EL7.AI
StocksMedium•26 October 2026•
3 min read

Shakti Pumps Falls 8.50% as Second-Quarter Profit Drops to 385 Million Rupees

Key Facts

1Profit after tax was 385 million rupees in the second quarter, compared with 907 million rupees a year earlier.
2EBITDA fell to 640 million rupees from 1,360 million rupees, while the margin narrowed to 8.6% from 20.4%.
3The shares fell 8.50% to an intraday low of 354 rupees on October 26, compared with the previous close of 386.90 rupees.
4The order book stood at 7,510 million rupees on October 23, including goods and services tax.
5Trial production began in October 2026 at solar module units with capacity of 0.5 gigawatts, while the company is targeting operations at a 2.2-gigawatt cell facility by financial year 2028.

Shakti Pumps shares fell 8.50% to an intraday low of 354 rupees in trading on October 26, compared with the previous close of 386.90 rupees, Business Today reported. The decline followed the board’s approval on October 23 of unaudited results for the quarter ended September 30, 2026. The results showed profit after tax falling to 385 million rupees from 907 million rupees in the corresponding quarter of the previous financial year. EBITDA also declined to 640 million rupees from 1,360 million rupees a year earlier. The drop coincided with the reported operating margin narrowing to 8.6% from 20.4%, a clear divergence between the profitability trend and the revenue level cited in the earlier news draft.

Management said in its investor presentation that margins declined because of lower realized prices, higher raw-material costs and increased logistics expenses linked to prevailing geopolitical conditions. This explanation puts cost and pricing pressures at the center of the decline, with EBITDA down by more than half from a year earlier. The company described the change as “moderation in margins during the period” and linked it to the three factors it had identified. It added that it was addressing the pressures through cost optimization, improved operating efficiency and disciplined execution. This indicates that, in management’s view, restoring margins depends on controlling expenses and executing existing work.

The company said its order book stood at 7,510 million rupees on October 23, including goods and services tax. The balance provides the company with a base of work to execute, while management said its priorities include efficient order execution, margin improvement and stronger cash conversion. The company also identified the PM-KUSUM 2.0 program as a potential source of demand, expecting it to be announced during the current quarter. It also pointed to continued order flows from the “Magel Tyala” program in Maharashtra and from programs in other states. The company links future demand opportunities to its ability to convert these flows into actual execution while addressing profitability pressures.

On expansion, the company said trial production began in October 2026 at solar module units with capacity of 0.5 gigawatts, as part of its capacity plan. It also said the 2.2-gigawatt DCR solar cell facility is scheduled to begin operations by financial year 2028. These plans put the deployment of new capacity among management’s priorities, alongside executing the order book, improving margins and strengthening cash conversion. The company said its aim was “to bring our new capacities into operation on schedule.” The expected announcement of PM-KUSUM 2.0 during the current quarter and execution of existing orders remain among the milestones management identified in its investor presentation.