Skipper Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Skipper Ltd trades at ₹552, in a confirmed uptrend and 16 weeks into that stage. That is +11.4% against its own 200-day average. It sits at 84% of a 52-week range of ₹337 to ₹591. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 2 straight weeks.

Today the stock is in a confirmed uptrend — week 16 of stage 2, confirmed. At ₹552 it trades +11.4% versus its 200-day average and sits at 84% of its 52-week range (₹337–₹591).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +303% while the NIFTY 500 moved +267% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 2 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Skipper Ltd's story is not scored yet against the markers our research file set on 22 August 2026. Where it sits in its own cycle: Not stated in the research file. Our fortnightly research layers last read it on 22 August 2026.

Our read, 22 August 2026. Transmission infrastructure specialist compounding net profit 26.7% YoY in Q1 FY27 on a ₹9,200 Cr order book while valuation trades at 40th percentile PE — an earnings-led cycle supported by ₹434 Cr debt deleveraging.

From the numbers. Valuation sits at the 40th percentile of its 10-year historical distribution with a current price-to-earnings ratio of 26.9x versus a median of 30.8x. Net profit compounded from ₹21 Cr in FY21 to ₹213 Cr in FY26…

From the price. Price stage 2, week 16 — above its 200-day line, relative strength rising.

From the research. Transmission infrastructure specialist compounding net profit 26.7% YoY in Q1 FY27 on a ₹9,200 Cr order book while valuation trades at 40th percentile PE — an earnings-led cycle supported by ₹434 Cr debt deleveraging.

🚨 Where they disagree. Valuation sits at the 40th percentile of its 10-year historical distribution with a current price-to-earnings ratio of 26.9x versus a median of 30.8x. Net profit compounded from ₹21 Cr in FY21 to ₹213 Cr in FY26, compressing the multiple from speculative highs of 72.8x down to current levels despite sustained profit delivery. Margins sit at the 54th percentile, demonstrating that current earnings reflect mid-cycle operating efficiency rather than a peak margin value trap.

What is proven. Transmission infrastructure specialist compounding net profit 26.7% YoY in Q1 FY27 on a ₹9,200 Cr order book while valuation trades at 40th percentile PE — an earnings-led cycle supported by ₹434 Cr debt deleveraging.

What is not proven yet. Thesis invalidates if quarterly order inflows drop below ₹1,200 Cr for two consecutive quarters alongside Power Grid Corporation tender award delays exceeding 6 months, or if gross operating margin contracts below 9.0%.

🚨 What would change our mind. Thesis invalidates if quarterly order inflows drop below ₹1,200 Cr for two consecutive quarters alongside Power Grid Corporation tender award delays exceeding 6 months, or if gross operating margin contracts below 9.0%.

Layer 1 read, 22 August 2026 — KEEP. Profit up 27% on revenue up 4.5% — the multiple halved while earnings doubled, and the price has not moved. In the June-2026 quarter revenue grew only 4.5% but net profit grew 26.7% to Rs 57 Cr, because the money is now coming from margin and from interest, not from volume: operating margin has held in a 9.6-10.7% band for eight quarters while finance cost fell to 3.9% of sales from 4.3% and a Rs 434 Cr equity placement went entirely into repaying debt, lifting the credit rating to CRISIL A+. Underneath that sits Rs 9,200 Cr of unexecuted orders, about 1.6 times a full year of revenue, fed by Power Grid capex guided at Rs 37,000 Cr in FY27 rising to Rs 45,000 Cr in FY28. The reason this ranks first is what the market has NOT done: the PE fell 50.3% over eight quarters while earnings per share…

What would change Layer 1’s mind. Quarterly order inflow falling below roughly Rs 1,200 Cr for two consecutive quarters, or the 75,000 MTPA commissioning slipping a second time past Q3 FY27 while quarterly revenue stays under Rs 1,400 Cr — that combination would mean the 15% FY27 revenue target is going the way of the 25% FY26 target, and the earnings-led case that justifies ranking this first collapses into a story about a compressed multiple with nothing pushing it. The reverse, a Q2 FY27 print above Rs 1,450 Cr of revenue…

Layer 2 read, 22 August 2026 — BENCH. Strong grid demand is real, but a long share-price run now meets a late industry capacity build. Skipper's Q1 profit rose 26.7% on 4.5% revenue growth, and its order book exceeds ₹9,200 Cr, so the business demand is real. The external capital cycle is less attractive: capex rose 232.58%, CWIP 60.46% and institutions are CROWDING_IN [sector_capital_flows:Electrical Equipments/HVDC], while sector Q5 warns that synchronized capacity can overshoot demand; after a 9.64-times trough-to-price run, that makes this a BENCH.

