Skipper Ltd (India) (NSE: SKIPPER) Q3 2026 Earnings Call dated Jan. 29, 2026
Corporate Participants:
Sharan Bansal — Executive Director
Analysts:
Navin Sahadeo — Analyst
Keval Barot — Analyst
Garvit Goyal — Analyst
Mehul Panjwani — Analyst
Sagnik Sarkar — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Q3FY26 earnings conference call of Skipper 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 this 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. Naveen Sahadev from ICICI Securities Limited. Thank you. And over to you sir.
Navin Sahadeo — Analyst
Thank you, Rudra. Good evening everyone. On behalf of ICICI Securities, I welcome you all to the Q3FY26 earnings call of SCPR Limited. The company is represented by Mr. Sharan Bansal Director, Mr. Devesh Bansal Director, Mr. Shivshankar Gupta Company CFO and Mr. Aditya Dujari, AVP Finance and IR. So without any further ado, I hand over the call to the management for their opening comments. Over to you sir.
Sharan Bansal — Executive Director
Thank you. Thank you, Naveen. Good evening everyone and welcome to SCPR Limited, quarter three and nine month FY26 earnings conference call. 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 share that the company has delivered a strong performance during the quarter and the nine month period supported by disciplined execution, improving profitability and sustained momentum in order inflows. Our performance continues to reflect the benefits of a manufacturing led model with scalable capacity, improving operating leverage and a growing international footprint.
During the quarter we recorded our highest ever quarterly revenue of 1370 crores registering a growth of 21% year on year driven by strong execution across engineering products and EPC business. We also achieved our highest ever quarterly EBITDA of 141 crores up 28% year on year with EBITDA margin improving to 10.3% reflecting operating leverage, higher plant utilization and execution of better quality contracts. Profit after tax increased by 40% year on year to 50.2 crores marking our strongest quarterly bottom line performance till date. Our improving profitability profile is also supported by a tighter cost discipline and a continued reduction in finance cost intensity aided by better working capital management and cash flow generation.
Now Moving to the nine month performance for nine months FY26 we delivered our highest ever nine month revenue of 3,886 crores growing 17% year on year. Profitability improved meaningfully with standalone EBITDA margin expanding to 10.3% compared to 9.8% last year driven by operating leverage and execution of higher quality T and D contracts. PVT before Exceptional items grew 38% year on year to 187 crores with PVT margins improving to 4.8% from 4.1% last year while operating PAT before exceptional items rose 38% year on year to 139.7 crores with PAT margins improving to 3.6% from 3%. These trends demonstrate that growth is increasingly translating into returns with improving predictability and resilience in earnings on the order book and growth visibility momentum remains exceptionally Strong.
As of December 25th our closing order book stood at an all time high level of approximately 1 billion or 9,009 crores with a healthy mix of 90% domestic and 10% export orders providing strong revenue visibility. During quarter 3 FY26 we secured new orders worth 1,428 crore primarily for engineering, product supplies and EPC works, including significant domestic EPC contracts from PGCIL and international customers. We also secured two prestigious 765kV transmission line projects in Uttar Pradesh and Karnataka, further strengthening our positioning in the high voltage segment and reinforcing our credentials in the complex transmission project. Cumulatively, nine month FY26 order inflows stood at 4,649 crores reflecting a growth of 24% year on year.
We continue to see strong tax action across both domestic and international markets supported by a robust bidding pipeline of approximately 3 billion or over 27,000 crores. Capacity expansion and Other Updates on the capacity and operational front, our new 75,000 tonnes capacity is now fully operational with commercial production commenced. In addition, an additional 75,000 tonnes expansion is already underway which will take our total installed capacity to 450,000 tonnes by the end of FY26. As utilization rises on this expanding asset base, incremental volumes are expected to translate into disproportionate gains in profitability, reinforcing the operating leverage inherent in our manufacturing platform.
