Record volume, margin cliff—recovery timing murky
The verdict, the claims that held up, the sharpest analyst exchanges, and the risks — the earnings call, decoded from the transcript.
Hold
confidence 6/10
Grade C
Order book downgraded (₹1,500 Cr → ₹1,000 Cr); KUSUM 2.0 still PMO-pending; margin recovery timeline vague; no 3-year EBITDA target given despite FY29 ₹5K Cr revenue target.
Cautiously Optimistic
next 1–2 quarters
Optimistic
multi-year
Strong volume execution (revenue +37.9%, pumps +57.6%) but profit collapse (PAT -46.7%) signals structural margin pressure beyond claimed temporary headwinds. Order book reset from ₹1,500 Cr (prior) to ₹1,000 Cr and KUSUM 2.0 delay add near-term execution risk. Capex plan concrete but new businesses (rooftop ₹8 Cr, EV trial phase) not yet meaningful.
₹858.7 Cr
Revenue · +37.9% YoY₹51.6 Cr
Reported PAT · −46.7% YoYCompressing
Margins · vs guidance: MixedDid the claims hold up?
Revenue grew 37.9% YoY to ₹859 Cr
METDelivered ₹858.7 Cr (37.9% YoY), precise match
EBITDA margin broadly stable at 9.6% QoQ
METOPM 9.7% delivered; claim of sequential stability holds
PAT ₹52 Cr, 35% QoQ growth from Q4 FY26
METDelivered ₹51.6 Cr (34.6% QoQ); inline
Raw material + price realization impact ~10% YoY on EBITDA
OVERSTATEDYoY PAT down 46.7% vs revenue +37.9%; margin erosion severe, claim understates NPM collapse (~950 bps)
INR1,000 Cr order book executable in next two quarters
UnverifiedOrder book reset from ₹1,500 Cr (prior guidance) to ₹1,000 Cr; KUSUM 2.0 not yet launched, timing opaque
Margin pressure temporary, will ease as geopolitical stabilizes
MISSNo recovery timeline quantified; NPM fell 950 bps YoY, OPM hit structural floor ~9–10%; roadmap to prior 15%+ unclear
Earnings quality
What changed since the last call
Order book
Downgrade₹1,500 Cr (prior) → ₹1,000 Cr (July 22). Still executable in 2 quarters but ₹500 Cr gap vs. prior assumption; execution depends on KUSUM 2.0 launch.
KUSUM 2.0 timeline
NeutralCalled 'ready for launch,' but still with PMO awaiting clearance as of July 27; no orders visible in Q1 despite positioning as FY27 growth engine.
Capex plan
NewINR1,500–1,700 Cr over 15 months (0.5 GW Sep26, 2.2 GW Sep27, pump Nov26); internally funded via QIP + bank facility (₹800 Cr term loan for 2.2 GW).
Margin outlook
DowngradeNo 3-year EBITDA target given; recovery expected 'gradually' but timeline undefined. Geopolitical dependency explicit; hedging not employed despite acknowledged volatility.
Rooftop business
Upgrade₹8 Cr (Q1) vs. ₹2 Cr (Q1 FY26), 4x growth; 0.5 GW plant to make Shakti only 'fully integrated rooftop provider' but still B2B business with compressed margins (~15% target post-panel integration).
EV motors (JBM joint venture)
NeutralIn validation/testing phase (8–9 months remaining); revenue ramp expected FY28 onwards. No material contribution expected until next year.
The Q&A
Analysts pressed hard on margins (Praveen Motwani, Parth Sodha, Divyansh Jajoo), order book splits (Ronak Agarwal), segment guidance (Maitri Shah), and peer comparisons. Management held firm but remained defensive: refused 3-year EBITDA target, deflected on rooftop/EV revenue guidance ('once numbers come'), and cited geopolitical headwinds repeatedly. No dodges, but significant hedging on forward visibility.
KUSUM 2.0 & payment delays — Himanshu Shivhare, NBA Investments
AnsweredKUSUM 2.0 ready, awaiting PMO clearance next week/month. Payments progressing; Maharashtra flowing; ₹760 Cr not yet due, ₹560 Cr >180 days, ₹477 Cr retention. No El Niño uptick.
3-year growth visibility — Harshil Solanki, Equitree Capital
PartialTargeting ₹5,000 Cr company in next 3 years via VFD, solar module, capacity expansion across structures, pumps, motors. No segment breakdown.
