₹8,520 Cr Order Book: Transformer stock that delivered 820% returns in 3 years

One of the world’s leading manufacturers of power transmission & distribution structures, and a prominent manufacturer of telecom and railway structures, has reported an order book exceeding Rs. 8,500 crores.

We’re talking about Skipper Limited, engaged in the manufacturing and selling of transmission & distribution structures (towers & poles), telecom towers and fasteners being its engineering products segment and PVC, HDPE, CPVC, UPVC, SWR pipes & fittings, water tanks, bath fittings and other related products being its polymer segment. In this article, we’ll take a closer look at the company’s financial performance, key ratios, management guidance, and more.

With a market cap of Rs. 5,913.5 crores, shares of Skipper Limited closed in the red at Rs. 549.5 on Tuesday, down by around 4 percent on BSE, as against its previous closing price of Rs. 546.55. In the last 3 years, the stock has delivered multibagger returns of around 820 percent, and positive returns of around 16 percent in the last one month.

Order Book

The company reported its highest-ever first-quarter revenue of around Rs. 1,254 crores on the back of strong execution in the Engineering & Polymer business segments. As of June 2025, the closing order book stood at an all-time high of Rs. 8,520.5 crores, with a composition of 90 percent domestic orders and 10 percent exports.

During Q1 FY26, the company achieved order inflows of Rs. 1,977.5 crores, reflecting a 158 percent year-on-year growth, primarily from engineering products, supplies, and EPC works. Notably, the quarter included several large-sized domestic EPC contracts from PGCIL and the international market

Skipper has a robust bidding pipeline of over Rs. 30,000 crores, spanning high-value projects across India, the Middle East, LATAM, Asia-Pacific, North America, and Africa. These opportunities are increasingly larger in scale and more complex in scope, positioning the company strongly for sustained growth.

Management Guidance

The company has successfully commissioned a new 75,000 MTPA capacity, with commercial production now underway. This expansion serves as a strategic enabler, allowing the company to target fast-track export orders and short-cycle demand, areas that faced constraints in the previous year.

In addition, another 75,000 MTPA capacity addition is already in progress, aligning with the company’s long-term vision of becoming the world’s largest transmission tower manufacturer with 6 lakh MTPA capacity by FY28.

On the growth front, the company continues to target an ambitious trajectory, with plans to deliver 25 percent revenue growth in FY26. It expects total order inflows exceeding Rs. 6,500 crore during the year, of which around 25 percent will be driven by international markets.

Operating margin to further improve from current levels, supported by better quality contracts execution, operational efficiencies and various improvement measures towards increasing productivity and cost reduction initiatives at the plant and site level.

To support this growth, engineering capacity is being enhanced by an additional 75,000 MT, taking the overall capacity to 4.5 lakh MTPA. This expansion will be funded through a targeted capex of around Rs. 250 crore, financed via a prudent mix of internal accruals and debt to ensure sustainable growth.

Financials & Segment Revenue

Skipper reported a significant growth in its revenue from operations, showing a year-on-year increase of around 15 percent from Rs. 1,092 crores in Q1 FY25 to Rs. 1,254 crores in Q1 FY26. Similarly, its net profit increased during the same period from Rs. 32 crores to Rs. 45 crores, representing a rise of about 41 percent YoY. Between FY22 and FY25, Skipper Ltd’s revenue grew at a 3-year CAGR of over 39 percent, while net profit surged at a CAGR of about 81 percent.

In terms of key financial metrics, the company has a Return on Equity (RoE) of 14.3 percent and a return on capital employed (RoCE) of 24 percent, with a debt-to-equity ratio of 0.62.

In terms of revenue mix, the Engineering Products segment was the largest contributor with Rs. 1,024.8 crores (82 percent), followed by the Polymer Products segment at Rs. 127.2 crores (10 percent), and the Infrastructure Projects segment at Rs. 102 crores (8 percent).

Written by Shivani Singh

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