Shakti Pumps (India) Limited (SHAKTIPUMP) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Q4 and full year FY26 earnings conference call, hosted by Shakti Pumps, India Limited. As a reminder, all participant clients 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, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rohit Anand from Ernst & Young, LLP. Thank you, and over to you, Mr. Anand.

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 development, and to answer your question today, we have the Senior Management of Shakti Pump India Limited, represented by Mr. Dinesh Patithar, Chairman, Mr. Ramesh Patithar, Managing Director, Mr. Ramakrishna Satluri, Chief Executive Officer, Shakti Energy Solutions Limited, Mr. Dinesh Patithar, Chief Financial Officer, and Mr. Ravi Patithar, Company Secretary and Compliance Officer. We will start the call with a brief overview of the past quarter and full year FY26 by Mr. Ramesh Patithar, our managing director. I will now hand over the call to Mr. Ramesh Patithar. So, over to you, sir.

Thanks, Roy. Good afternoon, everyone, and thank you for joining us on Sakti Pump's Q4 FY26 earning calls. FY26 marked a strategic transition year for the company, one where we deliberately balance growth with financial discipline. Our priorities throughout the year was clear to strengthen the balance sheet, improve case conversion, and build a resilient operating platform capable of delivering sustainable long-term growth, while continuing to reinforce our leadership in the solar pumping segment. The company delivered its highest ever consolidated revenue of Rs.2698 in FY26. With Q4 FY26 revenue at Rs.858, also the highest in the single quarter, this performance was backed by a strong execution ramp-up with solar pump installation increasing 20% year-on-year to 86086 units in FY26. And a robust 51% year-on-year growth in Q4-F26 to 28,345 installations. The strong exit run rate in the fourth quarter underlines our improved execution capabilities and sustained traction across key states. Thank you. Medical headwinds, not structural issue. The following week, we have discussed the Q&A at approximately 16% for FY26, reinforcing the robustness of our operating model and our ability to protect profitability while maintaining execution momentum. Crucially, we have not persuaded growth at the cost of balance sheet strength. FY26 focused on disciplined execution. This is now clearly reflected in our financial. Receivables were reduced by over Rs.420. From 197 crore, age of December 31, 2025, to Rs. 1276 crore, age of March 31, 2026, representing a 77-day improvement in receivable days. This was achieved even as Underscoring our strong focus on working capital efficiency, as a result, the company generated health. Thank you. The improvement in case conversion is key pillar of our long-term strategy and position us Providing strong revenue and visibility. On the export front, FO26 saw a stable performance. During the Q4, exports were temporarily affected due to the delays in order placement amid geopolitical tensions in the Middle East. The growth in our case-based domestic business has enhanced revenue, diversification, and further supported working capital efficiencies. Beyond our core solar pumping business, we are also looking into related areas. We are aligned with India's clean energy transition and offer attractive medium-to-long-term opportunities. Saktipams remain committed to growing responsibly, protecting the balance sheet, preserving cash flows, and investing for the long term. We are confident that the fundamentals of the business remain strong, and the steps taken in FF26 ensure that we in a better position, more resilient and Good afternoon, everybody.

Just to take it from where he has left, the strong fundamentals and the excellent product quality has really helped the... It belongs to the inverter, and therefore, we place a lot of inverters in the market to check the feedback. Given that the strong Shakti brand acceptance is pretty good, the feedback also for this product is very good. We have partners and we have customers who come back to us and say that whenever there is a Shakti inverter that has been installed, we are having about roughly 10% better generation, which augurs very well for this business. We have already set the channel up in most of the places. That's a continuous process, but we have some very good distributors set across the country. We are looking forward to some very good numbers in this financial year. This year really looks very good for us. Thank you very much, and now I open the floor.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Prakar Dibriwal from Choice Institutional Equities. Please go ahead.

Yeah. Hello, sir. Congratulations for our record-breaking revenue number. My question is regarding the margins. So, do we see a way back to the peak margins of 24% we saw in H1, FY26, and back in FY25, or are we expected to remain at the current levels?

