Ladies and gentlemen, good day, and welcome to the Q1 FY 2027 Earnings Conference Call hosted by Shakti Pumps Limited. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchtone phone. I now hand the conference over to Mr. Rohit Anand from Ernst & Young, LLP. Thank you, and over to you, sir.
Good afternoon, everyone. Before we proceed, let me remind you that the discussion may contain forward-looking statements that may involve known or unknown risk, uncertainties and other factors. It must be viewed in conjunction with our business risk that could cause future results, performance, or achievements to differ significantly from what is expressed or implied by such forward-looking statements.
To take us forward through the financial results and developments and to answer your questions today, we have the senior management of Shakti Pumps Limited, represented by Mr. Dinesh Patidar, Chairman, Mr. Ramesh Patidar, Managing Director, Mr. Ramakrishna Sataluri, CEO, Shakti Energy Solutions Limited, Mr. Dinesh Patel, Chief Financial Officer, Mr. Ravi Patidar, CS and Compliance Officer. We will start the call with a brief overview of the past quarter by Mr. Ramesh Patidar, our Managing Director. I will now hand over the call to Mr. Ramesh Patidar. Over to you, sir.
Thanks, Rohit. Good afternoon, everyone, and thank you for joining us on Shakti Pumps Q1 FY 2027 earnings call. We are pleased to share that the company has commenced FY 2027 on a strong note, delivering yet another record quarterly revenue and future building on the momentum witnessed in the previous quarter. Revenue for Q1 FY 2027 grew by 37.9% year-on-year to INR 859 crores as compared to INR 623 crores in Q1 FY 2026. This robust performance was driven by strong operational execution, continued traction in our core solar pump business, and sustained demand across key markets. The quarter's performance reflects the strength of our execution capabilities, our expanding market presence, and the continued relevance of our solution in supporting India's renewable energy and agricultural infrastructure priorities.
During the quarter, we achieved strong momentum in solar pump installations, with volume increasing by 57.6% year-on-year to 27,678 pumps in Q1 FY 2027, compared to 17,557 pumps in Q1 FY 2026. This growth was driven by robust execution of existing orders, healthy demand under state-led programs, and our continued ability to scale deployment efficiently across key markets. Our EBITDA margin remained broadly stable on a sequential basis at 9.6%. This performance highlights the resilience of our business model, the strength of our execution capabilities, and management's continued focus on driving profitable growth. On a corresponding basis, the margin remained under pressure due to the inflated raw material cost driven by the ongoing geopolitical situation as well as lower realization in some orders, as highlighted in the previous quarter as well.
We view these margin pressures as temporary and largely external in nature rather than reflective of any structural issue in the business. During Q1 FY 2027, the company reported a PAT of INR 52 crore, representing an increase of 35% over Q4 FY 2026. Despite revenues remaining broadly comparable on a subsequential basis, PAT margin improved to 6% in Q1 FY 2027 from 4.5% in Q4 FY 2026, reflecting disciplined cost management and profitability during the quarter. Our export business delivered a steady performance during the quarter, despite the continued geopolitical uncertainties impacting global trade and demand conditions. These resolutions reflect the strength of our trusted and leading market presence in key export markets. We continue to maintain a healthy and diversified order book of approximately INR 1,000 crore as on 22nd July 2026.
We are witnessing increasing visibility around the PM-KUSUM 2.0 scheme, along with growing traction from other state-led programs, which give us confidence in sustaining our growth momentum. We believe these opportunities position us strongly to further consolidate our leadership in the solar pump business. While the solar pump business continue to remain our core growth engine, we are also parallelly building the next phase of Shakti Pumps growth journey by diversifying into adjacent and complementary businesses. Our emerging B2C and retail sales business is witnessing encouraging traction, supported by the continued expansion of our dealer network. In Q1 FY 2027 this business recorded sales of INR 24 crore, registering a strong growth. Our solar rooftop business is also progressing well, and Mr. Ramakrishna Sataluri will provide a more detailed update on this business shortly. In the EV business, we are currently in a trial order phase with new customers.
