At a Glance

Skipper Ltd, the Kolkata-based manufacturer of transmission & distribution (T&D) structures, pipes, and EPC solutions, delivered Q1 FY26 results that had investors sitting up. Revenue came in at ₹1,254 Cr (+15% YoY) while PAT jumped 41% to ₹44.7 Cr. The company also announced a bold global push with subsidiaries in the USA, UAE, and Brazil – and even threw in a ₹500 Cr corporate guarantee for spice. Stock rose marginally to ₹490, but at 35x P/E, the market is already pricing in a lot of optimism.

Introduction

When your core product is transmission towers, you’d expect your stock to be electrifying. Skipper Ltd is halfway there – strong earnings, aggressive expansion, but also a debt pile that could give CFOs nightmares. Over the years, Skipper has gone from being a domestic EPC contractor to a top-10 global T&D structure player. The real question – can it hold that position without frying its balance sheet?

Business Model (WTF Do They Even Do?)

Skipper operates across three main segments:

• Engineering Products (77% revenue): Transmission towers, monopoles, telecom towers – the bread and butter.
• Poles & PVC Pipes: Infrastructure and water management solutions.
• EPC Projects: End-to-end solutions for power and telecom infrastructure.

The company also plays the global export card, serving Africa, SAARC, and now entering the Americas and Middle East. It’s a hardware-intensive play in a sector where margins are thinner than a tower beam.

Financials Overview

Q1 FY26:

• Revenue: ₹1,254 Cr (+15% YoY)
• EBITDA: ₹127 Cr (OPM ~10%)
• PAT: ₹44.7 Cr (+41% YoY)
• EPS: ₹3.96

FY25:

• Revenue: ₹4,624 Cr (+41% YoY)
• PAT: ₹146 Cr (+95% YoY)
• OPM: 10%
• ROCE: 24% (excellent)

Commentary: Revenue growth is healthy, margins stable, profits scaling – this is not the sleepy microcap story. But high finance costs (₹214 Cr interest in FY25) show the leverage strain.

Valuation

• P/E: 34.8
• P/B: 4.7
• ROE: 14%

Fair Value Estimate:

1. P/E Method: EPS FY26E ~₹16; fair P/E 20–25 → ₹320–₹400
2. EV/EBITDA: FY26E EBITDA ~₹500 Cr; multiple 7–8x → ₹350–₹400
3. DCF: Aggressive growth but debt risk → ₹350

Fair Value Range: ₹350–₹400 (current ₹490 looks hot and spicy)

What’s Cooking – News, Triggers, Drama

• Global Subsidiaries: Expansion into USA, UAE, Brazil.
• ₹500 Cr Guarantees: Could open opportunities, or open a financial Pandora’s box.
• Order Book: Expected surge with global projects.
• Risks: Leverage, cost of borrowing, and execution risks in overseas projects.

Balance Sheet

Stand-up Auditor Mode: “Assets rising, borrowings ballooning – feels like an EPC company’s midlife crisis.”

Cash Flow – Sab Number Game Hai

Takeaway: Operating cash flow falling despite profit growth – the working capital monster is lurking.

Ratios – Sexy or Stressy?

Observation: ROCE is sexy, D/E manageable – but the valuation premium makes it sweat.

P&L Breakdown – Show Me the Money

Commentary: Strong profit growth, but the market is already paying for tomorrow’s earnings today.

Peer Comparison

Roast: Cheaper than CG Power, but not as cheap as the risks it carries.

Miscellaneous – Shareholding, Promoters

• Promoter Holding: 66.5% (down 5% over 3 years – hmm)
• FIIs: 5.4%
• Public: 27.8%
• Buzz: Subsidiaries abroad and AGM in September.

EduInvesting Verdict™

Skipper is scaling up like a champion – revenue, profits, order book, all pointing north. However, leverage, working capital strain, and a pricey valuation are real risks.

SWOT

• Strengths: Global top-10 player, strong ROCE, expanding footprint.
• Weaknesses: High borrowing cost, falling OCF, promoter stake dilution.
• Opportunities: International EPC and transmission boom.
• Threats: Execution risks, interest rates, forex, and competitive pressure.

Final Take: A growth story that looks exciting – but at ₹490, the stock has already climbed most of the tower. Any slip in execution, and gravity will do its thing.

Written by EduInvesting Team | 31 July 2025
SEO Tags: Skipper Ltd, Transmission Structures, EPC Stocks