Oswal Pumps Ltd Management Discussions

) Industry structure and developments

Global Economy -

Global real GDP grew 3.4% in CY25 despite higher interest rates, tighter financial conditions, and geopolitical tensions, including the Russia-Ukraine war, Middle East conflicts, and US-China trade frictions. This momentum is expected to continue, with global growth projected to average 3.1% annually through CY30. India is set to lead globally with a projected growth rate of 6.5% over the same period, supported by strong domestic demand and rising infrastructure investments.

Global GDP per capita stood at US$ 14.7K in CY25 and is expected to rise at a CAGR of 4.3%, reaching US$ 18.2K by CY30. This growth builds on a 4.0% CAGR from CY19–CY25, driven by investments in infrastructure, education, healthcare, and technology. Meanwhile, global inflation is projected to rise from 4.1% in CY25 to 4.4% in CY26, driven by rising energy and commodity prices, supply chain disruptions, and persistent input cost pressures.

Regionally, Emerging Asia is expected to deliver the strongest growth, with a 5.5% rate in CY25, led by robust consumption in ASEAN economies and large-scale public investments in China and India. Among Asian economies, India will continue to stand out, propelled by favorable demographics, expanding middle-class consumption, low inflation, and rising government spending on infrastructure.

Indian Economy –

Indias GDP stood at US$ 3.9T in CY25 and is projected to reach US$ 5.6T by CY29, making it the worlds third-largest economy by CY28. Between CY18 and CY24, GDP expanded from US$ 2.7T to US$ 3.8T, supported by reforms such as GST, corporate tax cuts, and liberalized FDI policies. With an expected real GDP growth rate of ~6.5% from CY25–CY30, India will remain one of the fastest-growing large economies globally. Per capita income was ~US$ 2.7K in CY25 and is forecast to reach ~US$ 4.0K by CY30, growing at a CAGR of 8.6%. This strong rise, driven by manufacturing growth, higher agricultural output, and government spending, will position India as the fastest-growing major economy in terms of per capita income, ahead of China, the US, the UK, and Germany.

Inflation is moderating, with CPI inflation at 2.1% in CY25 and projected to rise to 4.7% by CY26. Industrial activity exhibited moderation in FY25 —Indias IIP grew by 4.1% in FY25 versus 5.9% in FY24, led by mining (3.0%), manufacturing (4.1%), and electricity (5.2%). These trends reflect rising domestic demand, robust FDI inflows, and supportive policies such as ‘Make in India, driving long-term industrial and economic expansion.

Global Pump -

The pump industry plays a very pivotal role in sectors such as agriculture, manufacturing and residential. Increasing investments in the renewable energy sector like solar panels and advancements in pump manufacturing technology like smart pumps, pumps developed for specific use cases requiring highly specialized functions are poised to fuel growth for the global pump market in the future. This expansion will be supported by factors such as rapid urbanization, rising demand in the power sector, and a focus on water recycling and wastewater treatment, among other drivers The global pump market grew at a CAGR of 5.2% from CY18-24, with the market being INR 6.1T in CY24 and expected to reach INR 7.9T by CY29, growing at a CAGR of 5.6% between CY24-29. The rapid industrialization in emerging economies, along with substantial infrastructure development, necessitates pumps for various purposes including water supply, wastewater treatment, and manufacturing operations. Furthermore, SDG 6 focuses on addressing water scarcity, poor water quality and inadequate sanitation globally, thereby requiring water pumps to meet the increased demand and handle water quality challenges.

29, reaching INR 0.7T by CY29. This growth is attributed to several factors, including increasing government support through subsidies, energy efficiency and cost savings offered by solar pumps, and concerns regarding water scarcity climate change and erratic rainfall. The need to reduce reliance on diesel pumps, government subsidies offered in various nations like the PM-KUSUM scheme of India, Rural Energy for America Program of the USA & Solar rebate Program of UAE, lower operating expenses compared to traditional pumps and adoption in remote areas with limited grid coverage are driving the demand for solar pumps. Additionally, government in different countries is providing grants, low-interest loans, and tax credits to individuals and businesses to promote the adoption of solar pumps and other renewable energy technologies.

Indian Pump Market

Pumps are vital across various sectors in India, including agriculture, industrials and infrastructure, making the pump industry a key contributor to the nations growth. This sector has experienced significant growth in recent years, driven by the expansion of domestic infrastructure projects and water-intensive industries. Advancements like built-to-suit pumps for specific applications in various industries and customization that optimizes pump performance for unique processes are also gaining potential. The increasing demand in these areas underscores the essential role of pumps in supporting Indias development and economic progress. Government initiatives like Jal Jeevan Mission and Swachh Bharat Mission are also driving growth in the pump market by increasing demand for water supply infrastructure and sanitation solutions.

The Indian pumps market was ~INR 380.5B in FY25, expectedtoreach~INR591.9BbyFY30,growingataCAGR of 9.2% between FY25-30. India currently has just ~5% share in global pumps market, indicating a significant opportunity for growth Agriculture drives growth in the Indian pumps market through increasing demand for efficient irrigation solutions, boosted by government initiatives, increasing adoption of solar pumps and rising need for reliable water supply to enhance crop yields. Rapid industrialization, coupled with significant infrastructure development, drives the need for pumps for water supply, wastewater treatment, and manufacturing operations. Urbanization in India is also driving the growth of pumps due to increased demand for water management, construction, and industrial activities in expanding urban areas.

