Oswal Pumps Q2 Results- PAT Grows 48% YoY, But Outlook Clouded By Margin Compression

Karnal, Haryana based Solar pumo and module maker Oswal Pumps has reported its Q2 Fy26  results.

The firm reported an operating revenue of INR 5,39.6 crores in its Q2 results for Fy 26, reflecting a 73.9% YoY increase and 5.0% QoQ growth. This was primarily driven by the  continued execution of PM Kusum and Magel Tyala orders for solar pumps.
 The firms EBITDA margin for the quarter stood at 24.7% while operating EBITDA margin stood at 23.7%, reflecting a QoQ decline of 368 bps. This has been attributed primarily to a reduction in PM Kusum and Magel Tyala tender rates, which fell by an average of 7.5%, impacting over 80% of its core revenue. In addition, certain one-time factors contributed to margin pressure, 
including approximately Rs 40 crores of module sales at significantly lower margins compared to complete pumping systems, and a one-time expense of Rs 2.5 crores related to  increasing the authorised capital of its subsidiary. 

Profit After Tax (PAT) for Q2 FY26 was Rs 97.5 crores, marking a 48.2% YoY and 3.0% QoQ increase, with a healthy PAT margin of 17.8%.

Oswal Pumpos has a strong order book exceeding 18,800 pumps consisting of direct PM Kusum, indirect PM Kusum and export orders and a pipeline of over 30,000 pumps across major states including Maharashtra, Haryana, Karnataka and Madhya Pradesh. 

The firm's management , led by Chairman and Managing Director, Vivek Gupta anticipates the launch of PM Kusum 2.0 before the end of this fiscal.There are also plans to shift the Solar Module Expansion Project to a land parcel adjacent to its existing plant, as it offers a larger area, superior logistics, better manpower utilization, and the ability to leverage existing R&D and administrative infrastructure. This change is expected to improve operational efficiencies and costs, provide stronger long term value. It has an existing solar module capacity of 570 MW.

Among key planned measures to protect margins, the firm hopes to :
 -Increase the solar module installed capacity by 1,500 MW
 - Integrate the aluminium extrusion process into operations by investing ₹433.59 million

- Integrate the manufacturing of EVA (encapsulant material) into the operations by investing ₹268.07 million 
-Consider manufacturing of on-grid inverters in-house and  integrate the production of Junction Box Back Sheet