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Shakti Pumps (India) Limited (SHAKTIPUMP) Q1 2026 Earnings Call Transcript

Shakti Pumps (India) Limited (NSE: SHAKTIPUMP) Q1 2026 Earnings Call dated Aug. 04, 2025

Corporate Participants:

Unidentified Speaker

Dinesh PatelChief Financial Officer

Ramakrishna SataluriChief Executive Officer

Dinesh PatidarChairman & Whole-time Director

Analysts:

Unidentified Participant

Rohit AnandAnalyst

Aashish UpganlawarAnalyst

Abhinav KapadiaAnalyst

CA Garvit GoyalAnalyst

Aditya SahuAnalyst

Rajesh VoraAnalyst

Nikhil AbhyankarAnalyst

Aditya VoraAnalyst

Snehal ShahAnalyst

Nilesh SoniAnalyst

Deepak PurswaniAnalyst

Surya PatraAnalyst

Presentation:

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Rohit AnandAnalyst

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Rohit AnandAnalyst

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operator

Ladies and gentlemen, you’ve been connected to Shakti Palms conference call. Please stay connected. The call will begin shortly. Participants, you have been connected to the Shakti Palms conference call. Please stay connected and the call will begin shortly. Ladies and gentlemen, you have been connected to Shakti Pump’s conference call. Please stay connected. The call will begin shortly.

operator

Good day and welcome to the Q1FY26 earnings conference call hosted by Shakti Pumps India Limited. As a reminder, all participant lines will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star and then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rohit Anand from Ernst and Young LLP. Thank you. And over to you, sir.

Rohit AnandAnalyst

Good afternoon everyone. Before we proceed, let me remind you that the discussion may contain forward looking statements that may involve known or unknown risks, uncertainties and other factors. It must be viewed in conjunction with our business risks that could cause future result, performance or achievements to differ significantly from what is expressed or implied by.

Rohit AnandAnalyst

Such forward looking statements.

Rohit AnandAnalyst

To take us through the financial results and developments and to answer your questions today we have the senior management of Shaktipam India Limited represented by Mr. Dinesh Patidar, Chairman. Mr. Ramakrishna CEO, Shakti Energy Solutions Limited Mr. Dinesh Patel, CFO and Mr. Ravi Patita, CS and Chief and Compliance Officer. We will start the call with brief overview of past quarter by Mr. Dinesh Patel. I will now hand over the call to Mr. Patel, our CFO. Over to you, sir.

Dinesh PatelChief Financial Officer

Thank you, Rohit. Good afternoon everyone and thank you for joining us today. It is my pleasure to welcome you to our Q1FY26 earning call. We have begun the current financial year on a strong note reflecting the strength and resilience of our diversified business model and disciplined execution. Our growth this quarter has been driven by robust performance in the solar pump segment, strong momentum in export market and the strategic investment in capacity and technology. We continue to lead the solar pump business maintaining approximately 25% market share across key states. As of 1st August 2025, our order book stood at approximately Rupees 1350 crore.

Supported by steady inflows and active participations in tender across Maharashtra, Madhya Pradesh, Rajasthan, Haryana, Punjab, Uttar Pradesh and Jharkhand, etc. We are now seeing decisive action from the central government which is working closely with states to accelerate implementation. We believe this will unlock substantial opportunities with meaningful order inflow and we remain confident in our ability to maintain leadership position while being selective in the order we pursue on the export front while executing market project globally, we continue to deliver strong results with around 25% CAGR over the past four years and having delivered successful projects in Uganda, Bangladesh, Nepal, Haiti etc.

With the growing demand for our products in USA, Middle east and Africa, we remain confident in our ability to sustain our growth in exports. We are witnessing good traction in our emerging business such as Solar rooftop motor and controller for EV segment and the retail business for solar pumps. We remain confident about the opportunity in the solar rooftop business driven by government initiatives such as PM Suryagra most visually in the solar rooftop space. We have initiated business in the states of Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh. I am happy to share that Mr. Ramkrishna Sataluri who leads this vertical will share his thoughts later on on our progress and outlook for this business.

Mr. Ramkar longest and most impactful tenure was at Tata power Solar System Ltd. Where he served as Executive Vice President and later Chief Product and Marketing. He also chaired the Board of directors of TP Renewable Microgrids Ltd. Demonstrating his leadership in renewable energy initiatives and product innovation. With his deep understanding of business strategy in renewable energy market, Ramkar sir will lead ACSL in its next phase of growth focusing on innovation, operational excellence and strengthening our market position. Let me discuss now about our EV business. We have also witnessed good traction in the EV business where we are receiving increasing inquiries and are undergoing trials.