On the organization and system side, SCPR has received the Great Place to Work certification for the fifth consecutive year, reflecting the strength of our culture and execution capability. Further, the company has successfully gone live with SAP S4 Hana rise across key business functions, marking a major milestone in our digital transformation journey and enabling stronger process control, data visibility and scalable growth. We believe SCPR is at a pivotal inflection point and poised for a multi year growth trajectory. The company is backed by A strong pipeline of domestic and international TND opportunities, strategic expansions into new business areas and a well defined roadmap to accelerate exports under the global China plus one framework.
With a worldwide shift toward non fossil and renewable energy driving sustained demand and a continued emphasis on operational excellence, SCPR is well positioned to deliver robust and profitable growth in the quarters and years ahead. Thank you and I’m happy to take your questions now.
Questions and Answers:
operator
Thank you very much. We’ll now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone 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 will wait for a moment while the question queue assembles. The first question is from the line of cable Barot from Access securities. Please go ahead.
Keval Barot
Am I audible?
Sharan Bansal
Yes please.
Keval Barot
Okay, compliments on good set of numbers. So sir, I have a couple of questions. My first question is that in the last Q2 con call you gave a revenue guidance of 20 to 25% growth year on year for next three years, capex guidance of 800 crore for next four years and EBITDA margins in the range of 10 to 10.5% gradually increasing year on year for the next two three years. So do you still hold this guidance? As you know in the TND sector is facing some challenges regarding right of the way land acquisition and power demand issues.
Sharan Bansal
Regarding TND sector. See as such there are no challenges. You know there are good amount of business opportunities both at the interstate level and at the intrastate level. Also you might be aware that recently the states, various states have also started TBCB bidding. So business opportunities are robust. You know the government of India has that 9 lakh crore transmission capex plan up till 2032 and even beyond 2032 there are going to be further opportunities with projects like arunachal hydro project etc. Which itself is expected to be 6.5 lakh crores in transmission investment. So all in all we don’t see any kind of challenge in the long run.
Yes, this year if you ask me, probably last year because it was much higher than expectations. The order, you know overall industry ordering probably in this year, last this year is slightly muted compared to last year but overall it is still robust. If you see from our own order inflows, we have got order inflows of 4800 crores in the nine months which is a 24% increase over the previous nine month period. And plus apart from this exports are also quite robust. We are seeing increasing export opportunities in a number of geographies. So long run honestly again in certain years they may be peaks and troughs but long run transmission opportunity is very very robust.
Keval Barot
Okay sir. And regarding the guidance of revenue Capex and EBITDA margin that will be intact which you have said it in last Q2 Concord. Right?
Sharan Bansal
Yeah. So again you know our aspiration is obviously to grow between 20 to 25%. We maintain that, that yes the opportunity in transmission does you know present itself to for us to be able to taking that target. So between 20 to 25% is our aspiration for year on year growth.
Keval Barot
Okay okay. And Capex for the like for the next four years will be 800 crore. Right?
Sharan Bansal
See you can expect we have already done quite a bit of Capex in last year and this year by increasing our capacity to 450,000 tons of for next year we have not yet formed up our annual our actual CAPEX numbers which were expected to be firmed up in the month of March but you can expect a similar CAPEX number in the next coming years as well.
Keval Barot
Okay sir, got it. And my second question is regarding capacity expansion. So as again in the last Q2 con call you have also said that the additional 75 KTPA plant is expected to go online by the end of FY26 as I’ve seen it in your presentation. I just wanted to know what will be the approximate timeline regarding the status of going to going to be online and what kind of capacity utilization we can expect from that once it comes online and how will the ramp up and what will be the ramp up profile?
Sharan Bansal
The you know as like any Capex projects we of course there are minor delays even in this one. You know again partially it will be commissioned before March and partially it will spill over to the first quarter. But largely this is the time range of the CapEx and we expect the utilization to come in by fully by quarter two.
