💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 88.55% YoY to INR 1,430.31 Cr in FY25. The Turnkey Solar Pumping Systems segment (PM-KUSUM) grew 193.5% from INR 327.42 Cr in FY24 to INR 961.11 Cr in FY25. Q2 FY26 revenue reached INR 539.6 Cr, a 73.9% YoY increase.

Geographic Revenue Split

Domestic revenue (India) contributed 95.02% (INR 1,359.07 Cr) of total FY25 revenue, while international sales contributed 3.51% (INR 50.27 Cr).

Profitability Margins

Net Profit Margin improved from 12.83% in FY24 to 19.58% in FY25. Restated profit for FY25 was INR 280.61 Cr, up 187.3% from INR 97.67 Cr in FY24. Q2 FY26 PAT stood at INR 93 Cr.

EBITDA Margin

Consolidated EBITDA margin was ~30% in FY25. Q2 FY26 operating EBITDA margin was 23.7%, reflecting a 3.68% QoQ decline due to a 7.5% drop in L1 tender prices. H1 FY26 EBITDA margin remained healthy at 25.5%.

Capital Expenditure

Planned capex of INR 360 Cr total: INR 90 Cr for plant modernization at OPL in FY26 and INR 270 Cr for capacity expansion at Oswal Solar Structure Private Limited across FY26-FY27.

Credit Rating & Borrowing

CRISIL assigned a 'Positive' outlook with strong liquidity. The company has a fund-based bank limit of INR 312 Cr utilized at 57% on average. Annual debt obligations are low at INR 4-5 Cr.

⚙️ Operational Drivers

Raw Materials

Solar modules, steel, and copper are primary inputs. Solar modules specifically impacted margins in Q2 FY26 with INR 40 Cr in lower-margin sales. Cost of materials consumed was INR 731.31 Cr in FY25.

Capacity Expansion

Capacity expansion is underway at the subsidiary Oswal Solar Structure Private Limited with a budget of INR 270 Cr to support the growing solar pump segment.

Raw Material Costs

Cost of material consumed represented 51.1% of total revenue in FY25, increasing from INR 511.83 Cr in FY24 to INR 731.31 Cr in FY25.

Manufacturing Efficiency

Vertical integration (manufacturing solar modules to pumps) is a key efficiency driver. Efficiency programs resulted in meaningful savings in FY25.

📈 Strategic Growth

Expected Growth Rate

14.9%

Growth Strategy

Growth will be achieved through a robust order book of INR 1,058 Cr (as of Oct 2025), expansion into Haryana, Maharashtra, and Uttar Pradesh, and diversifying the product portfolio into industrial, helical, and chemical pumps.

Products & Services

Solar pumps, submersible pumps, monobloc pumps, electric motors, and solar module panels.

Brand Portfolio

Oswal.

New Products/Services

New launches include industrial pumps, helical pumps, boiler feed pumps, and chemical pumps to diversify beyond the agricultural segment.

Market Expansion

Targeting deeper penetration in major agricultural belts including Haryana, Maharashtra, and Uttar Pradesh.

Market Share & Ranking

The company is among the largest suppliers of agri-solar pumps under the PM-KUSUM Yojana.

🌍 External Factors

Industry Trends

The solar pump industry is projected to grow at a 14.9% CAGR (FY25-30P) driven by government incentives and a shift toward sustainable irrigation.

Competitive Landscape

Faces competition from both organized and unorganized players; maintaining profitability amid L1 bidding pressure is a key monitorable.

Competitive Moat

Moat is built on vertical integration (one of the few fully integrated agri-solar pump suppliers) and an extensive network of 2,000+ distributors.

Macro Economic Sensitivity

Highly sensitive to government subsidy programs (PM-KUSUM) and monsoon patterns which create demand volatility in the agricultural segment.

Consumer Behavior

Farmers are increasingly adopting solar pumps due to cost-effective solar panel prices and government incentives.

Geopolitical Risks

Global supply chain uncertainties and trade fluctuations pose risks to material procurement and costs.

⚖️ Regulatory & Governance

Industry Regulations

Operations are heavily influenced by PM-KUSUM scheme guidelines and state DISCOM tender requirements.

Environmental Compliance

The company is focused on energy-efficient solutions and solar energy, aligning with national environmental goals.

Taxation Policy Impact

Effective tax rate was 24.2% in FY25 (INR 890.32 Cr tax on INR 367.75 Cr PBT).

Legal Contingencies

A petition under Section 441 of the Companies Act, 2013, regarding Section 149(1)(b) (Board composition) was filed on August 22, 2024; the order is currently awaited.

⚠️ Risk Analysis

Key Uncertainties

Working capital stress is the primary risk, with negative operating cash flow of INR 150.59 Cr in FY25 and INR 65.9 Cr in H1 FY26 due to subsidy payment cycles.

Geographic Concentration Risk

95% of revenue is concentrated in India, primarily in agricultural belts.

Third Party Dependencies

High dependency on government disbursement and approval cycles for cash realization.

Technology Obsolescence Risk

Mitigated by continuous R&D investment in energy-efficient pump technologies.

Credit & Counterparty Risk

High exposure to government receivables; payments typically face 6-9 month delays.