Our efforts toward the solar pumps retail business also continue as we now have more than 100 exclusive outlets in key locations. Our products are well accepted and we are working to reduce dependency on government programs by growing our non government business. We are also investing in the future and for the same we are executing a CAPEX plan of Rupees seventeen hundred crore over the next two years. We had announced last year that we are doubling our capacity for pump and motors, solar structure and VFDN inverter. I am happy to share that our solar structure capacity has already increased from 1 lakh per annum to 2 lakh per annum and the VFD and inverter capacity has increased from 2 lakh per annum to 4 lakh per annum.

We are also in the process of stabilizing an EV motor controller and charger facility under our wholly owned subsidiary Sakti EV Mobility with an annual capacity of 2 lakh motor and 2 lakh controller and chargers which will require a total capex of rupees 250 crore. In addition to this we are also initiating the process to set up the 2.2 giga solar DCR cell and PV module plant in Pithampur, Madhya Pradesh. This requiring a total capex of Rs. 1200 crores. We successfully raised Rupees 2926 million through a QIP which will partially fund our Solar DCR sale and Solar CE module manufacturing project.

The balance capex will be financed through internal accruals and debt. These investments will enhance our manufacturing capabilities, improve integration and support long term growth. With a strong foundation, disciplined execution and a clear strategic roadmap, we are confident in delivering around 25 to 30% revenue growth in FY26 and sustaining this trajectory over the next three to four years. The opportunity ahead is immense and we are taking the right steps to build a strong, diversified and future ready business that delivers long term value to all our stakeholders. Now let me talk you all through the financial performance for Q1FY26.

Revenue for the quarter stood at rupees 623 crore reflecting a year on year growth of 10% compared to 568 crore in Q1FY25. EBITDA came in at rupees 144 crore up from rupees 136 crore in the same quarter last year with an EBITDA margin of 26.1%. Profit after tax for the quarter was Rupees 97 crore, an increase from Rupees 93 crore in Q1FY25. During the quarter India Rating and Research Private Limited upgraded the company’s credit rating to AA minus. Now I would like to request Mr. Ramkrishnan Sataluru Ji to share the development and outlook for the Solar Upta business.

Ramakrishna SataluriChief Executive Officer

Thank you, thank you, thank you very much Mr. Vinesh Patel. Good day to everyone. I’m Ram Krishna Satluri and I’m extremely delighted to be here to lead the rooftop business for Shakti Energy Solutions. This in India is seeing a significant growth. All of us are fully aware of the PM Suryagarmukt Bili Yojana where the government is looking at solarizing 1 crore rooftops. It’s got a very rapid pace. We have almost 58 lakh applications that have already been received by the government and in excess of 10 lakh installations already done. The speed is picking up and the opportunity is immense there.

I’m looking forward to leading this and doing good business here with a clear vision that by 2030 we will be the market leader in this Space I bring to the table about more than 30 years of experience really breaking it down into three large sectors. Office, automation, telecom and lastly as Dinesh said in renewable space. 20 years of my working career has been with the Tata group and it’s been immensely enriching. I now open the floor for some questions. Thank you.

Questions and Answers:

operator

Thank you very much. We’ll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue please press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Ashish Ugganlavar from InvestQPMS. Please go ahead.

Aashish Upganlawar

Yeah. Thank you for the opportunity. So wanted to understand because we order book has been continuously going down if we look at numbers for the past 3 4/4. So if you can elaborate on how things are going at the government central state and what’s the outlook on the order book. Because we understand that efforts are there from the government side and from the industry side to bulk up the kind of tenders and orders wherever but it’s not reflecting in terms of. In terms of awards and improvement in our order book.

Aashish Upganlawar

So.

Aashish Upganlawar

If we could please help us understand. That will be the first question.

Dinesh Patidar

Okay. Yes, this is very clear. This scheme is very good and going to be in big way. And this Ashish it is solar business is taking some time to install and installations and this. This order book. Order book. Our order book is already. Yes, it is very very. 22 quarter is enough for our business is order books, pipelines, export maybe both a chakra growth.

Aashish Upganlawar

You are close to all these things. The rooftop thing is a separate thing.

Dinesh Patel

Number one. Number two or coordinate the career of sari statement. May I be gry. So maybe a Chakam kara.

Aashish Upganlawar

Nayaki.

Dinesh Patidar

Or area co craft may convert Karthiya so Hamari Kesan aki Solar pumpka Kosum c.

