Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Himanshu Shivhare from NBA Investments. Please go ahead.

Hi, good afternoon. My question is, can you give the update on PM KUSUM 2.0 and the payment related issues that the sector had been seeing? And there's been demand by farmers, written requests to the ministers for heavy pumps. Is there any notification from any sort of ministries to the company? And also, how is El Nino impacting the demand structure of the company?

Yes, Himanshu. On your first question re garding KUSUM, PM KUSUM 2.0 is ready for launch and could be announced as early as next week or next month. It is currently with the PMO and awaiting clearance from there. Number two, regarding payments, everything is progressing well. Payments from Maharashtra have started coming in; and as mentioned earlier, we received payments during the last quarter as well. Overall, the position remains under cont rol. Of our total outsta nding, around INR760 crores is not yet due, around INR560 crores is over 180 days, and the balance is the retention amount of INR477 crores. So, everything is very much in line and under control. On the demand for higher HP pumps, yes, that requirement is emerging. We are moving ahead in Haryana and Punjab as well, where larger pumps are entering the pipeline, and we believe this can create a good business opportunity going forward.

Nothing has come up so far.

All right. Thank you, sir.

Thank you Himanshu.

Thank you. The next question is from the line of Harshil Solanki from Equitree Capital. Please go ahead.

Hi team, good afternoon. Thank you for the opportunity. Sir, I wanted your long-term view because our capex will also go live now, 0.5 gi ga will come, and next year our cell will also have backward integration. So, for the next three to four years, what growth visibility do you see for the company? Can you share some thoughts?

Harshil, we are making these investments with the goal of becoming a INR5,000 crores company over the next three years. As you can see, we have invested in VFDs, we are setting up a solar module & cell plant, we are expanding capacities across structures, and pumps & motors. Through all these initiatives and investments, we see our company as a INR5,000 crores company in the next three years.

Fantastic, sir. Sir, we had successfully complete d the Uganda pilot. Africa is a very big market, so can you tell us how big the opportunity could be in Africa?

Absolutely, the project we worked on in Uganda was successfully completed. On the basis of that, we are in negotiations with some other countries as well. As soon as there is an update, we will definitely let you know.

Okay. And the last question, sir, we have inst alled a 40 HP solar pump in Saudi Arabia, which is a good thing because it is a very high HP. So, can that solar pump export market be specific for us in the Middle East? What will you be able to tell us about this?

Yes, absolutely. That is why we are planning these demonstrations, as large solar pumps of 40 HP have not typically been operated on solar before. We have also installed a 100 HP solar pump in Africa. These demos are aimed at crea ting awareness in those markets and supporting future business growth.

Okay, understood, sir. Thank you so much.

Thank you. The next question is from the line of Pavan KV from Sequent Investments. Please go ahead.

Sir, I just want to understand, out of the INR1,000 crores order book, how much is the rooftop order?

Okay. And what is the execution timeline for this INR1,000 crores order?

It is easily executable in the next two quarters.

Understood. Also, by when are you expecting orders for PM KUSUM 2.0? Like from Q3 or Q4? Will any orders come this year, or will it take some time?

Basis our understanding, PM KUSUM 2.0 is going to come soon and has a big opportunity. Once the scheme launches and we get to know the specifications, we will be able to tell the timeline, but we are very optimistic about the big opportunity in KUSUM 2.0.

Understood, sir. Sir, one final question. Real ization per pump has improved slightly quarter- on-year. So, is this improvement due to raw materials or because of the bidding war in the industry where everyone was bidding at low prices and losing money, so it has come back to normalized levels? I just want to understand what caused the realization improvement sequentially.

Realization is almost the same; I don't see any big gap. This quarter, the realization is at INR248,153 and last quarter it was INR248,374. So, there is no big impact. The minor impact is due to the sales mix. We had orders for both PM KUSUM and the Magel Tyala scheme, and the minor impact is due to the change in the sales mix of both orders.

Understood, sir. Thank you.

Thank you. The next question is from the line of Veer C. Mehta, from Marwadi Shares and Finance Limited. Please go ahead.

Hello sir, thank you for providing me this opportunity. Can you tell us about your DCR solar cell manufacturing facility, when the commerciali zation timeline will start, how it will impact your supply chain reliability, and how your competitiveness in the market will increase?

