Shakti Pumps (India) Limited – Investor Presentation Summary

Key Operational Highlights

  • Solar pump installations rose 29.3% year-on-year to 51,543 units during H1 FY27
  • Cumulative solar pumps installed till date: ~2.85 lakh units
  • Order book stood at ₹7,510 Mn as of 23rd October 2026
  • 0.5 GW of planned 2.2 GW solar module capacity commenced trial production in October 2026

Key drivers of operational performance: Strong execution on government solar pump schemes including PM-KUSUM, geographic expansion across multiple states, and export market penetration.

Segment-wise Performance

  • Government Business: 86,086 solar pumps installed in FY26, representing ~25% market share under PM-KUSUM scheme
  • Export Business: ₹4,110 Mn export revenue in FY26 with geographic split: Middle East (41.1%), Africa (33.4%), United States (19.1%), Asia (3.8%), RoW (2.6%)
  • Retail/Cash Sales Business: ₹770 Mn revenue from cash sales in FY26
  • Industrial/OEM Business: Products used in fire-fighting, sewage, heating & cooling systems, with customers including L&T, Mahindra, REIL, Adani & Tata Power

Explanation of significant changes in segment performance: Growth driven by continued government support for solar irrigation programs and expanding international presence across 100+ countries.

Financial Highlights

Revenue: ₹16,047 Mn (H1 FY27)

EBITDA: ₹1,469 Mn (H1 FY27)

PAT: ₹901 Mn (H1 FY27)

EPS: Not specified

Margins: EBITDA Margin 9.2% (H1 FY27), PAT Margin 5.6% (H1 FY27)

YoY/QoQ comparison: Revenue grew 24.5% YoY in H1 FY27 (₹16,047 Mn vs ₹12,889 Mn), while EBITDA declined 47.4% YoY (₹1,469 Mn vs ₹2,795 Mn)

Drivers of financial performance: Revenue growth driven by strong execution and increased solar pump installations; margin pressure due to lower realizations, higher raw material costs, and elevated logistics expenses owing to prevailing geopolitical tensions.

Comparison to market estimates: Not specified

Key Risks: Lower realizations, increase in raw material costs, higher logistics costs due to geopolitical tensions.

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Export revenue was ₹4,110 Mn in FY26

Regional Breakdown: Middle East (41.1%), Africa (33.4%), United States (19.1%), Asia (3.8%), RoW (2.6%)

Balance Sheet Snapshot

Net Debt/Equity: Not specified

Reserves: Not specified

Current Assets/Liabilities: Current Assets ₹28,862 Mn (Sep-26), Current Liabilities ₹5,954 Mn (Sep-26)

Working Capital/Leverage Metrics: Trade Receivables stood at ₹17,501 Mn as on 23rd October 2026, with around 50% not yet due and another 22% due for less than 180 days

Financial Health Insights: Strong cash profit generation of ₹1,058 Mn in H1 FY27, though net cash from operating activities was negative ₹4,481 Mn due to working capital changes.

Capex & Cash Flow Health

Capital Expenditure: Investing ₹17,000 Mn in capacity expansion including doubling core pump/motor capacities and 2.2 GW solar cell/module manufacturing

Free Cash Flow: Not specified

Operating Cash Flow: Net cash from operating activities was negative ₹4,481 Mn (Sep-26)

Net Debt Movement: Term loans increased to ₹1,080 Mn (Sep-26) from ₹408 Mn (Mar-26)

Investment Rationale: Backward integration into solar cell and module manufacturing to secure supply, improve cost optimization, and enhance long-term profitability.

Strategic & R&D Initiatives

Investments in Innovation: 2.2 GW solar DCR cell facility (expected commissioning by FY28), 2.2 GW solar module capacity (0.5 GW trial production started), EV motors/controllers/chargers through subsidiary Shakti EV Mobility Pvt. Ltd. (₹920 Mn invested of planned ₹1,140 Mn)

Expected impact on growth: Solar module capacity will support domestic content requirements for government schemes; EV business positions company for clean mobility transition

Strategic Rationale: Transforming from solar pumping company to integrated renewable energy solutions provider with diversification into solar rooftop and EV components.

Industry Trends & Business Environment

Macro/Industry Trends: PM-KUSUM scheme creating structural market opportunity estimated at ₹5.5 Trillion for solar irrigation; government commitment to diesel-to-solar transition; International Solar Alliance (ISA) showing demand for 2,70,000+ solar pumps across 22 countries

Impact on Company: Policy-backed tender pipeline provides recurring visibility; execution capability becomes competitive advantage; installed base drives follow-on service and replacement demand.

Management Commentary & Growth Outlook

Strategic Outlook: "We see significant opportunities under PM-KUSUM 2.0, which is expected to be announced during the ongoing quarter, along with continuous order inflow from Magel Tyala and other state programmes"

FY Guidance: Not specified

Market Share Targets: Current ~25% market share under PM-KUSUM scheme

Risks and Opportunities: Margin pressures from input costs and logistics; opportunities from expected PM-KUSUM 2.0 announcement and growing international demand for energy-efficient pumping solutions.

ESG Updates

  • Received ICRA ESG Impact Rating 78, Good – ESG Rating from ICRA in August 2026
  • Water consumption intensity of 9.89 m3 per ₹ Crore
  • Waste generation intensity of 2.55 tonne per ₹ Crore
  • Helped replace over 300 MW of diesel pumps equivalent capacity, contributing to significant emission reduction
  • Social initiatives include adoption of school, free medical facilities, health camps, and donations for construction projects