Skipper Limited: Powering Ahead with Record Q3 FY26 Performance and Strategic Expansion

Skipper Limited, a leading manufacturer of Power Transmission & Distribution structures and a prominent player in Telecom and Railway infrastructure, has announced a stellar performance for the third quarter ended December 31, 2025 (Q3 FY26). The company reported its highest-ever quarterly revenue, EBITDA, and operating Profit After Tax (PAT), underscoring robust execution across all major business segments and a sustained focus on profitability.

For Q3 FY26, Skipper Limited recorded a standalone revenue of INR 1,370.6 crore, marking a significant 21% year-on-year growth. This impressive top-line performance was complemented by a 28% increase in Reported EBITDA, reaching INR 141.4 crore. The EBITDA margin expanded to 10.3%, a 50 basis points improvement year-on-year, driven by operating leverage, higher plant utilization, and the execution of better-quality contracts. Operating PAT before exceptional items surged by 40% year-on-year to INR 50.2 crore, reflecting the company's strongest quarterly bottom-line performance to date. The finance cost as a percentage of revenue also improved to 4.1%, further reinforcing earnings quality.

Financial Highlights: Q3 FY26 (Standalone)

For the nine-month period (9M FY26), the company achieved its highest-ever revenue of INR 3,886.2 crore, a 17% increase year-on-year. Standalone EBITDA margin expanded to 10.3% from 9.8% in the previous year, and Operating PAT before exceptional items grew by 38% to INR 139.7 crore, with the PAT margin improving to 3.6% from 3.0%.

Segmental Performance and Strategic Initiatives

Skipper Limited's revenue mix for 9M FY26 highlights the dominance of its Engineering Products segment, contributing 80% of the total revenue, followed by Infra Projects at 11% and PVC Products at 9%. The engineering business achieved its best-ever quarter revenue of INR 1,088.1 crore, growing 20% year-on-year. The company secured new orders worth INR 1,428.6 crore in Q3 FY26, primarily driven by engineering product supplies and EPC works, including prestigious 765 kV transmission line projects from PGCIL in Uttar Pradesh and Karnataka.

This robust order inflow has propelled the company's order book to an all-time high of approximately USD 1 billion (INR 9,009.3 crore) as of December 2025, providing strong revenue visibility. The bidding pipeline remains robust at over USD 3 billion (INR 27,000 crore), indicating continued strong traction across domestic and international markets.

Capacity Expansion and Digital Transformation

Capacity expansion remains a key growth driver for Skipper. The recently commissioned 75,000 MTPA capacity is now fully operational, supporting higher export and domestic volumes. An additional 75,000 MTPA expansion is underway, targeting a total installed capacity of 450,000 MTPA by the financial year-end. This expansion is expected to translate into disproportionate gains in profitability as utilization rises.

In a significant move towards digital transformation, Skipper successfully went live with SAP S/4HANA RISE across key business functions. This implementation is set to streamline end-to-end operations, enhance process standardization, improve data accuracy, and enable real-time visibility, supporting faster decision-making and scalable growth. The company also announced a strategic partnership with Lubrizol, a global pioneer in CPVC technology, to manufacture next-generation CPVC piping systems for the Indian markets.

Outlook and Management Commentary

Skipper Limited is confident of delivering 20% revenue CAGR growth in the current year, with momentum expected to strengthen in the coming quarters. The management anticipates continued growth between 20% to 25% year-on-year, driven by strong Power T&D tailwinds, a record backlog, expanding global footprint, and improving profitability. The company aims to reduce finance costs to around 4% of sales by year-end through debt optimization and cash flow efficiency.

Mr. Sharan Bansal, Executive Director, commented, "Q3 represents another decisive step in Skipper's earnings compounding journey. Delivering our highest-ever quarterly revenue and EBITDA reflects the structural improvements we have made across project quality, execution discipline, and capacity readiness. Margin expansion this quarter is a direct outcome of our strategic shift towards higher complexity and higher value T&D projects." This quarter's performance reinforces Skipper's position as a globally competitive engineering and EPC partner, poised for accelerated and profitable growth in the years ahead.