Shakti Pumps India Q1 Results: Why did shares fall despite solar growth?
The stock market sometimes breaks hearts. Something similar happened with Shakti Pumps India, whose Q1FY26 financial result was quite promising, yet investors dumped the shares. “Shakti Pumps India shares tumble nearly 8% post Q1 results” This headline raises only one question – when the numbers are good, then why the fall? Let us understand in this detailed article how the company performed, and why its shares fell by 8%.
Shakti Pumps India Q1 Results & Q1FY26 Performance
Shakti Pumps showed very strong financial numbers in the first quarter of FY26. The company’s net profit increased by 4.5% on YoY basis to ₹96.8 crore from ₹92.7 crore in Q1FY25. Revenue also increased by 9.7% to ₹622.5 crore from ₹567.6 crore in the previous year. EBITDA also showed a growth of 5.7% to ₹143.6 crore and EBITDA margin stood at 23.1%.
But when we do Quarter-on-Quarter (QoQ) comparison, we get to see a little disappointment. Net profit fell by 12.15% as compared to ₹110.23 crore in the previous quarter as compared to Q4FY25. Revenue also declined by 6.43%, falling from ₹665.32 crore to ₹622.5 crore. Profit before tax also fell by 13.69% QoQ, but showed a slight growth of 3.24% YoY.
Despite these mixed results, the stock market reacted negatively, and Shakti Pumps shares fell 8% to ₹865. After a further decline of 6.63%, it reached ₹834.25.
Strategic Growth Planning and Future Vision of Shakti Pumps
Company Chairman Dinesh Patidar said in his statement that his focus is on long-term value creation. He said, “FY26 has started strongly, with a major contribution from the solar pump segment. Export momentum is also good and our strategic investments have helped significantly.”
Shakti Pumps has further invested ₹12 crore in its green energy vision through its subsidiary Shakti Energy Solutions Limited to build a 2.2 GW high-efficiency solar DCR cell and PV module plant in Pithampur, Madhya Pradesh.
The company has also raised ₹292.6 crore through QIP for this mega solar project. The remaining funding will be provided through internal accruals and debt.
Order Book, Expansion and Leadership in PM-KUSUM Scheme
The order book of Shakti Pumps has now reached ₹1,350 crore, with inflow through tenders from states like Maharashtra, Rajasthan, Haryana, Punjab, MP, UP. The company has a very strong presence in the agricultural segment and has 25% market share in PM-KUSUM scheme.
Not only this, the company has also improved its receivables days from 178 to 152, and has set a target of 120 days by the end of FY26.
Chairman Patidar says, “Our clean energy strategy, operational discipline and strong order pipeline are taking us towards long-term sustainable growth.”
Export Growth and Rooftop Solar Segment
Shakti Pumps export business is also growing at 25% CAGR, which includes projects in markets like Haiti, Uganda, Bangladesh, Nepal, USA, Middle East and Africa.
Rooftop solar segment is also in momentum due to government schemes like PM Surya Ghar: Muft Bijli Yojana. The Company is expanding its footprint in this segment and is also working in EV and industrial pumps segment.
₹17,000 Crore Capex Plan will boost India’s solar growth
Shakti Pumps has announced a ₹17,000 crore capex plan which includes:
- Capacity of pumps, motors and solar structures will be doubled with ₹2,500 crore
- An EV motor and charger facility will be established with ₹2,500 crore
- 2.2 GW solar DCR cell and PV module plant will be set up with ₹12,000 crore
All these initiatives are a big step towards making India a green energy powerhouse, in which Shakti Pumps is playing a major role.
So why did the shares fall?
Investors are looking a little cautious about short-term performance. Decline in QoQ net profit and revenue, falling EBITDA margins, and market volatility turned investor sentiment slightly negative.
Another reason could be that the stock was already trading at a very high valuation. In the past 5 years, it has given a return of 2,768%, which is quite phenomenal. Hence some profit booking was also expected.
Conclusion
Shakti Pumps India has started FY26 on a strong note. Though the share price may have given some tension to investors in the short-term, the long-term growth potential is still intact. The company is rapidly executing on its vision with strategic investments in solar, export and EV segments.
For those who are interested in green energy and industrial tech segments, Shakti Pumps has become a name that is difficult to ignore.
Disclaimer:
This article is for informational purposes only. The analysis given in it is based on the personal observations of the author on financial data and company performance. Before taking any financial decision, please consult your advisor.
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