What would change Layer 2’s mind. A future sector-capital-flow print changing capex_read from SUPPLY_FLOOD to NEUTRAL would flip this BENCH back toward ADVANCE, provided Skipper's thesis is still intact.

The test written in advance. Thesis invalidates if quarterly order inflows drop below ₹1,200 Cr for two consecutive quarters alongside Power Grid Corporation tender award delays exceeding 6 months, or if gross operating margin contracts below 9.0%. — the thesis as written as stated by the next result.

🚨 What the surface reading misses. The surface reading is: Net profit growth of 893% over five years appears to be an acceleration that could reflect a cyclical spike. The research reads it further: Profit expansion occurred across five consecutive fiscal years (₹21 Cr → ₹25 Cr → ₹36 Cr → ₹82 Cr → ₹149 Cr → ₹213 Cr), driven by revenue expanding 251% from ₹1,582 Cr to ₹5,553 Cr paired with operating leverage as fixed manufacturing costs were absorbed.

🚨 What the surface reading misses. The surface reading is: PE at 26.9x (40th percentile) appears moderately valued within historical context. The research reads it further: Multiple has compressed from 72.8x in early 2022 to 26.9x today despite net profit expanding 10x, creating an earnings disconnect where price growth trailed earnings delivery.

Lever 12 · New product launch — BUILDING. Domestic transmission bidding pipeline expanding to ₹90,000–100,000 Cr in FY27 supported by ₹9 lakh crore grid allocation through 2032. What proves it keeps working: Power Grid Corporation and Domestic Transmission Grid Capex Expansion. It stops working if Domestic tariff-based transmission awards experience regulatory deferrals or project clearance delays exceeding six months.

Lever 1 · Operating leverage — BUILDING. Fixed-cost absorption and 765 kV project mix drive EBITDA margin toward long-term 12% aspiration. What proves it keeps working: Operating Leverage and High-Voltage Mix Accretion. It stops working if Raw material commodity price spikes exceed contract escalation formulas or factory utilization rolls over.

Lever 10 · New geographies — BUILDING. Global utility qualification audits completed across North America and Australia backed by world-record testing facility. What proves it keeps working: Developed-Market Export Expansion and Dual Test Bed Edge. It stops working if Elevated ocean freight rates and geopolitical disruptions persist, causing international utilities to defer shipment dispatches indefinitely.

Sources: our stock research file (22 August 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Skipper Ltd reported ₹1,310 Cr of revenue in the Jun 26 quarter, +4.5% year on year. That is the 12th straight quarter of year-on-year growth. Over 7 years it has compounded at 16.8% a year. The last full year, FY26, came in at ₹5,553 Cr. The last four reported quarters add to ₹5,610 Cr.

FY26 revenue came in at ₹5,553 Cr (+20.1% on the year), capping 7 years at 16.8% compound. The latest quarter (Jun 26) printed ₹1,310 Cr, +4.5% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +17.1% growth against the decade's 16.8% — the current year is running in line with its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +17.2% over the last 4 quarters against +21.2%/yr over the last 8 — rolling over; TTM profit +38.9% vs +52.3%/yr — rolling over.

FY26-Q4. revenue ₹1,667 Cr and profit ₹78 Cr as reported.

FY27-Q1. revenue ₹1,310 Cr and profit ₹57 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Skipper Ltd's operating margin is 11.0% in the Jun 26 quarter, +1.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 8 fiscal years the operating margin has ranged 9.0% to 10.0%. The current quarter is running above every full year in that window.

