Shakti Pumps reported results for Q3 and 9M FY26, noting that Q3 performance was intentionally moderated primarily in Maharashtra to strengthen the balance sheet and stabilize receivables, pausing ₹2,000 Mn in order execution. Despite margin pressures from lower realizations and increased costs, the company maintains a strong order book of ₹21,000 Mn. Key business segments like Solar Pumps and Exports showed solid performance, while the company continues aggressive capex in manufacturing and EV segments.
Management Commentary on Recent Performance
The company intentionally moderated execution in Q3FY26, particularly in Maharashtra, as a disciplined approach to address elevated receivable levels and strengthen the balance sheet. This led to lower revenue recognition sequentially and year-over-year, impacting EBITDA margins. Management consciously chose working capital discipline over near-term revenue growth. Margins were also affected by lower realizations (around 4% in Magel Tyala orders), rising raw material costs (copper, steel, solar panels), and higher employee costs, including a one-time impact of ₹44 Mn from the new labor code implementation.
Despite these pressures, trade receivables remained stable in Q3FY26, reflecting improved collections. The company maintains a healthy order book valued at ₹21,000 Mn (inclusive of GST), diversified across states, with Maharashtra and Karnataka being key contributors. Execution is expected to improve in Q4FY26, anticipated to be the highest revenue quarter ever.
Q3 & 9M FY26 Business Updates
Revenue: 9M FY26 revenue stood at ₹18,398 Mn, with Q3FY26 at ₹5,510 Mn. Revenue growth was impacted by the deliberate slowdown in high-receivable states.
EBITDA & Margin: 9M FY26 EBITDA was ₹3,385 Mn (18.4% margin), down from ₹4,390 Mn (23.7% margin) in 9M FY25. Q3FY26 EBITDA was ₹590 Mn (10.7% margin).
Solar Pumps Business: 57,741 pumps sold in 9MFY26. The company secured a maiden order win from Karnataka worth ₹6,540 Mn.
Exports: Generated ₹3,070 Mn in 9MFY26. Growth is expected through trade agreements with the USA and Europe.
Emerging Businesses: The Cash Sales Business generated ₹666 Mn in 9MFY26 (up 68% YoY) via 100+ exclusive outlets. Solar Rooftop expanded via an MoU with 90+ dealers.
Order Book Position (As on 13th February 2026)
The total outstanding order book is ₹21,000 Mn (Inclusive of GST). Key components include: Magel Tyala Saur Urja Yojana, Maharashtra (₹8,120 Mn) and Karnataka Renewable Energy Development Limited (₹6,540 Mn).
Key Financial Trends (FY21 to FY25)
Historical data shows strong growth, with FY25 Revenue reaching ₹25,162 Mn (+83.6% YoY). FY25 EBITDA Margin reached 24.0%. Return on Equity for FY25 was 35.2%. The Debt-Equity ratio stood at a very low 0.1x as of 31/03/2025.
Receivables Ageing analysis as of 31.12.2025 (Total ₹16,970 Mn) shows 34% outstanding between 180–365 Days* (including retention amount) and 30% in the 0–90 Day bucket.
Manufacturing and Capacity Expansion
The company is executing a capex plan of ₹17,000 Mn. This includes doubling capacities for pumps, motors, VFDs, and solar structures (₹2,500 Mn), establishing an EV facility (₹2,500 Mn*), and setting up a major 2.2 GW solar DCR cell and PV module plant in Pithampur (₹12,000 Mn).
Manufacturing facilities include Main Unit (3,50,000 p.a. capacity), SEZ Unit II (1,50,000 p.a. capacity), Electronic & Control Unit III (4,00,000 VFDs/Inverters p.a. capacity), and Structures Unit IV (2,00,000 units p.a. capacity).
Market Opportunities and Competitive Edge
Shakti Pumps is a leader in the PM KUSUM Scheme, holding approximately 25% market share. The domestic solar pump market opportunity is estimated at ~₹5,500 Bn. The company emphasizes its PIONEER status (4+ decades experience), INTEGRATED manufacturing (holding 15 patents), and DIVERSIFIED business model covering Solar Pumps, Exports, EV Solutions, and Solar Rooftop.
Electric Vehicles & Solar Rooftop Growth
The EV industry is projected to reach 10 million in sales by 2030, growing at a 49% CAGR (2022–30). Shakti EV Mobility, a wholly-owned subsidiary, has received a key patent for its rotor assembly. Furthermore, the Indian Solar Rooftop market is expected to reach 41.52 GW by 2030, growing at a 19% CAGR (2025–30), bolstered by schemes like the PM Surya Ghar: Muft Bijli Yojana.
Source: BSE
