Shakti Pumps (India) Limited — PPTs, 10-05-2025: Investor Presentation

1. Financial Highlights:

Shakti Pumps posted FY25 revenue up 83.6% to ₹2,516.2 Cr and PAT surged 188.2% to ₹408.4 Cr. EBITDA margin expanded sharply to 24.0% from 16.4%, evidencing improved operational efficiency. Receivable days improved to 152 from 178, supporting better working capital management despite higher sales. The order book remains strong at ₹1,654.6 Cr, supported by steady government and export contracts. Debt-equity is low at 0.1x, reflecting a healthy balance sheet.

2. Strategic Initiatives & Growth Drivers:

Capacity expansion is underway to double output for pumps, motors, VFDs, and solar structures with integrated facilities. Growth is focused on government solar pump programs (PM KUSUM, Magel Tyala Saur Krushi Pump) and solar rooftop opportunities (PM Surya Ghar). R&D investments yielded 15 patents, and diversification into EV motors via subsidiary Shakti EV Mobility includes a ₹114.3 Cr capex plan over five years.

3. Business Developments:

A USD 35.3 million export contract from Uganda enhances the company’s global footprint across 100+ countries. The EV subsidiary launched motors and controllers for 2W, 3W, and 4W vehicles, securing a patent for a Permanent Magnet Rotor assembly improving EV efficiency. Expanding retail/cash markets through subsidy-driven sales and financial institution partnerships strengthens farmer outreach.

4. Market Position & Competitive Advantage:

With 40+ years of experience, Shakti commands ~25% market share in solar pumps under PM KUSUM in key states. Its vertically integrated manufacturing, diverse portfolio, strong R&D, and control over critical components build a solid competitive moat. Broad exposure across government, export, industrial, and retail channels provides revenue diversification and scale benefits.

5. Investor Implications:

Strong revenue and margin gains, a robust order book, and better working capital indicate positive growth potential. Entry into EV and solar rooftops diversifies future earnings streams. Execution risk exists in scaling new segments but is offset by government backing and global demand. Innovation, diversification, and operational strength position Shakti for sustainable value creation.