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