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.

Shakti Pumps (India) Limited , a leading manufacturer of energy-efficient pumps and motors, has reported mixed financial results for the second quarter of fiscal year 2025-26. The company saw an increase in revenue but experienced a decline in profitability compared to the same period last year.

Revenue Growth

For Q2 FY2025-26, Shakti Pumps reported consolidated revenue from operations of ₹666.35 crore, up from ₹634.59 crore in Q2 FY2024-25. This represents a year-over-year increase of approximately 5%.

Profit Decline

Despite the revenue growth, the company's consolidated net profit for the quarter decreased to ₹90.71 crore, down from ₹101.42 crore in the corresponding quarter of the previous year. This marks a decline of about 10.6% in net profit.

Key Financial Metrics

EBITDA and Margin Compression

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased to ₹136 crore from ₹148 crore year-over-year. Consequently, the EBITDA margin compressed to 20.40% from 23.44% in the previous year, indicating increased cost pressures.

Half-Year Performance

For the first half of FY2025-26, Shakti Pumps reported:

• Consolidated revenue of ₹1,288.85 crore (up from ₹1,202.15 crore)
• Net profit of ₹187.54 crore (down from ₹194.08 crore)

Balance Sheet Highlights

As of September 30, 2025, the company's balance sheet showed:

• Total assets of ₹2,997.19 crore
• Total equity of ₹1,626.95 crore
• Current liabilities of ₹1,269.25 crore

Financial Outlook

The results suggest that Shakti Pumps is experiencing growth in its top line but facing challenges in maintaining profitability. The company may be dealing with increased input costs or competitive pressures affecting its margins.

Investor Considerations

Investors may want to monitor how Shakti Pumps addresses the margin compression in upcoming quarters and whether the revenue growth trend continues. The company's ability to manage costs and improve operational efficiency will be crucial for future performance.

Shakti Pumps' stock performance and market reaction to these results will depend on how investors interpret the mixed signals of revenue growth and profit decline in the context of broader market conditions and the company's long-term prospects.