Shakti Pumps (India) Limited delivered its highest-ever quarterly revenue in Q4 FY26, but a sharp compression in margins dragged net profit down by nearly two-thirds, painting a mixed picture for the pump and solar energy company.
Consolidated revenue from operations rose 28.9% year-on-year to ₹857.8 crore in the quarter ended March 2026, a record for the company. However, net profit fell 65.2% to ₹38.3 crore from ₹110.2 crore in Q4 FY25, as raw material costs, logistics expenses, and lower realisations under a key government scheme weighed heavily on profitability.
Shares of Shakti Pumps fell sharply on May 8, declining 6.80% or ₹40.50 to ₹554.90 on the NSE, making it one of the top losers on the exchange during the session. The stock has lost significant ground from its 52-week high of ₹1,049 and was trading closer to the lower half of its year range of ₹456.35 to ₹1,049.
What drove Shakti Pumps’ margin collapse in Q4 FY26?
EBITDA for the quarter stood at ₹83.2 crore against ₹163.9 crore in Q4 FY25, a decline of 49.3% year-on-year. EBITDA margin contracted sharply to 9.7% from 24.6% in the same quarter last year — a near-halving in profitability at the operating level. Profit before tax fell to ₹66.2 crore from ₹150.2 crore in Q4 FY25.
The company attributed the margin pressure to three factors: lower realisations under Maharashtra’s Magel Tyala Scheme, elevated raw material prices, and higher freight costs stemming from geopolitical disruptions affecting supply chains.
How did Shakti Pumps’ solar pump business perform?
The solar pumps segment remained the operational highlight. The company installed 28,345 solar pumps during Q4 FY26, a 51% year-on-year jump from 18,749 units in Q4 FY25. Full-year installations rose 20% to 86,086 solar pumps across FY26. Revenue from the solar pumps business grew 42% year-on-year in the quarter to ₹704 crore, supported by strong execution in Maharashtra and growing traction in other states.
Full-year FY26 performance and order book
For the full fiscal year FY26, consolidated revenue rose 7.2% to ₹2,697.6 crore from ₹2,516.3 crore in FY25, a more modest pace of growth relative to the strong Q4 print.
On the working capital front, receivables improved meaningfully, falling to ₹1,275.7 crore as of March 31, 2026, from ₹1,679 crore as of December 31, 2025 — even as the company posted its highest-ever quarterly revenue. Management said approximately 72% of receivables were not yet due, with only 1% overdue beyond 365 days, reflecting a disciplined collections-led approach.
As of May 7, 2026, the company’s order book stood at approximately ₹1,500 crore, comprising orders under the Magel Tyala Saur Urja Yojana and other state-level renewable energy programmes. Shakti Pumps also announced investments in solar DCR module manufacturing and the EV mobility segment as part of its longer-term diversification strategy.
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