Africa/export opportunity — Harshil Solanki, Equitree Capital
PartialUganda project completed; in negotiations with other countries. 40 HP Saudi Arabia demo and 100 HP Africa demo to create market awareness.
Order book composition — Pavan KV, Sequent Investments
AnsweredRooftop negligible; ₹1,000 Cr is B2G (government), mostly solar pump KUSUM.
Order execution timeline — Pavan KV, Sequent Investments
PartialEasily executable in next 2 quarters. KUSUM 2.0 orders expected by end of Q2 once scheme launches; timeline TBD based on specs.
Realization per pump trends — Pavan KV, Sequent Investments
AnsweredRealization flat (₹248,153 vs. ₹248,374 prior quarter). Minor sales mix impact from KUSUM vs. Magel Tyala scheme orders.
DCR solar cell/module facility — Veer C. Mehta, Marwadi Shares
Answered0.5 GW Sep 26, 2.2 GW Sep 27. Expected 3% EBITDA margin expansion at full capacity. Full integration for rooftop and pump businesses.
Margin recovery to prior levels — Veer C. Mehta, Marwadi Shares
DodgedDifficult to say at what level right now; will update quarterly.
Rooftop business competitive positioning — Prakhar Tibrewal, Choice Institutional
AnsweredNo margin hit; B2B business has lower margins inherently. Strong inverter demand positions us well; integrated manufacturing strengthens competitive edge.
3-year company-wide EBITDA target — Prakhar Tibrewal, Choice Institutional
DodgedCannot give EBITDA target for 3 years right now; depends on raw material prices and geopolitical volatility.
Margin trajectory and floor — Praveen Motwani, BOI MF
Partial10% YoY impact from raw materials (6%) + realization (4%), totaling ₹61 Cr EBITDA hit. Expect gradual improvement as geopolitical stabilizes and KUSUM 2.0 launches.
Margin offset by competition in tenders — Ronak Agarwal, Ithought PMS
AnsweredPanel demand from customers over 3–4 years. Whole package preference (Shakti pump, inverter, panel, controller). Dependent on vendor pricing; now integrating to reduce dependency.
Order book Q-by-Q split — Ronak Agarwal, Ithought PMS
PartialTotal ₹1,000 Cr executable in 2 quarters; run rate similar last 2 quarters, depends on rain/floods. Will not split by quarter.
Business split in ₹5,000 Cr target — Maitri Shah, Sapphire Capital
DodgedAll segments expected to contribute; will update quarterly. Not disclosing individual segment targets; aggregate portfolio approach.
Rooftop & inverter current margins — Maitri Shah, Sapphire Capital
AnsweredRooftop mostly B2C; targeting ~15% EBITDA margin post-panel integration, combining industry benchmark with modules.
Peer margin comparison — Parth Sodha, Trinetra Asset Management
Partial4% realization impact (₹25 Cr) + 6% raw material impact (₹36 Cr). Do not analyze or comment on peer performance.
Rooftop execution priorities — Sucrit D Patil, Eyesight Fintrade
AnsweredQuality, digitalization, end-to-end warranty. 0.5 GW plant makes us only fully integrated provider. Market heading toward quality/digitalization focus.
Financial risk management — Sucrit D Patil, Eyesight Fintrade
AnsweredWorking capital: ₹1,800 Cr limits with 10 Indian banks + Qatar bank. Term loan ₹800 Cr for 2.2 GW. Vendor: 2–3 vendors per product. Follow-up on realizations with nodal agency.
Export resilience & geopolitics — Ankit Shah, Anand Rathi
AnsweredNo material impact; maintained growth in exports. Diversified order book helped sustain performance despite supply chain volatility.
Export order inflows — Ankit Shah, Anand Rathi
Answered~₹100 Cr orders per quarter for export.
State-wise order progress — Keval Gala, Ansom Capital
PartialOther states awaiting KUSUM 2.0 launch. Recent ₹350 Cr Maharashtra order helps maintain ₹1,000 Cr book. Another Maharashtra tender in process; expect orders post-KUSUM 2.0.
EV motors JBM progress — Keval Gala, Ansom Capital
AnsweredValidation/testing phase (8–9 months remaining). Revenue ramp gradual post-phase, meaningful contribution from FY28 onwards.
Rooftop/EV revenue expectations — Aryan Vijan, RV Investments
DodgedRooftop: want to become leader; no guidance given until numbers materialize. EV: validation phase ongoing, 6 months more work; good numbers from next year.
