Shakti Pumps Q1 FY26 Results: Performance, Challenges, and Future Outlook

Shakti Pumps (India) Limited, a leading manufacturer of stainless steel submersible pumps, has declared its Q1 FY26 results, and the numbers indicate a challenging quarter for the company. Let’s break down the performance, management commentary, and the growth outlook. Q1 FY26 Key Highlights Revenue: ₹116 crore (down 48% YoY) Net Profit: ₹-10.2 crore (loss vs profit last year) EBITDA Margin: -2.5% (vs 9% last year) EPS: Negative, reflecting losses in the quarter Order Book: ₹1,200 crore (majority linked to PM-KUSUM scheme) Reasons for Weak Performance PM-KUSUM Scheme Delay – The company's revenue is heavily dependent on government tenders under this scheme, and slow execution impacted sales. Low Demand in Export Markets – International orders remained muted. Margin Pressure – Higher raw material costs and lower capacity utilization hurt profitability. Working Capital Issues – Delay in government payments increased interest costs. Management Commentary Execution under PM-KUSUM will pick up in the next two quarters. The solar pump and rooftop solar segments are expected to grow with upcoming state government tenders. Backward integration through the DCR Solar Cell Plant is in progress, which will reduce dependency on imports and improve margins in the medium term. EV Components Business remains in a pilot stage, with commercialization expected in the next 12–18 months. Growth Triggers Ahead ₹1,200 crore order book to be executed over FY26–FY27. Government’s Renewable Energy Push to boost demand for solar pumps. In-house Solar Cell Manufacturing to improve cost efficiency. Diversification into EV and rooftop solar can open new revenue streams. Risks to Watch High dependency on government schemes. Execution delays due to tender approvals. Working capital stress affecting liquidity. Conclusion Shakti Pumps faced a weak Q1 FY26 due to delayed execution and high dependency on government orders. While the long-term growth story remains intact with renewable energy focus and backward integration, short-term volatility in earnings is likely. Investors should watch order execution pace and margins closely in upcoming quarters. Disclaimer: This article is for informational purposes only and should not be considered investment advice. Please consult your financial advisor before making any investment decisions.