Yes, we are working on the margin, and we are also working on the margin. I would like to say that the margin that you are seeing is the effect of Ram Metal pricing, which is not in control. Ram Metal price, copper, stainless steel and silicon sheets, there is also a lot of variation in the dollar. We always think that we are working on the margin. Thank you.

Sir, actually, it is a temporary impact, just because of this war and other things. I think that this will be a little bit later, and the margin will improve again.

Okay, so do we see it coming back to, like, 20? Again?

Now, we will comment a little early. Once the things get back, then I will...

Once the war is settled, then we will talk about it. We will update you in Q1.

Sir, how much is the impact of the lower realization, approximately?

3-4% of the impact. He said that he has a tender for the recent number.

Okay. Are we expecting the follow-up for FY27? Which states are we expecting?

Now, we have our order book, and we think that the Prime Minister of Kusub had a speech on the solar pump, so Kusub 2.0 is a good way to come, and until we go, until we see our two quarters, until the Kusub will come, until the Kusub will come, until the Kusub will come, until the Kusub will come, until the Kusub will come.

Okay. Okay. Thank you.

Thank you. Thank you.

Thank you. Our next question is from the line of Ashish Upangalavar from Invesq PMS. Please go ahead.

Thank you. Thank you.

Thank you. And almost, you can see, 800 crore, top line, after quarter, we received $1200 crore. So, on the receivable side, there was a lot of improvement, balance-free restraints, and we said that the receivable will be timely, then we will increase our execution. So, that's what we did. So, the quarter is good. The remaining remaining $1200 crore, the receivable, you can see, $900 crore is not due. Thank you.

I mean, not due, but it's time before which you can raise the resistance, like after installation.

Yeah, as far as tender terms, after installation, 7 days of RMS, and for 10% of the price, 90 days of RMS. So, when it's not due, it's not due to recover. Good morning, everyone, and welcome to the call.

Yes, that means 100 days of money will be blocked by the receivables.

This is always historical, that we are receiving the receivables from 120 to 150 days.

Okay. And sir, the realization of the competitive intensity has increased in the market, in the standard. So, do you know a little bit about that?

What is it that, of course, our friends, who are our friends, are big numbers, but our current price is also... Thank you. Thank you.

Sir, there are some L1 criteria now that we match the minimum price, so do we go first with profitability?

This is a part of life, we keep going back and forth, but the L1 criteria, we also do business. Today, the business was done in the last year, the business was done in the L1 category. I hope that the tender condition will be good, and we can do business better. Thank you.

I know we can margin out of here, but I think it's okay to share it with us.

Thank you. Thank you.

Sir, I have seen the order book position, but I haven't studied it yet, but what is the situation, what is the next year's top line, and where are the orders coming from? And the other thing, I have asked the question, what is the government's stance, and what is the deal happening, and what is the clarity.

So, if you look at the price list or the investor's presentation, then we have an order book in 1500 crore. Good morning, everyone, and welcome to the call. Now we're talking about the call. We're talking about the call, and we're talking about the call, and we're talking about the call.

Thank you. Our next question is from the line of Ankit Shah from Anandrathi. Please go ahead.

Hello, am I audible?

You are audible, sir. You may proceed.

Yes, sir. Sir, our margin staff was 25%, now it was 10%, and our revenue year-to-year increased, but how do you get the advantage of the operating leverage?

2-3% of the operating leverage.

2-3%, okay. And how did the raw metal price impact?

The raw metal price was around 6-7% of the impact in this quarter.

Okay, 6-7% of raw material impact and 3-4% of operating everything impact. And how much impact on the realization?

In the realization, there is an impact of 77 days. We talked about Q3 and Q4. From 1697, we have received the receivables from 1200, even though we have had the highest highest ever. Okay, okay.

And your receivable is around 1200 more corona, right? So how much is it in the receivable days?

It will depend on the execution of the next quarter and quarter.

Okay. And can you give some guidance for financial year or 20 cents in the top-line case?

Sir, as you told me, we will be doing year-on-year growth. The numbers are quarterly updates.

Okay, okay. Thank you. Thank you so much.

