Skipper Q2 PAT Surges 56% YoY to ₹575M

Skipper Limited – Investor Presentation Summary

Key Operational Highlights

Company registered its highest-ever second quarter revenue of Rs 13,840 million, achieving 9.7% YoY growth.
Exports declined ~46% YoY to Rs 1,064 million (vs Rs 1,980 million), impacted by geopolitical developments in West Asia.
Company is currently executing 5,500 approx circuit kilometers of EHV & HVDC transmission line work as of September 2026.
Manufacturing capacity of 375,000 MTPA as of March 2026, with expansion to 450,000 MTPA on track and roadmap to 600,000 MTPA by FY29.

Key drivers of operational performance:

Strong execution across all business segments despite geopolitical disruptions impacting exports, supported by disciplined execution and continued margin expansion.

Segment-wise Performance

Engineering Products:

Q2 FY27 Net Sales: ₹10,403.8M (4.3% YoY growth)
Q2 FY27 EBITDA: ₹1,237.3M (5.6% YoY growth)
EBITDA Margin: 11.9% (vs 11.7% YoY)

PVC Products:

Q2 FY27 Net Sales: ₹1,281.6M (11.1% YoY growth)
Q2 FY27 EBITDA: ₹74.9M (62.3% YoY growth)
EBITDA Margin: 5.8% (vs 4.0% YoY)

Infrastructure Projects:

Q2 FY27 Net Sales: ₹2,154.4M (44.5% YoY growth)
Q2 FY27 EBITDA: ₹136.1M (52.2% YoY growth)
EBITDA Margin: 6.3% (vs 6.0% YoY)

Explanation of significant changes in segment performance:

Infrastructure Projects segment showed strongest growth driven by increased project execution, while PVC Products demonstrated significant margin improvement through operational efficiencies.

Financial Highlights

Q2 FY27 Performance (Rs in Million):

Revenue: ₹13,839.8
EBITDA: ₹1,448.3
PAT: ₹574.7
EPS: Not Specified
EBITDA Margin: 10.5%
PAT Margin: 4.2%

YoY comparison:

Revenue growth: 9.7% YoY
EBITDA growth: 10.8% YoY
PAT growth: 55.8% YoY

H1 FY27 Performance (Rs in Million):

Revenue: ₹26,938.1 (7.1% YoY growth)
EBITDA: ₹2,849.4 (10.5% YoY growth)
PAT: ₹1,139.4 (39.7% YoY growth)
EBITDA Margin: 10.6%
PAT Margin: 4.2%

Drivers of financial performance:

Higher revenue growth, improved operating efficiencies, better product mix, prudent cost management, and declining finance costs.

Key Risks:

Geopolitical developments in West Asia impacting exports, temporary supply chain disruptions.

Geographical Revenue Split

Domestic vs Export revenue breakdown not specified in quantitative terms
Exports declined ~46% YoY to Rs 1,064 million in Q2 FY27
Export share in overall order book increased to 17%, well diversified across key markets
Majority export book from developed markets of Australia and North America; Middle East exposure limited to <18% in export mix

Balance Sheet Snapshot

Net Debt/Equity: 0.38x (improved from 0.61x in Sep'25)
Debt to EBITDA: 1.29x (improved from 1.49x in Sep'25)
Gross debt (including interest bearing acceptances): ₹9,642 million (reduced by ₹3,583 million YoY)

Financial Health Insights:

Strong cash flow generation with cash profit growth of 47% YoY to ₹823 million in Q2 FY27, improved liquidity, and strengthened balance sheet.

Capex & Cash Flow Health

Capital Expenditure: Ongoing 75,000 MTPA capacity expansion likely to be commissioned by H2'27
Free Cash Flow: Not Specified
Operating Cash Flow: Not Specified
Net Debt Movement: Gross debt reduced by ₹3,583 million YoY

Investment Rationale:

Focus on capacity expansion from 375,000 MTPA to 450,000 MTPA and roadmap to 600,000 MTPA by FY29 to cater to rising demand.

Strategic & R&D Initiatives

Establishment of USA subsidiary complementing existing subsidiaries in Brazil and UAE
Commissioned dual Transmission Tower Test Beds for testing Lattice Towers and Monopoles
DSIR approved in-house R&D facility with capability to test towers up to 120m height with 1200kV
Obtained LCA & EPD certificate for Towers and Pole products required for export to Europe and USA

Expected impact on growth:

Enhanced capability to capture larger domestic and export opportunities, particularly in developed markets.

Strategic Rationale:

Expanding into high-growth international markets, reducing operational costs through integrated manufacturing, and diversifying export markets beyond Middle East.

Industry Trends & Business Environment

India's power system undergoing once-in-a-generation expansion driven by energy transition
Non-fossil capacity expected to reach ~786 GW by 2035-36 (vs ~275 GW currently)
Total transmission investment opportunity: ~₹7.9 lakh crore
Transmission network planned for >900 GW integration by 2035-36
China+1 strategy presents significant opportunity for India as preferred sourcing location

Impact on Company:

Strong industry tailwinds supporting record order book and bidding pipeline >₹35,000 crore, positioning company as proxy play on China+1 theme for export markets.

Management Commentary & Growth Outlook

Strategic Outlook: "Demand fundamentals in the power transmission and distribution sector remain robust, reflected in our record order book and strong order inflows. Exports are emerging as an increasingly important growth driver, with encouraging traction across developed markets."

FY Guidance: Well poised to deliver another record year with strong Power T&D tailwinds, record backlog, and expanding global footprint.

Market Share Targets: Focus on strengthening EHV market share through capacity expansion and focus.

Risks and Opportunities: Geopolitical uncertainties and temporary supply chain disruptions impacting exports, but significant opportunities to deepen customer relationships in international markets.

Other Material Updates

Successfully raised ₹4,335 million through preferential equity issue to marquee global and domestic investors at ₹470 per share
Appointment of Mr R N Nayak, former CMD of Power Grid Corporation of India Ltd, as Independent Director
Received "Great Place to Work" certification for the 5th consecutive year
Strengthened global presence with establishment of USA subsidiary
Successfully charged Sikar II Khetri TL 03 765 KV line (144 KM approx.) in Rajasthan