We have two facilities coming up. One is fo r 0.5 GW which will be completed in September '26. The second is for 2.2 GW, for which we are aiming at September '27. After the total capacity is commissioned, we expect a 3% expa nsion in margins at the EBITDA level. Also, we will be fully integrated for both the solar rooftop business and the solar pump business.

Okay. So, the margin squeeze that has happened now, will it eventually bounce back to its previous levels?

It is difficult to say at what level it will go right now, but yes, we will keep giving you updates quarter-on-quarter.

Okay. Thank you.

Yes, hello sir. Congratulations on your set of numbers. Sir, my question was regarding the upcoming 0.5 GW capacity. How many pumps can we integrate internally on average? How many pump modules will we not have to buy from outside?

Currently, we are buying around 50 to 60 MW every month. Once our own capacity starts, we will be able to execute more orders, and we will also use our capacities in our export business. This 0.5 GW plant will not run at 100% efficiency as soon as it starts. In the first month, we will run it at about 40%-50% efficiency, in th e second at 60%-70%, and then around 85%. Accordingly, we will have sufficient captive consumption for KUSUM orders and for the solar pumps we do in the private market in India. More importantly, I am planning it for the rooftop business, because the panel drives the rooftop business. So, as soon as the capacity gets commissioned, our rooftop business will also increase. Further, our export customers also want our panels. So, with this 25% capacity, we will get the experience of the plant, brand promotion, and learn other things. Then, when we get 100% of 2.2 GW capacity, we will be fully ready with some learning, we will have done proper marketing and will have created a strong brand.

Okay, sir. And sir, we are comp eting with some larger peers in Surya Ghar, so will we take a bit of a margin hit to win Surya Ghar orders?

No, we won't take a margin hit. However, the PM Surya Ghar business is B2B business, where margins tend to be slightly lower. Given the st rong demand we see for our inverters in this segment, we believe we are well-positioned to become a leader in the PM Surya Ghar scheme, which is our goal. Our integrated domestic manufacturing capacities, including inverters, structures, and soon solar panels, should further strengthen our position and will enable us to derive good benefits from this opportunity.

Okay, sir. Got it. So, sir, three years down the line, what do we th ink the blended overall company-wide EBITDA target will be?

We cannot give an EBITDA target for three years right now. We update it every quarter.

It depends largely on raw material prices, and with the curre nt volatility due to the geopolitical uncertainties, we cannot say anything. Once things clear up a bit, we will be able to give our guidance.

Okay, sir. Okay. Thank you so much.

Thank you. The next question is from the line of Praveen Motwani from BOI MF. Please go ahead.

Yes, hi. Thanks for the opportunity. Sir, just one question again on the margins front. Could you just give us some indication on the margins? So, from the last 3 quarters, we have been doing 10-odd percent margins. So, directionally, how do we see that trajectory moving? And is

that 10% the bottom of the margin s, like, from here on, we should expect improvement? Some directional numbers should help us.

Praveen Ji, as you would have seen, the ongoing geopolitical situation has continued during the quarter, because of which, the expected softening in raw material prices has not yet happened. As a result, there is an impact of about 10% on a on a Y-o-Y basis, comprising approximately 6% from higher raw material costs and a 4% from lower realization or sales price impact. In absolute terms, this translated into an EBITDA impact of around INR36 crores from raw material costs and INR25 crores from sales price realization. Going forward, with KUSUM 2.0 expected to come in and raw material prices likely to ease as the geopolitical situation stabilizes, we expect margins to improve gradually on a quarter-on-quarter basis.

Okay. Got it. Thank you.

Thank you. The next question is from the line of Ronak Agarwal from Ithought PMS. Please go ahead.

Yes, so the company had indicat ed that backward integration will support the improvement in the margins over the next couple of years. However, by FY28, as more and more players will expand the capacity and competition increases, do you think that the benefits from backward integration could be offset by a lower government tender realization?

