Summary
Skipper Limited - Q3 FY 2026 Earnings Call Summary Thursday, January 29, 2026 4:00 PM
Event Participants
Executives 4 Aditya Dujari (AVP, Finance and IR), Devesh Bansal (Director), Sharan Bansal (Director), Shiv Shankar Gupta (CFO)
Analysts 4 CA Garvit Goyal (Serene Alpha), Keval Barot (Axis Securities), Mehul Panjuani (40 Cents), Navin Sahadeo (ICICI Securities)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹1,370 crores | +21% YoY; Highest ever quarterly revenue driven by engineering and EPC execution. |
| EBITDA | ₹141 crores | +28% YoY; Highest quarterly EBITDA achieved to date. |
| EBITDA Margin | 10.3% | +50 bps YoY; Improvement driven by operating leverage and better quality contracts. |
| Profit After Tax (PAT) | ₹50.2 crores | +40% YoY; Strongest quarterly bottom-line performance reported. |
| 9M Revenue | ₹3,886 crores | +17% YoY; Record 9M performance. |
| 9M PBT (Excl. Exceptional) | ₹187 crores | +38% YoY; Margin improved to 4.8% from 4.1% YoY. |
| Order Book | ₹9,009 crores | ~$1 billion total; 90% Domestic / 10% Export mix; Provides strong revenue visibility. |
| Order Inflow (9M) | ₹4,649 crores | +24% YoY; Reflects robust demand despite slightly muted industry-wide ordering. |
| Finance Costs | 4.1% of Revenue | Improved from 4.8% YoY; Aided by better working capital management. |
| Total Capacity | 450,000 tons | Targets this level by end of FY26 following 75,000-ton expansion. |
Geographic & Segment Commentary
- Engineering & EPC: Management reported highest-ever execution levels; secured prestigious 765 kV transmission line projects in Uttar Pradesh and Karnataka. The segment is benefiting from a manufacturing-led model and a growing footprint in high-voltage categories.
- International (Exports): Currently holds a ₹900 crore order book with a 20% execution rate in engineering products. Strategic focus remains on North America and Europe to achieve a long-term goal of a 50/50 domestic-export revenue mix.
- Polymer: Recently signed a strategic raw material tie-up with Lubrizol for CPVC supplies. Management expects this partnership to drive value in pricing and quality, helping scale the segment’s market position.
Company-Specific & Strategic Commentary
- Capacity Expansion: A new 75,000-ton capacity is fully operational, with another 75,000-ton brownfield expansion in Howrah expected to commission by Q1 FY27. Total capacity will hit 450,000 tons, with 85-90% utilization targets by Q2 FY27.
- Digital Transformation: Successfully went live with SAP S/4HANA RISE across key business functions. This initiative aims to improve process control, data visibility, and overall scalability.
- China Plus One Strategy: Positioned to capture global demand shifts toward non-fossil energy. Management noted no competitive threat from Chinese manufacturers in the transmission tower segment.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | 20% - 25% CAGR | Multi-year growth runway supported by ₹9 lakh crore India transmission capex plan. |
| EBITDA Margin | 10.5% - 12.0% | Long-term aspiration to reach 11-12% through operating leverage and high-quality contracts. |
| Q4 FY26 Growth | 25% - 30% YoY | Anticipated catch-up from monsoon-related delays and increased capacity. |
| Capex | ~₹200 crores (Annual) | 4-year cumulative target of ₹800 crores remains the benchmark for expansion. |
Risks & Constraints
| Risk | Context |
|---|---|
| Execution Delays | Management noted minor delays in capacity commissioning and monsoon-related execution slowdowns in early FY26. |
| Ordering Cyclicality | While the long-term outlook is robust, industry-wide ordering has been slightly muted this year compared to the high base of last year. |
| Real Estate/Land | While looking for future greenfield capacity, land acquisition remains a work-in-progress with no firm decisions on location yet. |
Q&A Highlights
Order Pipeline and T&D Outlook
- Question: What are the challenges regarding RoW and power demand issues in T&D? (Keval Barot)
- Answer: There are no major long-term challenges; the Govt. of India has a ₹9 lakh crore plan through 2032 and a ₹6.5 lakh crore hydro-linked opportunity in Arunachal. (Sharan Bansal)
Margin Sustainability
- Question: Will margins remain volatile or stay above 10%? (Navin Sahadeo)
- Answer: Guidance is maintained at 10% plus; the aspiration is to improve this to 11-12% as revenue scales. (Sharan Bansal)
Commodity Price Exposure
- Question: How will the rise in copper prices affect the EPC segment? (CA Garvit Goyal)
- Answer: Copper is not a raw material for Skipper; primary inputs are steel and zinc (~60% of selling price), which remain range-bound. (Sharan Bansal)
Growth Ambitions
- Question: Revenue growth guidance seems to have shifted from 25% to 20%. Why? (Navin Sahadeo)
- Answer: 25% remains the aspiration, but 20% is the firm CAGR floor. Q4 FY26 is expected to see 25-30% growth to close the year strongly. (Sharan Bansal)
Key Takeaway
Skipper Limited delivered a record-breaking Q3 FY26, characterized by its highest-ever quarterly revenue of ₹1,370 crores and PAT of ₹50.2 crores. The company is successfully executing its manufacturing-led growth strategy, evidenced by the 9M order inflow growth of 24% YoY and an all-time high order book of ₹9,009 crores. Strategically, the company is nearing its 450,000-ton capacity target and has strengthened its digital and supply chain foundations through SAP S/4HANA and a Lubrizol partnership. Profitability is trending upward with EBITDA margins at 10.3% and finance costs reduced to 4.1% of revenue. Management remains confident in a 20-25% revenue CAGR, supported by a ₹27,000 crore bidding pipeline and massive domestic transmission investments. Moving forward, the focus remains on ramping up new capacity and expanding the export footprint to developed markets.
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