Shakti Pumps shares experienced an 8 percent decline on Friday, closing at ₹550.05, down from ₹595.40, following the company’s release of quarterly results that showed a significant drop in profit. The stock touched an intraday low of ₹545.90 as investors reacted to the earnings report.
In the fiscal fourth quarter, the company announced a 65 percent year-on-year decline in consolidated profit after tax (PAT), which fell to ₹38.33 crore from ₹110.23 crore in the same quarter the previous year. Despite this drop, Shakti Pumps reported a 28.9 percent increase in revenue from operations, reaching a record ₹857.77 crore, up from ₹665.32 crore a year earlier. The company attributed this revenue growth to strong execution momentum and enhanced business volumes, although it faced margin pressures from decreased realisations and rising costs.
For the full financial year ending March 2026, consolidated PAT amounted to ₹257.58 crore, compared to ₹408.37 crore in the preceding fiscal year. The board of directors recommended a final dividend of ₹1 per share to its stakeholders.
Chairman Dinesh Patidar described FY26 as a strategic transition period focused on enhancing balance sheet quality and working capital efficiency while ensuring sustainable long-term growth. He emphasized the firm’s disciplined execution approach, which included a focus on collections and financial stability. Notably, the company reduced its receivables by over ₹4,200 million between December 2025 and March 2026, despite achieving its highest quarterly revenue in history.
Patidar noted that EBITDA margins were affected by lower realisations in the Magel Tyala Scheme in Maharashtra, alongside rising raw material prices and higher logistics costs driven by geopolitical factors. As of May 7, 2026, Shakti Pumps reported an order book of approximately ₹15,000 million, indicating a healthy outlook for future revenue.
The company remains optimistic about demand, underpinned by anticipated policy support from KUSUM 2.0, ongoing opportunities in the Magel Tyala Scheme, and continued engagement in state government initiatives. In an effort to diversify its business, Shakti Pumps has also been expanding beyond government projects. Its export segment has shown resilience in the face of geopolitical challenges, while its cash-based domestic business has improved working capital efficiency and revenue diversification.
Recent investments include ₹29 crore allocated to its subsidiary, Shakti Energy Solutions, for a greenfield solar DCR cell and solar PV modules manufacturing facility in Pithampur, Madhya Pradesh, boasting a production capacity of 2.2 GW. Furthermore, the company invested ₹10 crore in Shakti EV Mobility to expand its electric vehicle motors and controllers business, raising total investment in the subsidiary to ₹65 crore by April 2026.
Published on May 8, 2026.