Actually, Ronak Ji, it is important to understand that as we scale up the rooftop business, offering Shakti panels alongside our rooftop inverters becomes essential. In our export business as well, customers have been demanding panels for the last three to four years, as solar panel technology has evolved much faster than motors, VFDs, and controllers. Our customers are increasingly requiring the whole set. Even for a home installation, preference would be for a Shakti panel, Shakti inverter, Shakti pump, and controller as a complete solution. This is why we believe that th e 2 GW capacity we have planned, will be largely absorbed by our captive consumption, exports, and the domestic market. Earlier, we were dependent on external vendors, but now we are strengthening our own product basket. In tenders, we had to accept the penalty clause and we were dependent on our vendors like Premier, Tata, and Adani for panel supply quan tities and pricing. Given the rapid growth in solar energy, we believe this is the right time to build greater integration. And with our in- house manufacturing of structures, VFDs, controllers, inverters, and now panels, we can say that we are a fully integrated solar company.

Actually, for the current order book of INR1,000 crores, we believe we can comfortably execute it over the next two quarters. In addition, we expect some new orders to come in from the existing pipeline, which should further add to the current order book. Therefore, based on the current order book and expected additions, we have clear visibility for the next two quarters.

Sir, if you can give the order book of Q2, Q3, and Q4 separately.

No, sir, actually it is a total order book. This can be easily executed in two quarters, and the next orders that come will keep adding to it.

So, for the next two quarters, we can approximately take INR600 crores for Q2 and INR400 crores for Q3. Am I right?

No, sir. Our run rate over the last two quarters has been quite strong, and we are working to maintain a similar run rate. Ho wever, with ongoing rains and floods, execution will depend on ground conditions. Our focus remains on sustaining the current run rate.

What we mean to say is that the current INR1,000 crores order book and there are few orders which are expected to come in some time, so that will also add to the current order book.

Okay, okay sir. Thank you. I'll join back in the queue.

Thank you. The next question is from the line of Maitri Shah from Sapphire Capital. Please go ahead.

Yes, hello. Good afternoon and congratulations on the result. Firstly, you guided that we are targeting an INR5,000 crores revenue in the next three years. So, if you could help me out with the business split that we're expecting? How much are we expecting from rooftop, how much are we expecting the motors business to contribute in that, and how much are we expecting exports to contribute?

We have shared the overall vision for the group. As each business scales up, whether rooftop, solar pumps, exports, or other segments, we will continue to provide quarter-on-quarter updates. As you can see, exports are growing st eadily, and we are witnessing growth across all our businesses.

Any sort of guidance on what portion we want to keep from solar pumps and then what portion we want to diversify into these new three segments that we're trying to expand?

What Chairman Sir is trying to convey that all segments are expected to contribute to this growth, as we have been doing in the past. And we are adding significant capacities across the business - solar panels, solar pumps capacity is doubling, EV capacit y is already built up, structure capacity has come, VFD, and inverters. So, together these products create an integrated portfolio and with this complete package, our target is to reach INR5,000 crores by FY29.

So there is no kind of concrete idea of how much which business will contribute?

There is an idea, but I'm telling you here in portfolio total. I' m not telling you the individual portfolio.

Got it. And currently, our rooftop and inverter bu siness, what revenues are we clocking in right now? What margins are we clocking in right now? And once these solar cells and modules come in, so once we can give the integrated package, what kind of EBITDA margins we can expect?

Actually, the rooftop business is mostly B2C; you ha ve to look at it that way. And in this, if we combine the current industry benchmark and module, we are targeting around 15%.

This is post us Shakti getting modules and cells?

Yes.

Got it. Yes, that is from my side. Thank you.

Thank you. The next question is from the line of Parth Sodha from Trinetra Asset Management. Please go ahead.

Sir, so my question was that from the last 2 quarters, our EBITDA margin has been around 10%, and where our peer has been easily able to maintain the margin. So, in this bit, what we are doing wrong? Like, what other issues we are facing for it?

Sir, as I mentioned earlier, we saw an impact of around 4% from lower sales price realization, translating to approximately INR25 crores and 6% impact from higher raw material costs, amounting to approximately INR36 crores. Regarding your question on peers and how they are maintaining margins, we are not analysing or commenting on their performance. We can only speak about our own financials.

Okay. And sir, as you had said to the analyst before me that in the same basket the order, so they demand for the whole basket for the Shakti Pump itself. So my question in that is that peers can also do the same thing, so competition will come there too regarding the same thing?

