Rs 1,655 crore order book: Solar pumps manufacturer invests Rs 12,00,00,000 in its wholly owned subsidiary!

Shakti Pumps (India) Limited has invested Rs 12,00,00,000 in its wholly-owned subsidiary, Shakti Energy Solutions Limited (SESL), to establish a greenfield manufacturing plant in Pithampur, Madhya Pradesh. This facility will produce high-efficiency solar DCR cells and solar PV modules with a 2.20 GW capacity. SESL, incorporated on September 6, 2010, had a turnover of Rs. 216.53 crores in FY25 and specialises in manufacturing solar structures and rooftop solar solutions. This investment, which is not a related party transaction, aims to expand the company's capabilities in the solar energy sector.

Additionally, the company successfully closed its Qualified Institutions Placement (QIP) on July 7, 2025, raising Rs 292.60 crores from institutional investors. The funds will be used to establish a new manufacturing plant in Pithampur, Madhya Pradesh, through its subsidiary, Shakti Energy Solutions Limited. This facility will produce 2.20 GW of high-efficiency solar DCR cells and solar PV modules, aiming to strengthen the company's backwards integration and financial position. The QIP involved the allotment of 31,87,365 equity shares at Rs 918 per share, leading to an increase in the company's paid-up equity share capital. Key participants included PINEBRIDGE GLOBAL FUNDS-PINEBRIDGE INDIA EQUITY FUND, BANK OF INDIA SMALL CAP FUND, and various LIC Mutual Fund schemes.

About the Company

Shakti Pumps, a leading Indian manufacturer of pumps and motors for various applications like irrigation and domestic water supply, has been at the forefront of innovation with its well-regarded "Shakti" brand. Founded in 1982, they specialise in energy-efficient pumps, including solar options and manufacture a wide range of components in-house for complete solar pump solutions. Committed to sustainability and transforming agriculture, Shakti Pumps exports its products to over 100 countries and is India's first 5-star-rated pump manufacturer.

The company has a market cap of over Rs 11,000 crore and as of March 31, 2025, the company has an unexecuted order book of Rs 1,655 crore. In Q4FY25, the company witnessed strong growth across key financial metrics. Revenue from Operations surged by 9.2 per cent YoY to Rs 665 crore, driven by robust order execution. Consequently, PAT witnessed a remarkable 22.2 per cent YoY growth to Rs 110 crore. This strong performance was further reflected in the FY25 results. Revenue jumped to Rs 2,516 crore, a substantial increase from Rs 1,371 crore in the same period last year, an increase of 84 per cent. Similarly, PAT soared to Rs 408 crore, a skyrocket of 187 per cent from Rs 142 crore in FY24.

In July 2025, DIIs bought 27,17,951 shares & FIIs bought 17,19,613 shares, increasing their stakes to 6.42 per cent and 5.72 per cent, respectively, compared to March 2025. The shares of the company have a PE of 28x, an ROE of 43 per cent and an ROCE of 55 per cent. The stock gave multibagger returns of 830 per cent in 2 years and a whopping 3,000 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.