Thank you. Thank you again.

Thank you. Our next question comes from the line of Nikunj Banushali from Walford PMS. Please go ahead.

Hi, sir. Thank you for the opportunity. First question is, next year, this is a financial year's standpoint. Can we talk about CAPEX? Firstly, in FY26, what is CAPEX? How is the plan for the solar cells and modules in FY27?

So, actually, we have published two monitoring reports. One and two projects for both two projects. So, we think that Q2 onwards, the pump capacity, we will complete and we will operational it. This is the 0.5 giga capacity that we will get to Q2 onwards. The 2.2 giga solar cell capacity we will see March 28th. So, this is our update.

Okay, and in terms of pump installations, next year, what will be the target of next year?

What we have done last year, it has been around 86,000, and what we have done in the quarter, it has been around 28,000. For next year, we will be able to get updates, like Kusum or other tenders. We will be able to get our division and tell you about quarter on quarter.

Okay. One last question. So, how will exports this year? Because of the West Asia war impacts? Will the current year be orders coming? Or how is the situation? Will export-wise growth come?

Our next question comes from the line of Daksha Malhotra from Adriv Global. Please go ahead.

Thank you. Good afternoon, sir. Good afternoon. Good afternoon. This quarter is relatively good, sir. Sir, there are two-three questions. One is about our solar rooftop. Now, Sir Taluri has set up this year. Our new start will remain good. So, if you can add light on this, what are we doing? Our inverters are efficient. So, how do we expect a lot of market to this? Pumps, we will give guidance on the roof talk, but we will give guidance on the roof talk, and we will give an idea of what will remain in the roof talk.

Thank you. Thank you. This is a game where we are investing. We are working with solid fundamentals.

But, sir, would you like to give any, put any numbers to this for FY27?

Numbers, sir, we can tell you, we have come, maybe in Viva Watts or whatever. Numbers, sir, we can update quarter on quarter because this business is actually mature. Everything is going on and after our panels, we can see it more and more. We are now making channel partners. And margin-wise, we have already given guidelines that we are looking at EBITDA level 15%.

Thank you. It still shows under emerging business in the presentation, which is not the output and revenue generated.

Good morning, everyone, and welcome to the call. Controllers and Chargers. Chargers are a small job, but the controllers are a big job. We've spent a lot of time on it and we've also worked on it on a lot of products. We've already been working on our D&D's, so that's why we made this controller. So yes, in six and a year, there will be a result, and there will be a good result. Thank you. Thank you.

Thank you, sir. Thank you for answering these questions. Wish you the best, sir.

Thank you. Thank you. Thank you very much.

Thank you. Our next question comes from the line of Mahindra Jain from Way2Wealth. Please go ahead.

Yeah. Good afternoon, sir. Thank you for giving us a call. Sir, I am audible, sir?

Yes, yes, I am Jigoli.

Thank you, sir. Thank you. Sir, we are expecting that a lot of capex will come in this war. So, there are a lot of opportunities in the export. So, are we thinking on that line that some nuclear or hydrogen can enter like in future? Good morning, everyone, and welcome to the call of low-turn and high-margin products.

इसलिए वो बिजनेस भी हमारे लिए खुलेगा और हम R&D कंपरी होने के नाते हमने हर कंट्री के इसाब से आल्रेडी फोड़क्ट डवलप करके डिस्टिबूटर डवलप कर लिये हैं. दुनिया की 130 कंट्री में आल्रेडी हम एक्सपोर्ट करके अपने आपको प्रूफ कर � Thank you. We have been trying to develop for 10 years, but we have been able to take a small amount of money, because there are other things that we have to worry about. We will export better in Europe and in other countries. Today, we are doing great growth in the business. You can see the business.

Sir, on the side of the solar

pump, we have only solar pump, solar inverter, and we have nothing to do with it.

Sir, in 2017, there will be 15,000 crore in the solar pump. What are we expecting?

We will be a leader, we will be a leader, we will be a leader, so we have made such a big investment. Okay, sir. Thank you. Thank you, sir. Thank you. Thank you.