Keval Barot
Okay. Okay. So and just wanted to ask a last question regarding the sector outlook. As I’ve read articles in the consensus talking regarding expectation of lifting restrictions on Chinese products in power sector. Is there any update regarding it and how will it impact the company.
Sharan Bansal
In our products? See there is. We don’t expect any threat from Chinese companies but I am, I cannot really speak much about let’s say other substation products etc. But for transmission line products we don’t expect any competition from Chinese.
Keval Barot
Okay, so that was helpful. That’s it from my side. Thank You. Thank you so much.
operator
Thank you. Our next question is from the line of Ca Garvit Koel from Serene Alpha. Please go ahead.
Garvit Goyal
Hello, I’m audible.
Sharan Bansal
Yes please.
Garvit Goyal
Sir, I just want to understand the impact of the recent increase in the copper price on our ETC segment. Could you please throw some on some light on this?
Sharan Bansal
The impact of what sorry?
Garvit Goyal
Impact of recent increase in copper prices.
Sharan Bansal
We are not affected. Our major raw materials are steel and zinc and to some extent aluminum.
Garvit Goyal
Okay sir, thank you.
operator
Thank you. Our next question is from the line of mehul Panjwani from 40 cents. Please go ahead.
Mehul Panjwani
Hello sir. Congratulations. A good set of numbers. Sir, my first question is regarding the order book. We have USD 1 billion order book so can you just throw some light on how long will it take to execute these orders and how many in what period?
Sharan Bansal
Yeah, normal on an average you know our orders are to be executed over a two year time frame. So of course certain orders are shorter term in nature where one one and a half years and certain orders are longer term. But on an average you can assume them to be executed with executable over two years.
Mehul Panjwani
Okay sir. And so one follow up question on the previous participant you and you mentioned that majority part of the metals which we use is steel and zinc. So there is a lot of rise in overall commodity prices across the board. So how would it impact if we were to see some high appreciation in prices of zinc and steel the way we have seen in some precious metals and copper would it impact our margins substantially or how would it be?
Sharan Bansal
See in terms of steel and zinc prices they have largely been range bound. If you would know, if you would remember that prices had dropped quite a bit in the quarter one, quarter two and we have seen some firming up of prices in quarter three this time. So I would say that prices are pretty much if you look at an average for the full year they are range bound. And secondly as we have mentioned before there is a fair amount of value addition in in our end products. So raw materials only make up about 60% of our selling price.
So again and we have a healthy mix of firm price and variable price contracts also. So I would say that we are not very much concerned about the commodity price increase at least for where our raw materials are concerned. We are not really dealing with the precious raw materials like silver or et cetera or even copper like the previous participant asked. Those are not our raw materials where the real increase has been seen.
Mehul Panjwani
Right. And sir, can you elaborate a little bit on the Arunachal project which is Already there announced by the government because.
Sharan Bansal
I’m not aware about is right now in planning stage. But the government of India foresees a huge hydro potential in the Arunachal belt and it is expected that a total of about 6.5 lakh crore transmission opportunity will open up in that belt because of those hydro projects. But those are going to be extending up to 2035 and beyond. So it’s a very long term project.
Mehul Panjwani
Right. And sir, can we see some kind of announcement in the budget on the transmission sector?
Sharan Bansal
The transmission sector doesn’t really get any support from the budget as such because you know as I mentioned earlier that there is a large amount of private participation in the transmission sector. Most of the major projects are conducted on PBCB tariff based competitive bidding where you know the power grid also participates and various private developers are participating. So from the budget the transmission sector doesn’t really receive any budgetary support and we do not expect any budgetary support.
Mehul Panjwani
In this budget and any negative developments?
Sharan Bansal
None as such we don’t. I mean for the transmission sector again because it’s identified requirement to integrate 500 gigawatts of renewable capacity and overall now with government talking about nuclear power also I believe that that would also open up more transmission opportunities.
