Shakti Pumps India Ltd

Target and investment details

• Target: Shakti EV Mobility Private Limited, a wholly owned subsidiary manufacturing EV motors and chargers in India.
• Investment: Rs 5 crore cash by subscribing to 50 lakh equity shares.
• Consolidated investment post-subscription: Rs 75 crore.
• Industry: EV motors and chargers manufacturing; country: India.
• Related party: Not a related party transaction; subsidiary is wholly owned.
• Objects: To initiate and expand business of the subsidiary.
• Approvals: No government or regulatory approvals required.
• Timeline: Completion same day.
• Form of consideration: Cash by subscribing to equity shares.
• Ownership: No change in ownership; subsidiary remains wholly owned.
• Background: EV motors and chargers manufacturer; incorporated 16 Dec 2021; turnover FY2024-2026: 430.09, 372.73, 2,425.41 Lacs.

AGM details

• Held via video conferencing on 05 August 2026.
• AGM started 11:30 AM and ended 12:09 PM.
• Record date: 29 July 2026.
• Last date for postal ballot receipt: 05 August 2026.

Key resolutions and outcomes

• Resolution 1 (Ord): Adoption of Audited financial statements for year ended March 31, 2026; passed.
• Resolution 2 (Ord): Final dividend of Rs 10 per equity share approved.
• Resolution 3 (Ord): Re-appointment of director retiring by rotation; passed.
• Resolution 4 (Special): Re-appointment of Dinesh Patidar as Whole Time Director for three years; passed.
• Resolution 5 (Special): Re-appointment of Ramesh Patidar as Managing Director for three years; passed.
• Resolution 6 (Special): Revision of remuneration payable to the Whole Time Director; passed.
• Resolution 7 (Ord): Ratification of remuneration payable to Cost Auditors for FY 2026-27; passed.

Dividend

• Final dividend of Rs 10 per equity share approved.

Directors and management changes

• WTD: Dinesh Patidar appointed for three years.
• MD: Ramesh Patidar appointed as Managing Director for three years.
• Director retiring by rotation re-appointed; specifics not disclosed here.
• Remuneration for Whole Time Director to be revised.

Auditors

• Cost Auditors' remuneration for FY 2026-27 ratified.

Meeting Details

• Date and time: 27 July 2026, 14:00 IST.
• Type and mode: conference call (group), audio.
• Purpose: discuss unaudited Q1 2026 financial results.
• Key company participant: Company Secretary.
• Recording availability: audio recording available on the company website.

Business Overview

• Leading solar pumping company with in-house pumps, motors, VFDs, controllers, and structures.
• Diversified segments include Solar Complete Systems, Submersible, Solar Rooftop, and EV motors/controllers.
• Capex plan of ₹17,000 Mn to double core capacity and add 2.2 GW plant.
• PM-KUSUM and government programs underpin long-term solar irrigation demand.

Operational Highlights

• Q1 FY27 revenue ₹8,587 Mn; EBITDA ₹829 Mn; PAT ₹516 Mn.
• Order book as of 22 Jul 2026 stands at ₹10,000 Mn.
• 58% YoY growth in solar pump installations.
• FY26 revenue ₹26,976 Mn; highest in company history.
• Exports ₹4,110 Mn; 100+ countries served.
• Capex includes 0.5 GW DCR module facility and 2.2 GW integrated cell/module project.
• Greenfield capacity expansion at Pithampur expected by FY28.
• Geographic expansion: Karnataka entry strengthens tender wins.
• Solar Rooftop and EV motors/controllers provide optional growth avenues.

Financial Performance

• FY26 revenue ₹26,976 Mn; YoY growth 7.2%.
• EBITDA ₹4,217 Mn; EBITDA margin 15.6%; PAT ₹2,576 Mn; margin 9.5%.
• Q1 FY27 revenue ₹8,587 Mn; EBITDA margin 9.6%; PAT margin 6.0%.
• Receivables ₹17,988 Mn; cash ₹4,387 Mn as of 30 Jun 2026.

Capital Structure & Liquidity

• Debt-equity ratio 0.3x as of 31 Mar 2026.
• Gearing at 0.3x; healthy interest coverage.
• Operating cash flow ₹1,241 Mn in FY26.
• Term loans ₹408 Mn; working capital secured loans ₹4,457 Mn.
• Cash & equivalents ₹4,387 Mn as of 30 Jun 2026.

Strategic Priorities & Outlook

• Capex ramp of ₹17,000 Mn to double capacity and enable 2.2 GW cell/module.
• PM-KUSUM 2.0 and Magel Tyala provide demand visibility.
• Retail solar cash sales, Solar Rooftop expansion, and EV mobility as growth optionality.
• Discipline in execution; balance-sheet quality prioritized over near-term growth.
• 5 trillion addressable solar irrigation market; policy momentum supportive.
• Geographic expansion: Karnataka entry; broader presence supports tender pipelines.

