not just about capacity building, it's also about capability building. So at the same time, what we are doing is that we are having to add a lot of skilled manpower, lot of engineering skills -- and that also is a big constraint in terms of execution.

Analyst questioned why capacity isn't expanding faster; management explained that expansion is balanced with execution capability, which is constrained by the need for skilled manpower and engineering expertise, and over-aggressive expansion could compromise margins.

Asked by Bharat Sharma from Three Sigma Asset Managers LLP

Significance of Test Bed 2 and HVDC Opportunities Direct
we are the only company having a dual test bed in the same location. So that's a big advantage for international customers because they are able to witness simultaneous testing of multiple structures at the same time, which is very useful for international customers. That is a unique ability that we have. And also the other thing that we -- other significant capability of our test bed is that it is the highest capacity in the world. So it has the capability to test the highest voltage towers.

Analyst sought clarity on the strategic advantage of Test Bed 2 and HVDC market; management highlighted the unique dual test bed capability for reducing lead times and strengthening global competitiveness, positioning them for HVDC projects.

Asked by Pranjal Mukhija from GrowthSphere Ventures LLP

Raw Material vs. Critical Equipment Shortages Direct
The shortages is in the critical equipment, which goes into the transmission line and substations, which is the transformers and the HVDC equipment because without which the system cannot be commissioned and which is why the bidding activity itself was curtailed by the government. So -- but our raw material is... So, our raw material, there's no constraint because we only our raw materials are 100% indigenous. We don't have any import content. So our raw material, there's absolutely no disruption whatsoever.

Analyst asked about supply chain issues; management clarified that while critical equipment shortages are a global bottleneck impacting bidding, their raw materials are 100% indigenous and face no disruption.

Asked by Komal Iyer from NBG Investments

Polymer Segment Margin Improvement Direct
So, we kept the margin steady in this business. But of course, it is still in the low single digits. As we've seen volume growth has started taking place. We've crossed this INR500 crores of revenue for the first time. As we get closer to, I think, a number of INR700 crores, INR80 crores INR1,000 crores, definitely, we will be much closer to the double-digit margins, which is our aspiration.

Analyst questioned the low single-digit margins in the Polymer segment; management outlined a path to double-digit margins as revenue scales to ₹700-1,000 crores, linking it to volume growth.

Asked by Abhijeet Singh from Systematix

Capacity Utilization for New Expansion Direct
Yes. I mean, normally, to achieve full capacity utilization, it takes a couple of quarters. So I would say from quarter 3, perhaps we can expect to see a significant use of this capacity.

Analyst sought clarity on the utilization timeline for the new 75,000 MTPA capacity; management provided a clear expectation of significant utilization from Q3, which is crucial for revenue generation.

Asked by Pranjal Mukhija from GrowthSphere Ventures LLP

3 min read 6 chapters

Detailed narrative

Record Financial Performance in FY26

Skipper achieved its highest ever annual revenue of ₹5,552.8 crores in FY26, marking a 20% YoY growth, driven by a 24% increase in the Engineering segment to ₹4,359 crores and the Polymer segment crossing ₹500 crores. Profitability scaled significantly, with full-year PAT growing 42% YoY to ₹207.3 crores, and EBITDA margins expanding to 10.3%. The company also saw improved return ratios, with ROE at 14.1% and ROCE at 21%, while maintaining controlled leverage with Debt-to-EBITDA at 1.6x.

Strong Order Book and Pipeline Despite FY26 Moderation

The company closed FY26 with its highest ever order book of ₹8,501.9 crores, supported by record annual inflows of ₹5,678 crores, with Q4 inflows at ₹1,029 crores. The order book is well-diversified with 90% domestic and 10% export mix, and includes a significant multimillion-dollar order from a North American utility. Despite a temporary moderation in overall industry bidding activity in FY26 due to execution constraints, the bidding pipeline remains robust at over ₹33,000 crores, providing strong future visibility.

Strategic Capacity Expansion and Technological Edge

Skipper is progressing well with its 75,000 tons capacity expansion, aiming to reach 450,000 tons per year by June 2026, with utilization levels currently above 85%. The company also commissioned Test Bed 2, making it the only global company with dual test bed facilities at the same location, enhancing testing capabilities for highest voltage towers and reducing lead times for customers. Further capacity additions of 75,000 tons are planned for FY27 and another 75,000 tons for FY28, with the new capacity expected to add ₹1,000-1,200 crores in yearly revenue.

Conservative FY27 Guidance Amidst Export Headwinds

For FY27, Skipper has provided a conservative revenue growth guidance of 15% and approximately 30% bottom-line growth. This cautious outlook is primarily attributed to ongoing geopolitical challenges impacting export execution and increased sea freight costs, which are causing customers to delay decisions. However, management expects bidding activity to be robust from next year onwards, with a return to 20-25% growth rates from FY28, as export markets are anticipated to open up later in the year.

Managing Working Capital and Margin Stability

Trade receivables increased to ₹1,485 crores in FY26, partly due to a technical delay of ₹260 crores received in April and a higher share of domestic revenue with longer realization cycles, though ₹600-700 crores were already realized in April. Despite potential inflationary pressures and increased freight costs, management expects to maintain margins, citing a healthy mix of FOB/CIF contracts with force majeure clauses and firm price contracts with buffers for commodity price increases, aiming for a long-term aspirational EBITDA margin of 12%.

Diversification and Focus on Higher-Value Projects

The company is actively diversifying its export markets beyond the Middle East to North America, Europe, and Australia, having secured a large contract in North America. Domestically, while Power Grid remains the predominant client, Skipper is actively pursuing business with aggressive private players like Adani, Sterlite, and Tata Power. The focus is also on higher-voltage projects (400kV, 765kV) and expanding into substations to increase its total addressable market, which are expected to contribute to margin improvement.

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