Shakti Pumps shares hit 5% upper circuit on ₹754 crore solar water pumping system order | Stock Market News

Stock Market Today: Shakti Pumps, a leading Indian manufacturer of solar pumps and motors, saw its shares hit the 5% upper circuit limit during early trading on Thursday, December 12, reaching a two-week high of ₹856.55 apiece. The surge followed the announcement of a significant order win.

In an exchange filing on Wednesday, the company informed investors that it had received a Letter of Empanelment from the Maharashtra State Electricity Distribution Company Limited (MSEDCL) for 25,000 standalone off-grid DC Solar Photovoltaic Water Pumping Systems (SPWPS). These pumps will be deployed across Maharashtra under the Magel Tyala Saur Krushi Pump Scheme.

The total order value, including GST, stands at ₹754.30 crore, with execution scheduled within 60 days from the issuance of the Notice to Proceed (NTP) or work order, as per the regulatory filing. 

This follows another major order win in November, when the company secured work under Component B of the PM-KUSUM scheme from the Haryana Renewable Energy Department (HAREDA). That order, for 3,174 pumps, was valued at ₹116.36 crore.

Recognised as a leading manufacturer in the Indian pump industry, Shakti Pumps holds a dominant market position with a 25% share in the domestic solar pump market under the PM KUSUM scheme, an initiative aimed at transforming the Indian agriculture sector.

Through the PM Kusum Scheme, led by the government, it is estimated that there are over 14 lakh solar pumps under Component B (off-grid pumps) and 35 lakh solar pumps under Component C (on-grid pumps) to be installed.

Stellar performer

The stock has been a standout performer in the Indian stock market, delivering substantial wealth to investors over the years. In 2024 alone, it has skyrocketed by 402%, and over the past five years, it has surged by an impressive 2,375%.

The company’s consistent growth, bolstered by its strong foothold in the pump industry, particularly in solar pumps and motors, has made it a favourite among investors.

Since November 25, the company’s shares have been trading ex-bonus, following a 5:1 bonus share issuance.

For the September-ending quarter, the company reported a significant increase in revenue to ₹635 crore, up from ₹153 crore in Q2 FY24. The EBITDA also saw a remarkable rise, reaching ₹149 crore compared with ₹15 crore in the same period last year, while the EBITDA margin expanded to 23% in Q2FY25 from 10% in Q2FY24.

The company’s profit after tax (PAT) surged to ₹101 crore in Q2 FY25, a significant jump from ₹6 crore in Q2 FY24, with the PAT margin expanding from 3.8% to 16%. As of June 30, Shakti Pumps had an order book of ₹1800 crore, according to the company’s earnings filing.

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