Oswal Pumps LimitedUnclassifiedOSWALPUMPS
Q1 FY27 earnings callOswal Pumps Limited
The company started FY27 with a decline in revenue and margins due to industry-wide competitive bidding, geopolitical input costs, and diversification efforts, but maintains its full-year growth guidance on the back of an expanding solar EPC pipeline.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue from Operations | INR474 crores | -7.9% | |
| Operating EBITDA Margin | 15.7% | -747 bps | |
| PAT | INR54 crores | — | |
| PAT Margin | 11.2% | — | |
| Pumps Order Book | 22,025 pumps | — | |
| Solar EPC Order Book | 72 MW | — |
TL;DR
- Revenue declined 7.9% YoY to INR474 crores due to competitive tender pricing and project timing.
- EBITDA margin moderated to 15.7% impacted by a 9% price realization drop in Magel Tyala, higher raw material costs, and increased employee expenses.
- Order book stands at 22,025 pumps with a pipeline of 12,500 pumps; solar EPC order book is 72 MW with a 359 MW pipeline.
- Management reiterated FY27 revenue growth guidance of 20-25% and operating EBITDA margin guidance of 15% to 17%.
- The company is diversifying into PM Surya Ghar (rooftop solar) targeting 2 lakh installations (INR800-1000 crores revenue) and introducing wires/cables via channels to reduce dependency on PM KUSUM.
- Cash conversion cycle increased to 244 days due to delayed government receivables, but payments are considered secure.
Said on the call
“Fundamentally, the company is working and all the plans of the company are going as per plan. But due to external factors, like the delay of PM KUSUM 2.0... and due to more bidders coming in Magel Tyala... the bid has come down a lot in the price that was the biggest reason.”
From the Q&A
| Topic | What management said |
|---|---|
| Stock Price and Retail Investor Concerns | Management attributed the stock price decline and recent performance gaps to external factors like PM KUSUM 2.0 delays, aggressive bidding in Magel Tyala, and geopolitical raw material costs, calling it a 'temporary phase' and expressing optimism for FY28/29. |
| Margin Pressure and Cost Initiatives | The 9% price impact from Magel Tyala competitive bidding and a 3-3.5% impact from higher raw material costs drove the margin decline. Mitigation efforts include value engineering and diversification into PM Surya Ghar. |
| PM KUSUM 2.0 Timing | Management is hopeful for a launch in Q2 (August) based on industry and ministry feedback but cautioned that the timing is ultimately up to the government and cannot be guaranteed. |
| FY27 Growth Confidence | Management is 'very much confident' in the 20-25% revenue growth guidance, expecting Q2 YoY growth of 10-15%, with growth back-ended in H2 driven by PM Surya Ghar execution, channel sales, and existing pump orders. |
| PM Surya Ghar Revenue and Margins | Targeting ~2 lakh installations in FY27, translating to INR800-1000 crores revenue. Margins here are expected to be lower than PM KUSUM but, combined with other businesses, contribute to the guided 15-17% EBITDA margin. |
| Receivables and Working Capital | The cash conversion cycle increased to 244 days due to delayed payments from state nodal agencies. Management expects improvement in Q2 and significant normalization in Q3, noting receivables are from government entities and secure. |
Guidance
- FY27 overall revenue growth of 20-25% over FY26, with a back-ended growth profile.
- FY27 operating EBITDA margin in the range of 15% to 17%.
- FY27 PAT margin in the range of 11% to 13%.
- Targeting sustained growth momentum of 30% to 40% in the medium term beyond FY27.
Source
Summary written from the transcript filed by Oswal Pumps Limited for the call held on 10 Aug 2026; published 18 Aug 2026, 20:50 IST.