While this phase is inherently time-taking, given the validation and onboarding requirements, we remain optimistic about the long-term potential of this business and expect it to gain meaningful momentum over the coming periods. We continue to invest ahead of the demand curve to ensure that we are well positioned to capture the next phase of growth. This includes the ongoing capacity expansion across pumps, motors, VFDs and solar structures, enabling us to strengthen our integrated manufacturing capabilities and support higher execution volume expected in future. Additionally, our 500 MW DCR module facility and 2.2 GW integrated DCR cell and module project remain on track, further reinforcing our backward integration strategy. To conclude, we remain committed to pursuing a strategic and disciplined approach to long-term growth while continuing to protect the strength of our balance sheet.
Our expanding portfolio across the renewable energy sector, our ongoing investment to build future-ready capacities and increasing policy support from the government position us at a unique inflection point to deliver sustainable performance in the future. I now request Mr. Ramakrishna Sataluri to share key development and the outlook of our solar rooftop business. Thank you.
Thank you very much, Mr. Ramesh Patidar. The rooftop business in this quarter showed a healthy growth. We clocked in INR 8 crores revenue as compared to INR 2 crores on a like-to-like quarter. There's been very good response from the market about our inverters. As we spoke about it earlier, too. Customers have got back to us and given us feedback that they are getting about 10% better generation with our inverters, which is a very good sign for us. We've taken the initiative to be a brand owner in the PM Surya Ghar Muft Bijli Yojana. We have registered ourselves. The 500 MW plant is coming up and coming up fast, and with this, we will become the only fully integrated rooftop service provider in the country. This is similar to what we are for the pumps industry. The government is doing an excellent job.
In the next phase, in consultations with various stakeholders, it's clear that the focus areas are quality, digitalization, and customer experience by providing end-to-end warranty. The Shakti brand will largely benefit because of this, because this is what we focus on. To quote our Chairman, "This is in the DNA of our business philosophy." I now open the call for questions. Thank you very much.
Thank you very much. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Himanshu Shivhare from MBA Investments. Please go ahead.
Hi. Good afternoon. My question is, can you give the update on PM-KUSUM 2 and the payment related issues that the company had and the sector had been seeing? There's been demand by farmers, written request to the ministers for heavy pumps. Is there any notification from any sort of ministries to the company? Also, how is El Niño impacting the demand structure of the company?
Okay, Himanshu. [Non-English content].
I'm sorry to interrupt, there seems to be some disturbance. One second.
Yes, Himanshu. [Non-English content].
Alright, thank you sir.
Thank you, Himanshu.
Thank you. The next question is from the line of Harshal Solanki from Equitree Capital. Please go ahead.
Good afternoon, thank you for the opportunity. [Non-English content]
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Okay, understood sir. [Non-English content ] sir, this was it. Thank you so much.
Thank you, Harshal.
Thank you. The next question is from the line of Ravan KV from Sequin Investments. Please go ahead.
Hi. Hello sir, can you hear me?
Yes.
Sir, I just want to understand out of the INR 1,000 crore order book, how much is our rooftop order?
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Next two quarters [Non-English content].
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Realization almost same , [Non-English content].
Understood sir. Thank you sir.
Thank you. The next question is from the line of Veer C. Mehta from Marwari Shares and Finance Limited. Please go ahead.
Hello sir, thank you for providing this opportunity. [Non-English content]
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Okay, thank you.
Thank you.
Thank you. Reminder for all participants, please press star and one to ask a question. Participants who wish to ask questions may press star and one. The next question is from the line of Prakhar Tibrewal from Choice Institutional Equities. Please go ahead.
Hello sir, congratulations on your set of numbers. [Non-English content]
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Okay sir, thank you so much.
Thank you. The next question is from the line of Praveen Motwani from BOIMF. Please go ahead.
Hi, thanks for the opportunity. Sir, just one question again on the margins front. Could you just give us some indication on the margins? From the last three quarters, we have been doing 10% odd margins. Directionally, how do we see that trajectory moving? Is that 10% is the bottom of the margins like from here on, we should expect improvement. Some directionally numbers should help us.
