Shakti Pumps (India) (531431) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 performance was intentionally moderated, especially in Maharashtra, to address elevated receivables and protect balance sheet strength, resulting in lower revenue and margin pressure both sequentially and year-over-year.

• Export and retail businesses showed resilience, with export revenue at INR 307 crore (₹3,070 Mn) for nine months FY26 and retail exports growing 25% YoY.

• The order book remains robust at INR 2,100 crore (₹21,000 Mn), diversified across multiple states, with resumed execution in Maharashtra and a maiden order in Karnataka.

• Board approved unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2025.

• Appointment of Mrs. Bela Bharatendu Jani as Additional cum Non-Executive Woman Independent Director, subject to member approval.

Financial highlights

• Q3 FY26 consolidated revenue was Rs. 550.99 crore (₹5,510 Mn), down from Rs. 666.35 crore in the previous quarter and Rs. 558.69 crore in Q3 FY25; 9MFY26 revenue was Rs. 1,839.84 crore (₹18,398 Mn), nearly flat YoY.

• Q3 FY26 EBITDA was ₹590 Mn (10.7% margin), down from ₹1,544 Mn (23.8%) in Q3 FY25; 9MFY26 EBITDA was ₹3,385 Mn (18.4% margin).

• Q3 FY26 PAT was ₹317 Mn (5.8% margin), down from ₹1,041 Mn (16.0%) in Q3 FY25; 9MFY26 PAT was ₹2,192 Mn (11.9% margin).

• Margins were impacted by a 4% drop in realization in Magel Tyala orders, 2% increase in raw material prices, higher employee costs, and a one-time manpower cost of INR 4.4 crore due to new labor code.

• Final dividend of Rs. 12.34 crore (Rs. 1 per share) for FY25 was paid during the quarter.

Outlook and guidance

• Execution momentum is expected to improve significantly in Q4 FY26, anticipated to be the highest revenue quarter ever, with some revenue possibly spilling into subsequent quarters.

• Export segment expected to grow at a healthy pace, supported by new trade agreements and strong retail exports.

• Solar rooftop business is expanding its dealer network and expects meaningful contribution post-commissioning of 500 MW DCR module capacity in Q1 FY27.

• Margins for FY26 are likely to remain under pressure due to lower realizations and cost inflation, but focus remains on balance sheet consolidation and sustainable growth.

• Company continues to monitor the impact of new labour codes and will account for any additional impact as required.