Release Date: May 18, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Oswal Pumps Ltd NSE:OSWALPUMPS reported a record operating income of INR2,064 crore for FY26, marking a robust year-on-year growth of 44.3%.
- The company achieved a historic milestone with a PAT of INR376 crore, the highest ever recorded, representing a year-on-year growth of 34.1%.
- Oswal Pumps Ltd maintains a strong order book with 19,912 pumps and a pipeline exceeding 25,000 pumps, providing healthy revenue visibility.
- The company is diversifying into rooftop solar, utility, and commercial and industrial solar projects, reducing dependency on government-driven solar irrigation.
- Oswal Pumps Ltd is expanding its solar module capacity, with plans to complete a 1.5 gigawatt expansion by Q3 FY27, supporting long-term growth.
Negative Points
- Q4 FY26 margins were impacted by competitive tender pricing and input cost pressures due to geopolitical uncertainties.
- Receivable days remained elevated at 155 days, primarily due to delays in collection from state nodal agencies under government schemes.
- The company anticipates a temporary revenue decline in the first half of FY27 due to the timing of project awards and execution schedules.
- Operating EBITDA margin for FY27 is expected to be slightly lower at 22% to 23% due to elevated input costs and competitive pricing dynamics.
- The profitability of new segments like rooftop solar may initially be lower due to different cost structures and early-stage execution challenges.
Q & A Highlights
Q: Can you share the expected growth or decline for the first half of FY27, and how dependent is this on new orders from PM-KUSUM 2.0?
A: Vivek Gupta, Executive Chairman, mentioned that they expect PM-KUSUM 2.0 to launch soon, which will support growth. They are also diversifying their business to mitigate risks. The order book is strong, and they are confident in achieving more than last year's revenue, although they are being conservative in their estimates.
Q: What is the expected profitability for the rooftop solar projects, given that this is a new segment for Oswal Pumps?
A: Vivek Gupta explained that they have a backward integrated facility, which will help maintain profitability. While initial expenses may be high, they expect profitability to improve as they gain experience and scale in the rooftop solar segment.
Q: Could you provide guidance on expected capex for FY27 and the areas of investment?
A: Vivek Gupta stated that the capex will focus on automation and capacity expansion, including a 2.1 gigawatt solar module capacity and backward integration projects like aluminum extrusion. These investments are aimed at enhancing long-term profitability.
Q: How should we think about the profitability of PV modules, given the current geopolitical issues and raw material prices?
A: Vivek Gupta noted that while geopolitical issues have impacted raw material prices, they are confident that these issues are temporary. They expect profitability to improve once these issues are resolved.
Q: What is the timeline for ramping up orders and execution for PM-KUSUM 2.0?
A: Vivek Gupta mentioned that once orders are received, execution and revenue generation can start quickly. They are prepared to ramp up operations as soon as orders are confirmed.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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