Shakti Pumps (India) Limited , a leading player in the solar pumps industry, has reported a record quarterly revenue of ₹6,664 million for Q2 FY26, marking a 5% year-over-year growth despite facing challenges from extended monsoon conditions. The company's performance highlights its resilience and strong execution capabilities in a challenging environment.

Key Financial Highlights

Operational Performance

Shakti Pumps installed 22,304 solar pumps during Q2 FY26, representing a significant 21% year-over-year increase. This growth in installations is particularly noteworthy given the challenging weather conditions that affected the agricultural sector during the quarter.

Challenges and Margin Pressure

The company faced headwinds in the form of extended monsoon conditions, which impacted installations and farmer urgency for pump operations. Additionally, raw material prices, including copper, steel, and solar panels, increased by 3-4% due to volatile market conditions. These factors contributed to a decline in EBITDA margin from 23.4% in Q2 FY25 to 20.4% in Q2 FY26.

Order Book and Future Outlook

Despite the challenges, Shakti Pumps maintains a robust order book of ₹13,000 million as of November 7, 2025. The company is seeing strong order inflows, particularly from Maharashtra, which is leading in both order inflows and execution. This healthy order pipeline provides visibility for potential growth in the coming quarters.

Diversification and Emerging Businesses

The company's diversification strategy is showing promising results:

1. Export Business: Generated revenue of ₹1,029 million in Q2 FY26, demonstrating momentum in international markets.
2. Cash Sales Business: Achieved revenue of ₹428 million in H1 FY26, growing 67% year-over-year.
3. Solar Rooftop: Expanded operations into three new states - Rajasthan, Uttar Pradesh, and Maharashtra.

Capacity Expansion and ESG Rating

Shakti Pumps is progressing with its ₹17,000 million capacity expansion plan, which is expected to strengthen its manufacturing capabilities. The company also received an ESG rating of 75 from ICRA Ratings Limited, underscoring its commitment to sustainable business practices.

Management Commentary

Mr. Dinesh Patidar, Chairman of Shakti Pumps, commented on the company's performance: "Despite certain headwinds in the first half of FY26, including extended monsoon conditions and raw material price inflation, we delivered one of the highest quarterly revenues in our history. Our diversified order pipeline, operational agility, and strategic initiatives position us well to deliver on our FY26 guidance and sustain growth beyond this year."

Conclusion

While Shakti Pumps faced some short-term challenges in Q2 FY26, the company's record revenue, strong order book, and strategic diversification efforts indicate a positive outlook. The company's focus on emerging businesses and capacity expansion, coupled with its strong market position in the solar pumps industry, positions it well for potential future growth. Investors and stakeholders will be watching closely to see how Shakti Pumps navigates the evolving market conditions and capitalizes on the opportunities in the renewable energy sector.

Shakti Pumps (India) Limited , a leading manufacturer of energy-efficient pumps and motors, has reported robust financial results for the second quarter of fiscal year 2025-26, while also confirming proper utilization of funds raised through recent Qualified Institutional Placements (QIPs).

Q2 Financial Highlights

For the quarter ended September 30, 2025, Shakti Pumps reported:

• Consolidated revenue from operations of ₹666.35 crore, up 5% from ₹634.59 crore in the same quarter last year
• Profit after tax of ₹90.71 crore, compared to ₹101.42 crore in Q2 FY2024-25
• Earnings per share (EPS) of ₹7.35, compared to ₹8.44 in the corresponding quarter

Half-Year Performance

For the first half of FY2025-26, the company achieved:

• Consolidated revenue of ₹1,288.85 crore, a 7.2% increase from ₹1,202.15 crore in H1 FY2024-25
• Profit after tax of ₹187.54 crore, slightly lower than ₹194.08 crore in the previous year
• EPS of ₹15.40, compared to ₹16.14 in H1 FY2024-25

QIP Fund Utilization

Shakti Pumps conducted two Qualified Institutional Placements (QIPs) in recent months:

1. March 22, 2024: Raised ₹2,000 million through 16,54,944 equity shares at ₹1,208.50 per share
2. July 5, 2025: Raised ₹2,925.60 million through 31,87,365 equity shares at ₹918.00 per share

The company has reported no deviation from the stated objectives for both QIPs. Funds are being utilized for:

• Capacity expansion of pumps, motors, inverters, and solar projects
• General corporate purposes

Expansion Plans

Shakti Pumps is in the process of expanding its manufacturing capabilities:

• Acquired 23.35 acres of land in Pithampur, Madhya Pradesh
• Total planned land acquisition: 45.66 acres
• Acquisition of remaining 22.31 acres is in process

The expansion aims to double production capacity:

Management Commentary

Dinesh Patidar, Chairman & Whole Time Director, stated, "Our Q2 results demonstrate Shakti Pumps' resilience in a dynamic market. The proper utilization of QIP funds for expansion aligns with our long-term growth strategy. We're confident that our increased production capacity will strengthen our market position and drive future growth."

Future Outlook

With its expansion plans underway and strong financial performance, Shakti Pumps is well-positioned to capitalize on the growing demand for energy-efficient pumping solutions. The company's focus on capacity enhancement and efficient fund utilization is expected to drive sustainable growth in the coming years.