Promoter holding trajectory — Aryan Vijan, RV Investments
AnsweredPromoter never decreased; mostly post-2 QIPs dilution. Whenever promoters have funds, they increase holding; will continue.
Capex funding mechanism — Aryan Vijan, RV Investments
AnsweredTwo QIPs: ₹200 Cr (no debt taken, sufficient funds); second QIP for solar with bank arrangements; internal equity through QIP maintained.
Margin cyclicality vs. structural — Ghansham Joshi, GJ Techno Funds
Partial10% YoY impact: 6% raw material (₹36 Cr) + 4% realization (₹25 Cr) = ₹61 Cr EBITDA decline. Temporary, geopolitical-driven; margins will improve gradually as situation stabilizes.
Hedging strategy for raw materials — Ghansham Joshi, GJ Techno Funds
AnsweredNo hedging; viewing as temporary situation.
PM Surya Ghar target misconception — Deepak Rathore, Individual Investor
Answered0.5 GW Sep 26, 2.2 GW Sep 27, pump plant Nov 26. 1 crore is scheme-wide target, not company-specific; once panel capacity online, well-positioned for leadership.
Capacity utilization — Varun Agarwal, Individual Investor
Answered63%.
Pump production volumes — Varun Agarwal, Individual Investor
Answered27,678 pumps installed.
Feeder-level solarization opportunity — Varun Agarwal, Individual Investor
AnsweredFeeder-level drives additional pump demand, larger opportunity. In feeder solar, only pump replacement, not panel installation.
New tender pricing outlook — Deepak Purswani, Svan Investments
AnsweredRate contract model; farmer is key decision-maker. Not conventional tender. Lowering rates doesn't auto-win orders; quality, brand, pricing are qualifiers. Expect rational pricing from peers as raw materials impact industry-wide.
Capex guidance — Prakhar Tibrewal, Choice Institutional
AnsweredINR1,500–1,700 Cr by Sep 2027. ~50% each year: INR800 Cr FY27, balance FY28.
Guidance
FY27 continued YoY growth (no specific number)
MediumDelivered 37.9% in Q1; expect sustainment from KUSUM 2.0 launch and state schemes, though dependent on scheme rollout timing
INR5,000 Cr company by FY29
Medium3-year vision via solar panel integration (0.5+2.2 GW), rooftop scaling, EV FY28 ramp, exports. No segment split disclosed; mechanisms early-stage (rooftop ₹8 Cr, EV trial, KUSUM pending)
Gradual margin improvement from next quarter as geopolitical stabilizes + KUSUM 2.0 launches
LowNo quantified target; vague timeline. Raw material (6%) + realization (4%) impact flagged but recovery roadmap undefined. Hedging not employed despite acknowledged volatility.
3% EBITDA expansion at full DCR capacity (2.2 GW Sep 27)
MediumPost-2.2 GW operational benefit, rooftop business margin uplift via integrated panel offering targeting 15% EBITDA in B2C segment
INR1,500–1,700 Cr capex through Sep 2027
High0.5 GW (Sep 26), 2.2 GW (Sep 27), pump plant (Nov 26). Split ~50% FY27 (INR800 Cr), ~50% FY28. Funded via QIP + bank term loan (INR800 Cr for solar).
Risks the call surfaced
Execution risk (order book)
HighKUSUM 2.0 pending PMO clearance; Q1 revenue ₹859 Cr with minimal new KUSUM orders signals scheme not yet active. If launch slips to H2, ₹1,000 Cr order book execution pushed, FY27 growth target at risk.
Margin pressure (structural vs. cyclical)
HighPAT down 46.7% YoY despite revenue +37.9%. NPM fell 950 bps to 5.9% from ~15.5%. Raw material (₹36 Cr) + realization loss (₹25 Cr) = ₹61 Cr EBITDA impact. Management claims temporary but no hedging in place and recovery timeline vague ('gradually improve').
New business segment maturity
MediumRooftop ₹8 Cr base depends on 0.5 GW plant (Sep 26); EV in 8–9-month validation phase; exports ~₹100 Cr/Q but subject to Middle East geopolitical headwinds. INR5K Cr FY29 target requires all three to scale but no segment split disclosed.
Receivables and government payment delays
MediumOutstanding receivables ₹1,797 Cr: ₹760 Cr not yet due, ₹560 Cr >180 days overdue, ₹477 Cr retention. While management says collections progressing (Maharashtra flowing), >180-day overdue is structurally long and strains working capital.
