Shakti Pumps Q4 FY25 Results: Growth Gain Amid Cash Concerns
Shakti Pumps Q4 FY25 Results: Robust Growth Amid Cash Flow Concerns
By S Jha
MUMBAI, May 11, 2025 – Shakti Pumps (India) Ltd. reported a strong performance in its Q4 FY25 results. The company posted a 23% year-on-year (YoY) increase in net profit to ₹110.23 crore, up from ₹89.67 crore, driven by higher income.
Shakti Pumps’ total revenue for the quarter rose 9.7% to ₹669.76 crore from ₹610.13 crore. The FY25 revenue surged 83.6% to ₹2,516.2 crore. The profit after tax (PAT) soared 188.2% to ₹408.4 crore.
Shakti Pumps in its Q4 numbers stated EBITDA margin expansion to 24%, reflecting operational efficiencies and strong execution under the PM-KUSUM scheme. However, stock observers flagged concerns over declining order books and poor cash flow conversion.
Value Vizard, a stock market analyst, highlighted the company’s robust growth, saying that the “net profit rose 23% to ₹110.23Cr from ₹89.67Cr YoY, driven by total income growth to ₹669.76Cr from ₹610.13Cr.”
Investor Feed, a financial news handle, emphasized the “record-breaking metrics of Shakti Pumps”. Second SRC, an equities research account, underscored the company’s industry-leading metrics but noted its valuation at ₹878 (P/E: 25.9×) to stress that the company may be already commanding premium in the stock market.
However, not all reactions were unequivocally positive. Equity Insights, a stock analysis page, flagged cash flow concerns: “Shakti Pumps’ results may look good and valuations also okay at 25 P/E. But there is a big problem in the cash flows.”
Selva Prathee, a financial commentator, provided a balanced analysis, arguing that the company is yet to tap rooftop and EV businesses efficiently.
Shakti Pumps Chairman Dinesh Patidar attributed the performance to “faster execution of orders within both the domestic and international spheres”. He highlighted the company’s ₹1,800 crore order book as of September 2024.
The company also announced a 10% final dividend and plans for capacity expansion to support a ₹5,000 crore revenue target in three years.
Despite the stellar financials, experts caution that a declining order book (from ₹2,400 crore in March 2024 to ₹1,800 crore in September 2024) and high trade receivables (178 days) could pose risks for FY26.
The stock, trading at a P/E of 25, remains attractive for medium-term investors, but analysts urge monitoring cash flows and order inflows closely.
(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)
Follow The Raisina Hills on WhatsApp, Instagram, YouTube, Facebook, and LinkedIn
About The Author