Aashish Upganlawar

Local order book improvement.

Dinesh Patidar

Yes.

Aashish Upganlawar

So the Maraska say ordering or clarity.

Aashish Upganlawar

Thank you so much.

Dinesh Patel

Thank you Ashish.

Dinesh Patidar

Thank you.

operator

Thank you. Ladies and gentlemen we request you to please limit your questions to two per participants and rejoin the queue for the follow up question. The next question is from the line of equity broking. Please go ahead.

Abhinav Kapadia

Hello.

Dinesh Patel

Yes.

Abhinav Kapadia

Hi sir. Good evening. Good afternoon. My question is on the lines of the cost of materials consumed. So if we see that this quarter there has been a slight increase increase in the cost of materials that you have any particular reason for the same and where do we see that going forward? Okay and sir, second my second question is from the line of the EV mobility business. So have we had any order book for that or any execution? Because last quarter I believe that we had said that that is not set.

Dinesh Patidar

To amna bossy computers of the technology of the design approval situations.

Abhinav Kapadia

Okay sir, thank you. Thank you for the next question.

Dinesh Patidar

Thank you.

Abhinav Kapadia

Thank you sir.

operator

Thank you. Thank you. The next question is from the line.

operator

Of.

operator

Analytics advisories llp. Please go ahead.

CA Garvit Goyal

My question is on the fundraise part like we raised money by a QIP recently and now we are looking to borrow also I think we we approved a limit borrowing. So I want to just understand what is the perspective behind this. Like what is the management thinking while raising the money via qip while using the significant amount by borrowing. So what are the exact plans that we are looking for? So that’s my first question.

Dinesh Patel

Okay, so there is a. Actually we have already said that there is a plan of 1200 crore of capex in ACSL for DCR cell manufacturing NP module. So we are funding through equity for 33% which is minimum requirement of the bank for the loan and remaining part will be funded through our internal equity and debt. So that is the plan for this increase in the debt and that is only approvals from the shareholders. That is the only requirement. We are much confident that we are generating EBITDA every quarter at a much higher level. So we will more concern on the debt portion and we are minimizing it and we are expecting that we will take minimum loan and execute this project on timeline.

CA Garvit Goyal

Okay. And regarding the order book part like order book is obviously on the decreasing side quarter over quarter despite the confidence the management is showing regarding the order inflow. So my question is like means till now we are seeing about 25 30% growth for this year. But this quarter was kind of muted for us. Right. So I want to understand what is the plan for next nine months. What is giving us the confidence that we will be able to do 25 30% growth this year. And secondly on the margin side do you see like we will be able to do the similar margins that we did in Napa 25 for full year ever only 6.

Dinesh Patidar

Okay. Yes, you see quarter and quarter growth.

Dinesh Patidar

You.

Dinesh Patidar

You will see this already the special growth.

CA Garvit Goyal

We will be seeing more than 25 30% growth in next nine months.

Dinesh Patidar

Yes, yes.

CA Garvit Goyal

We used to give the guidance for next quarter. So what is the guidance for Q2 this time?

Dinesh Patel

Actually we are targeting for the our yearly target and which is 3000 crore for this last con column. Sir already said and we are maintaining that we are. We will do it 25 to 30 growth on year on year basis. And we are maintaining 24 EBITDA at year on year basis level.

CA Garvit Goyal

Thank you very much. For the future.

Dinesh Patel

Thank you. Thank you.

operator

Thank you. The next question is from the line of Aditya Sahu from HDFC Securities. Please go ahead.

Aditya Sahu

Hi.

Dinesh Patidar

Yes.

Aditya Sahu

Hello. Hi. I’m Audible.

Dinesh Patidar

Yeah, yeah.

operator

Yes sir.

Aditya Sahu

Yeah. Thank you for the opportunity. Sir, I had two questions. One of which was what would be the overall scope of the Kusuntu in terms of the total, you know order that you’re expecting in the Kusum.

Dinesh Patidar

Yes. Yes.

Dinesh Patidar

Yes.

Dinesh Patidar

Yes.

Aditya Sahu

Okay.

Dinesh Patidar

Plant growth.

Aditya Sahu

I just wanted to understand from your perspective including you know how.

Dinesh Patidar

See growth.

Aditya Sahu

Thank you.

Dinesh Patidar

Thank you.

Aditya Sahu

I don’t have any more questions.

Dinesh Patidar

Thank you.

Dinesh Patel

Can you take next question? Are you there?

operator

Yes sir. Yes sir. The next question is from the line of Rajesh Vora from Janma Venture. Please go ahead.

