Skipper Limited reported a strong second quarter with a 56% jump in profit to INR 57.5 crore and revenue growth of 10% to INR 1,384 crore. The company hit a record order book of INR 10,066 crore, supported by a robust bidding pipeline. With a significantly improved debt-to-equity ratio of 0.38x and capacity expansion on track, the company maintains its 15% revenue growth guidance for FY27.
Skipper Limited Reports 56% Profit Growth in Q2 FY27
Revenue grew 10% to INR 1,384 crore while PAT climbed 56% to INR 57.5 crore.
Reader Takeaway: Record order book and improved debt ratios fuel growth, though shipping costs and geopolitical risks remain key headwinds.
What just happened
Skipper Limited posted a strong performance for the second quarter of FY27. Revenue reached INR 1,384 crore, marking a 10% year-over-year increase. Profit After Tax (PAT) surged 56% to INR 57.5 crore, while EBITDA grew by 11% to INR 145 crore. The company’s focus on financial discipline led to a reduction in finance costs, which fell to 3.2% of revenue compared to 4.2% in the previous year.
Why this matters
The company’s record-breaking order book of INR 10,066 crore underscores high demand visibility. A successful INR 433.5 crore equity raise has significantly strengthened the balance sheet, bringing the debt-to-equity ratio down to a comfortable 0.38x. This financial stability provides the necessary runway for the firm to execute its ongoing 75,000 MTPA brownfield capacity expansion, which is slated for completion in the second half of FY27.
Business Outlook
Management has maintained its 15% revenue growth guidance for FY27, citing strong operational momentum in H2. The export strategy remains a key growth engine, with a significant presence in North America (44% of export orders), Australia, and the Middle East. The long-term aspirational goal remains an EBITDA margin of 12%, with the current range targeted at 10-11%.
Risks to watch
Investors should monitor potential shipment deferrals caused by rising global freight rates. While management is optimistic, persistent inflationary pressures and geopolitical instability in the Middle East could impact operational margins and project timelines in the coming quarters.
What to track next
The commissioning of the new capacity, which will bring the total to 450,000 MTPA, remains the primary milestone. Further, the execution of the INR 35,000 crore bidding pipeline will be critical for sustaining long-term order growth.