Oswal Pumps Limited has officially announced receiving a Letter of Empanelment/Letter of Award from Maharashtra State Electricity Distribution Company Limited for a significant ₹380 crore contract. The order encompasses 13,738 off-grid DC solar photovoltaic water pumping systems under the PM Kusum B Scheme Magel Tyala Saur Krishi Pump Yojana.

Contract Specifications

The comprehensive contract covers the design, manufacture, supply, transport, installation, testing and commissioning of solar water pumping systems across Maharashtra districts. The systems include multiple capacity variants to meet diverse agricultural requirements.

Project Implementation Framework

The contract requires Oswal Pumps to execute the complete project within one year from the Letter of Award date. Individual installations must be completed within 60 days from the issuance of Notice to Proceed (NTP), Work Order, or Joint Site Report (JSR) approval. The project includes comprehensive system warranty, repair and maintenance services, plus Remote Monitoring System (RMS) for five years.

Government Initiative Alignment

This order falls under the PM Kusum B Scheme, a central government initiative aimed at promoting solar-powered agricultural pumps. The Magel Tyala Saur Krishi Pump Yojana specifically targets farmers in Maharashtra, providing sustainable irrigation solutions while reducing dependency on grid electricity. The off-grid DC solar photovoltaic systems will be installed at identified farmer sites across various districts in Maharashtra.

Regulatory Compliance

Oswal Pumps has disclosed this contract award under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that no promoter, promoter group, or group companies have any interest in the awarding entity, and the transaction does not fall within related party transactions, ensuring arms-length commercial dealings.

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.