Shakti Pumps Shares Plunge 8% Despite Robust Earnings

As of August 4, 2025, Shakti Pumps India has reported a strong financial performance in the first quarter of the fiscal year 2026, but its shares have declined nearly 8% on the BSE.

The company's net profit rose 4.5% year-on-year to Rs 96.8 crore in Q1FY26, up from Rs 92.7 crore in the same period last year. Revenue from operations also grew by 9.7% to Rs 622.5 crore, compared to Rs 567.6 crore in Q1FY25. EBITDA increased by 5.7% to Rs 143.6 crore, with an EBITDA margin of 23.1%.

Despite these positive results, Shakti Pumps India's shares fell to Rs 865, a decline of nearly 8%. The company has attributed this to its strategic investments, including the Rs 12 crore it has invested in its wholly owned subsidiary, Shakti Energy Solutions Limited, to establish a greenfield high-efficiency solar DCR cell and solar PV modules manufacturing plant in Pithampur, Madhya Pradesh, with a production capacity of 2.2 GW.

The company's long-term and short-term credit ratings have also been upgraded by India Ratings & Research Pvt. Ltd., further strengthening its financial position.

Looking ahead, Shakti Pumps India remains committed to delivering 25-30% revenue growth in FY26 and sustaining this trajectory over the next 3-4 years. The company's strong order book of approximately Rs 1,350 crore, supported by steady inflows and active participation in tenders across several states, positions it well to capitalize on the growing demand in the solar and pump sectors.