Skipper Limited submitted its Business Responsibility and Sustainability Report (BRSR) for FY26 to stock exchanges on August 21, 2026. The report outlines the company's environmental, social, and governance (ESG) commitments and performance metrics.

The filing covers standalone operations across manufacturing facilities in West Bengal and Assam, as well as EPC operations. External assurance was not obtained for FY26, though the company plans to undertake external assurance of BRSR Core from FY27 in line with regulatory mandates.

Sustainability Targets

The company has established three primary long-term goals:

• Net Zero Emissions: Targeted by 2050.
• Zero Liquid Discharge (ZLD): To be achieved across all business units by 2031.
• Zero Harm: A continuous commitment to employee health and safety.

Progress toward ZLD involves installing Sewage Treatment Plants (STPs) and Effluent Treatment Plants (ETPs). The company reported zero fatal accidents during the year.

Energy and Emissions

Total energy consumption rose to 9,22,322 GJ in FY26 from 7,61,567 GJ in FY25. This increase is attributed to the inclusion of the EPC segment in the reporting boundary.

Scope 1 emissions increased due to the reclassification of welding gases and higher production volumes. However, Scope 2 emissions decreased despite higher production, driven by a Power Purchase Agreement (PPA) for renewable energy implemented in November 2025.

Water Management

Total water withdrawal increased to 1,22,705 kilolitres from 79,606 kilolitres in FY25, while consumption fell to 58,116 kilolitres from 68,046 kilolitres. The rise in withdrawal reflects the inclusion of EPC sites. The Uluberia facility reuses 100% of treated effluent water in manufacturing processes.

Workforce and Safety

The company employed 1,499 permanent employees and 7,633 workers. Female representation among permanent employees stood at 3%.

The Lost Time Injury Frequency Rate (LTIFR) for employees rose to 0.83 from 0.24, and for workers to 2.45 from 2.21. The company attributed this increase to the inclusion of EPC employees and workers in the reporting boundary for FY26.

What the Numbers Show

While total energy consumption and Scope 1 emissions both increased year-on-year, the divergence between rising production and falling Scope 2 emissions indicates the early impact of the renewable energy PPA. The significant jump in Scope 3 emissions (3,52,325 tCO2e) compared to Scope 1 and 2 combined highlights that the majority of the company's carbon footprint lies outside its direct operational control, primarily driven by purchased goods and services.

Skipper reported a consolidated net profit of ₹564.7 million for the quarter ended June 30, 2026 (Q1FY27), marking a 26.5% year-on-year increase from ₹446.6 million in Q1FY26. Standalone results mirrored this strength, with Profit After Tax (PAT) rising to ₹565 million from ₹447 million, driven by significant margin expansion across all profitability metrics. The growth was primarily fueled by robust execution in its Infrastructure Projects segment and steady performance in core Engineering Products. Consolidated revenue from operations stood at ₹13,098.3 million, up 4.5% from ₹12,538.6 million in the corresponding period last year. This disproportionate growth in net profit relative to revenue indicates substantial operational leverage and improved cost efficiency within high-margin infrastructure contracts.

The Board of Directors approved the unaudited standalone and consolidated financial results at a meeting held on August 11, 2026. The results were reviewed by the statutory auditors, M/s. JKVS & Co., pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Additionally, the Board scheduled the company’s 45th Annual General Meeting (AGM) for September 15, 2026, to be conducted via Video Conferencing or Other Audio-Visual Means (OAVM). The record date for dividend entitlement and remote e-voting is set for September 4, 2026.

Financial Performance Highlights

Skipper’s operating profitability improved with EBITDA rising to ₹1,401.1 million from ₹1,271.7 million in Q1FY26, an increase of 10.2%. The Engineering Products segment remained the largest revenue contributor at ₹9,401.3 million, while Infrastructure Projects saw the most significant growth, jumping to ₹2,527.0 million from ₹1,018.9 million year-ago. Polymer Products revenue slightly declined to ₹1,170.0 million from ₹1,271.9 million. Finance costs decreased to 3.6% of sales from 4.2% in the previous year, reflecting improved operating leverage.

