Shakti Pumps (India) (531431) Q4 25/26 earnings summary

Executive summary

• FY26 was a strategic transition year, focusing on balancing growth with financial discipline, strengthening the balance sheet, and reinforcing leadership in the solar pumping segment.

• Achieved record consolidated revenue of INR 2,698 crore (Rs. 26,976 Mn) for FY26 and highest-ever quarterly revenue of INR 858 crore (Rs. 8,578 Mn) in Q4, driven by a 20% year-on-year increase in solar pump installations.

• Audited standalone and consolidated financial results for FY26 were approved, with auditors issuing unmodified opinions.

• Final dividend of ₹1 per equity share (10%) recommended, subject to AGM approval.

• Re-appointments of Chairman cum Whole-time Director and Managing Director for three years, and appointment of new Cost Auditor.

Financial highlights

• FY26 consolidated revenue reached INR 2,698 crore (Rs. 26,976 Mn), with Q4 revenue at INR 858 crore (Rs. 8,578 Mn), both all-time highs.

• EBITDA margin at 15.6% for FY26, down from 24.0% in FY25 due to lower realization and higher costs.

• PAT for FY26 stood at Rs. 2,576 Mn, with a PAT margin of 9.5%.

• Receivables reduced by over INR 420 crore (Rs. 4,200 Mn) in Q4, improving receivable days by 77, and generated INR 124 crore (Rs. 1,241 Mn) in operating cash flow for the year.

• Order book as of May 2026 at INR 1,500 crore (Rs. 15,000 Mn), providing strong revenue visibility.

Outlook and guidance

• Demand outlook remains positive, supported by policy momentum under KUSUM 2.0 and state-level solar initiatives.

• Ongoing capex plan of Rs. 17,000 Mn to double capacity for pumps, motors, VFDs, and solar structures.

• Commissioning of 0.5 GW DCR module capacity expected by end of Q1 FY27, anticipated to improve margins.

• Focus on expanding EV and solar rooftop businesses to capture emerging opportunities.

• Margin recovery to previous peak levels (20-24%) depends on normalization of raw material prices and geopolitical stability; management will provide updates in future quarters.