Why this happened. Transmission tower fabrication benefits from operating leverage as volume scales across fixed overheads. In Q1 FY27, EBITDA margin expanded 60 bps YoY to 10.7% while operating profit grew 10% on 4.5% revenue growth. Low-margin legacy contracts now comprise under 5% of the backlog, with new orders weighted toward higher-margin 765 kV and HVDC transmission structures.

The latest quarter's operating margin is 11.0%, +1.0 pp against the same quarter a year ago. Across 8 fiscal years the operating margin has ranged 9.0%–10.0%, and FY26's 10.0% is the top of that band — a record year.

Why the margin moved: operating margin went +0.6 pp year on year while gross margin went +7.3 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

FY26-Q4. revenue ₹1,667 Cr and profit ₹78 Cr as reported.

FY27-Q1. revenue ₹1,310 Cr and profit ₹57 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Skipper Ltd earned ₹57.0 Cr of net profit in the Jun 26 quarter, +26.7% year on year. It is the 12th consecutive quarter of growth. Full-year FY26 profit was ₹213 Cr. The 7-year compound rate is 31.7%. That is 4.4% of the quarter's revenue. The same quarter a year earlier earned ₹45.0 Cr.

Jun 26 profit was ₹57.0 Cr, +26.7% year on year — the 12th consecutive quarter of growth. On the full year, FY26 printed ₹213 Cr (+43.0%), and the 7-year compound rate is 31.7%.

Why profit moved: revenue contributed +4.5% and the margin +1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +37.1% vs revenue +17.1%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

FY26-Q4. revenue ₹1,667 Cr and profit ₹78 Cr as reported.

FY27-Q1. revenue ₹1,310 Cr and profit ₹57 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 142% of Skipper Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹277 Cr of operating cash against ₹213 Cr of profit. After ₹485 Cr of capital spending, ₹−208 Cr was left as free cash.

FY26: operating cash of ₹277 Cr against reported profit of ₹213 Cr, leaving free cash of ₹−208 Cr after ₹485 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 142% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 142%: the cash cycle tightened 59 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 4.8× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Skipper Ltd's cash conversion cycle runs 30 days in FY26, down from 89 days in FY21. Capital spending ran ₹932 Cr over the last 3 years. At FY26 sales of ₹5,553 Cr each day of that cycle holds about ₹15.2 Cr, so roughly ₹456 Cr sits inside the business at any moment.

Why this happened. Power Grid Corporation has guided capital expenditures of ₹37,000 Cr in FY27 rising to ₹45,000 Cr in FY28, with annual domestic tariff-based competitive bidding tenders scaling to ₹90,000–100,000 Cr. Skipper's unexecuted order book of ₹9,200 Cr provides 1.6x revenue visibility, while its historical 20%–25% conversion rate on the active ₹35,000 Cr bidding pipeline supports continuous order replenishment.

FY26: debtors at 98 days, inventory at 109 days — roughly 3.6 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 30 days, tighter than FY21's 89.

The full loop: cash goes out to suppliers and production on day 0; stock waits 109 days to sell; customers pay about 98 days after that; and suppliers themselves are paid at 176 days — netting out to the 30-day cycle.

In money terms: at FY26 sales of ₹5,553 Cr, each day of the cycle holds about ₹15.2 Cr — so the 30-day loop keeps roughly ₹456 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹932 Cr over the last 3 fiscal years against ₹196 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹273 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Skipper Ltd earns a ROCE of 24% in FY26. That is up from a trough of 9% in FY20. Return on invested capital clears the cost of that capital by +3.7 percentage points, so growth here adds value rather than only size. The wiring behind it is 3.8% net margin on 1.23× asset turns.

FY26 ROCE is 24%, recovered from a FY20 trough of 9% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 3.8% net margin × 1.23× asset turns × 3.04× balance-sheet leverage ≈ 14.2% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 15.7% − 12.0% = a +3.7 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Positive but thin — value creation with little room for error.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Skipper Ltd carries total debt of ₹948 Cr against shareholder equity of ₹1,491 Cr as of Mar 26, a debt-to-equity of 0.64. On the annual view that ratio went from 0.79 in FY22 to 0.64 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹948 Cr against shareholder equity of ₹1,491 Cr — a debt-to-equity of 0.64. On the annual view, debt-to-equity went from 0.79 (FY22) to 0.64 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions added 6.3 points of Skipper Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 10.6% of the company. Promoters moved −5.0 points over the same window, to 61.5%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: +6.3 points over 8 quarters to 10.6%; Promoters: −5.0 points over 8 quarters to 61.5%; Domestic institutions: +2.0 points over 8 quarters to 2.2%.

