Skipper Q1 FY27 Results (NSE: SKIPPER)
Signal: Margin expansion
The read
The operating inflection is margin-led rather than broad-based: EBITDA margin expanded 225bps YoY to 12.39% and PAT rose 26.5%, but revenue growth of 4.5% depended on Infrastructure Projects growing 148.5% while the two larger product segments declined; higher borrowings of 10834.90 million and a 701.99 million inventory reduction make the margin improvement worth confirming in subsequent quarters.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,309.83 Cr | +4.5% | -21.4% |
| EBIT | ₹140.11 Cr | +18.7% | |
| Net profit | ₹56.47 Cr | +26.5% | |
| EPS | ₹5 | +26.3% | |
| EBIT margin | 12.39% |
P&L walk
Standalone revenue increased 4.5% YoY as Infrastructure Projects grew 148.5%, while gross margin expanded 727bps and EBITDA margin expanded 225bps; PAT rose 26.5% despite a 9.6% YoY increase in borrowings.
Segments
Infrastructure Projects was the clear growth driver, with revenue up 148.5% YoY to 2526.95 million and segment result up 358.0% to 195.37 million, offsetting Engineering Products revenue down 8.3% and result down 1.5%; Polymer Products revenue fell 8.0% but result rose 13.7%.
Key positives
- Infrastructure Projects revenue increased 148.5% YoY to 2526.95 million and segment result increased 358.0% to 195.37 million, providing the principal growth engine.
- EBITDA margin expanded 225bps YoY to 12.39%, while EBIT increased 18.7% YoY to 1401.13 million and PAT increased 26.5% to 564.73 million.
- Finance costs declined 11.8% YoY to 466.94 million despite borrowings increasing 9.6% YoY to 10834.90 million.
- The depreciation-to-asset-base check was clean: depreciation rose 25.3% YoY while segment assets rose 18.9% YoY.
Key concerns
- Engineering Products revenue declined 8.3% YoY to 9401.34 million and Polymer Products revenue declined 8.0% to 1170.03 million, leaving consolidated growth reliant on Infrastructure Projects.
- Raw materials increased to 64.46% of revenue from 62.88% even as reported gross margin expanded 727bps; the filing does not disclose the driver, and the 701.99 million negative inventory change reduces confidence in the persistence of the margin improvement.
- Borrowings rose 17.5% QoQ to 10834.90 million, increasing balance-sheet risk despite the 14.3% QoQ reduction in finance costs.
- The company allotted 92,23,402 preferential shares on 31 July 2026 at ₹470 per share; current EPS still tracks PAT, but future share-count expansion can dilute per-share growth.
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