Mehul Panjwani
Thank you a lot for all the answering patiently. Thank you.
operator
Thank you. Participants who wish to ask a question may press star N1 on their touchstone telephone. Our next question is from the line of Naveen Sahadeo from ICICI Securities Ltd. Please go ahead.
Navin Sahadeo
Yeah, good evening sir. Am I audible? Yes, you are right. Thank you. So a couple of questions. My first was observation basically in your presentation that you have given a guidance of 20% growth. Until previous quarter we were always maintaining 25%. So if you could just give some color here why the change? And then like you know, are we? Are we? Because even from that point of view, simple arithmetic. I mean for to meet that 20% guidance also we arithmetically we need almost 30% jump in Q4. Whereas so far into the first nine months the revenue run rate has not been that much.
So just wanted to get your understanding about the change in the guidance and conviction for Q4.
Sharan Bansal
So in the sense the revenue, if you look at this quarter we have had a 21% growth for the last quarter. Definitely we do expect anywhere between 25 to 30% growth in the last quarter also. So I’d say what certainly an overall growth of anything between 21 22% is on the cards for the full year. Again see 25%. ESA was our aspirational growth for the full year. But again as we have shared in the previous calls, there was a delay in our capacity enhancement that took place that came about in quarter one and there was some amount of slower execution due to the heavy monsoon in the months of extended monsoon period.
So overall, but look in the beginning of the year 25% is an aspiration. I believe we are not very far off from that.
Navin Sahadeo
Helpful. My second question then was on the order intake. So if we were to continue with this because I believe 20 to 25% range is what I think you had alluded to last time. So to continue this revenue run rate ideally our order book should also I’m saying our order inflow trend should also grow by a similar run rate over a period. Now last year our order inflow was more like 5335 and this year I think the guidance was 6000 odd crore order inflow point of view which is roughly anywhere between 10 to 15%. I’m just throwing a number here because we have nine months number but we don’t know the Q4 number.
But broadly it looks like our order inflow will grow at 10 to 15 whereas the revenue then that we are saying is likely to grow at 20% or going ahead also that is what I would like to recollect that last until previous quarter you were saying we can continue to grow at 2025%. So I’m just trying to understand the pipeline for the order inflow and can that also grow at 20% plus and how would we look at it between domestic and exports?
Sharan Bansal
Yes. So this year obviously like I said that overall ordering in the sector has been lesser compared to last year. Despite that we will definitely be ending with a healthy order inflow. As if you look at nine month number it is 24% up. So certainly quarter four we are expecting some good orders to come in. Apart from that I believe that look there are a lot of short term orders also that come in during the year and because we now have a good amount of capacity available. So we are. This order book that you are seeing is only the closing order book but there are short term orders that are received during the year which get executed during the year itself.
So that will also help the business volume. So business volume is not only dependent on the closing order book. Yeah, pipeline obviously is you know plus of 25,000 crores. So that obviously you know again that is a mix of all short term, medium term and long term orders.
Navin Sahadeo
Helpful. I. I will come back into for more question thank you.
Sharan Bansal
Thank you.
operator
Thank you. Our next question is from the line of CA Garvit Koil from Serene Alpha. Please go ahead.
Garvit Goyal
Hello. Am I audible?
Sharan Bansal
Yes.
Garvit Goyal
Good evening sir and congrats for a. Good set of numbers. My question is particularly in relation to copper prices. As these prices are rising and we might be using the components where the copper goes into in our. Particularly in our EPC segment. So I just wanted to understand are we able to pass on the commodity price volatility to the customers from where we are getting?
Sharan Bansal
So copper is not really used in our contracts at all. Like I mentioned, our main raw materials are steel, zinc and to some extent aluminium. Like I said, copper is not really our raw material.
Garvit Goyal
What kind of EPC do we are we engaged in?
Sharan Bansal
We are doing the full transmission line EPC up to high volt for high voltage category. So where we do the complete supply of tower bought out items and the construction site construction.
Garvit Goyal
Understood. So the copper is not at all getting used in this.
Sharan Bansal
No.
