Skipper Q1FY27 net profit rises 26.5% to ₹565M on infra surge
Skipper Limited delivered strong Q1FY27 results with a 26.5% YoY rise in net profit to ₹564.7 million, driven by margin expansion and robust infrastructure project execution. Revenue grew 4.5% to ₹13,098.3 million, while EBITDA margins improved by 60 bps to 10.7%. The company completed a ₹4,335 million equity raise, strengthening its balance sheet ahead of expected H2 growth momentum.
*this image is generated using AI for illustrative purposes only.
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.
| Metric | Q1FY27 (₹ Mn) | Q1FY26 (₹ Mn) | YoY Change |
|---|---|---|---|
| Revenue from Operations | 13,098.3 | 12,538.6 | +4.5% |
| Consolidated Net Profit | 564.7 | 446.6 | +26.5% |
| EBITDA | 1,401.1 | 1,271.7 | +10.2% |
| EBITDA Margin (%) | 10.7% | 10.1% | +60 Bps |
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.
Historical Stock Returns for Skipper
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.83% | +9.11% | +9.09% | +74.81% | +8.41% | 0.0% |
How will the upcoming listing of the 9.2 million preferential allotment shares impact Skipper's stock liquidity and potential dilution for existing shareholders?
Given the record ₹92 billion order book, what specific capacity expansion timelines has management outlined to prevent execution bottlenecks in the Infrastructure segment?
What is the company's strategy to mitigate the risk of unrealized losses on commodity and currency hedges, which recently resulted in a negative comprehensive income?
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