During Friday’s trading session, the shares of India’s leading manufacturer of energy-efficient pumps and motors hit a 5 percent upper circuit at Rs. 886.7 on BSE, after receiving an order worth Rs. 754.3 crores from Maharashtra State Electricity Distribution Company Limited (MSEDCL).
With a market cap of Rs. 10,659 crores, at 11:03 a.m., the shares of Shakti Pumps (India) Limited (SPIL) were trading in the green at Rs. 884, up by nearly 4.7 percent, as against its previous closing price of Rs. 844.5.
What’s the news:
According to the latest regulatory filings with the stock exchanges, Shakti Pumps has received a Letter of Empanelment from the Maharashtra State Electricity Distribution Company Limited (MSEDCL).
The order involves supplying 25,000 Standalone Off-Grid DC Solar Photovoltaic Water Pumping Systems (SPWPS) pumps collectively worth Rs. 754.3 crores (inclusive of GST) for the entire state of Maharashtra under the Magel Tyala Saur Krushi Pump Scheme.
Under this Letter of Empanelment, Shakti Pumps will receive a series of orders from MSEDCL over the next 1 year. The stipulated timeline of 60 days for executing these orders will commence from the date each work order is issued.
Previous Orders & News:
On 7th October, the company’s Board approved the issue of bonus shares in the 5:1 ratio, and has fixed 25th November 2024 as the Record Date.
On 6th November, Shakti Pumps received work order worth Rs. 116.36 crores under the PM‐KUSUM scheme from the Haryana Renewable Energy Department (HAREDA) for the supply, installation and commissioning of 3,174 solar water pumping systems.
In Q2 FY25, SPIL also received its 15th Patent from the Government of India, for Groundbreaking Sensorless Motor Drive Technology.
Financials:
Shakti Pumps reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 315.4 percent, from Rs. 152.8 crores in Q2 FY24 to Rs. 634.6 crores in Q2 FY25.
Similarly, its net profit increased during the same period from Rs. 6 crores to Rs. 101.4 crores, representing a rise of nearly 1,633.3 percent YoY.
EBITDA for Q2 FY25 reached Rs. 148.7 crores, representing an increase of around 878.4 percent YoY from Rs. 15.2 cores in Q2 FY24, with an EBITDA Margin of 23.4 percent, up from 10 percent, during the same period. This was largely due to higher execution of orders and economies of scale.
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Order Book:
As of September 2024, the company’s outstanding order book stood at around Rs. 1,800 crores. In Q2 FY25, SPIL secured a contract worth $35.3 million from the Government of Uganda for supplying solar-powered water pumping. Shakti Pumps remains focused on expanding its presence in the retail business as well as the EV business, which would contribute to a sustained financial performance in the future.
Key Financial Ratios:
In terms of key financial metrics, Shakti Pumps has a Return on Equity (RoE) of 24.2 percent and a return on capital employed (RoCE) of 31.4 percent. Additionally, the company’s debt-to-equity ratio stands at 0.17.
About the company:
Founded in 1982, Shakti Pumps (India) Limited (SPIL) is engaged in manufacturing solar pumps, energy-efficient stainless-steel submersible pumps, pressure booster pumps, pump motors, and other products and spare parts.
SPIL is the only company that manufactures a wide range of products for solar pump installation in-house, including variable frequency drives, structures, motors, inverters, and so on.
Written by Shivani Singh
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