Garvit Goyal
Thank you very much. All the best for.
operator
Thank you. Our next question is from the line of Sagnik Sarkar from SKP Securities. Please go ahead.
Sagnik Sarkar
Yeah, thanks for the opportunity. I had a couple of questions on the new capacity that is coming up. So this 75,000 tons of capacity, is it a brownfield capacity in Howrah or is this a greenfield capacity? Also for further capacity additions, have we acquired any land and what’s the status on that?
Sharan Bansal
Yeah. So the current capacity that is coming up is the brownfield capacity. Only for new capacity we are on the lookout for more land as well. And we haven’t made a firm decision on anything yet.
Sagnik Sarkar
Okay. So it will be in West Bengal or it will be outside? Outside the state.
Sharan Bansal
We’re looking at both the options.
Sagnik Sarkar
Okay. And for this new capacity, the 75,000 tons of capacity that will take the total capacity to 4 lakh 50,000. So work has started on this or like it is yet to start.
Sharan Bansal
We’re expecting to commission by the end of this year.
Sagnik Sarkar
By. By the end of March 25th. Right?
Sharan Bansal
March. Spilling over to quarter one year.
Sagnik Sarkar
Yeah. And 100% capacity utilization will be achieved by Q2, Q2 of FY27.
Sharan Bansal
Generally our capacity utilization is in the range of 85 to 90% which is the optimum utilization. So we should achieve that by quarter two.
Sagnik Sarkar
Okay. Okay. Thank you.
operator
Yeah, thank you. Our next question is from the line of Naveen Sahadev from ICICI securities limited. Please go ahead.
Navin Sahadeo
Yeah. Hi and thank you. Thank you for the follow up opportunity. A couple of questions. So in the previous quarter we had an aspirational like you know, what do you say targets over the period of time to get our order book balanced between domestic and export at 50, 50. Right. So what I just wanted to understand is that how should one look at it and when like you know, from which year is it a two, three year out kind of a visibility you have or a slightly longer period. And by when can the export share begin to rise? I mean your, your views on that.
Sharan Bansal
Yeah. So if you look at, you know, in terms of export execution, Even in the nine month period, we have had close to about a 20% execution rate for the export out of our engineering products. Now obviously the long term aspiration is to go to 50% and we certainly think it is possible with the kind of opportunity that exists. This is, this is going to be a combination of developing and developed markets. But overall the exports, due to the overall geopolitical situation probably it is little difficult to say that how fast it is going to grow.
But it is definitely on the upside. And the good thing is that domestic markets are obviously robust and they are expected to remain robust for the next four, five years. What we are really doing is that we are increasing our penetration in a lot of key markets including developed markets like North America and Europe. So I think look, it is going to bear fruit and long term certainly that 50, 50 aspiration will be met. But it is probably difficult for me to put in a timeline about when we will be able to achieve that.
Navin Sahadeo
No, I appreciate that 5050 is a very far off. What I really wanted to request is or rather like, you know, just from a understanding point of view, if this thing becomes 15, 20% in the interim, do we have an interim milestone or a short term, you know, target which is you have any visibility on is my question.
Sharan Bansal
Just a minute. We have a, again we have a lot of projects which are under evaluation, Naveen, but it’s difficult for us to put a timeline and you know, our success rate in those various contracts. I would say that it’s, it’s in the right direction. It is healthy. You know, even right now we have a close to 900 crores order book on the export side which is definitely, probably the highest for any transmission line tower company from India. It is definitely increasing and growing healthily. But difficult for me to put interim targets on this.
Navin Sahadeo
No, fine, I appreciate, I just wanted to know if like you know there is anything that we can try to, you know, bring into estimates or into the consideration. But I understand it’s a dynamic situation.
Sharan Bansal
It’s progressively going to be increasing for sure that you can assume that. Yes, it is definitely going to be progressively increasing every year.
