Oswal Pumps Ltd

Financial Performance

• EBITDA for the quarter: INR82 crores; margin 17.1%.
• Operating EBITDA: INR74 crores; margin 15.7%.
• Gross margin declined 548 bps sequentially; operating EBITDA margin down 747 bps QoQ.
• PAT for quarter ended June 2026: INR54 crores; PAT margin 11.2%.
• Net debt: INR266 crores; net debt/EBITDA 0.90x.

Operating / Segment Update

• Pump order book: 22,025 pumps; near-term pipeline ~12,500 pumps (PM KUSUM, Magel Tyala, exports).
• Solar EPC order book: ~72 MW; pipeline ~359 MW (rooftop, utility, commercial/industrial).
• PM Surya Ghar vertical created; dedicated business head appointed.

Balance Sheet & Cash Flow

• Cash conversion cycle: 244 days as of 30-Jun-2026; 172 days as of 31-Mar-2026.
• Receivable days: 229 vs 155; delays from state nodal agencies; receivables are government-backed and secure.
• INR305 crores of receivables were not due yet; payment-cycle normalization expected medium term.
• Net debt/equity: 0.15x; net debt/EBITDA: 0.90x.

Capex & Projects

• Pump & motor plant capex to complete by Q3 FY27.
• Solar module plant expansion: first phase 1 GW capacity by end of Q2; rest progressing.
• IPO-proceeds capex infusion planned as per plan.

Outlook & Guidance

• FY27 revenue growth guidance: 20-25% over FY26; back-ended profile.
• Q1 revenue to be moderate/temporary; momentum expected to build in H2.
• EBITDA margin guidance FY27: 15-17%; based on current bids; safety cushion.
• PM Kusum 2.0: expected launch in current Q2; management sees no reason it won’t happen.
• PM Surya Ghar target: 2 lakh households in FY27; revenue projected INR800-1000 crores in FY27.

Q&A Highlights

• Margin erosion driven by 9% price bidding in Magel Tyala and 3-3.5% higher raw materials.
• Q2 expected YoY growth > 10-15%; overall FY27 target 20-25% growth.
• Q1 pumps ~43,000; Q4 FY26 ~40,400; Q1 FY26 ~56,000.
• Surya Ghar revenue to begin from Q2; 2 lakh homes target supports 800-1000 cr revenue in FY27.
• Wires & cables added in-house; margin uplift anticipated through diversification and channel expansion.
• If Kusum 2.0 launches, margins could improve beyond current 15-17% guidance.

Order award details

• Domestic NBPDCL awarded the order for 20 MW grid-connected rooftop solar capacity.
• Project spans 18,089 sites at 1.1 kW each in Darbhanga Circle under PM Surya Ghar MBY.
• Total order value approximately Rs 78 crore including GST.
• Projects to be commissioned within 9 months from PPA execution; 10-year O&M.
• RESCO Developer to design, procure, install, test, and operate the RTSPV systems under ULA.
• Supply solar power to South and North Bihar DISCOMs at own cost per RFP/PPA terms.
• Promoter/group interest: none; related-party transaction not applicable.
• Execution aligned with RFP/Corrigendum/addendum as applicable.

Meeting Details

• Date: August 10, 2026.
• Type/Mode: group virtual earnings conference call.

Participants

• Key company participant: Company Secretary and Compliance Officer.

Purpose

• Purpose: discuss Q1 FY2027 financial results.

Availability

• Audio recording available on the company site and investor relations page.

Business overview

• Vertically integrated solar pumping solutions provider with pumps, motors, modules, and BoS.
• Two facilities; ISO 9001/45001/14001; MNRE-approved solar modules.
• Diversifying beyond PM Kusum into Rooftop, Utility, and C&I EPC.

Operational highlights

• Q1 FY27 order book at 22,025 pumps; near-term pipeline 12,500.
• Addressable market expanding to 42,000 Jal Jeevan pumps.
• Rooftop, Utility, C&I EPC pipeline ~359 MW.
• Entered PM Surya Ghar rooftop scheme; SPV with Doon Infrapower.

Financial performance

• Q1 FY27 revenue ₹4,736 mn; YoY −7.9%.
• Q1 FY27 EBITDA ₹743 mn; margin 15.7%.
• Q1 FY27 PAT ₹538 mn; margin 11.2%.
• FY26 revenue ₹20,644 mn; total income ₹20,859 mn.
• FY26 gross margin 39.3%; EBITDA margin 24.9%; PAT margin 18.0%.
• Q1 FY27 gross margin 32.9%; CCC 244 days.
• Total borrowings ₹3,076 mn; net debt ₹2,663 mn; net debt/Equity 0.15x.
• Cash ₹413 mn; RoE 35.7%; ROCE 37.4%.

Capital structure & liquidity

• IPO fund utilization: unutilized balance ₹2,355.48 mn as of 30.06.2026.
• Total borrowings ₹3,076 mn; cash ₹413 mn.
• Net debt ₹2,663 mn; net debt/equity 0.15x.

Strategic priorities & outlook

• Diversify beyond government schemes; grow Rooftop, Utility, and C&I revenue streams.
• Scale 72 MW existing pipeline; target 359 MW across Rooftop/Utility/C&I.
• Leverage cost control and value engineering to defend margins.

Risks & governance

• Margin pressure from competitive bidding; mitigated by cost controls and value engineering.
• PM Kusum 2.0 rollout delays; pivot to diversified renewable segments.

Governance & leadership

• Management commentary attributed to Vivek Gupta, Chairman & MD.
• Shareholding summary presented as of 30 June 2026.

Financial highlights

• Total income for Q1 FY27: ₹4,817 million.
• EBITDA: ₹825 million; EBITDA margin 17.1%.
• PAT: ₹538 million; PAT margin 11.2%.
• Diluted EPS: ₹4.86.

Order book & pipeline

• Pump order book at 22,025; near-term pipeline 12,500 pumps.
• Rooftop/Utility/C&I EPC order book ~72 MW; pipeline 359 MW.

Strategic diversification

• Diversifying beyond core solar irrigation due to PM KUSUM 2.0 rollout delays.
• Evaluating Jal Jeevan Mission entry; addressable pump pipeline ~42,000.
• Expanding across Rooftop, Utility, and C&I segments.

Outlook & management commentary

• Margins declined due to competitive bidding; management pursuing cost optimization and value engineering.

Dematerialisation/Rematerialisation status

• Dematerialisation requests were processed and confirmed to the depositories (accepted/rejected).
• Securities dematerialised have been listed on the stock exchanges where the earlier issues are listed.
• Physical certificates for dematerialisation were mutilated and cancelled after verification, with the depository name as registered owner.
• Compliance under Regulation 74(5) confirmed.

Order win from MSEDCL

• Awarded by MSEDCL for 10,000 Off-Grid DC SPWPS worth ₹235.92 crore (incl. GST).
• Scope includes design, manufacture, supply, transport, installation, testing, commissioning and 5-year RMS under PM Kusum Yojna.
• Installation to be completed within 60 days from NTP/Work Order.
• Cumulative order book under solar pumping schemes expands.

Entity type and governance

• Awarding entities are domestic.
• No promoter or group company interest was disclosed.
• The order was stated not to be a related party transaction.