Shakti Pumps reports robust Q3 FY25 growth with 30.9% revenue surge

Shakti Pumps (India) Limited has delivered outstanding financial results for the quarter and nine months ending December 31, 2024, cementing its position as a leader in sustainable energy solutions. The company recorded a revenue of ₹6,488 million for Q3 FY25, reflecting a 30.9% year-on-year (YoY) growth. Profit after tax (PAT) surged by 130.2% YoY, reaching ₹1,040 million during the same period.

The company’s nine-month performance was equally impressive, with revenue climbing 143.1% YoY to ₹18,509 million. PAT for 9M FY25 rose dramatically by 472.8% YoY to ₹2,981 million. Shakti Pumps attributed this growth to higher order execution, operational efficiencies, and a diversification strategy aimed at tapping into emerging sectors like electric vehicles (EVs).

What key factors are driving Shakti Pumps’ growth?

A significant driver of Shakti Pumps’ growth has been its strategic focus on renewable energy solutions. The company has successfully capitalized on government initiatives aimed at integrating solar energy into the agriculture sector, such as the Magel Tyala Saur Krushi Pump Scheme and PM Surya Ghar: Muft Biji Yojana.

During Q3 FY25, Shakti Pumps secured two landmark orders:

1. A contract to supply 25,000 solar pumps worth ₹7,543 million under the Magel Tyala Saur Krushi Pump Scheme in Maharashtra.
2. An order from the Haryana Renewable Energy Department (HAREDA) for 3,174 pumps valued at ₹1,163.6 million.

These projects, combined with an outstanding order book worth ₹20,700 million as of December 31, 2024, have strengthened the company’s revenue pipeline.

How is Shakti Pumps leveraging the EV market?

Shakti Pumps has strategically diversified its operations to include the manufacturing of electric motors and controllers for EVs. The company is progressing with pilot orders from original equipment manufacturers (OEMs), signaling its intent to capture a share of the growing EV market.

This diversification aligns with Shakti Pumps’ vision of contributing to sustainable development while expanding its revenue streams. The company believes the EV sector represents a substantial growth opportunity, complementing its established expertise in solar-powered solutions.

What role does innovation play in Shakti Pumps’ success?

Innovation remains at the core of Shakti Pumps’ business strategy. Chairman Dinesh Patidar highlighted the company’s commitment to leveraging cutting-edge technology to deliver efficient and sustainable solutions. Shakti Pumps is the only Indian company to manufacture a comprehensive range of products for solar pump installations, including motors, variable frequency drives (VFDs), inverters, and pump controllers.

The company’s export business has also benefited from its innovative approach, reporting a 58% YoY growth to ₹3,119 million for 9M FY25. Shakti Pumps now supplies its products to over 100 countries, solidifying its global footprint.

What are the financial highlights of Shakti Pumps in FY25?

Shakti Pumps’ financial performance in FY25 reflects its ability to scale operations efficiently while maintaining profitability. EBITDA for Q3 FY25 rose by 117.6% YoY to ₹1,544 million, with margins expanding to 23.8%, up from 14.3% in the previous fiscal. For the nine-month period, EBITDA grew 366.6% YoY to ₹4,390 million, supported by economies of scale and operational improvements.

The company’s PAT margin for Q3 FY25 stood at 16%, a substantial increase from 9.1% YoY, indicating improved cost management and higher profitability.

What lies ahead for Shakti Pumps?

Looking forward, Shakti Pumps aims to further its leadership in renewable energy and EV technology. The company plans to raise ₹4,000 million through Qualified Institutions Placement (QIP) to fund growth initiatives.

Additionally, Shakti Pumps has invested ₹78 million in its wholly-owned subsidiary, Shakti Energy Solutions Pvt. Ltd., to expand its solar manufacturing capabilities. This investment underscores the company’s commitment to driving innovation and scaling operations.

What makes Shakti Pumps a leader in sustainable energy?

Shakti Pumps’ commitment to sustainability is evident in its product portfolio, which includes stainless-steel submersible pumps, solar pump systems, and energy-efficient motors. The company’s emphasis on renewable energy solutions aligns with India’s energy goals, positioning it as a key player in the country’s transition to sustainable agriculture.

Chairman Patidar believes the company’s “Great Place to Work” certification reflects its strong organizational culture, which drives innovation and operational excellence. By prioritizing sustainability and diversification, Shakti Pumps is poised to maintain its upward trajectory.

Shakti Pumps (India) Limited has demonstrated exceptional performance in FY25, driven by its focus on renewable energy, strategic diversification into EV technology, and operational efficiencies. With a robust order book and expanding global presence, the company is well-positioned for sustained growth in the years ahead.