Shakti Pumps, a diesel engine maker, witnessed sharp selling pressure on August 4th, nosediving by at least 8% after its Q1 result for FY26. Shakti Pumps shares faced a bearish trend after its EBITDA margins and PAT margins contracted sharply on a YoY basis in Q1FY276, while it recorded single-digit growth in revenue and PAT. Shakti Pumps has rewarded investors with a 5:1 bonus issue and Rs 4 dividend per share in the past 12 months. Should you buy or sell the stock?
Shakti Pumps Share Price:
After market hours of August 4th, Shakti Pumps' share price closed at Rs 826.20 apiece on BSE, down by 7.53% with a market cap of Rs 10,195.14 crore. The stock declined by at least 8% after hitting an intraday low of Rs 822 apiece on Monday.
As of August 4, Shakti Pumps' return on equity (ROE) is at 46.66%, while its price-to-equity ratio is at 25.64x.
Shakti Pumps Q1 Results:
During Q1FY26, Shakti Pumps reported 9.7% YoY growth in revenue to Rs 622.5 crore, while its PAT stood at Rs 96.8 crore, up by 4.5% YoY. However, EBITDA and PAT margins dropped by 87 basis points and 77 basis points to 23.1% and 15.6% year-on-year.
Despite this, Shakti Pumps is optimistic going forward in FY26. Chairman Dinesh Patidar, commented, "We continue to lead the PM-KUSUM scheme with approximately 25% market share across major Indian agricultural states. As of 1st August 2025, our order book stood at approximately Rs. 13,500 Mn, supported by steady inflows and active participation in tenders across states like Maharashtra, Madhya Pradesh, Rajasthan, Haryana, Punjab, Uttar Pradesh, Jharkhand, etc. Our presence in these markets, built over more than a decade, positions us well to capitalise on the growing demand."
He added, "The rooftop solar segment is also gaining traction, supported by government initiatives such as PM Surya Ghar: Muft Bijli Yojana. We are actively expanding our footprint in this space, alongside our efforts in the domestic, industrial, and EV segments."
"Our export business continues to be a key growth lever, delivering a ~25% CAGR over the past four years. With successful projects in Haiti, Uganda, Bangladesh, Nepal and growing demand from USA, Middle East and Africa, we remain confident in our ability to sustain this momentum," said the chairman.
Looking ahead, Shakti Pumps remain committed to delivering 25-30% revenue growth in FY26 and sustaining this trajectory over the next 3-4 years. The chairman added, "Our strategic focus on clean energy, backed by operational discipline and a strong order pipeline, positions us well for long-term value creation."
Shakti Pumps Bonus Issue And Dividend:
In the past 12 months, the company has rewarded investors with bonus issue and dividends. Last year, in November 2024, the stock turned ex-bonus for bonus issue ratio of 5:1. That meant the company rewarded investors with 5 free shares on existing 1 equity share.
Also, the company paid dividend of Rs 4 per share, which is highest since September 2022.
Is Shakti Pumps Stock Attractive?
According to MarketsMojo report, Shakti Pumps (India) has faced a notable decline in stock performance, underperforming its sector and experiencing significant drops over various time frames. Despite impressive long-term growth over the past three to five years, the stock currently trades below multiple moving averages, indicating a challenging market environment.
Despite the recent downturn, Shakti Pumps has shown impressive long-term growth, with a remarkable increase of 967.63% over the past three years and an astounding 2779.10% rise over the last five years. However, the current trading situation indicates that the stock is below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, reflecting a challenging market position, said MarketsMojo's latest note.
About Shakti Pumps:
Shakti Pumps (India) Limited is a trailblazer in the field of energy-efficient pumping solutions, proudly driving innovation in India's water and renewable energy landscape since 1982. Headquartered in Pithampur, Madhya Pradesh, the company stands as a global leader in the design and manufacture of high-performance pumps and motors, with a deep commitment to sustainability and self-reliance.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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