Multibaggers To Margin Pain: Why Pump Manufacturers Declined In 2025

After a stellar multibagger run in 2024, India's pump manufacturing sector hit a rough patch in 2025, with leading stocks posting sharp year-to-date declines amid margin pressures and tender price resets.

Shakti Pumps has fallen 35.8%, Roto Pumps dipped 28%, while newly listed Oswal Pumps is also down 14.7% since its June debut.

The correction follows aggressive profit-taking and a structural shift in input costs.

The sharp drop in prices of solar panels, which account for nearly 80% of a solar pump system's cost, have triggered fresh tenders at lower prices. Companies holding old inventory purchased at higher rates now face margin erosion or potential write-downs, leading to downward revisions in topline expectations and valuation derating.

Margins Tell The Story

Shakti Pumps' Ebitda margin slid from 25% in March to 20% by September, while Roto Pumps dropped from 25.6% to 18% over the same period. Oswal Pumps, though relatively stable, saw margins ease from 27% to 24%.

Despite the weak sentiment, select counters are buzzing. Shakti Pumps surged recently after winning multiple PM-KUSUM orders, including a Rs 443.8 crore Maharashtra government contract, equal to 61% of its Q2 revenue. This is to be executed within 60 days.

Roto Pumps has seen promoter buying in the open market, signalling confidence and triggering a rebound after steep losses. Oswal Pumps remains cautious, but expects margin recovery from the third quarter of fiscal year 2026, backed by an order book of 18,800 pumps and pipeline visibility of 30,000 units, with PM-KUSUM 2.0 rollout anticipated by fiscal-end.

The sector's near-term outlook hinges on inventory adjustments and government tender flows, but for now, pump stocks have slid from multibagger glory to margin pain.