Why Did Shakti Pumps Shares Crash 13% Today?

Synopsis: Shakti Pumps India Ltd shares dropped 13% after Q3 results, with revenue down 15% YoY to ₹551 crore and net profit down 70% YoY to ₹31.7 crore. Its earnings per share (EPS) for the quarterly period stood at ₹2.57.

The shares of the Small-Cap company specializing in manufacturing energy-efficient solar pumps, submersible pumps, motors, and controllers, primarily for agricultural, industrial, and residential applications, are in focus after its decline by 13% in the day’s trade following its Q3 Results.

With a market capitalization of Rs. 7,192.87 Crores on the Day’s Trade, the shares of Shakti Pumps India Ltd declined upto 12.8 percent, reaching a low of Rs. 558.00 compared to its previous close of Rs. 640.35.

What Happened

Shakti Pumps India Ltd, engaged in manufacturing energy-efficient solar pumps, submersible pumps, motors, and controllers, primarily for agricultural, industrial, and residential applications, is in the spotlight following its Q3 results, as follows:

Its Revenue from operations declined by 15 percent YoY from Rs. 649 Crores in Q3FY25 to Rs. 551 Crores in Q3FY26, and it declined by 17 percent QoQ from Rs. 666 Crores in Q2FY26 to Rs. 551  Crores in Q3FY26.

Its Net profit YoY declined by 70 percent from Rs. 104 Crores in Q3FY25 to Rs. 31.7 Crores in Q3FY26, and on a QoQ basis, it declined by 65 percent from Rs. 90.7 Crores in Q2FY26 to Rs. 31.7 Crores in Q3FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 2.57, compared to Rs. 7.35 in the previous quarter.

Shakti Pumps (India) Limited Chairman, Mr Dinesh Patidar, commented on the company’s performance: This is a deliberate slowdown in execution in Maharashtra to manage high receivables, which led to lower revenues and EBITDA margins. Margins were further pressured by a 4% decline in Magel Tyala order realisations, rising raw material costs (copper, steel, solar panels), and higher employee expenses, including a one-time Rs. 44 Mn cost from the new labour code. 

Additionally, using inventory bought at elevated prices in Q2FY26 and investments in new segments increased costs, while revenues grew modestly despite a stable export performance.

Orderbook Overview & Others

As of 13th February 2026, the company’s order book stood at approximately Rs. 21,000 Mn, driven by strong recent order inflows of around Rs. 19,000 Mn across key states, including Madhya Pradesh, Jharkhand, Haryana, Maharashtra, and Karnataka.

A significant milestone this quarter was the company’s expansion into the Southern region, marked by its first order for 16,780 solar pumps worth Rs. 6,540 Mn, strengthening its market presence and opening new growth opportunities.

The company’s capacity expansion program is progressing well, with full confidence in meeting the disclosed timelines for both Pumps & Motors and the solar DCR cell and PV module plant. The ongoing capex plan of Rs. 17,000 Mn aims to significantly enhance production across multiple segments.

Post-expansion, the company plans to double its Pumps & Motors capacity to 10 lakh units by August 2026, increase structures to 2 lakh units, VFDs & inverters to 4 lakh units, and maintain EV motors and controllers at 2 lakh units each. Additionally, the DCR cells and PV modules plant is targeted to reach 2.2 GW capacity by March 2027, supported by a capex allocation of Rs. 12,000 Mn.

Other Highlights: The company invested Rs. 780 Mn in its wholly owned subsidiary to set up a greenfield high-efficiency solar DCR cell and PV module plant in Pithampur with a 2.2 GW capacity. 

During the quarter, led with 8,846 pump installations in Maharashtra’s Guinness World Record attempt under the Magel Tyala Saur Krushi Pump Yojana, contributing to a total of 45,911 solar water pump installations in just one month—one of the fastest and largest renewable irrigation rollouts globally.

SPIL, founded in 1982 as a partnership firm and later converted into a public limited company in 1995, manufactures solar pumps, energy-efficient stainless-steel submersible pumps, pressure booster pumps, pump-motors, and other related products. 

It is the only company in India that produces a wide range of components for solar pump installations in-house, including Variable Frequency Drives, structures, motors, and inverters. The company operates two manufacturing facilities in Pithampur, Madhya Pradesh, with a combined annual capacity of 500,000 pumps and motors.

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