Oswal Pumps Limited – Investor Presentation Summary

Key Operational Highlights

  • Total solar and non-solar pumps supplied in H1 FY27: 74,304 units
  • Solar pumps supplied in H1 FY27: 36,556 units
  • Non-solar pumps supplied in H1 FY27: 37,748 units (21,484 agri pumps + 16,264 non-agri pumps)
  • Solar pump order book: 9,487 pumps as of presentation date
  • Near-term pipeline: Approximately 10,000 pumps across various schemes
  • Solar EPC order book: 143 MW across Rooftop Solar, Utility-Scale Solar and Commercial & Industrial segments
  • Solar EPC pipeline: 168 MW

Key drivers of operational performance: Steady execution of solar pump order book, diversification into solar EPC segments, and expansion under government schemes including PM-KUSUM and Magel Tyala.

Segment-wise Performance

Revenue breakdown for H1 FY27:

  • Revenue from Turnkey Solar Pumping Systems directly under PM Kusum Scheme: ₹722 million
  • Revenue from other Government Schemes (including Magel Tyala): ₹5,028 million
  • Revenue from supply to players participating in PM Kusum Scheme: ₹466 million
  • Revenue other than PM Kusum Scheme and Other Government Schemes: ₹2,622 million
  • Total revenue (A+B+C+D+E): ₹8,839 million

Explanation of significant changes in segment performance: Significant growth in revenue from other Government Schemes (primarily Magel Tyala Scheme) compared to previous years, while direct PM Kusum Scheme revenue decreased year-over-year.

Financial Highlights

Q2 FY27 Financials:

  • Revenue: ₹5,063 million
  • Operating EBITDA: ₹574 million
  • PAT: ₹396 million
  • EPS: ₹3.34 (not annualized)
  • Margins: Operating EBITDA margin 11.3%, PAT margin 7.7%

H1 FY27 Financials:

  • Revenue: ₹9,799 million
  • Operating EBITDA: ₹1,317 million
  • PAT: ₹935 million
  • EPS: ₹8.20 (not annualized)
  • Margins: Operating EBITDA margin 13.4%, PAT margin 9.4%

YoY comparison: Q2 FY27 revenue decreased 6.2% YoY, operating EBITDA decreased 55.2% YoY, PAT decreased 59.4% YoY

QoQ comparison: Q2 FY27 revenue increased 6.9% QoQ, operating EBITDA decreased 22.8% QoQ, PAT decreased 26.4% QoQ

Drivers of financial performance: Higher raw material costs (aluminium frame, glass, copper, zinc, steel) impacting margins by approximately 210 bps, increased employee costs for solar EPC business scale-up, higher project-related operating expenses, and higher debtors provisions.

Key Risks: Competitive pricing environment, delays in PM-KUSUM 2.0 rollout, raw material price volatility, payment delays from state nodal agencies.

Balance Sheet Snapshot

As of September 30, 2026:

  • Net Worth: ₹17,591 million
  • Total Borrowings: ₹5,359 million
  • Cash & Cash Equivalents: ₹49 million
  • Net Debt: ₹5,310 million
  • Net Fixed Assets: ₹3,136 million
  • Net Current Assets: ₹14,893 million
  • Total Assets: ₹25,560 million

Financial Health Insights: Increased borrowing levels, reduced cash position, extended cash conversion cycle affecting liquidity.

Capex & Cash Flow Health

  • Capital Expenditure: Ongoing investments in expansion
  • Net Debt Movement: Increased from ₹1,346 million (Mar-26) to ₹5,310 million (Sep-26)
  • Cash Conversion Cycle: 257 days as of September 30, 2026 (increased from 172 days in Mar-26)

Investment Rationale: Strategic focus on capacity expansion including planned 1.2 GW TOPCon solar cell manufacturing facility to enhance backward integration and cost competitiveness.

Strategic & R&D Initiatives

Investments in Innovation: Planned 1.2 GW TOPCon solar cell manufacturing facility through subsidiary Oswal Solar Energy Private Limited (subject to shareholders' approval).

Strategic Rationale: Securing reliable supply of Domestic Content Requirement (DCR)-compliant solar cells, enhancing supply chain integration, improving cost competitiveness, and improving margin profile.

Industry Trends & Business Environment

Macro/Industry Trends: Government support through schemes like PM-KUSUM and PM Surya Ghar: Muft Bijli Yojana (~₹75,000 crore outlay), with ₹22,000 crore allocated in Union Budget 2026-27 for rooftop solar expansion.

Impact on Company: Provides growth opportunities in solar irrigation and rooftop solar segments, though delays in PM-KUSUM 2.0 rollout have prompted strategic diversification.

Management Commentary & Growth Outlook

Strategic Outlook: Focus on disciplined order book execution, restoring operating margins through cost optimization, building a more diversified and integrated business platform.

Growth Strategy: Diversification beyond government-driven solar irrigation into Rooftop Solar, Utility and C&I Solar projects to reduce single-scheme dependency and broaden addressable market.

Risks and Opportunities: Competitive pricing environment, raw material cost volatility, but opportunities in government solar schemes and diversification into new solar segments.

IPO Fund Utilization

As of September 30, 2026:

  • Total funds raised: ₹8,415.14 million
  • Amount utilized: ₹6,309.52 million
  • Unutilized amount: ₹2,105.62 million
  • Key utilization: ₹2,800 million for debt repayment, ₹1,094.85 million invested in Oswal Solar for new manufacturing units