1. At a Glance
Shakti Pumps isn’t just moving water—it’s moving markets. From humble submersibles to a ₹10,674 Cr market cap, this Indore-based company has become India’s poster child for solar irrigation. With25% market share in PM-KUSUMand a fresh₹1,037 Cr Maharashtra order, it’s practically the government’s plumbing contractor. Add EV motors, exports to 100+ countries, and a capex plan to double capacity, and suddenly pumps sound sexier than startups. But wait—promoter holding slipped to50.3%, and receivables stand at152 days, making collections as tough as getting a Delhi Jal Board tanker on time.
2. Introduction
In India, water isn’t just life—it’s politics, business, and sometimes breaking news. Enter Shakti Pumps, the desi manufacturer quietly building a mini empire of solar pumps, submersible motors, and controllers. From rural fields in Rajasthan to international solar projects in Africa, Shakti has found a lucrative formula: when water flows, so does revenue.
The story gets juicier with government schemes. Shakti has installed1,14,900+ solar pumpsunder PM-KUSUM, ensuring that when politicians promise irrigation for every farmer, Shakti quietly bills the government. Over 69% of revenue now comes from government orders, compared to just 32% five years ago. That’s called playing the subsidy game right.
And they’re not stopping at pumps. Shakti EV Mobility, a subsidiary, is building motors, charging stations, and BMS for electric 2W/3W. In short, they want to be as relevant in e-mobility as they are in irrigation. Throw in exports to 100+ countries and contracts like aUSD 35 Mn Uganda solar water project, and the company suddenly looks like a global player.
The numbers tell a story of speed: sales grew at a46% CAGR in 5 years, profits at99% CAGR, and stock at96% CAGR over 5 years. The only thing growing faster? Their debtors.
3. Business Model (WTF Do They Even Do?)
Shakti Pumps has three main turbochargers:
- Pumps & Motors (core breadwinner):Everything from submersibles to solar-powered to booster pumps. Farmers love them, industries use them, and the government subsidizes them. Jackpot.
- Solar Solutions:They’re a top supplier under PM-KUSUM with tech like controllers, drives, and solar structures. A government-backed annuity disguised as pumps.
- Shakti EV Mobility (future bet):EV motors, chargers, BMS. Mostly
- small-ticket now, but could ride India’s EV adoption.
Key revenue mix FY24:
- Govt Projects: 69%
- Exports: 21%
- Others: 10% (industrial firefighting, OEMs, domestic use)
Order book? A juicy₹1,800 Cr(Q2 FY25), more than half their FY25 revenue. Capacity? 5 lakh pumps annually, doubling post new₹560 Cr capex.
4. Financials Overview
| Metric | Latest Qtr (Jun ’25) | YoY Qtr (Jun ’24) | Prev Qtr (Mar ’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹622 Cr | ₹568 Cr | ₹665 Cr | +9.7% | -6.5% |
| EBITDA | ₹144 Cr | ₹136 Cr | ₹164 Cr | +5.9% | -12.2% |
| PAT | ₹96.8 Cr | ₹93 Cr | ₹110 Cr | +4.5% | -12.0% |
| EPS (₹) | 8.06 | 7.71 | 9.17 | +4.5% | -12.1% |
Commentary:Sales grew, profits improved YoY, but margins slipped QoQ—probably due to working capital stress. Annualized EPS ~₹32.2 → CMP ₹865 gives aP/E ~27. Not dirt-cheap, not Nestlé-expensive, but solid for growth.
5. Valuation (Fair Value RANGE only)
- P/E Method:Sector average ~36, Shakti EPS annualized ₹32 → FV ₹800–₹1,150.
- EV/EBITDA:EV ₹10,673 Cr / EBITDA ₹611 Cr ≈ 17.5x. Peer average ~20x → FV ₹850–₹1,100.
- DCF:Assuming 20% growth, WACC 11%, terminal 4% → FV ~₹900–₹1,200.
Fair Value Range:₹800–₹1,150“This FV range is for educational purposes only and is not investment advice.”
6. What’s Cooking – News, Triggers, Drama
- Mega Orders:₹1,037 Cr from Maharashtra (Aug 2025). Largest ever? Almost a year’s PAT in one swoop.
- Capex Expansion:₹560 Cr to double capacity. Revenue potential up by ₹2,500 Cr. Execution risk is
