Shakti PumpsQ1 FY27
Shakti Pumps Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹492P/E: 29.3Market Cap: ₹6.2K CrSector: Industrial Products
Management growth scorecard
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Margin
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0 of 0 growth signals are positive — mixed outlook.
Full analysisRevenue guidance
- →Shakti Pumps aims to become a INR5,000 crores company by FY29 (within three years from 2026).
- →This growth is driven by capacity expansion across solar pumps, solar panels, EV motors, VFDs, and structures.
- →The 2.2 GW solar expansion and backward integration in solar cell and module manufacturing will support margin improvements and higher volumes.
- →Rooftop solar business is targeted to be a leader but specific revenue guidance is not yet provided; margins of ~15% are expected once integrated with in-house modules.
- →EV motors business is currently in validation; meaningful revenue contribution is expected from FY28 onwards.
- →Order inflows are strong, with INR1,000 crores order book mainly in government business, executable over next two quarters.
- →Growth momentum is supported by expected government schemes like PM KUSUM 2.0 and new state tenders.
- →Export business is steady, with around INR100 crores in quarterly orders.
Margin guidance
- →Shakti Pumps aims to become a INR5,000 crore company by FY29, driven by capacity expansions across pumps, motors, VFDs, solar structures, and integrated solar modules and cells.
- →EBITDA margins have been impacted recently (~10%) due to raw material inflation and lower sales price realization but are expected to improve gradually as raw material prices ease and geopolitical stability returns.
- →Backward integration through developing in-house solar module and cell manufacturing is expected to strengthen margins in the medium term.
- →EV motors business and rooftop solar are in early stages; significant revenue and margin contributions are expected from FY28 onwards.
- →Management views current margin pressures as temporary and expects margin correction and profit growth as supply chain and geopolitical factors stabilize.
- →PAT rose 35% in Q1 FY27; disciplined cost control and improving operational efficiency are expected to support future earnings growth.
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Fundraise plans
- →The company has completed two Qualified Institutional Placements (QIPs), raising INR200 crores without taking any loan, ensuring sufficient funds are available for expansion.
- →For the 2.2 GW solar project, a term loan arrangement of around INR800 crores has been entered into.
- →Working capital limits of approximately INR1,800 crores are arranged with around 10 leading banks in India and one bank from Qatar.
- →No mention of any immediate plans for new fundraising through additional debt or equity beyond these arrangements.
- →Promoters have historically increased their holding whenever funds are sufficient and may continue to do so in the future, but no specific equity issuance plans disclosed.
Order book
- →Current order book stands at around INR 1,000 crores, primarily from B2G (government) business.
- →This order book is expected to be executed comfortably over the next two quarters.
- →New orders continue to flow in from states like Maharashtra, Karnataka, and pending launches in MP, Rajasthan with KUSUM 2.0 expected to bring more tenders soon.
- →Quarterly order inflows for export business are around INR 100 crores.
- →Additional orders are anticipated from the existing pipeline, contributing to order book additions beyond INR 1,000 crores.
- →Order execution pace depends on external factors such as monsoon rains and floods but remains strong.
- →KUSUM 2.0 scheme launch is anticipated soon, expected to add significant new orders by the end of the current quarter or early next quarter.
Capex plans
- →Total capex planned around INR1,500 to INR1,700 crores to be completed by September 2027.
- →Around INR800 crores capex expected in the current year, remaining in the next year.
- →Key projects include:
- → - 0.5 GW solar module plant commissioning by September 2026.
- → - 2.2 GW integrated DCR cell and module plant commissioning by September 2027.
- → - New pump plant expected by November 2026.
- →Capex aimed at backward integration and capacity expansion across pumps, motors, VFDs, and solar structures.
- →Investment supports the goal to become a INR5,000 crores company within three years.
- →Strategic focus includes creating a fully integrated solar rooftop and pump business with in-house solar panel production.
- →Funding includes arrangements with multiple banks and term loans to support working capital and capex.
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