Shares of Shakti Pumps (India) fell sharply on Monday, February 16, 2026, losing up to 13.8% intraday to ₹552.10, marking the lowest price since December 11, 2025. The stock’s decline came after the company reported its third-quarter (Q3FY26) results, which showed a significant drop in profits and revenue.
As of 12:30 PM, Shakti Pumps shares were trading 12% lower at ₹563, while the Nifty 50 index was slightly up by 0.4%. Around 3.2 million shares changed hands on the National Stock Exchange (NSE), reflecting strong selling pressure.
Why Shakti Pumps Share Price Fell
The main reason behind the sharp fall in Shakti Pumps stock was the decline in its bottomline for the October–December quarter.
- Net Profit: Dropped nearly 70% to ₹31.7 crore from ₹104.1 crore last year.
- Revenue: Fell 15% to ₹551 crore from ₹648.8 crore in Q3FY25.
- EBITDA: Declined 61.8% to ₹59 crore from ₹154.4 crore.
The decline in earnings triggered profit-taking among investors, causing a sharp correction in the stock price.
Reasons for Q3 Earnings Drop
The company took strategic steps to strengthen its balance sheet, which impacted short-term earnings:
- Moderation in Execution: Orders worth around ₹200 crore were paused, mainly in Maharashtra, to manage receivables. This reduced revenue recognition for the quarter.
- Rising Input Costs: Increase in raw material prices impacted margins.
- One-Time Costs: Labour law changes led to additional expenses of ₹4.4 crore.
According to the company chairman, Dinesh Patidar, the approach was intentional to prioritise financial discipline and long-term stability over short-term growth.
Outlook for Shakti Pumps
Shakti Pumps expects margins to remain under pressure for the current year due to cost increases and lower realisations.
However, the company is confident about future revenue growth:
- Execution momentum is expected to improve in the fourth quarter (Q4FY26).
- Some revenues from Q4 may spill over into subsequent quarters.
- The company’s order book remains strong, providing visibility for future growth.
Analysts suggest that the share price drop reflects temporary earnings pressure, not a decline in underlying demand. The company continues to benefit from government-backed solar irrigation schemes, which support long-term business potential.
Analyst View
Experts say that the sharp decline in Shakti Pumps shares is normal after a profit shock:
- Harshal Dasani, business head at INVAsset PMS, noted that investors were expecting strong earnings under solar pump schemes.
- The sudden earnings drop led to profit-taking and a valuation reset.
- Despite short-term weakness, demand fundamentals remain strong, and the company’s order book provides stability for the next few quarters.
This indicates that the stock could recover as execution improves and costs stabilise.
Opinion
In my view, the fall in Shakti Pumps shares is more about investor sentiment and short-term earnings pressure rather than structural issues in the business. The company’s focus on balance sheet discipline and sustainable growth is a positive sign.
Investors should watch the Q4 results and execution updates. If revenue and margins improve, the stock could recover in the coming months. Long-term prospects remain promising due to solar irrigation and government-supported projects.
Conclusion
Shakti Pumps stock fell 14% after a sharp decline in Q3FY26 profit and revenue. The drop was caused by temporary execution moderation, rising input costs, and one-time expenses. Analysts suggest the fall is earnings-driven, not demand-driven, and the company’s strong order book and government-backed solar pump schemes provide hope for recovery. Investors should focus on the long-term growth potential rather than short-term price fluctuations.
FAQs
Why did Shakti Pumps shares fall so much?
Shares fell because Q3FY26 net profit dropped nearly 70%, revenue declined 15%, and EBITDA margins shrank due to higher costs and halted order execution.
Is the company facing long-term problems?
No, the company’s core demand remains strong, supported by government solar irrigation schemes. The decline is mainly due to short-term earnings compression.
What caused the profit drop in Q3FY26?
The profit drop was due to moderated order execution to manage receivables, rising raw material costs, and a one-time labour law-related expense of ₹4.4 crore.
Will Shakti Pumps recover in the future?
Yes, the company expects better execution in Q4FY26, and its order book remains strong. Revenue and margins are likely to improve over the next quarters.
Should investors buy the stock now?
Investors with a long-term view may consider buying cautiously, focusing on recovery in execution and sustainable growth supported by solar pump projects.