Shakti Pumps: consolidated PAT ₹51.6 Cr, down 47% YoY as fat FY26 margins normalise despite 38% revenue growth

Shakti Pumps reported Q1 FY27 (Jun-2026) consolidated revenue of ₹858.67 Cr, up ~38% YoY from ₹622.50 Cr, but net profit fell ~47% to ₹51.59 Cr from a year-ago ₹96.83 Cr. The story is not the topline — it is margins. Operating margin collapsed from ~23% in Q1 FY26 to ~9.6% now, and net margin from 15.5% to ~6.0%, as the exceptionally profitable KUSUM-heavy mix of a year ago gave way to a lower-margin revenue base with elevated input costs. There were no exceptional items on either side, so this is genuine margin normalisation rather than an accounting distortion; raw material (cost of materials consumed at ₹571 Cr, ~67% of revenue) remains the pressure point. Sequentially the picture is steadier: revenue was flat QoQ (₹857.77 Cr → ₹858.67 Cr) while PAT rose ~35% from Q4 FY26's compressed ₹38.33 Cr, lifting net margin from 4.4% to ~6.0% — an early sign of the sequential margin recovery management pointed to. On the guidance scorecard, management's core FY27 promise of continued YoY revenue growth was clearly delivered (+38%), backed by the ₹1,500 Cr order book flagged on the Q4 call and a fresh ₹353.89 Cr solar-pump order won in early July; the second half of the promise — EBITDA margin improvement — is still pending and hinges on the new solar-panel plant commissioning in Q2 FY27 and raw-material normalisation. Standalone tells the same story a shade weaker (revenue ₹816.28 Cr, PAT ₹42.99 Cr), with the ₹51.6 Cr consolidated figure lifted by overseas subsidiaries. No formal street consensus print surfaced for the quarter. Concurrent board actions — a ₹5 Cr injection into EV subsidiary Shakti EV Mobility and the FY26 annual-report/AGM cycle — signal continued diversification spend but are immaterial to this quarter's P&L. Net: strong demand-side execution, but profitability is running well below the FY26 peak and the margin-recovery thesis remains to be proven next quarter.