Shares of Shakti Pumps (India) Ltd. fell by 8.5% to a session low of Rs 354 apiece on Monday following the company's announcement of a significant decline in profit for the September quarter (Q2 FY27), despite an increase in revenue.
The company reported a consolidated revenue from operations of Rs 746 crore for Q2 FY27, marking a 12% increase from Rs 666.4 crore in the same period last year. However, profit after tax (PAT) plummeted by 57.6% year-on-year, settling at Rs 38.5 crore compared to Rs 90.7 crore in Q2 FY26. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) also decreased to Rs 64 crore from Rs 136 crore, with the EBITDA margin narrowing sharply to 8.6% from 20.4%.
Shakti Pumps attributed the pressure on its profitability to several factors: lower realisations on products, higher costs for raw materials, and increased logistics expenses, all exacerbated by prevailing geopolitical uncertainties. Chairman Dinesh Patidar reiterated these points, stating, "Margins during the period moderated due to lower realisations, higher raw material costs and elevated logistics expenses linked to prevailing geopolitical conditions."
First Half FY27 Performance Overview
For the first half of FY27, Shakti Pumps recorded a 24.5% year-on-year rise in revenue from operations, reaching Rs 1,604.7 crore from Rs 1,288.9 crore. Despite this revenue growth, PAT for H1 FY27 declined to Rs 90.1 crore from Rs 187.5 crore in H1 FY26. The EBITDA margin for the first half also saw a significant reduction, falling to 9.2% from 21.7% a year earlier.
Solar Pump Installations and Future Outlook
The company reported a positive trend in solar pump installations, which increased by 29.3% year-on-year to 51,543 units in H1 FY27. In Q2 FY27 alone, installations rose by 7% to 23,865 units.
As of October 23, 2026, Shakti Pumps' outstanding order book stood at Rs 751 crore, inclusive of GST. The company anticipates potential new orders from initiatives such as PM-KUSUM 2.0, the Magel Tyala Saur Urja Yojana in Maharashtra, and other state-sponsored programs.
Regarding capacity expansion, Shakti Pumps commenced trial production in October 2026 at 0.5 GW of its planned 2.2 GW solar module capacity. A larger 2.2 GW solar cell facility is slated for commissioning by FY28, signaling the company's continued focus on renewable energy solutions despite short-term profitability challenges.