Buoyed By Better Margins, Oswal Pumps Targets 50% Revenue Surge

Indian solar pump manufacturer, Oswal Pumps, is now confident of creating new records in revenues in FY26. The top management of the firm has planned to increase its annual revenue by around 50%–60% in the ongoing fiscal.

The confidence of the recently listed company stems from the robust backward linkage of its equipment, which has apparently led to higher margins for the firm compared to its closest rivals in the industry.

“For FY’26, we are targeting revenue growth in the range of 50% to 60%, with a medium-term goal of maintaining a CAGR of 30% to 35%. On the profitability front, we are guiding for operating EBITDA margin in the range of 27% to 29% and PAT margin between 18% to 20%. We remain committed to disciplined executions, financial prudence and sustainable growth,” Vivek Gupta, Chairman and MD of the firm, said.

Strong Backward Integration

Oswal Pumps, over the last few decades, has worked to build a strong backward linkage with the co-production of multiple items that are key for solar pumps and their supply, primarily under several solar irrigation schemes in the country. Besides the production of solar pumping systems, controllers, Balance of System (BoS), and solar structures, the firm is already producing solar modules from its plant located close to its solar pump manufacturing unit in Karnal. It is doing this either through its fully owned subsidiaries or its associated subsidiaries.

Oswal Solar uses its subsidiary, Oswal Solar Structure Private Limited, for the supply of solar modules. Solar structures and BoS kits come from its associate company, Walso Solar Solutions Private Limited, in which it holds around a 38.5% stake.

Better Margins

The firm said that as it is less dependent on external vendors for the supply of the majority of its raw materials, except items like solar cells, it enjoys the leeway to achieve better margins than others.

“Our deep integration helps us ensure consistent product quality, reduce dependency on external vendors, manage costs and delivery timelines more effectively, and consequently achieve industry-leading margins,” Gupta told investors in a recent investor call.

Export Market

The Karnal-based company, spearheaded by Vivek Gupta, Amulya Gupta and Shivam Gupta, currently sees around 4.5% of its revenue coming from exports. While the firm expects the same share to be maintained in the current fiscal, it is optimistic about rising volumes.

“... if we talk about FY’25, then our export contribution was about 4%, 4.5% broadly, which is growing at 30%–40%. And, simultaneously, if we talk about FY’26, here also, we have seen a very clear growth of 40%–50% in export business. So, I think the percentage will remain almost the same. If we talk about Quarter 1, then we have achieved 3% here,” he said.

Sales of Solar Pumps

The company sold around 1.6 lakh solar pumps in FY25 and is now eyeing sales of around 2.2–2.35 lakh solar pumps in FY26. This confidence arises from the overall growth and demand for solar pumps in the country, the focus of the Union government and states on solar irrigation, and the rise in PM-KUSUM solar tenders in various states.

Preferred States

The firm, started in 2003, is now seeing strong business in states like Maharashtra, Haryana, Uttar Pradesh and Rajasthan. Most of these states are expanding solar pump deployment either through PM-KUSUM or additional state schemes like the Magel Tyala scheme in Maharashtra. A number of these states now have ambitious plans for solar pumps, giving high hopes to the firm.

“Magel Tyala, the overall state government is running with 5 lakh pumps. So, as the orders of 1 lakh pumps are being executed, they are issuing tenders of 1 lakh orders. So, the broad vision is 5 lakh pumps, and they want to install them as soon as possible, so that the demand for more pumps comes to them, which they can plan for the future,” the top management of the firm said in the investor call.

Planned Expansion

As per its pre-planned expansion, the company, which currently has a capacity of producing 2 lakh solar pumps annually, has planned to scale it up to 5 lakh pumps per year. On the other hand, it has also planned to scale its solar module production business to 1.2 GW. The firm said that the plans are in full swing and likely to be completed by FY26 itself.

It has also planned to venture into other pump businesses like helical pumps and others to diversify its prospects and client base.