Skipper Ltd (SKIPPER) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator (ICICI Securities Limited): Ladies and gentlemen, good day, and welcome to Skipper Limited Q2 FY '27 Earnings Call, hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Navin Sahadeo from ICICI Securities. Thank you, and over to you.
Navin Sahadeo (ICICI Securities): Thank you. Good evening, everyone. On behalf of ICICI Securities, I welcome you all to the conference call of Skipper Limited. Today, we have with us from the management, Mr. Sharan Bansal, Director, Mr. Shiv Shankar Gupta, Company CFO, and also Mr. Aditya Dujari, AVP Finance and Head IR. So without any further ado, I hand over the call to the management for their opening comments. Over to you, sir.
Sharan Bansal (Skipper Ltd): Good evening, everyone, and thank you for joining today's Skipper concall for Quarter 2 FY '27. Before we proceed, I would like to draw your attention to the fact that certain statements made during the call may be forward-looking in nature and should be considered in conjunction with the risks and uncertainties associated with our industry and business. We are pleased to report another strong quarter with record revenue, sustained margin expansion, robust order inflows, and a significant improvement in our balance sheet. Despite inflationary cost environment, continued geopolitical uncertainties, and temporary
Sharan Bansal (Skipper Ltd): in export markets. Let me begin with our financial performance. During quarter two FY27, we achieved our highest ever second quarter revenue of Rs 1,384 crores registering 10% year on year growth. For H1 FY27, revenue reached a record Rs 2,694 crores, growing 7% over the corresponding period last year. Profitability continue to strengthen, reflecting improved execution, favorable project mix, and disciplined cost management. Q2 EBITDA grew 11% year on year to 145 crores, with margin expanding to 10.5%. Profit before tax increased 25% to 78 crores, while PAT grew a strong 56% to 57.5 crores, with PAT margins improving by 130 basis points to 4.2%. For H1, we delivered our highest ever half yearly PAT of Rs 114 crores, representing 40% growth year-on-year. An important highlight has been the continued improvement in our financial position. Our finance cost as a percentage of revenue declined to 3.2% in quarter two from 4.2% a year ago, supported by lower borrowings and better financial discipline. Our debt to equity ratio improved to 0.38x, while gross debt including interest bearing acceptances, declined by approximately 358 crores year-on-year to 964 crores. The recent 433.5 crores preferential equity raise, and our CRISIL rating upgrade to A plus stable further strengthen our financial flexibility. Coming to the business performance, our order book reached a new milestone of Rs 10,066 crores as of September 2026, providing strong revenue visibility. We secured record Q2 order inflows of Rs 2,111 crores up 70% year-on-year, taking H1 order inflows to Rs 3,786 crores, up 18%. Our bidding pipeline remains strong at over Rs 35,000 crores, supported by sustained domestic transmission investments and expanding international opportunities. Exports remain a key strategic priority for us, and we are particularly encouraged by the changing composition and diversification of our export order book. Our geographical exposure is now well diversified, with the Middle East accounting for less than 18% of our export order book. A majority of our export order inflows are increasingly coming from developed markets, particularly the US and Australia, where we are witnessing strong customer traction, growing engagement and encouraging order opportunities. Our record quarterly export order inflow of Rs 1,055 crores, which surpassed the entire export order inflow of FY26, is a strong validation of our growing international competitiveness and expanding global customer relationships. We believe this diversification significantly strengthens the quality and resilience of our export portfolio, and positions us well for sustained international growth. Further, the ongoing 75,000 MTPA capacity expansion is on track, and likely to be commissioned and operational in H2 '27, taking our total installed capacity to 450,000 MTPA from existing 375,000 MTPA. This expansion will strengthen our ability to serve larger orders, improve, improve operating leverage, and capitalize on opportunities in both domestic and international markets. We continue to work towards our longer-term capacity road map of 600,000 tonnes by FY29 alongside customer qualification initiatives across developed markets and expansion of our global presence. Looking ahead, the structural outlook for power transmission and distribution sector remains encouraging, supported by grid expansion, renewable energy integration, rising electricity demand and investments in high-voltage transmission infrastructure. We believe Skipper is well-positioned to benefit from these opportunities through its integrated manufacturing capabilities, execution track record, expanding capacity, and growing international footprint. With a record order book, improving profitability, a stronger balance sheet, and increasing traction in developed export markets, we remain focused on delivering sustained growth and creating long-term shareholder value. With these opening remarks, I would like to hand over the call for follow-up questions from participants.
Moderator (ICICI Securities Limited): Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Dhiraj Mali from Beatfield. Please go ahead.
Dhiraj Mali (Beatfield): Good evening and thank you for the opportunity. My question is in the previous concall, you maintained your FY '27 revenue growth of 15% and said you are confident of achieving it. However, H1 revenue growth is currently around 7.1%. To achieve that 15% full year target, we would need around 21.6% growth in H2. Are you still confident of achieving this target? And what factor will be drive the higher growth in the second half?
Sharan Bansal (Skipper Ltd): Yes, thank you for the question. We are largely in line to achieve our 15% growth target for the full year. However, there are continued geopolitical uncertainties and shipping lines, shipping freight remains elevated across the world. So yes, we are facing, you know, shipment deferrals from a lot of customers who are waiting for the prices to come down. So yes, at worst, we may see 1% or 2% drop from our 15% guidance. But however, we are optimistic that we are, we are largely on track to achieve our revenue growth.
Dhiraj Mali (Beatfield): Okay, so you mean 13% to 14% will be your target?
Sharan Bansal (Skipper Ltd): At worst, yes. At worst.
Dhiraj Mali (Beatfield): Okay. Okay, got it. Thank you.
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