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 maintaining 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 FY26, driven by strong demand for solar pumps and robust execution.

• Solar pump installations increased 20% year-on-year to 86,086 units in FY26, with Q4 installations up 51% year-on-year, reinforcing market leadership.

• 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.

Financial highlights

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

• EBITDA margin sustained at 15.6% for FY26, despite margin pressures from lower realizations 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 FY26.

• 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, state-level solar initiatives, and ongoing capex plan of Rs. 17,000 Mn to double capacity.

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

• Focus on expanding EV and solar rooftop businesses to capture emerging opportunities, aligned with clean energy trends.

• Margin recovery is expected as raw material prices stabilize and geopolitical disruptions ease, but management refrained from giving specific margin guidance for FY27.

• The company continues to monitor the impact of new labour codes and will account for any further changes as required.