Are you talking about demand?

Yes, like how will the compet ition increase for the demand?

On the demand side, we continue to undertake several marketing initiatives, including product demonstrations, peer comparisons, and field-le vel engagement activities. These efforts have helped us generate strong order inflows and positive word-of-mouth publicity among farmers. As a result, we continue to receive back-to-back orders from Maharashtra as well as other states, and we remain focused on sustaining our leadership position going forward.

Okay sir, I have understood. Thank you.

Thank you. The next qu estion is from the line of Sucrit D Patil from Eyesight Fintrade Private Limited. Please go ahead.

Good afternoon to the team. I have two questions. The first question to Mr. Ramakrishna is, beyond the regular outlook, what are the top two to three execution priorities you're focusing on the next few quarters? And alongside that, what do you see as the biggest risk in demand shifts or competitive pressu res, and how are you prepar ing to manage them while strengthening Shakti Pumps' position in the domestic and export markets? That's my first question. I'll ask my second question after this. Thank you.

Yes, good afternoon. Is your question related to the rooftop or could you be a bit more specific?

Yes, exactly. It was specific to the rooftop business.

Yes. So, as far as the rooftop is concerned, as I said, now the focus is moving towards overall customer experience, wherein they are clearly looking at focusing on quality of products, digitalization in terms of how we are going to use digitalization for installation, data management, and everything. And third is how you're going to give the total experience, that is giving an end-to-end warranty to the consumer. As we said, with our 0.5 GW plant coming up, we will be the only fully integrated solar rooftop service provider. Because of this, you know about the quality of our products; the feedback is already there in the market. In addition to that, being a fully integrated rooftop service provider holds us in good stead to provide the end-to-end service warranty. So, this is where the entire market is heading to.

Thank you. My second question to Mr. Patel is, from a financial point of view, what key risks or challenges do you anticipate in the coming quarters, and what specific measures are being taken to manage margins, cash flow, and balance sheet strength, especially in areas like raw material cost volatility, receivables, and regulatory compliance? Thank you.

Yes, there are several points to add here. First, on working capital, we have arrangements with around 10 leading banks in India and one bank from Qatar, providing us with sufficient working capital limits of approximately INR1,800 crores. In addition, for the 2.2 GW solar project, we have also entered into a term loan arrangement of around INR800 crores On realizations, we are continuously following up with the nodal agency to ensure timely collections, and we are receiving them as expected. On the vendor side, we have a dedicated negotiation team and follow a policy of maintaining two to three vendors for each product. These measures are aimed at strengthening our balance sheet and supporting profitability.

Thank you. The next question is from the line of Ankit Shah from Anand Rathi. Please go ahead.

Hello, am I audible?

Yes.

Yes. My first question is on the export side. So, majority of the revenue from export is coming from the Middle East. So, is there any impact due to the war?

No, that's why we have maintained our growth in exports as well. The war has not had that much of an impact; it hasn't affected our business.

If you look at our overall revenue, it remained broadly in line with Q1 of last year, and we have maintained that level this year as well. While there was some supply chain impact due to the geopolitical situation, our di versified order book helped us sustain performance, and we expect to continue maintaining this momentum.

Okay, thank you. And one more question. How much we are expecting in this particular business in terms of order inflows or order book?

Order book? So, every quarter we are getting orders of around INR100 crores for the export business.

Okay, okay. Thank you so much. That's it from me.

Thank you. The next question is from the line of Keval Gala from Ansom Capital. Please go ahead.

Good afternoon, sir. My question is on the revenue front. Like, we are getting maximum orders from Maharashtra recently, and we also got a big order from Karnataka. So, sir, what is the progress of other states? Like, how are you se eing the order book from there, from other states? Is there any progress ahead in that?

Sir, the recent INR350 crores order from Ma harashtra, which we announced recently, has helped us maintain an order book of around INR1,000 crores. Other states have not yet launched their respective schemes, as these are expected to come along with KUSUM 2.0. We are also awaiting the rollout of KUSUM 2.0 and expect orders under the scheme to start coming in by the end of this quarter, following which orders from other states should also begin to flow in.

No, there are still orders from MP that we are executing, and as soon as KUSUM 2.0 comes, more orders will come from there. Plus, another tender from Maharashtra is already under process, so we expect some more new orders from there.