Ladies and gentlemen, to ask a question, you may please press star and one. Our next question is from the line of Johan Kinwasra from Asian Broking. Please go ahead. Hello.

Hello, sir, actually, sir, I know that this quarter, your tax rate is so high, approximately 42 percent.

Actually, there are some impacts, such as warranty provisions, dividend tax, corporate CSR. These additions are made due to year-end, so that it is slightly reduced. Actually, the total profit is low, so you can see it. But if you look at year-on-year, it is always 27 percent.

Okay, sir. Thank you.

Thank you. Our next question is from the line of Suvankar Malik from Shanghai Family Office. Please go ahead. Hello, sir.

Am I audible?

Hello, Malik.

Yes, sir. Sir, my first question is that the Qusum 2.0 that is a little late in government terms of RME, can it be the first time of the year or the second time of the year?

I think that we should get to the Q1 end and get to the order system.

Next question is, the project we were doing, is that the government has been doing a payment, not a payment, but a problem is not. Good morning, everyone.

Yes, the problem is completely solved. That's why we have increased our execution. In December, it was a problem, and we have reduced our execution. Now, we have reached about 1200 crore. You can see that our balance sheet is strong.

Okay, sir. Another question. I think last Q3, Q3 after Q2, you have a comment on the U.P. in a scheme, the solar pump. Do you have any updates on the U.P.? Yes, U.P. after M.P., your second quarter, comment on.

M.P. was going slow. Our state is going slow, but it's going.

Okay, Matt Cunningham.

Thank you. The next question is from the line of Rahul Gupta from Evergrowth Capital. Please go ahead. Hello.

Rahul Ji, please.

Yes, sir. Actually, what you ordered from the order book is 1500 crore. I have seen that our price is 524 crore. And our margin is very low. So, how do we execute this quarter, and how do we margin for next quarter?

We think the margin will improve, because the raw metal price is inflated, and the price is inflated.

Good morning, everyone, and welcome to the call. So, how much will it improve then?

I think that there will be an improvement, because the war situation is temporary and it will be fine. So, the inflated metal price will come back. So, I think that there will be an impact. But we will be able to update this quarter on quarter because it is the same situation.

And how much is the export margin? The export margin is double, right?

The export margin is around 10% plus compared to the domestic market.

Okay, sir. Thank you, sir.

Thank you.

Thank you. Our next question is on the line of Jeet Javiri from Vaya Financial Technologies. Please go ahead.

Hello, sir. I know that the order will be 15,000,000, but I can expect this type of margin.

We will update you in the quarter 1. So we once execute, then we will update you because the operational efficiency is the second meter and the

experimental price dependency is the one meter. Good morning, everyone, and welcome to the call.

Thank you.

Yes, we will see that in the next two quarters, we will execute the next two quarters. The other thing we have said about the margin side. The margin side of our solar panel plant is also starting Q1 onwards. So, there is a margin plus. The other thing is R&D. We are doing reverse nearing through our margin. The third thing is now a scale. We are negotiating with vendors for pricing. So, there is a margin plus. Thank you. Thank you.

Thank you. Our next question is on the line of Bhavya Shah from Wolford Fund Management. Please go ahead.

Thank you, sir.

My question is about the DES solution. We have a lot of people who are working on the R&B and battery management. Like you are working on the solar cell, what is your view on battery management and how much is

the integration of solar pump and rooftop solar cell? Hear the mouth.

Thank you. Thank you.

Thank you.

Thank you.

Our next question is from the line of Kamlesh Bagmar from Lotus Asset Managers. Please go ahead. Namaskar, Sahab.

Sir, one question was, because this is our order book, so, sir, there is a lot of visibility, because, sir, we have an inventory of raw metal, so, sir, if the raw metal prices are made, copper, silver connect, so, sir, the margin... Thank you. And if we have this trajectory of raw metal, then we will keep our margin. And the project we are taking, what are we doing in the work of pricing? Thank you. Good morning, everyone, and welcome to the call. Thank you very much.

