Shakti Pumps reported standalone net sales of ₹605.51 crore in June 2025, up 9.09% YoY. Explore detailed Q1 FY26 results, expert insights, stock reaction & EPS update.
In its Q1 FY26 update, Shakti Pumps (India) Ltd reported a 9.09% year-on-year rise in standalone net sales, reaching ₹605.51 crore in June 2025, compared to ₹555.05 crore in June 2024. The net profit also climbed 4.33% YoY to ₹94.41 crore. However, the market response has been cautious due to concerns about EPS decline, equity dilution, and monsoon-related slowdowns.
🔍 Key Financial Highlights – June 2025 vs June 2024
| Metric | June 2025 | June 2024 | Change |
|---|---|---|---|
| Net Sales | ₹605.51 Cr | ₹555.05 Cr | ▲ 9.09% |
| Net Profit | ₹94.41 Cr | ₹90.49 Cr | ▲ 4.33% |
| EBITDA | ₹138.55 Cr | ₹133.91 Cr | ▲ 3.47% |
| Basic EPS | ₹7.85 | ₹45.17 | ▼ -82.6% |
| Share Price (Aug 1, 2025) | ₹825.55 | — | ▲ 1.60% YoY |
| 6-Month Stock Return | — | — | ▼ -12.45% |
📈 Quarterly Performance Overview
📊 Revenue Growth in Detail
The company’s revenue from operations rose to ₹605.51 crore in June 2025, mainly driven by consistent demand in the agricultural and solar pump segments, both domestic and export. However, the 9.09% growth is slightly lower than the 10.85% growth seen in the March 2025 quarter.
“While the revenue trajectory remains positive, Q1 showed signs of margin pressure and EPS dilution,” said a stock analyst from Moneycontrol.
💰 Profitability Metrics
Despite revenue gains, net profit grew only 4.33% YoY to ₹94.41 crore. The relatively slower profit growth is attributed to:
- Increased raw material costs (₹441.19 Cr vs ₹342.30 Cr YoY)
- Slightly higher interest payments (₹8.27 Cr vs ₹7.98 Cr)
- Stagnant other income (~₹7.19 Cr)
📉 EPS Drop Sparks Concern
One of the biggest red flags for investors was the sharp fall in EPS (Earnings Per Share):
- June 2024: ₹45.17
- June 2025: ₹7.85
- Drop: -82.6%
This decline reflects the company’s continued equity dilution, as it raises capital through the issuance of shares rather than debt. While this may reduce the debt burden, it dilutes shareholder value.
📉 Market Reaction & Investor Sentiment
Shakti Pumps’ stock closed at ₹825.55 on NSE on August 1, 2025, witnessing:
- 1.60% gain YoY,
- But a –12.45% drop over 6 months, underperforming energy peers like JSW Energy and KPI Green.
According to Business Standard, “Shakti Pumps was dragged down after market hours due to investor disappointment around EPS drop and equity dilution concerns.”
🌦️ Impact of Monsoon & Installation Slowdown
Experts believe that the early monsoon this year may have slowed installation activities, especially in the agri sector. This seasonal factor, coupled with investor unease about the company’s fund-raising spree, has moderated market enthusiasm.
🧠 Expert Insights & Future Outlook
What Analysts Are Saying:
- Margins under pressure: Operating margins fell slightly despite revenue gains.
- Equity dilution strategy: Continues to be a concern for institutional investors.
- Product demand stable: Solar pumps & sustainable water solutions still show strong demand.
- Q2 expectations: Will depend on post-monsoon demand pickup.
📌 Note: Investors are advised to watch Q2 figures closely for confirmation of business recovery.
🔁 Comparison With Peers
| Company | Q1 Revenue Growth | Stock Trend (6M) |
|---|---|---|
| Shakti Pumps | ▲ 9.09% | ▼ -12.45% |
| JSW Energy | ▲ 11.2% | ▲ 8.5% |
| KPI Green Energy | ▲ 13.7% | ▲ 12.4% |
| Tata Power | ▲ 6.9% | ▲ 3.6% |
❓ FAQs on Shakti Pumps June 2025 Results
1. What is the revenue of Shakti Pumps in June 2025?
Shakti Pumps reported standalone net sales of ₹605.51 crore in June 2025, up 9.09% from ₹555.05 crore in June 2024.
2. Why did Shakti Pumps’ EPS drop sharply?
The drop in EPS (from ₹45.17 to ₹7.85) is due to equity dilution, as the company issued more shares instead of taking debt.
3. How did the stock react post-results?
The stock closed at ₹825.55 on August 1, 2025, but has shown a 6-month decline of -12.45% due to weak investor sentiment.
4. What are the prospects of Shakti Pumps?
Future performance hinges on post-monsoon demand, margin improvements, and investor trust over fundraising strategies.
5. Is Shakti Pumps a good stock to hold in 2025?
While fundamentals remain stable, investors should monitor EPS growth, debt-equity structure, and sector trends.
https://www.nseindia.com/get-quotes/equity?symbol=SHAKTIPUMP
✅ Final Verdict
While Shakti Pumps India continues to post steady revenue growth, investors are cautious due to EPS contraction, equity dilution, and seasonal installation delays. The stock’s medium-term movement will depend on how the company balances growth with shareholder value protection in upcoming quarters.
📣 Call to Action (CTA)
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