Okay. And sir, I wanted an update on the EV motors business. Like, we heard something last time about a joint venture with JBM Auto. So, sir, what is our progress ahead in this business vertical?

The product is currently in the validation and testing phase, which is a time-taking process. We expect this phase to continue for the next eight to nine months. Revenue should begin to ramp up gradually thereafter, with meaningful contribution expected from next year onwards.

So, we can assume th at from FY28, it will also contribute to the top line in a big way?

It will be a big contributor because then orders will start coming in bulk.

Okay, sir. Thank you so much.

Thank you. The next question is from the line of Aryan Vijan from RV Investments. Please go ahead.

Sir, I wanted to ask, how much revenue do you expect from rooftop and EV motors?

In rooftop, we want to become a leader in the coming time. We are not giving guidance for rooftop right now. Once the numbers come, then we will give you guidance for rooftop. And in EV also, as we are saying, we are in the validation phase, the initial stage. We still need six months to work on it. After that, we will reach a conclusion. Good numbers will come from next year.

And this 2.2 gigawatt solar expansion you're doing, how will your revenue look after that?

That's what we said, within three years from today, in FY29, we wi ll become an INR5,000 crores company.

Okay. And the promoter holding is around 50%, so can that increase? Do you have any plan to increase it?

Sir, if you see, the promoter has never decreased. Mostly the movement you see happened after the two QIPs we did. And after that, whenever the promoters have sufficient funds, they increase their holding and will keep doing it in the future as well.

How will this whol e expansion happen?

For the whole expansion, as we have told you, we have done two QIPs. One was for INR200 crores in which we didn't take any loan, so sufficient funds are available there. The second

project, which was for solar, we have made arrangements with the bank and maintained our internal equity through QIP.

Okay, sir. Thank you.

Thank you.

Thank you. The next question is from the line of Ghansham Joshi from GJ's Techno Funds. Please go ahead.

Yes. Sir, if we see the last eight quarters' performance, revenue is increasing, but operating profit margin, which was around 24%, 25% in FY24-25. That has gone down drastically to 10%. Can you explain how we are going to again achieve that percentage, and can you give the bifurcation of whether this is purely due to the raw material inflation or it is part of competitive tender pricing, logistics cost, product mix? And the second question is whether this decline in the operating profit margin, this is purely primarily cyclical or there is any structural change?

Okay. So, On a year-on-year basis, margins were impacted by around 10%. This was primarily due to lower realization of sales price, which contributed around INR25 crores or 4%. And one more reason is higher raw material costs, which contributed around INR36 crores or 6% to the EBITDA impact. Therefore, the decline in EBITDA from INR144 crores to INR83 crores can largely be explained by these two factors, wh ich together account for about INR61 crores of the difference. Second one is the how we are seeing this impact. We view this impact as temporary, mainly driven by geopolitical factors that led to higher raw material prices. As the situation stabilizes, we expect raw material prices to ease and margins to improve gradually from the next quarter onwards.

So, due to war if the prices are increasing, are we taking any hedging position against the price increase?

No, we are not taking any he dging position right now because we are looking at it as a temporary situation.

Okay. Thank you. That's all from my side.

Thank you.

Thank you. The next question is from the line of Deepak Rathore, an Individual Investor. Please go ahead.

First, our 0.5 GW plant will come in September '26. In September '27, our 2.2 giga plant will come. In November '26, our pump plant will come. This is our capacity; everything is well- planned, it's all coming.

No, sir, I read in the con call 2 or 3 quarters ago that you have a target to reach 1 crores Surya Ghar Yojana. So, how mu ch of that target will you be ab le to achieve? 10%, 20%, 50%? Can we expect anything from you?

No, sir. The 1 crore figure refers to the overall target under the PM Surya Ghar scheme, as announced by PM Modi ji, to cover 1 crore households. This is not a company-specific target. Once our solar panel capacity comes onstream, we believe we will be well-positioned to emerge as a leader in this opportunity. We already have in-house cap abilities across inverters and structures, a strong BoQ offering, and an established network. We are now awaiting the commissioning of our solar cell and module capacity, which should further strengthen our integrated offering and support our leadership ambitions in the PM Surya Ghar segment.