Capacity utilization constraint
LowCapacity utilization at 63% despite 37.9% YoY revenue growth. Expansion capex (₹1,500–1,700 Cr through Sep 27) may further dilute utilization near-term before new capacity comes online; efficiency drag if order flow doesn't match new capacity timing.
Management
Score 7/10. Transparent on operational metrics and challenges (raw material costs, receivables, capex milestones) but hedged on forward guidance (no 3-year EBITDA target, no rooftop/EV revenue guidance, vague margin recovery timeline). Deflected peer comparisons and segment splits. Strong track record on core business (Q1 volume +57.6%, revenue +37.9%, capex plan on track). PAT collapsed -46.7% YoY signals margin management weakness. Order book reset (₹1,500→₹1,000 Cr) and KUSUM delay raise near-term execution questions.
1 · Aug–Sep 2026
KUSUM 2.0 scheme launch; new state tenders rollout
2 · Sep 2026
0.5 GW solar module facility commission; rooftop revenue ramp
3 · Nov 2026
Pump capacity expansion complete; volume scaling
Capex plan concrete but new businesses (rooftop ₹8 Cr, EV trial phase) not yet meaningful.
Growth Crushed Profits—The Recovery Timeline Is Missing
Revenue jumped 37.9% to ₹859 Cr on exceptional pump volume (+57.6% YoY), but net profit collapsed 46.7% to ₹51.6 Cr. Raw material costs and pricing pressure erased three-fourths of the margin benefit. Management claims it's temporary, but the order book is softer and KUSUM 2.0 is still waiting for PMO clearance.
₹859 Cr
+37.9% YoY, volume +57.6%
₹52 Cr
-46.7% YoY, ₹97 Cr prior year
NPM 5.9%
-950 bps YoY from 15.5%
₹61 Cr
Raw materials ₹36 Cr + realization ₹25 Cr
The gap: volume execution vs. profit collapse
On volume, Shakti executed at scale—27,678 solar pump installations, up 57.6% year-on-year, drove revenue to ₹859 crore (+37.9%). The headline looks clean. But net profit fell to ₹51.6 crore, a 46.7% year-on-year decline from ₹97 crore in Q1 FY26. Net profit margin compressed 950 basis points to 5.9% from 15.5%. That gap between growth and profitability is the quarter's real story.
What crushed the margin
Management quantified the damage: raw material cost inflation contributed ₹36 crore (~6% of operating profit), and lower realization or selling prices another ₹25 crore (~4%). Combined, a ₹61 crore EBITDA hit. Operating profit landed at 9.7%, stable quarter-on-quarter but down 550 basis points year-on-year. The villain: geopolitical headwinds driving steel, copper, and aluminum price spikes, plus pricing pressure in government solar pump tenders where Shakti competes on rate contracts. Management's thesis: temporary.
The ongoing geopolitical situation has continued during the quarter... there is an impact of about 10% on a Y-o-Y basis, comprising approximately 6% from higher raw material costs and a 4% from lower realization or sales price impact.
Claims tested against delivered numbers
Revenue grew 37.9% YoY to ₹859 Cr
₹858.7 Cr, 37.9% YoY—precise match
Supported
EBITDA margin broadly stable at 9.6% QoQ
OPM 9.7%; sequential stability holds
Supported
PAT ₹52 Cr, 35% QoQ growth
₹51.6 Cr, 34.6% QoQ—inline
Supported
Raw material & price realization impact ~10% YoY on EBITDA
NPM down 950 bps; OPM down 550 bps. ₹61 Cr hit is severe, not light
Overstated severity
₹1,000 Cr order book easily executable in 2 quarters
Reset from ₹1,500 Cr prior; KUSUM 2.0 not yet launched; timing opaque
Unverified
Margin pressure temporary; will ease as geopolitical stabilizes
No recovery timeline; roadmap to prior 15%+ margins unclear; no hedging in place
Contradicted
What changed on this call
Order book reset. Prior guidance: ₹1,500 crore. Current (July 22): ₹1,000 crore. A ₹500 crore (~33%) downgrade. KUSUM 2.0, the linchpin scheme for FY27 growth, has not launched—still with the Prime Minister's Office awaiting clearance. No KUSUM orders visible in Q1 despite it being positioned as the quarter's catalyst.
