Oswal Pumps Limited , a leading player in the solar pump industry, has reported a robust performance for the second quarter of fiscal year 2026. The company's financial results showcase significant growth and resilience in a competitive market environment.

Strong Revenue Growth

Oswal Pumps achieved an operating revenue of INR 540.00 crores in Q2 FY26, reflecting a substantial year-on-year growth of 73.9%. This impressive growth was primarily driven by the continued execution of orders under the PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme and the Magel Tyala program.

EBITDA Performance

Despite facing pricing pressures from L1 tenders, Oswal Pumps managed to maintain a healthy EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin of 24.7%. The company's operating EBITDA margin stood at 23.7%, reflecting a quarter-on-quarter decline of 3.68%. This decline was attributed to:

1. L1 pricing in PM-KUSUM and Magel Tyala tenders, which fell by an average of 7.5%.
2. One-time factors, including approximately INR 40.00 crores of module sales at significantly lower margins.
3. A one-time expense of INR 2.50 crores related to increasing the authorized capital of a subsidiary.

Operational Highlights

• Oswal Pumps has successfully executed over 80,000 solar pumping systems under various government programs as of October 31, 2025.
• The company's order book exceeds 18,800 pumps, consisting of direct PM-KUSUM, Magel Tyala, indirect PM-KUSUM, and export orders.
• A near-term pipeline of over 30,000 pumps across major states including Maharashtra, Haryana, Karnataka, and Madhya Pradesh.

Future Outlook

The management expressed confidence in achieving their FY26 targets, citing a strong order book and robust near-term pipeline. They anticipate the launch of PM-KUSUM 2 before the end of the fiscal year, which is expected to present new opportunities for growth.

Strategic Initiatives

Oswal Pumps is implementing several strategic initiatives to enhance its operational efficiency and maintain its competitive edge:

1. Proactive value engineering initiatives to mitigate the impact of pricing pressures.
2. Completion of key backward integration projects, expected to positively impact operating profitability by 1% from Q4 FY26.
3. Proposed relocation of the solar module expansion project to a land parcel adjacent to the existing plant, offering logistical benefits and operational efficiencies.

Management Commentary

Vivek Gupta, Chairman and Managing Director of Oswal Pumps Limited, stated, "We are pleased with our Q2 performance, which demonstrates our ability to navigate pricing pressures while maintaining strong growth. Our focus on backward integration and value engineering has been crucial in sustaining our margins. We are well-positioned to leverage the opportunities that will arise from the upcoming PM-KUSUM 2 program."

As Oswal Pumps continues to strengthen its position in the solar pump market, the company remains committed to sustainable growth and operational excellence. With a strong order book and strategic initiatives in place, Oswal Pumps appears well-prepared to capitalize on the growing demand for solar pumping solutions in India.

Oswal Pumps Limited has successfully obtained shareholder approval for the strategic relocation of its new manufacturing facility, with an overwhelming 99.99% of votes cast in favor of the proposal. The postal ballot process, which concluded on December 17, 2025, saw strong participation from shareholders who endorsed the company's plans to relocate the facility for its wholly-owned subsidiary, Oswal Solar Structure Private Limited.

Postal Ballot Results

The voting results demonstrate strong shareholder confidence in the company's strategic decision:

Original Proposal Details

The company had sought shareholder approval to vary the terms of contract mentioned in its IPO prospectus regarding fund utilization. The key aspects of the approved proposal include:

• Relocation Plan: Moving the planned new manufacturing facility for Oswal Solar Structure Private Limited to a new site in Karnal, Haryana
• Fund Allocation: Utilizing IPO proceeds of ₹272.76 crores for setting up new manufacturing units at the proposed location
• Strategic Advantages: The new site offers 28,000 sq. m. compared to the original 13,983 sq. m., providing enhanced operational efficiency

Rationale for Relocation

The management had presented several compelling reasons for the relocation:

1. Proximity Benefits: The new site is adjacent to Oswal Solar's existing facility, offering logistical advantages
2. Expanded Capacity: Larger area allows for optimized plant layout and future scalability
3. Cost Optimization: Expected shared resources and reduced administrative costs
4. Regulatory Efficiency: Minimal new approvals required, streamlining the expansion process

Financial Impact and Fund Utilization

The relocation maintains the total IPO proceeds allocation without altering the committed investment amount:

Voting Process and Compliance

The postal ballot process was conducted in full compliance with regulatory requirements:

• Voting Period: November 18, 2025 (9:00 AM IST) to December 17, 2025 (5:00 PM IST)
• Scrutinizer: Mr. Amit Kumar Shukla, Practicing Company Secretary
• Platform: Remote e-voting through NSDL platform
• Resolution Type: Special Resolution as required under Companies Act, 2013

The company's paid-up equity share capital stands at ₹11.40 crores, divided into 11,39,77,414 fully paid equity shares of face value ₹1 each. The strong approval reflects shareholder confidence in the management's strategic vision and the potential benefits of the proposed relocation for long-term value creation.