Detailed Narrative
Q1 FY27 Financial Performance Highlights
Shakti Pumps delivered a robust Q1 FY27, with revenue growing 37.9% year-on-year to INR 859 crores, up from INR 623 crores in Q1 FY26. Solar pump installations surged by 57.6% YoY, reaching 27,678 units. Despite these gains, the EBITDA margin remained stable sequentially at 9.6%. Profitability saw an uplift, with PAT increasing 35% over Q4 FY26 to INR 52 crores, and PAT margin improving to 6% from 4.5% in the previous quarter.
Order Book and Future Revenue Visibility
The company maintains a healthy and diversified order book of approximately INR 1,000 crores as of July 22, 2026, primarily comprising B2G (government-related) projects. This order book is expected to be executed comfortably within the next two quarters, with additional orders anticipated from the existing pipeline. Management highlighted strong visibility for sustained growth, particularly with the upcoming launch of PM-KUSUM 2.0 and ongoing state-led programs.
Strategic Diversification and Capacity Expansion Initiatives
Shakti Pumps is actively pursuing diversification beyond its core solar pump business. The emerging cash and retail sales segment recorded INR 24 crores in Q1 FY27, while the rooftop business saw a fourfold increase in revenue to INR 8 crores. The company is investing INR 1,500-1,700 crores by September 2027, with INR 800 crores planned for FY27, to expand capacity across pumps, motors, VFDs, solar structures, and establish 0.5 GW and 2.2 GW DCR module/cell facilities, aiming for a fully integrated portfolio and a ₹5,000 crore revenue target by FY29.
Margin Dynamics and Raw Material Impact
While the EBITDA margin was sequentially stable, it experienced a year-on-year impact of approximately 10%. This was attributed to a 6% increase in raw material costs (INR 36 crores) and a 4% impact from lower sales price realization (INR 25 crores). Management views these margin pressures as temporary, stemming from geopolitical uncertainties, and expects gradual improvement as raw material prices stabilize and PM-KUSUM 2.0 orders commence.
PM KUSUM 2.0 and State Program Outlook
PM KUSUM 2.0 is poised for launch, potentially within the next week or month, and is expected to be a significant growth driver. Orders under this scheme are anticipated to begin flowing in by the end of Q1 FY27, followed by orders from other states. The company also noted that payments from Maharashtra have commenced, and there is emerging demand for higher HP pumps in states like Haryana and Punjab, indicating broader market traction.
Backward Integration for Competitive Advantage
The company's 0.5 GW DCR module facility is scheduled for completion in September 2026, with a larger 2.2 GW integrated DCR cell and module project targeted for September 2027. This backward integration strategy aims to strengthen manufacturing capabilities, reduce dependence on external vendors, and enable Shakti Pumps to offer a complete, integrated solution for solar pumps and rooftop installations. This is expected to contribute a 3% expansion in EBITDA margins and enhance competitiveness, particularly in the B2C rooftop segment where a 15% margin is targeted post-integration.