Skipper record order book and capacity ramp support growth outlook

Investment View

Axis Securities’ October 3, 2026 report presents Skipper Limited as a high-conviction Pick of the Week, supported by strong order-book visibility, planned manufacturing capacity expansion and export opportunities.

Skipper Limited manufactures transmission and distribution structures, including towers and poles. Its other businesses include polymer pipes and fittings, railway electrification structures, telecom towers and poles, and EPC projects.

Order Book and Demand Visibility

The principal positive for Skipper Limited is its order-book visibility. Q1FY27 order inflow was Rs 1,674 Cr, including two 765 kV transmission-line projects from a domestic developer in Maharashtra.

The closing order book reached a record Rs 9,217 Cr as of June 2026, up 8.4 per cent from Rs 8,502 Cr in Q4FY26. The order-book composition was as follows:

Skipper Limited also had a record bidding pipeline of more than Rs 35,000 Cr across domestic and international opportunities.

Capacity Expansion

Capacity expansion is a key future catalyst, although its schedule has slipped slightly. The ongoing 75,000 MTPA expansion is expected to be commissioned by the end of Q2FY27, compared with the previous target of June 2026 in Q1FY27.

The expansion will raise installed manufacturing capacity from 375,000 MTPA to 450,000 MTPA, with commercial ramp-up expected from Q3FY27. The longer-term capacity roadmap to 600,000 MTPA has been deferred from the earlier FY28-end guidance to FY29.

Export Opportunities and Near-Term Headwinds

Export revenue declined around 50 per cent year-on-year to Rs 162 Cr in Q1FY27 from Rs 326 Cr in Q1FY26. Geopolitical developments in West Asia caused shipment delays and temporary holds.

Management nevertheless guided for export order inflows to grow by more than 50 per cent year-on-year in FY27. During the quarter, the company completed qualification audits with customers in the USA, Finland and Australia, and established wholly owned subsidiaries in Brazil and the UAE. Management views these developments as supportive of international opportunities.

Management Guidance and Growth Drivers

Management expects Skipper Limited to execute around Rs 5,000 Cr from its current backlog in FY27. It targets FY27 order inflows of more than Rs 7,000 Cr and a closing order book above Rs 10,000 Cr by FY27-end.

Management maintained guidance for 15 per cent revenue growth and around 30 per cent PAT growth in FY27, alongside a long-term EBITDA margin aspiration above 12 per cent. Demand visibility is linked to renewable-energy integration, HVDC infrastructure buildout and grid expansion.

Financial Estimates and Valuation

Axis Securities’ estimates for Skipper Limited are as follows:

The broker considers the valuation attractive at 15.1 times FY28E EPS. It recommends BUY with a target price of Rs 595, implying around 10 per cent upside from the Rs 541 CMP.

Key Risks

• Export disruption caused by geopolitical developments could affect shipments and revenue.
• Delays to capacity commissioning or to the longer-term expansion plans could affect the expected growth trajectory.