This article first appeared on GuruFocus .
Release Date: November 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Shakti Pumps (India) Ltd ( BOM:531431 ) reported its highest ever quarterly revenue of INR 666 crore, marking a 5% year-on-year growth.
-
The solar pumps business showed significant growth with 39,861 installations in H1 and 22,304 in Q2, growing by 19% and 21% respectively.
-
Retail sales surged by 67% year-on-year to INR 43 crore, supported by over 100 exclusive outlets nationwide.
-
The company received an ESG rating of 75 from ICRA and was recognized as the best strategy organization of the year and best employer.
-
Shakti Pumps (India) Ltd ( BOM:531431 ) is expanding its solar rooftop segment into new states, leveraging government initiatives, and has set up 57 channel partners.
Negative Points
-
Receivables were impacted by extended monsoon and RMS linked collection cycles, with 20% of receivables more than 6 months overdue.
-
EBITDA margins were affected by a 3-4% increase in prices of key raw materials such as copper, steel, and solar panels.
-
The company faces pricing pressure in certain schemes, affecting realizations and margins.
-
There is uncertainty regarding the sustainability of the 20-21% EBITDA margin due to volatile raw material prices.
-
The company has a significant portion of its revenue dependent on government schemes, which may face delays or changes.
Q & A Highlights
-
Warning! GuruFocus has detected 2 Warning Signs with BOM:531431.
-
Is BOM:531431 fairly valued? Test your thesis with our free DCF calculator.
Q: Can you clarify the aging of receivables, particularly those over six months? A: Yes, we have provided the aging details. About 20% of receivables are over six months, which includes some retention money due to tender conditions. We expect to release more receivables in the next quarter. (Respondent: Unidentified_3)
Q: With margins dropping to 20% this quarter, is this a structural change or temporary? A: The margin drop is temporary, influenced by increased raw material prices. We expect these prices to stabilize, allowing us to maintain our margin guidelines. (Respondent: Unidentified_3)
Q: Can you provide more details on the solar rooftop business model and its credit cycle? A: The rooftop business operates under the PM Suger Muk Bigli Yojna. Consumers register on a portal, select a brand, and our channel partners install the systems. The subsidy is directly credited to the consumer post-installation. We operate on an advance basis with our dealers. (Respondent: Unidentified_4)
Q: What is the status of the solar cell and module manufacturing CapEx, and what revenue can we expect? A: We plan a 2.2 gigawatt capacity for solar cells and modules, expected to commission by March 2027 with a CapEx of around INR 1,200 crore. This investment could generate approximately INR 4,000 crore in revenue, with a payback period of about three years. (Respondent: Unidentified_3)
Q: How do you plan to achieve the 25% revenue growth target for FY26? A: Historically, H2 performs better than H1. We have a strong order book and expect growth from various state and central government schemes, as well as retail sales. (Respondent: Unidentified_3)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
