This article first appeared on GuruFocus .
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Revenue:INR859 crores in Q1 FY27, a 37.9% increase year-on-year from INR623 crores in Q1 FY26.
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Solar Pump Installations:27,608 pumps in Q1 FY27, a 57.6% increase from 17,557 pumps in Q1 FY26.
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EBITDA Margin:Stable at 9.6% for the quarter.
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PAT (Profit After Tax):INR52 crore, a 35% increase over Q4 FY26.
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PAT Margin:Improved to 6% in Q1 FY27 from 4.5% in Q4 FY26.
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Order Book:Approximately INR1,000 crores as of July 22, 2026.
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Emerging Case and Retail Sales:Recorded sales of INR24 crores in Q1 FY27.
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Solar Rooftop Business Revenue:INR8 crores in Q1 FY27, up from INR2 crores in the previous year.
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Warning! GuruFocus has detected 5 Warning Signs with BOM:531431.
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Release Date: July 27, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Shakti Pumps (India) Ltd ( BOM:531431 ) reported a 37.9% year-on-year revenue growth for Q1 FY27, reaching INR859 crores.
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The company saw a 57.6% increase in solar pump installations, with 27,608 units installed in Q1 FY27.
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PAT increased by 35% over Q4 FY26, with a PAT margin improvement from 4.5% to 6%.
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The company maintains a healthy and diversified order book of approximately INR1,000 crores.
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Shakti Pumps is expanding into adjacent businesses, including solar rooftop and EV sectors, showing promising growth potential.
Negative Points
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EBITDA margin remained stable at 9.6%, but margins are under pressure due to inflated raw material costs.
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Geopolitical uncertainties are impacting global trade and demand conditions, affecting the export business.
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The company faces challenges with lower realization in some orders, impacting profitability.
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There are ongoing payment-related issues under the PM KUSUM 2.0 scheme, affecting cash flow.
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The company is not currently hedging against raw material price volatility, which could impact future margins.
Q & A Highlights
Q: Can you provide an update on the PM KUSUM 2 scheme and any payment-related issues the company is facing? How is El Nino impacting demand? A: The company is actively engaging with the government regarding the PM KUSUM 2 scheme. Payment-related issues are being addressed, and the company is optimistic about resolving them. El Nino has not significantly impacted demand as of now.
Q: What portion of the INR1,000 crore order book is attributed to the rooftop segment? A: The rooftop segment constitutes a significant portion of the order book, and the company expects to execute these orders over the next two quarters.
Q: How do you see the company's margins evolving, given the current 10% margin level? A: The company anticipates margin improvement due to backward integration and expects the current 10% margin to be the bottom, with potential for growth as raw material costs stabilize.
Q: What are the key execution priorities for the rooftop business in the coming quarters? A: The focus is on enhancing customer experience through quality products, digitalization, and providing end-to-end warranties. The upcoming 500-megawatt plant will position the company as a fully integrated service provider.
Q: What financial risks do you foresee, and how are you managing them? A: The company is managing risks through a robust working capital arrangement with multiple banks and maintaining vendor relationships to mitigate raw material cost volatility. Efforts are ongoing to ensure timely realization of receivables.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
