Solar Pump Stock Jumps After Securing ₹120 Cr Order from Karnataka Government

SYNOPSIS: Oswal Pumps secured a Rs. 119.92 crore PM-KUSUM B order from KREDL to supply and install 3,263 off-grid solar water pumps across Karnataka, strengthening its renewable energy order book.

During Wednesday’s trading session, shares of one of India’s fastest-growing, vertically integrated solar pump manufacturers surged more than 4 percent on BSE, after the company announced securing solar pump orders worth nearly Rs. 120 crore under the PM-KUSUM B Scheme from the Karnataka Government.

At 10:51 a.m., shares of Oswal Pumps Limited were trading in the green at Rs. 461.4 on BSE, up by around 1 percent, compared to its previous closing price of Rs. 456.8, with a market cap of Rs. 5,259 crores. The stock has delivered negative returns of over 26 percent in the last one year, and has fallen by around 16 percent in the last one month.

News

As per its latest regulatory disclosure, Oswal Pumps Limited has received an order from Karnataka Renewable Energy Development Limited (KREDL) under the PM-KUSUM B Scheme, valued at Rs. 119.92 crore, for the supply and installation of 3,263 off-grid DC solar photovoltaic (PV) water pumping systems.

The scope of the order includes the design, manufacture, supply, installation, testing, and commissioning of solar water pumping systems in 3 HP, 5 HP, 7.5 HP, and 10 HP capacities. These systems will be deployed at identified farmers’ locations across Karnataka, aimed at supporting sustainable irrigation and promoting the adoption of renewable energy in the agricultural sector.

Financials

Oswal Pumps Limited is primarily in the business of manufacturing and installation of solar and grid submersible pumping systems, solar and grid monoblock pumps, electric motors and solar modules. 

For FY26, the company is targeting revenue growth of 50-60 percent, with a medium-term aim of sustaining a 30-35 percent CAGR. Management noted that the one-time margin impact seen during the quarter is unlikely to recur, and additional cost savings of at least 100 basis points are expected by Q4 FY26.

The company anticipates closing Q3 FY26 with operating EBITDA margins in the range of 25.5-26 percent, improving further to 26.25-26.75 percent in Q4. PAT margins are expected to remain healthy in the 17.5-19 percent range.

Oswal Pumps also highlighted its strong order pipeline, with an order book exceeding 18,800 pumps, covering direct PM-KUSUM, Magel Tyala, indirect PM-KUSUM and export orders. Additionally, a near-term pipeline of more than 30,000 pumps across key states, including Maharashtra, Haryana, Karnataka and Madhya Pradesh, provides solid visibility to achieve its FY26 growth targets.

In Q2 FY26, Oswal Pumps experienced a marginal growth in the revenue from operations of Rs. 540 crores, an increase of around 5 percent QoQ and 74 percent YoY. Meanwhile, its net profit stood at Rs. 98 crores, representing a rise of more than 3 percent QoQ and 48 percent YoY.

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