Shakti Pumps Q2 FY27: PAT down 58% YoY to ₹38.5 Cr as margins compress on costs
PAT -57.55% YoY · revenue +11.96% · margins compressing
₹746.03 Cr
+11.96% YoY
₹38.51 Cr
-57.55% YoY
5.08%
-8.4pp YoY
₹3.12
Shakti Pumps' consolidated PAT fell 57.5% year-on-year to ₹38.51 Cr (EPS ₹3.12) in Q2 FY27, even as consolidated revenue grew 11.96% YoY to ₹746.03 Cr — a clean decoupling of topline growth from profitability. No exceptional or one-off items are disclosed in the filing, so the decline reflects underlying operating cost pressure rather than a prior-period base effect; sequentially, both revenue (-13.1% QoQ) and PAT (-25.4% QoQ) fell from Q1 FY27's ₹858.67 Cr/₹51.59 Cr, confirming the weakness is not purely a YoY comparison quirk.
Q2 FY-2027 vs prior quarters
The margin bridge sits on the cost-of-materials line: materials consumed net of the inventory change rose to roughly 76% of consolidated revenue from about 65% a year ago, pulling net margin down to 5.2% from 13.5% in Q2 FY26 and operating margin (EBIT plus depreciation over revenue) to roughly 10.3% from about 21.2%. Finance costs added a secondary drag, up 41.7% YoY to ₹18.85 Cr on higher borrowings. The squeeze is concentrated onshore: India segment PBT fell 57.1% YoY to ₹55.55 Cr despite 11.9% India revenue growth to ₹743.41 Cr, while overseas subsidiaries' PBT more than doubled to ₹12.83 Cr on 34.2% revenue growth to ₹40.34 Cr — the overseas diversification is working, the core domestic pump business is not. Standalone PAT (₹31.03 Cr, -65.6% YoY on revenue up 5.3% YoY to ₹683.33 Cr) shows the same pattern more acutely, since it excludes the better-performing overseas units.
The stock went into the print at ₹386.6, down 17.6% over the past month of trading.
INR5,000 Cr revenue by FY29 via solar panel backward integration (0.5 GW Sep26, 2.2 GW Sep27), rooftop leadership, and EV ramp from FY28. Margins expected to improve gradually as geopolitical pressures ease and KUSUM 2.0 launches. Capex ₹1,500–1,700 Cr through Sep 2027 (split ~50-50 FY27–FY28).
— This quarter: missed
No Q2 FY27 analyst consensus preview turned up in search — only a Q1 FY27 preview (₹752-865 Cr revenue, ₹43-54 Cr PAT range) was found — so vsStreet is unknown rather than estimated. Against management's own prior guidance, margins were expected to "improve gradually as geopolitical pressures ease" — that has not happened yet; compression continued both YoY and, less severely, QoQ. The ₹1,500-1,700 Cr capex plan for solar backward integration does appear on track: capital work-in-progress rose to ₹47.68 Cr from ₹12.09 Cr at FY26-end. Subsequent to the quarter, the company booked a ₹112.18 Cr solar pump order from MSEDCL (Oct 6) and put a combined ₹37 Cr into its EV, solar and energy subsidiaries (Oct 8-22), continuing the diversification spend the guidance described. No management press release accompanied this filing to weigh against the print.
W1
Margin trajectory next quarter — management guided margins to improve 'as geopolitical pressures ease and KUSUM 2.0 launches'; OPM was ~10.3% this quarter versus >20% a year ago, so a Q3 FY27 reversal is the key test.
W2
Receivables/cash conversion — trade receivables at ₹1,963.64 Cr and H1 operating cash outflow of ₹448.10 Cr; watch whether collections normalize in H2 FY27.
W3
Solar backward-integration capex milestone (0.5 GW by Sep-26, 2.2 GW by Sep-27 per management's plan) — CWIP rose to ₹47.68 Cr from ₹12.09 Cr at FY26-end; confirm the Sep-26 0.5GW target is met.