No, this is correct. By 2027, do we have a target to reach around 50% of what you've said? If we reach 50%, everyone has very big expectations from the company.

Sir, I’ll explain again, we have never given the number of 1 crores. The number of 1 crores is the total target of PM Surya Ghar, meaning for the whole scheme.

Yes, yes. That's what I meant.

Yes.

Thank you. The next question is from the line of Varun Agarwal, an Individual Investor. Please go ahead.

Thank you for taking my question. Sir, what is our capacity utilization?

63%.

And what was the total production of pumps and motors in this quarter?

In this quarter, we installed a total of 27,678 pumps.

Okay. All right, sir. Thank you. Besides this, sir, some news reports have come in PM- KUSUM 2.0 which say that the focus is going to be more on feeder level solarization. So, what is our potential participation in this?

Feeder-level solarization is ex pected to drive additional demand for pumps, thereby creating a larger opportunity for us.

No, in feeder level solar, we are only talking about changing the pumps.

Okay. All right, sir. That's all from my side. Thank you. Best of luck.

Thank you.

Thank you. The next question is from the line of Deepak Purswani from Svan Investments. Please go ahead.

Yes, good afternoon, sir. Sir, I just wanted to understand one thing. If we look at the existing order book, there is margin pressure because of the increase in raw material prices. Now, the new tenders we are seeing going forward, can you tell us what the pricing scenario is going to be there? Will we be able to take a price hike there or is the pricing already decided?

Very good question of yours. This price has not increased only for me; raw material has increased for all the industry.

Yes, sir. I wanted to understand from the industry point of view that if this is the case, the raw material price hike has come in the orders everyone has. Now, how should we look at it from the new tender point of view -- from the industry point of view?

Yes. To clarify, this is not a conventional tender business; it is essentially a rate contract model. It operates as a market-mode rate contra ct where the farmer is the key decision-maker. Therefore, lowering rates does not automatically translate into higher order wins for any company. Orders are won based on service qua lity, product quality, brand strength, with pricing only serving as one of the qualifying mechanisms. We believe raw material costs have increased across the industry, not just for us, and this will reflect in the pricing quoted by other players as well. The 6% raw material impact we faced was largely due to increases in stainless steel, copper, aluminium, and mild steel prices amid the geopolitical situation. Recently, some raw material prices have softened by around INR1–1.5, and we expect prices to remain stable or ease further. And in the coming tender, we believe contracts should see more rational pricing from other players as well.

Okay. Thank you, sir. Thanks a lot.

Thank you. The next question is from the line of Prakhar Tibrewal from Choice Institutional Equities. Please go ahead.

Yes, sir. So, I had one more question regarding capex. So, what is our total capex figure going to be for this year and for next year?

By September 2027, we have to complete all these capex. So, almost the capex of INR1,500 to INR1,700 crores is to be completed in this time period.

Take it as 50-50% this year. Around INR800 crores capex will be in this year and the remaining capex will be in the next year.

Okay, INR800 crores. Got it, got it. Thank you.

Thank you. The next question is from the line of Divyansh Jajoo from Trinetra Asset Managers. Please go ahead.

Sir, as you said that the prices, that prices again, for your peers also, we faced problems because of raw materials. But I again have this query on this that the margin of our peers was maintained till the end.

We can only talk about our margins. We have been an industry experience for 40 years. We don't comment on peers.

Okay. So, what are you expecting in the coming quarters? That our margins which are broken now because of raw material prices, as the war ends, will those margins be sustained again?

Absolutely, absolutely. Raw material prices are well-known, , you also know the price of the dollar, and you also know other things. So, de finitely, margin correction will come, we hope that it will definitely come.

Okay, sir. Thank you.

Thank you.

Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Dinesh Patidar, sir, for closing comments. Please go ahead, sir.

Thank you, friends. Thank you very much for coming. I have tried to answer all your questions. If you have any other question, you can contact our EY team or contact us directly, and we will be ready to give your answers. Thank you very much.

On behalf of Shakti Pumps (India) Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Disclaimer: E&OE. This transcript has been edited for factual errors. In case of discrepancy, the audio recordings uploaded on stock exchange on 27th July 2026 will prevail.