Capex plan locked in. ₹1,500–₹1,700 crore through September 2027: a 0.5 GW solar cell/module plant (September 26), a 2.2 GW integrated facility (September 27), and pump capacity expansion (November 26). ~50% each in FY27 and FY28. Backward integration to supply Shakti's own solar panels is the margin-recovery play in rooftop and pump bundles.
New segments growing but immature. Rooftop solar: ₹8 crore (vs. ₹2 crore prior year), 4x growth but still a small base dependent on the 0.5 GW plant ramp. EV motors (JBM Auto joint venture): in validation phase (8–9 months remaining), zero revenue, meaningful contribution expected FY28 onwards. Cash/retail sales: ₹24 crore with strong trajectory but not yet material.
Margin recovery hedged. Management refused to commit to a 3-year EBITDA target or quantify a margin recovery timeline, citing geopolitical uncertainty. No hedging program for raw material prices despite ₹61 crore of Q1 exposure and acknowledged war-driven supply chain volatility.
How the street is positioned
The market's initial read was decisively negative and has held. The stock fell 4.25% on day 1 of the result announcement (July 24), deepened to -5.29% by day 3, and settled at -5.9% by day 5. That sustained slide—not a pop-and-fade—reflects sustained skepticism of the margin narrative. Price now sits at ₹520.4, a 37.3% drawdown from its all-time high of ₹829.95. Trading below all major moving averages (SMA20: ₹551.69, SMA50: ₹544.62, SMA200: ₹608.24). RSI at 22.4 signals oversold technicals, but volume is declining—no conviction in a bounce.
Institutional conviction is wavering. Foreign institutional investors trimmed 51 basis points QoQ (FY26 Q4: 4.83% vs. Q3: 5.34%). Domestic institutional investors cut 133 basis points (6.30% → 4.97%). Promoter holding unchanged at ~50.3%, offering no signal of board-level conviction on the reset. The combined flows suggest institutions are cutting losses or pausing until margin recovery becomes visible.
Volume execution strong (27,678 pumps, +57.6% YoY)
Capex plan concrete (₹1,500–₹1,700 Cr with published milestones)
Backward integration (solar panels + rooftop bundle) unlocks margin recovery
Sector tailwinds secular (KUSUM, PM Surya Ghar, farm electrification)
Export resilience (₹100 Cr quarterly orders despite geopolitical headwinds)
PAT down 46.7% despite revenue +37.9%—profit power evaporated
Margin recovery vague; no 3-year EBITDA target committed
Order book down ₹500 Cr; KUSUM 2.0 still PMO-pending
New segments immature (rooftop ₹8 Cr, EV trial phase)
No hedging vs. geopolitical raw material volatility
Receivables stretched (₹560 Cr >180 days overdue)
FII/DII trimming (FII -51 bps, DII -133 bps QoQ)
Risks ranked by severity to a holder
Margin pressure—structural vs. cyclical
HighPAT down 46.7% YoY while revenue up 37.9%; NPM collapsed 950 bps to 5.9%. ₹61 Cr raw material + realization hit is quantified but recovery roadmap is undefined. No hedging in place. If compression persists beyond H2 FY27, margin squeeze is structural, not temporary.
KUSUM 2.0 execution risk
HighFlagship scheme still PMO-pending, no launch date disclosed. No KUSUM orders visible in Q1. Order book reset ₹500 Cr below prior guidance. If launch slips to H2 or Q4, ₹1,000 Cr order execution target is at risk; FY28 growth visibility collapses.
New business segment immaturity
MediumRooftop ₹8 Cr depends on 0.5 GW plant (Sep 26); EV motors in trial phase (zero revenue until FY28); cash/retail ₹24 Cr growing but small. ₹5,000 crore FY29 target requires all three to scale, but no segment split disclosed—execution visibility low.
Receivables and government payment delays
MediumOutstanding ₹1,797 Cr: ₹560 Cr >180 days overdue (~31%), ₹477 Cr retention clauses. Working capital facilities absorb pressure, but extended cycles strain cash flow and limit capex flexibility.
Order book reset and guidance credibility
Medium₹1,500 Cr (prior) → ₹1,000 Cr (current); a 33% gap not formally reconciled. Raises questions: were prior forecasts inflated, or is current reset conservative? Affects read on ₹5,000 crore FY29 target credibility.
Capacity utilization and capex cycle mismatch
LowCurrent utilization 63% despite 37.9% revenue growth. ₹1,500–1,700 Cr capex may dilute utilization near-term. If order flow doesn't match ramp (e.g., KUSUM delays), efficiency drag on returns.