Why the register moved: foreign institutions drove it (+6.3 points), absorbed on the other side by promoters (−5.0 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Skipper Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Skipper Ltd trades at 26.8× P/E, mid-range by its own standards (40th percentile). Its long-run median P/E is 32.1×, measured across 7.3 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 26.8× is mid-range by its own standards (40th percentile), against a long-run median of 32.1× measured over 7.3 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year annual EPS moved +42.5% against a +3.4% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +45.7%/yr price move, ~+58.8%/yr came from earnings growth and ~−13.1 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 26 August 2026 price, Skipper Ltd was paying for profit growth of about 16.0% a year. Profit itself has compounded 31.7% a year over the past 7 years. Today the market pays 26.8× P/E, the 40th percentile of its own 7-year range.

What the two numbers say together. The multiple is unremarkable against its own past, and the growth the price is paying for is below what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 26 August 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Skipper Ltd reads as mixed on its fundamental arc. Mixed — growth is normalizing off a hyper-growth base: profit growth has eased from +116.2% at its peak to +38.9% but is still expanding, ROCE holding at 26.2%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

4-Factor Sector Score

53.5/100 — rank 4 of 6 in Electrical Equipments/HVDC · 96% evidence confidence

Skipper Ltd scores 53.5 out of 100 against the 6 companies it is compared with in Electrical Equipments/HVDC, ranking 4. Cheap but unconfirmed: require improving earnings before treating the valuation as an opportunity.

The four contributions add to the total exactly: 14.4 + 11.9 + 17.2 + 10 = 53.5. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What Skipper Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

🚨 Capacity Expansion Timeline Slipped · 12 August 2026. In Apr 2026, management said the 75,000-ton expansion would take total capacity to 450,000 tons by June 2026. In Aug 2026, management moved commissioning to the end of Q2 FY27, a further several-month delay; while it said the 15% growth target was unaffected, it did not explain the reason for the slippage.

Export Freight Impact Changed · 12 August 2026. In Apr 2026, management stated that ocean freight would not affect the company. In Aug 2026, management described high shipping prices as causing customers to defer lifting, with temporary effects on export dispatches and revenue recognition, which is a materially different operational impact and warrants clarification.

FY27 Revenue Growth Guidance Sharply Reduced · 28 April 2026. In both prior calls, management affirmed a 20-25% annual revenue growth aspiration for FY27 and beyond. In the Q3 call (Jan 2026), a participant explicitly cited Q2's stated guidance of '20% to 25% growth year-on-year for next 3 years,' which management fully confirmed, and when directly asked if 20%+ held for FY27 specifically, management responded 'definitely.' However, in the latest call (Apr 2026), management provided FY27 revenue guidance of only 15%—a material downward revision citing export headwinds that were not flagged as a guidance risk in the prior quarter's call. Later call (Apr 2026): “For FY27, we are giving a guidance of 15% growth on revenue and approximately 30% growth in the bottom line.”

🚨 FY26 Year-End Order Book Closed Below Prior Guidance · 28 April 2026. In the Q2 call (Nov 2025), management explicitly guided for a FY26 year-end closing order book of INR 9,000–10,000 crores. The subsequent Q3 call (Jan 2026) neither revised nor updated this guidance, and with the Q3 closing order book at INR 9,009 crores, the target appeared on track. However, the latest call (Apr 2026) reveals FY26 actually closed at INR 8,501.9 crores—below the lower bound of the original guidance—without management explicitly acknowledging the shortfall against its own stated target. Later call (Apr 2026): “we closed the year with our highest ever order book of 8,501.9 crores, supported by record annual inflows of 5,678 crores.”

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions