Shakti Pumps Q1 FY27 Results (NSE: SHAKTIPUMP)
Signal: Margin pressure
The read
Revenue growth remains strong (+37.9% YoY) driven by record solar pump installations, but the profit collapse (-46.7% YoY) and margin deterioration (4th straight quarter of compression, EBITDA margin down 1350bps YoY to 9.6%) signal structural headwinds from lower realizations and input cost pressures. The order book of Rs. 10,000 Mn and emerging businesses (retail, rooftop, EV) provide long-term optionality, but near-term earnings quality is weak with margins at multi-year lows.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹858.7 Cr | 37.9% | 0.1% |
| EBIT | ₹82.9 Cr | -42.3% | |
| Net profit | ₹51.6 Cr | -46.7% | |
| EPS | ₹4.2 | -48.1% | |
| EBIT margin | 9.6% |
P&L walk
Revenue hit a record Rs. 8,587 Mn, up 37.9% YoY driven by 57.6% growth in solar pump installations to 27,678 units. However, EBITDA margin collapsed to 9.6% from 23.1% YoY (4th consecutive quarter of compression), attributed to subdued realizations and elevated input costs. PAT of Rs. 516 Mn fell 46.7% YoY though rose 34.6% QoQ from a low Q4 base. EPS fell to Rs. 4.2 vs Rs. 8.1 YoY. The deterioration in margins is structural, with OPM falling from 24% in Q1FY25 to 9.6% now.
Segments
No segment table in this update; solar pumps (PM-KUSUM & non-KUSUM) remain the core growth driver with 51.3% revenue growth.
Key positives
- Record Q1 revenue of Rs. 8,587 Mn, +37.9% YoY.
- Solar pump installations up 57.6% YoY to 27,678 units.
- Order book robust at Rs. 10,000 Mn, providing 3+ months of visibility.
- Emerging businesses gaining traction: Retail/Cash Rs. 240 Mn, Solar Rooftop Rs. 80 Mn, EV subsidiary reaches customer validation stage.
- Sequential PAT growth of 34.6% QoQ from Q4FY26 low base.
Key concerns
- EBITDA margin collapsed to 9.6% from 23.1% YoY — 4th consecutive quarter of compression (from 24% in Q1FY25 to 9.6% now).
- PAT fell 46.7% YoY to Rs. 516 Mn despite record revenue.
- Receivables remain elevated at Rs. 17,988 Mn; 27% are overdue beyond 180 days.
- EPS fell 48.1% YoY to Rs. 4.2.
- Subdued realizations on select orders and elevated input costs blamed; no clear path to margin recovery stated.
Research and educational content only. Not investment advice.