Pump maker's stock jumps 35% in three sessions—What is driving the rally?

Shares of Shakti Pumps continued their strong run on Monday, December 15. The stock rose another 15 per cent to a one-month high of Rs 748.70 apiece. This marked the third consecutive session of gains for the solar pump maker.

With the latest move, Shakti Pumps’ share price has climbed around 35 per cent in just three trading sessions. The rally helped the stock recover a large part of its recent losses. However, the shares are still down 33 per cent on a year-to-date basis.

Over a longer period, the stock has delivered exceptional returns. Shakti Pumps has gained around 1,400 per cent over the last five years.

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Fresh orders boost sentiment

The sharp rise in the stock comes after the company secured multiple large orders last week. These wins have strengthened its order book and improved revenue visibility.

On Friday, Shakti Pumps received a work order from Madhya Pradesh Urja Vikas Nigam Limited. The order is for 2,033 stand-alone off-grid DC solar photovoltaic water pumping systems. It will be executed across the state under Component-B of the PM-KUSUM scheme. The order value stands at Rs 71.25 crore.

The company also received major orders from Maharashtra. On December 11, it got a Letter of Empanelment from Maharashtra State Electricity Distribution Company Limited. The contract involves design, manufacturing, supply, installation, testing, and commissioning of off-grid DC solar water pumping systems. The total value of this order is Rs 443.78 crore, inclusive of GST.

Execution is expected within 60 days from the issue of the work order.

These orders add to Shakti Pumps’ growing pipeline under central and state solar-irrigation schemes. PM-KUSUM continues to be a key demand driver for the company.

Earlier, in September, Shakti Pumps had secured another large order worth Rs 374 crore from MSEDCL. This order was for the supply and installation of 34,720 off-grid solar water pumping systems under the same scheme.

Order book remains strong

As per its September quarter filing, Shakti Pumps’ order book stood at around Rs 13,000 crore. The company said Maharashtra has emerged as a key growth market.

Order inflows from the state have been strong. Maharashtra is also leading in project execution. The company expects further additions from upcoming large-scale projects.

Q2FY26 performance

For the quarter ended September (Q2FY26), Shakti Pumps reported revenue of Rs 666 crore. This was a 5 per cent increase compared to the same quarter last year.

Rising raw material prices also weighed on margins. Operating margin declined to 20.4 per cent from 23.4 per cent a year ago. Net profit for the quarter fell to Rs 91 crore, compared with Rs 101 crore in the year-ago period.