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 , a leading player in the pump manufacturing industry, has announced plans to seek shareholder approval for a strategic relocation of its new manufacturing facility. The company has issued a postal ballot notice dated November 17, 2025, proposing to vary the terms of contract mentioned in its initial public offering (IPO) prospectus regarding fund utilization.

Key Points of the Proposal

• Relocation Plan: Oswal Pumps intends to relocate its planned new manufacturing facility for its wholly-owned subsidiary, Oswal Solar Structure Private Limited (Oswal Solar), to a new site in Karnal, Haryana.
• Fund Allocation: The company plans to utilize IPO proceeds of INR 2,727.58 million for setting up new manufacturing units at the proposed location.
• Original Plan: Initially, the funds were earmarked for investment in Oswal Solar to establish new manufacturing units at a different site in Karnal.

Rationale for Relocation

The company has cited several advantages for the proposed relocation:

1. Proximity to Existing Facility: The new site is adjacent to Oswal Solar's existing facility, offering logistical advantages and operational efficiencies.
2. Larger Area: The proposed land offers 28,000 sq. m. compared to the original 13,983 sq. m., allowing for optimized plant layout and future scalability.
3. Cost Efficiencies: The relocation is expected to result in shared resources and reduced administrative costs.
4. Regulatory Ease: The new location requires minimal new approvals, potentially streamlining the expansion process.

Shareholder Approval Process

• Voting Period: E-voting will commence on November 18, 2025, at 9:00 A.M. (IST) and end on December 17, 2025, at 05:00 P.M. (IST).
• Resolution Type: The proposal requires approval as a Special Resolution.
• Scrutinizer: Mr. Amit Shukla has been appointed as the scrutinizer for the postal ballot process.

Financial Implications

The relocation does not alter the total amount of IPO proceeds allocated for this purpose. As of September 30, 2025, the utilization status of IPO proceeds is as follows:

Management's Perspective

The management believes that this strategic relocation will enhance shareholder value by utilizing the IPO proceeds more effectively, potentially leading to increased operational efficiency and long-term growth prospects for Oswal Pumps and its subsidiary.

Investors and shareholders are advised to review the detailed postal ballot notice and consider the proposed changes carefully before casting their votes. The results of the postal ballot will be announced within two working days or three days of the conclusion of the e-voting period, whichever is earlier.