Synopsis:Skipper’s FY26 performance was driven by better contract quality, strong execution, and robust order inflows, while expansion plans, rising global presence, and a strong pipeline support sustained growth visibility.
The shares of this small cap company majorly engaged in manufacturing and selling of Transmission & Distribution Structures and Pipes & Fittings were in focus after posting its record Q4 FY26 result.
With the market capitalization of Rs. 5566 Crores, the shares of Skipper Ltd were trading at around Rs. 493 per share which is 16 percent discount from its 52 weeks high of Rs. 588 per share and is trading at a P/E of 25.8 whereas industry P/E stands at 38.4
Q4 FY26 result
- Year on Year analysis: Revenue from operations has increased from Rs. 1288 Crores to Rs. 1667 Crores, up 29 percent. Operating profit has increased from Rs. 124 Crores to Rs. 173 Crores, up 39 percent and net profit has increased from Rs. 44 Crores to Rs. 76 Crores, up 72 percent
- Quarter on Quarter analysis: Revenue from operations has increased from Rs. 1371 Crores to Rs. 1667 Crores, up 21 percent. Operating profit has increased from Rs. 141 Crores to Rs. 173 Crores, up 22.6 percent. And net profit has increased from Rs. 50 Crores to Rs. 76 Crores, up 52 percent
Improved Contract Quality and Margin Expansion
The company’s performance was driven by a clear focus on executing higher-quality T&D contracts, which supported margin expansion. EBITDA margin improved to 10.3% from 9.8% YoY, while PBT margin rose to 5.2% from 4.2% and PAT margin to 3.7% from 3.1%. This reflects the impact of better contract selection along with operating leverage, enabling profitability to grow faster than revenue.
Robust Order Inflows Supporting Growth Momentum
The company secured total order inflows of Rs. 5678 Crores during FY26, ensuring a continuous flow of projects for execution. Q4 inflows stood at Rs. 1029 Crores, maintaining momentum toward the end of the year. These inflows played a key role in sustaining revenue growth without disruption.
Record Order Book Providing Revenue Visibility
As of March 2026, the order book stood at a record Rs. 8,502 Crores, with a mix of 90% domestic and 10% export orders. This strong backlog provides clear visibility for future revenues and underpins the company’s ability to sustain its growth trajectory.
Large-Scale Project Execution Strengthening Capabilities
The EPC division is executing approximately 5,000 circuit kilometres of EHV and HVDC transmission line projects. Additionally, four 765 kV projects covering 940 circuit kilometres, valued atRs. 15,000 million, were commissioned during the year. This demonstrates the company’s ability to handle large and complex infrastructure projects.
Global Business Momentum and Market Expansion
The company secured its largest-ever order in the North American market and saw increased engagement from international customers, including plant audits from potential clients in the Middle East and North America. It also established Skipper LATAM in Brazil, with subsidiaries in the UAE and USA in the final implementation phase, indicating expanding global presence.
Capacity Expansion to Support Future Demand
A capacity expansion of 75,000 MTPA is underway, which will take total installed capacity to 450,000 MTPA by June 2026. This aligns with rising demand and supports the execution of a growing order book.
Innovation and Technological Advancements
The company achieved key milestones by prototyping and testing the world’s heaviest transmission tower at 293 MT and successfully conducting India’s first testing of Composite Insulated Cross Arms (CICA). These developments highlight advancements in engineering capabilities.
Polymer Segment Growth and Market Expansion
The polymer division achieved its highest-ever quarterly performance, supported by expansion of over 250 SKUs and deeper market penetration. The company strengthened its distribution network and maintained product quality despite challenges such as raw material price volatility and supply constraints.
Future Outlook Supported by Strong Pipeline and Expansion Plans
The company’s bidding pipeline stands at approximatelyRs. 33,000 Crores , indicating strong future opportunities across domestic and international markets. It plans to expand into new geographies, widen its distribution footprint, and build on its current momentum. Capacity expansion, growing global presence, and a strong order book provide confidence in sustained growth going forward.
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