Oswal Pumps reported a robust Q3 FY2026, with Total Income rising 33.4% YoY to INR507.7 crores. Management confirmed an operating EBITDA margin of 25.4% for the quarter, showing sequential improvement. The company maintains a strong order book exceeding 24,500 pumps and is aggressively pushing forward on capacity expansion plans, aiming for sustained growth despite temporary payment delays in Maharashtra.
Oswal Pumps Announces Q3 FY2026 Operational Highlights
Oswal Pumps Limited held its Earnings Conference Call on February 09, 2026, to discuss the third-quarter performance for FY2026. Chairman and Managing Director, Mr. Vivek Gupta, welcomed attendees and noted the period marked strong operational execution and improved profitability despite competitive pricing in government solar programs.
Key Financial Performance Metrics (Q3 FY26)
- Total Income for the quarter reached INR507.7 crores, marking a 33.4% year-on-year (YoY) growth.
- Operating Revenue stood at INR501.1 crores, reflecting 31.9% YoY growth.
- Operating EBITDA for Q3 FY26 was INR127.1 crores, translating to an operating EBITDA margin of 25.4% (a sequential improvement of 164 basis points).
Nine-Month Performance Summary
For the nine-month period ending December 2025, the company reported substantial growth:
- Total Income grew by a robust 47.0% YoY to INR1,569.2 crores.
- Operating Revenue increased by 45.9% YoY to INR1,554.7 crores.
- Operating EBITDA stood at INR395.8 crores, yielding margins of 25.5%.
Profitability and Balance Sheet Health
CFO Mr. Subodh Kumar detailed the bottom-line performance, noting resilience against pricing pressure. Profit After Tax (PAT) for the quarter was INR91.6 crores (18.0% margin). The PAT for the nine-month period was INR283.7 crores (18.1% margin), reflecting 30.9% YoY growth. As of December 31, 2025, Net Debt stood at approximately INR188 crores, with a conservative Net Debt to Equity ratio of 0.12x.
Operational Execution and Order Visibility
Mr. Vivek Gupta highlighted the company’s execution strength:
- Over 90,000 solar pumping systems have been executed under various government programs as of January 31, 2026.
- The current order book stands at over 24,500 pumps.
- A near-term pipeline exceeding 25,000 pumps provides healthy revenue visibility.
The company reiterated its financial year 2026 revenue growth guidance of around 50% YoY and targets a medium-term CAGR of 30% to 35%.
Capital Expenditure Updates
Capital expenditure plans are progressing according to the IPO objectives:
- The bulk ordering for the pump and motor plant capacity expansion is expected by Q4 FY’26, with completion scheduled by Q2 FY’27.
- The first phase of solar module plant expansion (1 GW) is expected by Q1 FY’27, with the remaining 0.5 GW completed by Q3 FY’27.
Q&A Focus: Receivables and PM KUSUM 2.0
A significant portion of the Q&A session focused on temporary payment delays, primarily related to the Maharashtra State Government’s Magel Tyala scheme. Management confirmed this was due to procedural delays concerning external funding (AIIB banks) and reassured stakeholders that the receivables are fully secure. Management stated that money flow had started to resume in the week preceding the call and expected normalization soon.
Regarding the upcoming PM KUSUM 2.0 scheme, management expressed strong optimism, expecting an announcement around late March or early April 2026, following the conclusion of PM KUSUM 1.0 on March 31, 2026. The anticipated scale of PM KUSUM 2 is expected to be significantly larger.
Margin Outlook and Diversification
Despite persistent pressure from high commodity prices (metal and copper), management noted that value engineering and supplier support helped neutralize most negative margin impacts, limiting the net effect to about 1% to 1.3%. Profitability is expected to remain stable or slightly improve.
In response to potential delays, Mr. Gupta confirmed that Oswal is actively diversifying beyond solar, strengthening its PM Surya Ghar vertical, expanding its export team, and aggressively targeting the private domestic solar pump market to ensure robust growth even if PM KUSUM 2 faces further setbacks.
Inventory days for the quarter stood at 36 days, slightly above the normal cycle range of 32 to 40 days.
Source: BSE
