shares plunged more than 8 per cent in early trade on Friday after the company reported a sharp decline in quarterly profit despite posting its higher quarterly revenue, as margin pressures and elevated costs weighed on earnings.
The stock traded at ₹555.65 on the NSE at 10 am after hitting an intraday low of ₹545.90, compared with the previous close of ₹595.40.
The company reported a 65 per cent y-o-y decline in consolidated profit after tax for the quarter ended March 2026 at ₹38.33 crore, against ₹110.23 crore in the corresponding period last year.
Revenue from operations, however, rose 28.9 per cent y-o-y to ₹857.77 crore during the quarter under review from ₹665.32 crore a year earlier, driven by strong execution momentum and higher business volumes.
For FY26, consolidated PAT stood at ₹257.58 crore, compared with ₹408.37 crore in the previous financial year. The board also recommended a final dividend of ₹1 per share.
Chairman Dinesh Patidar said FY26 was a strategic transition year focused on strengthening balance sheet quality, improving receivable efficiency and ensuring sustainable long-term growth. He said the company adopted a disciplined execution approach with emphasis on collections, working capital optimisation and financial stability.
The company highlighted that receivables reduced by over ₹4,200 million between December 2025 and March 2026 despite delivering the highest quarterly revenue in its history. Patidar said EBITDA margins were impacted by lower realisations in the Magel Tyala Scheme in Maharashtra, elevated raw material prices and higher logistics costs arising from geopolitical disruptions.
Shakti Pumps said its order book stood at around ₹15,000 million as of May 7, 2026, providing strong revenue visibility going forward. The company remains optimistic on demand, supported by expected policy momentum under KUSUM 2.0, opportunities under the Magel Tyala Scheme and continued traction in state government initiatives.
It continues to diversify its business portfolio beyond government-led programmes. Its export business remained stable despite geopolitical challenges, while cash-based domestic business supported working capital efficiency and revenue diversification.
Among expansion initiatives, the company recently invested ₹29 crore in subsidiary Shakti Energy Solutions for setting up a greenfield solar DCR cell and solar PV modules manufacturing plant in Pithampur, Madhya Pradesh, with a production capacity of 2.2 GW. It also invested ₹10 crore in Shakti EV Mobility for expansion of the EV motors and controllers business, taking total investment in the subsidiary to ₹65 crore till April 2026.