Shakti Pumps: consolidated PAT falls 47% YoY to ₹51.6 Cr as margins halve, despite 38% revenue growth

Shakti Pumps reported a Q1 FY27 (quarter ended June 30, 2026) that split cleanly along the top and bottom lines on a consolidated basis: revenue from operations grew 37.9% YoY to ₹858.67 Cr, but net profit fell 46.7% YoY to ₹51.59 Cr (from ₹96.83 Cr a year ago). The story is margin compression, not the topline — net profit margin collapsed to 6.0% from 15.5% a year ago, and operating margin (~9.7%) sits at roughly half the 23.1% of Q1 FY26. Sequentially the print looks better — PAT rose ~35% QoQ off a weak ₹38.33 Cr in Q4 FY26 and NPM recovered from 4.4% — but that QoQ improvement is off a depressed base and does not offset the year-on-year erosion.

The squeeze sits on the cost-of-goods line: raw material consumed plus inventory change ran to ~73% of revenue versus ~64% a year ago, so gross margin gave up close to 9 points even as the business nearly doubled in size. Other expenses also doubled YoY (₹106.75 Cr vs ₹53.03 Cr) and finance costs rose to ₹14.57 Cr — the cost of scaling volumes on thinner unit economics. This matches management's own May guidance from the Q4 concall, which flagged compressed EBITDA margins and pinned recovery on raw-material normalisation and the new solar panel plant commencing in Q2 FY27 — that margin relief has not yet shown up, so on margins the quarter is still tracking below management's own hoped-for improvement while the promised YoY revenue growth (backed by the ~₹1,500 Cr order book and KUSUM 2.0) has clearly been delivered.

The stock went into the print at ₹553, down 6.4% over the past month of trading.

For context: PAT has now risen for 2 consecutive quarters; revenue is at a 6-quarter high.

Standalone tells the same story slightly harder: standalone revenue +34.8% YoY to ₹816.28 Cr but PAT -54.5% YoY to ₹42.99 Cr — a wider profit decline than the -46.7% consolidated, the gap explained by overseas subsidiaries (₹35 Cr revenue, ₹6.3 Cr PAT) carrying the group. Readers will see both numbers; they point the same direction. Concurrent corporate activity supports the growth narrative rather than the margins — a ₹353.89 Cr solar-pump order (Jul 4) and a ₹5 Cr further investment into EV subsidiary Shakti EV Mobility (Jul 17) — but none of it changes the Q1 margin picture. No exceptional items in either period, so reported and adjusted growth are the same. No formal street consensus for Q1 FY27 could be verified; near-term broker targets are contingent on earnings 'meeting expectations,' with no published PAT/revenue estimate on record.