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Thank you, Praveen.
Thank you. The next question is from the line of Ronak Agarwal from Ithought PMS. Please go ahead.
Hello.
Yes.
Yeah. The company has indicated that backward integration will support for improvement in the margins over the next couple of years. However, by FY 2028 as more and more players will expand the capacity and competition increases. Do you think that the benefits from backward integrations could be offset by a lower government tender realization?
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Okay. Sir, in the presentation you have given that there is a order book of INR 1,000 crore currently which is there. Should we expect that this order book will get executed by the end of Q2 or is there any likelihood that the spillover can be there for the second half of the year?
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Sir, if you can give the order book of Q2 and Q3 and Q4 separately.
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[Non-English content] next two quarters we can approximately take INR 600 crore for Q2 and INR 400 crore for Q3. Am I right?
No sir. Actually, [Non-English content].
Okay. Basically INR 1,000 crore is the run rate for the upcoming next two quarters. There is sufficient order book available for the next two quarters.
What we mean to say that current INR 1,000 crore order book and there are few orders which are expected to come in some time. That is also added to the current order book.
Okay. Thank you. I will join back in the queue. Thank you.
Thank you. The next question is from the line of Kewal Gala from Anz on Capital. Please go ahead. Ladies and gentlemen, the line of the previous participant has been disconnected. We will move on to the next. Maitri Shah from Sapphire Capital. Please go ahead.
Hello. Am I audible?
Yes.
Hello, good afternoon. Congratulations on the result. Firstly, [Non-English content] we have guided [Non-English content] we are targeting a INR 5,000 crore revenue in the next three years. If you could help me out with the business split that we are expecting [Non-English content]. , how much we are expecting the motors business to contribute in that and how much are we expecting export to contribute?
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[Non-English content] portion we want to diversify into these new three segments that you are trying to expand.
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Thank you. There is no kind of concrete idea of [Non-English content] business will come.
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Got it. Currently [Non-English content] rooftop, the inverter business, what revenues are we clocking in right now? What margins are we looking right now? Once [Non-English content] , once we can give the integrated package, what kind of EBITDA margins we can expect sir?
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This is post Sapna getting modules and cells?
Yeah.
Got it. Yeah, that is it from my side. Thank you.
Thank you. The next question is from the line of Parth Sodha from Trinetra Asset Managers. Please go ahead.
Hello, my voice is coming?
Yes.
Yes. Sir, my question was that from last two quarters, our EBITDA margin has been around 10%, where our peer has been easily able to maintain the margin. In this bit, what we are doing wrong? What other issues we are facing for it?
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[Non-English content] There are so many activities we are handling in the field. That is the reason we are getting good orders and good mouth publicity from the farmers. That is the reason why we are getting orders back to back from Maharashtra also and other states also. We are continuing this leadership role in future also.
Okay, thank you.
Thank you.
Thank you. The next question is from the line of Sucrit Patil from Eyesight Fintrade Private Limited. Please go ahead.
Good afternoon to the team. I have two questions. The first question to Mr. Ramakrishna is, beyond the regular outlook, what are the top two to three execution priorities you are focusing on the next few quarters? Alongside that, what do you see as the biggest risk in demand shifts or competitive pressures? How are you preparing to manage them while strengthening Shakti Pumps' position in the domestic and export markets? That's my first question. I'll ask my second question after this. Thank you.
Yeah, good afternoon. Is your question related to the rooftop, or could you be a bit more specific?
Yeah, exactly. It's to the rooftop they suggest.
Yes. As far as the rooftop is concerned, as I said, now the focus is moving towards overall customer experience, wherein they are clearly looking at focusing on quality of products, digitalization in terms of how we are going to use digitalization for installation, data management and everything and third is how we are going to give the total experience that is giving an end-to-end warranty to the consumer. As we said that with this our 500 MW plant coming up, we will be the only fully integrated solar rooftop service provider. Because of this, you know about the quality of our products. The feedback is already there in the market. In addition to that, being a fully integrated rooftop service provider holds us in good stead to provide the end-to-end service warranty. This is where the entire market is heading to.