What to watch next
1 · KUSUM 2.0 launch and order inflows
If the scheme launches Aug–Sep and Shakti books meaningful orders in Q2, KUSUM becomes executable into H2 and validates the ₹1,000 Cr order book timeline. If launch slips or order inflow disappoints, FY27 growth target is at risk. Track the order book update and management's KUSUM pipeline commentary each quarter.
2 · Operating profit margin trajectory
Watch OPM trend (currently 9.7%, down 550 bps YoY). A bounce to 11–12% in Q2–Q3 as raw materials stabilize and KUSUM orders boost volume would validate the 'temporary headwind' thesis. A hold at 9–10% suggests margin compression is structural and recovery depends on capex upside (0.5 + 2.2 GW), pushing profit recovery to FY28.
3 · Rooftop revenue ramp and 0.5 GW plant ramp (Sep 26)
Rooftop hit ₹8 crore (4x YoY) but remains a small base. The 0.5 GW solar panel plant, commissioned September 26, is positioned to unlock 15% EBITDA margins in rooftop bundles. Track rooftop revenue and margins as plant comes online. If rooftop grows to ₹50+ Cr annually by FY28 at 15% margins, it becomes material to group profit recovery.
Valuation context
At ₹520.4, the stock trades at a steep discount to prior valuations—down 37.3% from its all-time high and below all long-term moving averages. If earnings hold at ₹51.6 crore quarterly (₹206 crore annualized), the stock sits at roughly 11.5x trailing earnings, a compressed multiple reflecting margin pressure and near-term execution risk. A recovery to ₹100 crore annualized PAT (pre-2024 normalized levels via backward integration and capex) would imply upside, but that outcome is dependent on KUSUM launch, rooftop scaling, and raw material stabilization—all high-execution risks.
Shakti Pumps delivered strong volume execution in Q1 FY27—27,678 pump installations and 37.9% revenue growth are real. But profit collapsed 46.7% under raw material cost inflation and pricing pressure in government tenders. The company's claim that this is temporary is undermined by three facts: the order book reset (₹500 crore lower), KUSUM 2.0's continued delay (still PMO-pending, zero Q1 orders), and management's refusal to quantify a margin recovery timeline or commit to a 3-year EBITDA target.
The long-term story—backward integration via ₹1,500–₹1,700 crore capex, rooftop leadership, EV scaling—is credible but has no near-term profit catalyst. Institutions are trimming (FII -51 bps, DII -133 bps QoQ), and the stock's technical setup is weak (RSI oversold, volume declining, below all SMAs).
Hold. The stock's 37% drawdown has priced in substantial pain, but until KUSUM launches and margin recovery becomes visible (Q2–Q3), the risk-reward is balanced, not compelling. The single number to track is operating profit margin: a bounce to 11–12% in the next two quarters validates the 'temporary headwind' thesis. A hold at 9–10% suggests capex upside is necessary and pushes recovery to FY28. Watch that number closely.
Shakti Pumps: consolidated PAT falls 47% YoY to ₹51.6 Cr as margins halve, despite 38% revenue growth
PAT -46.72% YoY · revenue +37.94% · margins compressing
₹858.67 Cr
+37.94% YoY
₹51.59 Cr
-46.72% YoY
5.94%
-9.6pp YoY
₹4.18
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.
Q1 FY-2027 vs prior quarters
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.
Management expects continued year-on-year revenue growth for FY27, supported by a strong INR 1,500 crore order book to be executed over the next two quarters and the anticipated rollout of the KUSUM 2.0 scheme. While providing no specific figures, they anticipate an improvement in EBITDA margins from current compressed
— This quarter: met
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.
W1
Q2 FY27 EBITDA margin — management guided margin improvement contingent on the new solar panel plant commencing operations in Q2; current OPM ~9.7% is the base to beat
W2
Raw-material cost ratio — materials+inventory at ~73% of revenue (vs ~64% YoY) is the swing factor for margin recovery
W3
Order-book execution — the ~₹1,500 Cr book was guided for execution over two quarters; watch revenue conversion and KUSUM 2.0 rollout pace
Clean digital PDF, columns read unambiguously (current = quarter ended Jun 30 2026). No exceptional items either period, so raw = adjusted YoY. All arithmetic ties (rev+OI=TI; TI-exp=PBT; PBT-tax=PAT). Consolidated primary; five subsidiaries + Uganda branch.