Basic earnings per share (EPS) stood at ₹5.0 for the quarter, compared to ₹4.0 in Q1FY26. Cash EPS was reported at ₹7.0, up from ₹5.6 in the previous year’s quarter. Profit Before Tax (PBT) grew 26.5% to ₹756.5 million, with PBT margins expanding by 100 basis points to 5.8%. Standalone PBT rose 26.6% to ₹757 million, with margins expanding from 4.8% to 5.8%.

Balance Sheet and Capital Structure

Total segment assets increased to ₹44,561.28 million as of June 30, 2026, from ₹37,454.89 million a year earlier, largely due to higher assets in the Infrastructure Projects segment (₹10,159.25 million vs ₹6,388.55 million). Total borrowings, including term loans and working capital loans, rose to ₹10,834.90 million from ₹9,889.56 million in June 2025.

The company completed a preferential allotment of 9,223,402 equity shares at ₹470 per share in July 2026, raising ₹4,335.00 million. This capital infusion supports ongoing project execution and balance sheet strengthening. The shares are pending listing approval from NSE and BSE. CRISIL upgraded the company’s long-term credit rating to A+ / Stable and reaffirmed CRISIL A1 for short-term facilities, reflecting strengthened financial profile and prudent management.

Order Book and Strategic Initiatives

Skipper reported a record closing order book of ₹92,166 million, up 8.4% from March 2026 levels of ₹85,019 million. Q1FY27 order inflows totaled ₹16,744 million, with a trailing 12-month inflow exceeding ₹53,750 million. The company secured two prestigious 765 Kv line projects from a reputed domestic developer in Maharashtra and is currently executing approximately 5,200 circuit kilometers of EHV & HVDC transmission line work. Exports declined ~50% YoY to ₹1,620 million due to geopolitical disruptions in West Asia, but the export pipeline remains strong with targeted growth of over 50% compared to last year. The bidding pipeline remains at an all-time high of more than ₹35 billion.

Management clarified that the Engineering segment slowdown is temporary, attributed to deferred export shipments due to high shipping costs and lower order intake last year. The Infrastructure segment's growth is driven by domestic TBCB projects, with no change in scope of work. The company expects FY27 to be H2 weighted as export logistics normalize and capacity utilization improves. Management guided for full-year finance costs to settle between 3.2% and 3.5% of revenue post-fundraise, noting that the Q1 improvement was purely operational, as funds were received in late July/August.

Management Commentary

Sharan Bansal, Director, stated that the quarter marked a disciplined start to FY27, with revenue at ₹13,098 million and PAT at ₹565 million. He emphasized that the ₹4,335 million raised through preferential allotment to marquee global and domestic long-only institutional investors will materially reduce reliance on working-capital borrowings. Bansal reaffirmed the company’s FY27 guidance of around 15% revenue growth and approximately 30% PAT growth.

Devesh Bansal, Director, noted steady execution in the Engineering business and progress on the capacity expansion. He highlighted deepened international footprint with new subsidiaries in Brazil and UAE, and strong customer engagement across Middle East, Africa, Europe, North America, and Latin America.

What the Numbers Show

The disproportionate growth in net profit (26.5%) relative to revenue growth (4.5%) indicates significant operational leverage and margin expansion, particularly within the Infrastructure Projects segment. While material costs rose proportionally with revenue, the surge in high-margin infrastructure contracts appears to have driven overall profitability. Finance cost reduction to 3.6% of sales further contributed to bottom-line improvement. However, total comprehensive income turned negative at (₹364.48 million) due to unrealized losses of ₹1,240.50 million on commodity/currency hedge derivatives recognized in Other Comprehensive Income (OCI), highlighting exposure to foreign exchange and input cost volatility despite hedging strategies.