Thank you. My second question to Mr. Patel is, from a financial point of view, what key risks or challenges do you anticipate in the coming quarters, and what specific measures are being taken to manage margins, cash flow, and balance sheet strength, especially in areas like raw material cost, volatility, receivables, and regulatory compliance? Thank you.
There are so many things I need to add here. First of all, for working capital, we have working capital arrangement with around 10 banks, 10 odd lead banks from India and one from Qatar also. We have sufficient working capital arrangement of around INR 1,800 crore with these banks and we have one more collaboration or agreement for term loan for this project of solar 2.2 GW. That is around INR 800 crore. Another part is for realization. Realization we are continuing follow-up with our nodal agency to get the realization on time. We are getting it. You know that for vendor, we have a negotiation team and we have a policy, two to three vendors for any product. That kind of measurement we have taken for strengthening our balance sheet and maintaining our profitability.
Thank you and best wishes.
Thank you. The next question is from the line of Ankit Shah from Anand Rathi. Please go ahead.
Hello, am I audible?
Yes.
Yeah. My first question is on export side. Majority of the revenue from export is coming from Middle East. Is there any impact due to this war?
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Okay, thank you. One more question, how much we are expecting in this particular in terms of order inflows or order book?
Order book? Every quarter we are getting order of around INR 100 crore.
For export business.
For export business.
Okay. Thank you so much. That's it for me.
Thank you. The next question is from the line of Kewal Gala from Anz on Capital. Please go ahead.
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Okay. Thank you.
Thank you. The next question is from the line of Aryan Vijay from RV Investments. Please go ahead.
Hello?
Yes.
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Okay sir. Thank you.
Thank you.
Thank you. The next question is from the line of CA Ghanshyam Joshi from GGs Techno Funds. Please go ahead.
Yeah. Thank you for the opportunity. I am audible?
Yes.
Sir, in the last eight quarters' performance, revenue is increasing, but operating profit margin which was around 24%-25% in FY 2024-2025, that has gone down drastically to 10%. Can you explain how we are going to again achieve that percentage and can you give the bifurcation of whether this is purely due to the raw material inflation or it is part of competitive tender pricing, logistic cost, product mix? The second question is whether this decline in the operating profit margin is purely, primarily cyclical or there is any structural change?
Okay. For this margin, if you will see on Y-O-Y basis, there is an impact of around 10%. That is because of lower realization of sales price. That contributes for INR 25 crore, that is for around 4%. One more reason is the raw material price hike, and that is for 6%, that is contributing INR 36 crore in our EBITDA. If you are comparing from INR 144 crore to INR 83 crore, there is a reason for INR 61 crore difference in the EBITDA level. Second one is how we are seeing this impact. We are seeing it as a temporary impact because of the war reason. These raw material price get hiked and we are seeing that it will get smoothen in the next quarter onward.
Due to war, if the prices are increasing, are we taking any hedging position against the price increase?
No, we are not taking any hedging position right now because we are looking it as a temporary position.
Okay. Thank you, sir.
Thank you.
That's all from my side.
Thank you. The next question is from the line of Deepak Rathore, an individual investor. Please go ahead.
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Thank you.
Thank you. The next question is from the line of Varun Agarwal, an individual investor. Please go ahead.
Thank you for taking my question. Sir, [Non-English content] in this year?
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Thank you.
Thank you. The next question is from the line of Deepak Purswani from Svan Investments. Please go ahead.
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Okay. Thank you, sir.
Thank you. The next question is from the line of Prakhar Tibrewal from Choice Institutional Equities. Please go ahead.
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Okay. 800. Got it. Thank you sir.
Thank you. The next question is from the line of Divyansh Jaju from Trinetra Asset Managers. Please go ahead.
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Thank you.
Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Dinesh Patidar sir for closing comments. Please go ahead, sir.
Thank you [Non-English content] 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.