Shakti Pumps (India) Limited has announced a strategic investment of ₹75.00 crores in its wholly owned subsidiary Shakti Energy Solutions Limited (SESL) to establish a state-of-the-art solar manufacturing facility. The investment aims to set up a greenfield high-efficiency Solar DCR cell and Solar PV modules manufacturing plant in Pithampur, Madhya Pradesh.

Manufacturing Facility Details

The new manufacturing plant will have a substantial production capacity of 2.20 GW, positioning the company to capitalize on India's growing solar energy market. The facility will focus on manufacturing Solar DCR (Domestic Content Requirement) cells and Solar PV modules, aligning with government initiatives to promote domestic solar manufacturing.

Investment Structure and Compliance

The investment will be made through equity shares in the subsidiary, with shares to be issued periodically as per the agreement. Since SESL is a wholly owned subsidiary of Shakti Pumps, this investment does not fall under Related Party Transaction regulations, and arm's length pricing requirements are not applicable. The transaction requires no government or regulatory approvals and was completed on the same day of announcement.

Subsidiary Performance Track Record

Shakti Energy Solutions Limited, incorporated on September 6, 2010, has demonstrated impressive growth trajectory over the past three years. The subsidiary currently operates as a manufacturer of solar structures and solar rooftop solutions, and is now expanding into solar cell and module manufacturing.

The subsidiary's turnover has more than doubled from FY23 to FY25, reflecting strong market demand and operational efficiency. This growth pattern indicates the subsidiary's capability to scale operations and manage larger manufacturing capacities.

Strategic Business Expansion

This investment represents Shakti Pumps' strategic expansion beyond its core pump manufacturing business into the renewable energy sector. The move aligns with India's solar energy goals and the government's push for domestic manufacturing under various policy initiatives. The establishment of DCR cell manufacturing capability will enable the company to serve projects requiring domestic content compliance.

The Pithampur location in Madhya Pradesh provides strategic advantages including industrial infrastructure, connectivity, and proximity to key markets. The 2.20 GW capacity positions the facility as a significant player in India's solar manufacturing landscape, supporting both domestic demand and potential export opportunities.

Shakti Pumps India Ltd shares gained up to 7% in today's trading session after the company secured a significant order worth ₹654.03 crore from Karnataka Renewable Energy Development Limited. The stock was trading at ₹719.70 per share, representing a 5% increase from the previous closing price of ₹685.65, with the company's market capitalisation standing at ₹8,880.95 crore.

Major Karnataka Order Win

The company received its first letter of award from Karnataka Renewable Energy Development Limited for 16,780 Stand-alone Off-Grid DC Solar Photovoltaic Water Pumping Systems (SPWPS) pumps covering the entire state of Karnataka under Component-B of the PM-KUSUM scheme.

Recent Order Book Expansion

Shakti Pumps has significantly strengthened its order book with multiple PM-KUSUM wins across various states, improving near-term revenue visibility.

Financial Performance Overview

The company reported mixed financial results in its recent quarterly performance. Revenue showed steady growth of 5%, increasing from ₹635.00 crore in Q2FY25 to ₹666.00 crore in Q2FY26. However, net profit declined by 10%, falling from ₹101.00 crore to ₹91.00 crore, indicating margin pressure and higher operational costs despite improved topline performance.

Business Model and Market Position

Shakti Pumps India Ltd operates through a diversified business model spanning legacy and emerging segments. Solar pumps constitute the core business with FY25 revenue of ₹20,794.00 million, while exports contributed ₹4,368.00 million across 100+ countries. The company is also expanding into newer verticals including EV motors and controllers, and solar rooftop solutions to drive future growth.

As an integrated manufacturer of solar and electric submersible pumps, the company maintains a presence in over 100 countries. Key operational highlights include:

• In-house manufacturing of pumps and motors
• Portfolio of 15 patents
• Over 1,200 product variants
• Network of 500+ dealers and 400+ service centres across India

Strong Order Book Position

As of November 7, 2025, Shakti Pumps maintains a robust outstanding order book of ₹1,300.00 crore, providing solid revenue visibility and execution momentum. The order book composition shows off-grid solar pumping as the dominant segment, with Maharashtra contributing ₹464.00 crore and Uttar Pradesh adding ₹367.00 crore. Additional grid-connected, export, and Uganda orders further strengthen the company's near-term growth prospects.