I have updated the margins. If you want to talk about i-zone date, then i-zone date, which we have given you, is the same. But we have started some work. We have told you that we have reverse engineering. We have a big team. The second one, we have made our 800-800 crore. We have started negotiations with vendors. Thank you.

And on the other hand, you have told us about the price of the tender, so this is not possible for the call and the rate of the tender, so let's leave it to us. We will tell you in the next quarter. Thank you.

No sir, I'm asking you about pricing. I'm asking you about what we are doing to cut the margin. Because the margin is coming up to 24% to 10%. Thank you. I'm asking for a question. When we have to take a order, we have to take a lot of contingency, and how much our margin is at minimum, we have to take a lot of money. We have to know that.

Correct, correct. Actually, we are in the diversified sector. We are in the export. We can pass on the price. We can pass on the dealer-distributed network. But if you are in the tender business or rate contract business, the price differs from state-on-state. Our competition is different. So, actually, the execution was in Maharashtra, the price was already low, you know, everyone knows that the margin will not improve in this quarter, but we think that when we get orders and the other business will grow, the margin will also be improved, and how will the improvement be improved, and how will the improvement be before you. So, in this line, we will have to do some work in this quarter and quarter, and we will update you.

And lastly, we give the order book, like in the last quarter, we see the last one. Thank you. Thank you, thank you.

Good morning, everyone, and welcome to the call. Good morning, everyone, and welcome to the call.

I'll tell you about the number of quarter, I'll tell you about the number of quarter.

Our next question comes from the line of Himanshu Shivharay from MB Investment. Please go ahead.

Thank you.

Thank you. Our next question comes from Vamika Mandania from Anandhraati. Please go ahead.

Hello, sir. Congratulations on your set of numbers. There were two questions. You mentioned in the last quarter that you will expand in the South and your order book visibility is also showing you more in Karnataka. So can you comment on that?

Yes, we started working on South. We will have to answer the question. And in the meantime, we will increase our work from South.

Can you get a rough number or figure? How percent is the total order book?

If the order book comes, we will inform you to 24 hours.

Okay, and my second question was, you mentioned that the 0.5GW module plan will be commissioned until Q1-27, so if you can get any updates now, then?

Yes, it is in progress, it is growing, and we think that we will get to the end of the Q1 facility, so we have told that we will improve our margin.

Okay, thank you so much.

Thank you.

Thank you. Our next question is from the line of Prakhar Tibrewal from Choice Institutional Equities. Please go ahead.

Private singer came at the time period on December 12, 2021 and received all about 1.700 croda. We recognized the revenue of approximately 1.300 croda. For Q4. So, in this case, how many orders are now, or in this case, there were some orders that we had in Q3, which we had fulfilled in Q3, so I can understand it so that I can get the order properly forecast.

Thank you. The remaining execution was made in OEM, EV sales, domestic, or export. The solar segment, the EPC segment, I have made 704 crore in this quarter, and in the last year, I have made 280 crore. If you have any confusion or details, you can give me a separate email. Thank you.

Okay, sir, I had to just understand that in which day, approximately, you always tell the order, when you release the order, the timeline is 60 days, 120 days, or 90 days.

So, I don't know. With every order, we have mentioned the timeline.

Exactly, exactly. You haven't mentioned it yet, so I was asked that we have accepted the order for 120 days. But we can do it approximately in a few days.

So, actually, there is a little minor correction that we have given in our press release that the orders have been given for a little time. Therefore, this timeline doesn't match the timeline. So, if the company discloses the order boost, we will concentrate on the numbers and the numbers we will concentrate on. So, it will be better for the analysis.

No, no, this is when we come to the order for 24 hours, this is from the call. So, these are the numbers. So, I wanted to know that if we got an order today and its timeline is 90 days, so, will we book in Q1 in FY27 or will it go to Q2?

Thank you, sir.

Thank you. Ladies and gentlemen, due to time constraints, we will take that as a last question. I would now like to hand the conference over to Mr. Dinesh Patidar, Chairman, for closing comments. Over to you, sir.

Thank you, friends. You all have come. Thank you very much.

On behalf of Shakti Palms India Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.