Shakti Pumps Revenue Rises But Profits Decline Amid Rising Costs

Shakti Pumps experienced a decline in share price on May 8, 2026, after reporting fourth-quarter results for FY26 that showed a sharp drop in profitability despite record revenue growth.

Shares of the company fell 6.77% to Rs 555.15 during the May 8, 2026, trading session. The decline followed the disclosure of a significant contraction in profit margins, which offset a nearly 29% increase in operational revenue.

Financial Performance and Margin Contraction

For the March 2026 quarter, Shakti Pumps reported revenue from operations of Rs 857.8 crore, representing a 28.9% increase compared to the Rs 665.3 crore reported in the same period the previous year.

Despite the growth in top-line revenue, rising costs led to a substantial decrease in profitability. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) dropped 49.2% to Rs 83.2 crore, down from Rs 163.9 crore in the prior-year quarter.

This operational decline resulted in a sharp narrowing of the EBITDA margin, which fell to 9.7% from 24.6%, a contraction of 14.9 percentage points.

The company’s profit after tax (PAT) margin also weakened, falling to 4.5% from 16.6% year-on-year, a decrease of 12.1 percentage points. Basic earnings per share (EPS) slipped 66.3% to Rs 3.1, compared to Rs 9.2 in the year-ago quarter.

Dividend Announcement and Market Valuation

Despite the decline in earnings, the board of Shakti Pumps recommended a final dividend of Rs 1 per equity share for FY26. This represents 10% of the face value of Rs 10 per share, pending shareholder approval at the upcoming annual general meeting.

The company’s market capitalization currently stands at approximately Rs 7,347 crore. Over the past year, shares of Shakti Pumps have fallen nearly 36%.

As of May 8, 2026, the stock trades at a price-to-earnings (P/E) ratio of 21.46, a price-to-sales ratio of 4.68, and a price-to-book ratio of 6.09.

Technical Indicators and Investor Sentiment

Technical analysis of the stock indicates a bearish undertone, as the share price is trading below five of eight key simple moving averages (SMAs). The 14-day relative strength index (RSI) was recorded at 64.2, which is approaching overbought territory but remains below the 70 threshold.

Institutional sentiment remained weak during the March 2026 quarter. Foreign Institutional Investors (FIIs) reduced their holdings in the company, with their stake falling from 5.34% to 4%.