Rajesh Vora

Good afternoon.

Dinesh Patel

Currently we are working at around 60% capacity. And for solar business we have sold out around 17,500 units. That amounts to around 452 crore for this quarter.

Rajesh Vora

Okay. And my second question is to Mr. Ramakrishna. Very interesting to see that Shakti Pumps is taking the initiative on rooftop business. You told you said that Shakti wants to be number one in the rooftop market. So can you elaborate a little bit on the strategy and how you plan to get there? Yeah.

Ramakrishna Sataluri

One, we have a clear vision of getting to market leadership by 2030. What we are doing right now is keeping that as a vision. Now we are working backwards as to how we are going to get there. We are now getting into the minute details of every data point and putting the strategy and the business plans together which we will share in due course of action.

Rajesh Vora

And when you say number one you mean currently number one of course is your previous company as with 13% market share. So is it fair to say that we are looking at double digit market share by then?

Ramakrishna Sataluri

Whatever it takes to be the market leader. If it is double digit, so be it.

Rajesh Vora

Okay.

Rajesh Vora

All the very best.

Rajesh Vora

Thank you.

Ramakrishna Sataluri

Thank you very much.

operator

Thank you. The next question is from Nikhil Abhyankar from UTI Mutual fund. Please go ahead.

Nikhil Abhyankar

I’ve got just one question. So in the recent tenders I feel that the realizations are coming off. I mean for five HP firms the most tender has gone for 2.5 lakh. Whereas our average realization last year was 2.7 odd lakh. So in this scenario how do you really expect to maintain the margin at current levels? And are you actually seeing some kind of moderation in module costs for you?

Dinesh Patidar

Sure.

Nikhil Abhyankar

That’s all from us. Thank you.

Dinesh Patidar

Thank you.

operator

Thank you. The next question is from the line of Aditya Vora from Soham Asset Management. Please go ahead.

Aditya Vora

Hi sir. Thank you for the opportunity. One is presentation that your receivable is going to go to 120 days. Now I understand that I think 75, 77% of your business is through government difficult here. So can you just guide us that from your current 150, 152 days, 30 days.

Dinesh Patel

Actually we are in this business in since last 12 to 13 years and our historical trend is also 120 to 130 days and we are just targeting that trend only. So last year also we have done very good job. So once from 178 days we have reduced it to 152 days and now we are targeting by end of this year to 120 days. So there is not much we are seeing and we know how can we do this.

Aditya Vora

Right. So you’re saying by FY26 and this 120 day number is very achievable.

Dinesh Patel

Yeah, that is achievable and that is our target. We will achieve much confident.

Aditya Vora

Okay. And secondly it was more of a broader question since this kosum part 2 is going to come maybe this year or start of next year and obviously this scheme is going to be much bigger, is expected to be much bigger than the current scheme. In that case do you see any pressure on your margins going forward? Like I know you’ve guided your 24 margins but you know since competition heats up and since this becomes much bigger can margins be under pressure? Because historically we have not been at this higher level.

Dinesh Patidar

Amara Iska Credit Department Scope Departments Major Costing Pejo Kam Ki Process Import Service Provider Wetage Bilay Hamari Kutki company May Hamari Kutki RND Department Performance Field Member.

Aditya Vora

Right. So that was very helpful. Last question if I may. Backward integration going Forward next year 27 how much benefit do we see in terms of margins? And one more question related to that is won’t it make sense to get DCR cells from outside considering that going forward there is a lot of capacities coming in. I think it is estimated that the cell capacity in India is going to double and as a result the prices may go down, down. So is it more prudent to get it from outside say Two years later. Or rather make your own capacity which you are doing.

Dinesh Patidar

First of all, 13 giga requirement. Yes. Solar panel. KB marketing expenses. Manufacturing, export market. May be Hamari consumption.

Aditya Vora

Thank you so much for the detailed explanation.

Dinesh Patidar

Thank you.

operator

Thank you. The next question is from the line of Snehal Shah, an individual investor. Please go ahead.

Snehal Shah

Under the subsidy scheme. Yes sir. We will check and we’ll rectify if required. Correct? Correct.

operator

Thank you. The next question is from the line of Nilesh Soni from JM Financial. Please go ahead.

Nilesh Soni

Thank you for the opportunity. And secondly.

operator

Sorry to interrupt but I request you to please use your hands if you are asking a question.

Nilesh Soni

Yeah. Sorry. Hello.

Nilesh Soni

Industry level.

Nilesh Soni

Directly.

Nilesh Soni

Farmer.