Navin Sahadeo
Understood. Then my second question was also on the bidding pipeline. So between Q2 and Q3 there is a slight drop in the bidding pattern. Of course you have done a commendable job on reporting a healthy order inflow quarter after quarter. So appreciate clearly that I was only asking from a bidding pipeline point of view that the previous quarter it seemed more like a 30,000 crore. In this quarter about 27. So I know it’s not that big a swing, but I’m only trying to understand if there is a slight slowdown in the broader activity is what I’m trying to arrive at.
Sharan Bansal
I mean trust me, this is just a couple of years ago. This bidding pipeline used to be less than 10,000 crores. You have obviously been tracking the company for much longer than this. So I think from a 10,000 crore now we are almost 3x of that. So again a plus minus 10% variation will happen. But this is definitely not indicative of any long term slowdown of the sector. Sector opportunities remain robust as I have mentioned previously in the call.
Navin Sahadeo
Sure. Then my second question, if you could just help us with the net debt including acceptances or net debt and acceptances as of December quarter.
Sharan Bansal
Debt numbers are not reported for the December quarter, but it’s largely in line with our September numbers. And again if you can, I think more importantly, and it is reflective in the finance charges. So if you see the finance charges, they have come down quite well, you know, in line with our aspiration of achieving a 4.1, 4.2% number. As I had mentioned in the beginning of the year we have delivered on that. Where finance charges have come down from Overall last year, 4.8% to this time about 4.1%.
Navin Sahadeo
Helpful. My last question was on the tie up that you have done with Deep Resolve. Just wanted to get a sense how, how meaningful or material can this be in terms of revenue for the segment. And if yes it is a sizable opportunity which can unfold by then, can it percolate into some sort of a revenue traction? Thanks. Yeah.
Sharan Bansal
So Lubrizol is obviously a world leader in CPVC supplies. They have been long term partners to other Indian companies like Ashes. This is obviously we are very excited about this tie up. It is a raw material tie up only and we expect that certainly both in terms of pricing and quality, we should be able to drive good value from this tie up in the long Run. It is still early days, but our expectation is that this should definitely add value to the company very soon.
Navin Sahadeo
Understood, understood. And in Q4 per se, as we like, you know, aiming for 25 to 30% kind of revenue traction that will continue at a healthy 10% plus kind of a margin outlook remains steady in that 10% plus range or it can be a little volatile between 9 to 10%.
Sharan Bansal
No margin guidance. I think we are maintaining on the 10% plus only. And of course as you’ve noticed that we have been able to improve margins despite the increase in revenue. We have been able to improve our margin profile over last year, which is what our expectation is that long term aspiration we get to a 11 to 12% number in this.
Navin Sahadeo
No appreciate. And it seems like from your commentary, seems like we will be ending FY26 year on a fairly strong note. So from that perspective, how should one look at order inflow trend for FY27?
Sharan Bansal
It would be definitely progressively increasing as our capacity is growing, as our market penetration in export markets is growing. You definitely can expect an increasing trend in order inflow also.
Navin Sahadeo
Yeah, I mean can it grow 20? Sorry, I’m just doing a little pushy on this. But since our revenue guidance is 20% plus and I hope that is what we are maintaining for 27, order inflow will broadly be in that range. Is it safe to assume that directionally?
Sharan Bansal
I mean it definitely. I mean I think our aspiration will be that it should be happening.
Navin Sahadeo
Understood, that’s. That’s very, very helpful. Those were my questions.
operator
Thank you. Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to the management for closing comments.
Sharan Bansal
Okay, thank you everyone. Looking ahead, we are confident of delivering 20% revenue CAGR growth in the current year. A multi year growth Runway ahead lies ahead for us. With a record order book. Rising capacity utilization, improving margin profile, expanding export footprint and a structurally scalable manufacturing base. Skipper is entering a phase where growth, profitability and return ratios are set to compound together. We appreciate your continued support and look forward to interacting with you again in the next quarter. Thank you.
operator
Thank you on behalf of ICICI securities limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.