Skipper's 10.70% margin trails Industrials median by 3.23 points
Interest of Rs 46.69 cr materially reduced the conversion of operating profit into pre-tax earnings, while exports fell approximately 50% YoY.
Filed 11 Aug 2026, 13:39 IST · Skipper Ltd (SKIPPER)
Key takeaways
- Skipper's consolidated operating margin of 10.70% was 3.23 percentage points below the Industrials median across 112 reported peers.
- Interest of Rs 46.69 cr and depreciation of Rs 22.18 cr reduced operating profit of Rs 140.11 cr to profit before tax of Rs 75.99 cr.
- Management said the ongoing 75,000 MTPA expansion is expected to take installed capacity to 450,000 MTPA by the end of Q2'26.
Price around the results
Operating profit was reduced by financing and depreciation costs
Skipper reported consolidated revenue of Rs 1,309.83 cr and operating profit of Rs 140.11 cr for Q1FY27. Expenses of Rs 1,169.72 cr left limited room below revenue, while interest of Rs 46.69 cr and depreciation of Rs 22.18 cr brought profit before tax down to Rs 75.99 cr. Other income was Rs 4.75 cr, so reported earnings were not primarily dependent on non-operating income.
Margin remains below the Industrials peer median
The company's 10.70% operating margin was 3.23 percentage points below the 13.93% median for the 112 Industrials companies that had reported the same quarter. With no sequential or year-on-year comparison provided, the quarter's main benchmark is its position against peers rather than a demonstrated margin trend.
Infrastructure execution continued despite export disruption
Management said infrastructure execution was supported by disciplined execution and continued margin expansion, and that the company was executing approximately 5,200 circuit kilometres of EHV and HVDC transmission work as of June 2026. It also said exports declined approximately 50% YoY because geopolitical developments in West Asia caused delays and temporary holds. Management said it expects to deliver another record year and highlighted two 765 kV transmission line projects secured in Maharashtra.
Capacity and overseas expansion are the key reported initiatives
Management said the ongoing 75,000 MTPA expansion was progressing toward commissioning by the end of Q2'26, taking total installed capacity to 450,000 MTPA. The company said subsidiaries had been established in Brazil and the UAE, with a USA entity expected to be established soon. It also said it had prototyped and tested a 320 MT transmission tower and completed plant audits by potential customers from Finland, the US and Australia.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹1,310 cr |
| Other income | ₹5 cr |
| Expenses | ₹1,170 cr |
| Operating profit | ₹140 cr |
| Operating margin (%) | 10.70% |
| Interest | ₹47 cr |
| Depreciation | ₹22 cr |
| Profit before tax | ₹76 cr |
| Tax | ₹19 cr |
| Net profit | ₹57 cr |
| EPS (₹) | ₹5.03 |
Operating margin of 10.70% compares with a Industrials sector median of 13.93% across 112 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company executed strongly in infrastructure business segments during the quarter.
- The company was executing approximately 5,200 circuit kilometres of EHV and HVDC transmission line work as of June 2026.
- The company successfully charged the approximately 118 km Bewar Dausa 765 KV transmission line in Rajasthan.
Guidance & outlook
- The company expects to deliver another record year.
- The company remains confident of delivering sustainable growth and creating long-term shareholder value.
Expansion
- The ongoing 75,000 MTPA expansion is expected to be commissioned by the end of Q2'26, taking capacity to 450,000 MTPA.
- The company has established subsidiaries in Brazil and the UAE and expects to establish a USA entity soon.
New orders
- The company secured two 765 kV transmission line projects from a domestic developer in Maharashtra.
New initiatives
- The company prototyped and tested the world's heaviest transmission tower at 320 MT.
- The company completed plant audits by potential customers from Finland, the US and Australia.
Competition
- The company was awarded the title of “Largest Tower Supplier” by PGCIL.
Problems & risks
- Exports declined approximately 50% year on year because geopolitical developments in West Asia caused delays and temporary holds.
What to watch
- Whether operating margin moves closer to the 13.93% Industrials peer median.
- The status of the stated 75,000 MTPA expansion and the targeted 450,000 MTPA installed capacity.
- Whether exports recover from the approximately 50% YoY decline attributed to West Asia-related delays and temporary holds.