Dinesh Patel

Directly.

Rohit Anand

Okay. Or cash market. Kia Joe Bhattap Kara. 50% price. Kiju Kisanoki Bhatna performance.

Nilesh Soni

Okay.

Nilesh Soni

Electric pumps.

Dinesh Patidar

You say Subsebra.

Nilesh Soni

Okay. Okay. Okay. Okay. Okay.

Nilesh Soni

Okay. Got it.

Nilesh Soni

Got it. Thank you.

Dinesh Patidar

Thank you. Thank you.

operator

Thank you. The next question is from the line of people. Swani from Swan Investments. Please go ahead.

Deepak Purswani

Yeah. Good afternoon sir and thank you. For the opportunity, sir.

Deepak Purswani

Or Peak level of debt.

Dinesh Patel

So that capacity will get operated from March 27 and the peak level date if you will say as of today. So we are planning for around 900. Yeah. But we are much confident that existing EBITDA level which we are incurring approximately 100 crore on each and every quarter. So we are expecting lesser debt for this project.

Deepak Purswani

Okay. And secondly sir, rooftop solar business case in terms of the distribution network. Or.

Deepak Purswani

Distribution network. Distribution network.

Ramakrishna Sataluri

Yes. It’s a.

Ramakrishna Sataluri

It’s a.

Ramakrishna Sataluri

It’s a good point for this. Since it’s a government run subsidy program. So we will be using our capacity for the rooftop program. And so therefore it will be a complete in house solution.

Deepak Purswani

Point 2 Joe capacity solar cell pump plus based on the current.

Dinesh Patel

First the priority in house consumption. So.

Dinesh Patel

Additional requirement. Okay. And.

Ramakrishna Sataluri

The distribution network. Obviously a business may it requires a strong distribution robust coverage and distribution network. Yes. We will give an option to the existing channel partners if they want to grow further with Shakti Parivar.

Deepak Purswani

Okay. And presentation. We have also mentioned 250 crore mobility and EV motor and charger facility. Under the evidence potentially next three, four years down the line like we have projected for 250 crore for the CV business. And in phase one we have already done the capex of around 114 crore which is already planned in the board meeting. And we are expecting that this capacity sufficient for around 500 to 700 crore business. Currently we are. We have a capacity of around 2 lakh motors and 2 lakh controller and chargers in this facility. So that is covering the area of around 8 acres.

Okay, thank you. Okay, thank you and wish you all the best.

operator

Thank you. The next question is from the line of Surya from Philip Capital Pct. Please go ahead.

Surya Patra

First of all thank you for the opportunity. Regarding the solar water pumps that we are doing raw materials, what all are we doing in house and what are.

Surya Patra

We sourcing from outside?

Dinesh Patel

We are sourcing only solar panels from outside and whatever other BOQ which is. We are totally record integrated inverter, 3 kilowatt, 5 kilowatt competitor made in India, Indian products.

Surya Patra

Understood sir. And so the second question I have.

Surya Patra

Is like.

Dinesh Patel

Currently 20% exports, 80% solar business. So we are much confident that we will do good business in export, export and domestic. So we are reducing dependency on government business.

Surya Patra

In terms of solar pumps and EPC rooftop ventures.

Dinesh Patel

Yes, yes. That is why we have planned for EV for rooftop.

Surya Patra

Solar form span of. So going forward Kitna Ragaska or Bakika Cafe.

Dinesh Patel

Quarter on quarter.

Surya Patra

Thank you.

Dinesh Patidar

Thank you.

operator

Thank you. The next question is from the line of Divya from Bonanza Portfolio. Please go ahead.

Unidentified Participant

Hello.

Dinesh Patidar

Am I audible?

Unidentified Participant

Yeah, yeah nicely. Sir. Sir, as a question we are not able to see any traction.

Dinesh Patidar

138.

Unidentified Participant

Okay. Thank you sir. And so my second question is like for exports we have seen from last year I think is there any new territory or country which we have entered or Uganda projects.

Dinesh Patel

So for current year we are planning for around 500 crore from export and whatever quarter you have seen in our order book that is around 100 crores for Uganda and other African countries and 100 crores from other territories.

Unidentified Participant

Okay sir. Thank you. So that’s all from a science fault.

Dinesh Patel

Thank you.

operator

Thank you. Due to time constraints we’ll take this as the last question for today. I now hand the conference over to Mr. Dinesh Patidar for closing comments.

Dinesh Patidar

Thank you very much. Thank you very much.

operator

Thank you very much on behalf of Shakti Pumps India limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.

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