Oswal Pumps Sees Strong Solar Pump Pipeline, Bets on PM KUSUM 2 & Rooftop Solar

Indian solar pump company Oswal Pumps expects continued growth in the solar pump segment, driven by upcoming government programmes and diversification into rooftop solar and exports, the top management of the firm told its investors in its latest earnings call.   

Chairman and Managing Director Vivek Gupta said the company has already executed over 90,000 solar pumps as of January 31, 2026 and currently holds an order book of more than 24,500 pumps, with an additional pipeline exceeding 25,000 pumps expected in the near term.

The company’s growth continues to be supported by government-backed schemes such as the PM KUSUM Scheme and the Magel Tyala Scheme in Maharashtra.

Delay in Maharashtra Payments

The management noted that receivables from government-backed projects have increased due to payment delays linked to the Magel Tyala programme. Gupta explained that the delay was caused by procedural issues in funding from multilateral banks, but the situation is expected to improve as approvals have now been secured.

“Funding from AIIB-backed banks was delayed due to procedural matters, but sanctions are now in place and some funds have already started being released,” he said, adding that around 70–75% of receivables are from Maharashtra.

The company maintained that these receivables remain secure since they are backed by state government programmes.

PM KUSUM 2.0 Expected Soon

On the outlook for government solar pump programmes, Gupta said the next phase of the flagship solar irrigation scheme—PM KUSUM Scheme 2.0—is expected to be announced around late March or early April 2026, once the current phase concludes on March 31.

Oswal Pumps also noted that the ₹5,000 crore allocation currently indicated for the programme is a continuation of earlier provisions and may not limit deployment volumes, as actual implementation historically exceeds the budgeted amounts.

Expansion of Manufacturing Capacity

Oswal Pumps is also expanding its manufacturing capacity across key components of the solar pump value chain.

The company plans to complete ordering for the expansion of its pump and motor manufacturing plant by the fourth quarter of FY26. In addition, its solar module manufacturing capacity is expected to expand by 1 GW by the first quarter of FY27, followed by another 0.5 GW by the third quarter of FY27, it added. 

The company said the expansion is aimed at supporting future demand from both government schemes and private sector projects.

New Pump Products Under Development

The company is also developing helical and centrifugal pump models, although Gupta said commercial rollout will happen only after performance benchmarks are fully met.

He added that Oswal Pumps’ backward integration across key components and its in-house service capabilities provide a competitive advantage in the solar pump market.

Diversification Beyond Solar Pumps

To mitigate potential delays in government programmes, the company is expanding into other segments including rooftop solar and exports.

Management said it is exploring opportunities under the PM Surya Ghar: Muft Bijli Yojana rooftop solar programme as well as private solar projects. If the next phase of the solar pump scheme is delayed, the company plans to utilize its solar module capacity for EPC execution of large rooftop solar systems.

The company is also evaluating financial mechanisms such as invoice discounting with banks to manage working capital while maintaining a cautious approach toward balance sheet risk.