Risks & Mitigation

• Input cost pressures and lower realizations on some orders; mitigated by efficiency gains.
• Capex ramp execution risk; mitigated by cash-flow discipline and staged capacity launches.

Governance & Leadership

• MD: Ramesh Patidar; Chairman: Dinesh Patidar; CFO: Dinesh Patel.
• 100% subsidiaries: Shakti EV Mobility P Ltd; Shakti Pumps USA LLC; Shakti Pumps FZE UAE; Bangladesh unit.
• ICRA ESG rating 75; Good – ESG rating (Oct 2025).
• Patents: 15 total; 7 new patents in 2024.
• Global footprint: 100+ countries; 60+ distributors; 400+ service centres in India.

Issue Overview

• QIP 1 (Mar 2024): equity shares; objects include capacity expansion and GCP.
• QIP 2 (Jul 2025): equity shares; objects include SESL investment and GCP.
• No material deviation observed; approvals partly obtained; current stage approvals reportedly secured.
• Unutilised proceeds parked in fixed deposits; deployment timelines extended.
• Land acquisition delays impacting capex deployment; revised timelines indicate ongoing execution.

Utilisation of Proceeds

• QIP 1: Capex deployment ongoing; land acquisition delays; some deployment completed.
• QIP 1: General Corporate Purposes utilized; small unutilised residual.
• QIP 1: QIP-related expenses utilized; minor residual.
• QIP 1: Unutilised funds parked in fixed deposits; multiple banks.
• QIP 2: SESL investment deployment; remaining unutilised; revised completion 2027.
• QIP 2: General Corporate Purposes utilized; small residual.
• QIP 2: QIP-related expenses utilized; small residual.
• Unutilised proceeds invested in fixed deposits; total fixed deposit balances.
• Note: Revised deployment timeline to Sep 2027; land/lease progress reported.

Governance and Compliance

• Approvals: government/statutory partly obtained; management asserts requisite approvals secured for current stage.
• No material deviations observed; no shareholder approvals required.
• Board approvals: SESL investment approved; other approvals per board notes.
• Delays: ongoing land acquisition; revised timelines disclosed; no regulatory actions noted.

GCP

• QIP 1 GCP: 469.95 utilized of 470 allocated.
• QIP 2 GCP: 629.96 utilized of 632 allocated; 2.04 remaining.
• Note: Board approval for funding via SESL subsidiary disclosed.
• Board approval for allocation of GCP not explicitly stated.

Financial results approved

• Consolidated and standalone results for quarter ended June 30, 2026 approved with Limited Review Reports.
• Consolidated revenue from operations Rs 858.67 cr; PAT Rs 42.99 cr; EPS Rs 4.18.
• Consolidated total income Rs 869.01 cr; standalone revenue Rs 816.28 cr; standalone PAT Rs 42.99 cr.
• Standalone EPS (basic) Rs 3.48.
• Board meeting held on July 24, 2026 via video conference.

Audit and regulatory

• Review reports issued by Statutory Auditors for both consolidated and standalone results.
• Two overseas subsidiaries' interim results reviewed; one foreign branch not material.
• Regulatory compliance: SEBI LODR Regulation 33 (limited review).

Additional disclosures

• No material regulatory, legal, or compliance contingencies disclosed.

Target overview

• Shakti EV Mobility Private Limited, a wholly owned subsidiary of Shakti Pumps, established Dec 16, 2021, India.
• Engaged in manufacturing electric vehicle motors and chargers/controllers.
• Total assets Rs 12,857.28 Lacs as on 31 Mar 2026.

Transaction terms

• Investment of Rs 5 crores in cash by subscribing to 50,00,000 equity shares of Rs 10 each.
• Consolidated investment post-subscription: Rs 70 crores.
• Completion timeline: same day.
• No regulatory approvals required.
• Ownership remains 100% in subsidiary; no change.
• Type of consideration: cash.

Rationale and related party status

• To initiate and expand the wholly owned subsidiary's EV business.
• Not a related party transaction; arm's length not applicable.

Background of target

• Incorporated on 16 December 2021; presence in India.
• Turnover (Rs Lacs): 2026: 2425.41; 2025: 372.73; 2024: 430.09.
• Asset base: Rs 12,857.28 Lacs as on 31 Mar 2026.

Meeting Details

• Date and time: July 27, 2026 at 14:00 IST.
• Type and mode: Earnings conference call, virtual teleconference.
• Event/organiser: Q1 FY27 Earnings Conference Call.

Participants

• Chairman
• Managing Director
• Chief Executive Officer (Shakti Energy Solutions Limited)
• Chief Financial Officer
• Company Secretary & Compliance Officer

Purpose

• Discuss Q1 FY27 unaudited financial results for the quarter ended June 30, 2026.