Business

Shakti Pumps shares tumble 7% as Q4 profit drops 65% YoY

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Shares of Shakti Pumps tumbled 6.77% to Rs 555.15 during Friday’s trading session after the company reported a sharp decline in profitability for Q4FY26, even as revenue posted healthy growth.

On the operational front, revenue from operations rose 28.9% YoY to Rs 857.8 crore, up from Rs 665.3 crore, indicating strong business momentum. However, rising costs significantly impacted margins.

EBITDA dropped 49.2% to Rs 83.2 crore from Rs 163.9 crore a year ago, while EBITDA margin narrowed sharply to 9.7% from 24.6%, marking a contraction of 14.9 percentage points.

The company’s PAT margin also weakened considerably, falling to 4.5% from 16.6%, down by 12.1 percentage points YoY. Meanwhile, basic EPS slipped 66.3% to Rs 3.1 against Rs 9.2 in the year-ago quarter.

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Despite the muted earnings performance, the board recommended a final dividend of Rs 1 per equity share (10% of face value Rs 10 each) for FY26, subject to shareholder approval at the upcoming AGM.

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Stock performance and valuation


Shakti Pumps shares have fallen nearly 36% over the past year, with the company’s market capitalisation currently at around Rs 7,347 crore.
At current levels, the stock trades at a P/E ratio of 21.46, a Price-to-Sales ratio of 4.68, and a Price-to-Book ratio of 6.09.
From a technical perspective, the stock’s 14-day RSI stands at 64.2 — approaching overbought territory but still below the 70 mark. The stock also remains under pressure on moving averages, trading below 5 out of 8 key SMAs, signalling a bearish undertone.

Also read: BSE shares fall 3% despite Q4 profit surge. Should you buy, sell or hold India’s oldest stock exchange?

Institutional investors reduce exposure

Institutional sentiment remained weak during the March 2026 quarter. Foreign Institutional Investors (FIIs) reduced their stake in the company from 5.34% to 4.83%, while mutual funds cut holdings from 6.18% to 4.92%, reflecting cautious positioning by large

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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