Submersible Pumps

A submersible pump extracts water and debris while fully submerged inside the water source. Built to sustain complete immersion, these pumps are encompassed with protective measures to shield internal components from water damage. Encased within a watertight chamber, the motor remains safeguarded, preventing entry of harmful substances that could corrode its mechanisms. This design enhances operational efficiency and prolongs the pumps lifespan. These pumps are mainly used for, irrigation, waste water and sewage treatment, drilling rigs and oil wells to extract water from deep borewells, removing water from flooded sites, etc.

The global submersible pump market size was INR 1.3T in CY24 and is expected to reach INR 1.8T by CY29, growingataCAGRof7.5%fromCY24-29.Theincreasing need for efficient water management systems in residential and commercial sectors, increasing demand for hydrocarbon products and agricultural activities will drive demand for submersible pumps.

The submersible pumps market in India is experiencing growth, with bore wells emerging as a significant segment due to reducing water table. The growth is also driven by increased applications in water treatment and mining sectors across the country. These pumps also play a pivotal role in household water supply, finding strong demand even in Tier-3 cities. The submersible pump market grew at a CAGR of 34.2% between FY19-24 and was valued at ~INR 200.7B in FY25, forming ~5% of the global submersible pumps market. It is expected to reach ~INR 330.4B by FY30, growing at a CAGR of ~10.5% from FY25-30.

Monoblock Pumps

A monoblock pump is a type of centrifugal pump that has all its rotating components mounted on a single shaft. Fresh water and fluids that are not chemically aggressive to pump components are recommended for centrifugal monoblock pumps. It works well for domestic applications and is used in drinking water supply, gardens, apartments, etc. It is also used for small-scale agriculture.

The monoblock pump, a centrifugal pump variant, finds extensive use across water supply, irrigation, agriculture, and industrial applications. Over recent years, the monoblock pump market has seen substantial growth in India. The monoblock pump market grew at a CAGR of 6.3% between FY19-25 and was valued at ~INR 50.3B in FY25, forming ~6% of the global monoblock pumps market. It is expected to reach ~INR 74.2B by FY30, growing at a CAGR of ~8.1% from FY25-30. The Indian monoblock pumps market is thriving due to their strong demand in the rural areas. They are popular in agricultural usage for their compact design, easy installation, and efficient irrigation. This growth trend has prompted a surge in product offerings, catering to diverse demands across sectors and driving innovation uptake in the market.

Solar Pumps

A solar pump is an electrical pump that uses electricity generated by solar panels to provide the energy needed for the motor to pump water out of the source. This pump can extract water from deep underground. Moreover, it also serves as a sustainable alternative to unreliable grid power and environmentally harmful diesel-powered pumps. Solar pumps are used in agriculture for irrigation, especially in regions with limited electricity access, domestic and community water supply.

The global monoblock pump market size was INR 0.9T in CY24. It is projected to grow at a CAGR of 5.1% between CY24-29, reaching INR 1.1T by CY29.

This growth is fueled by the demand for effective fluid management solutions across sectors such as agriculture, construction, and water treatment. Furthermore, the expansion of urban areas and the increasing demand for energy-efficient pumping systems are contributing to the markets upward trajectory.

The global solar pump market was INR 0.3T in CY24 and is expected to grow at a CAGR of 19.5% between CY24-29, reaching INR 0.7T by CY29. This growth is attributed to several factors, including increasing government support through subsidies, energy efficiency and cost savings offered by solar pumps, and concerns regarding water scarcity climate change and erratic rainfall. The need to reduce reliance on diesel pumps, government subsidies offered in various nations like the PM-KUSUM scheme of India, Rural Energy for America Program of the USA & Solar rebate Program of UAE, lower operating expenses compared to traditional pumps and adoption in remote areas with limited grid coverage are driving the demand for solar pumps. Additionally, government in different countries is providing grants, low-interest loans, and tax credits to individuals and businesses to promote the adoption of solar pumps and other renewable energy technologies.

Indian solar pump market was valued at INR 164.5B in FY25 and is expected to grow at a CAGR of 11.0% between FY25-30, expected to reach INR 271.1B by FY30

Solar pumps are environment-friendly and sustainable alternatives to diesel / grid-connected pumps. These cost-effective pumps provide energy access in remote areas with scarce electricity. It is important for sustainable agriculture in India, which contributes to ~18% of Indias GDP. Solar pumps are widely used in agricultural activities for irrigation, drip irrigation, livestock watering, aquaculture, and rainwater harvesting.

The Indian solar pump market has witnessed a remarkable growth trajectory increasing from INR 1.7B in FY19 to INR 164.5B in FY25 and is expected to reach INR 271.1B by FY30, growing at a CAGR of 11.0% over FY25-30 expected to attribute to ~57% of total pumps market by FY30. The market growth is

Schemes & Programs

a) PM KUSUM Scheme

Overview of the components under the PM KUSUM Scheme

In March, 2019, the Government of India launched the Pradhan Mantri Kisan Urja Suraksha evan Utthaan Mahabhivan Scheme ("PM Kusum Scheme"), with total INR 344B (US$ 4.1B) central financial support with the objective of installing 1.40 million standalone solar agriculture pumps in off-grid areas to provide energy security for farmers, reduce the consumption of diesel, promote the use of renewable energy in the agricultural sector and reduce environmental pollution. The PM Kusum Scheme also focuses on the solarization of 3.50 million existing grid-connected agricultural pumps and provides subsidies to individual farmers who have grid-connected pumps to retrofit their pumps with solar panels The Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM) Scheme, launched in March 2019 with total INR 344B (US$ 4.1B) central financial support, aims to provide energy security to farmers, de-dieselize and promote the use of renewable energy in the agricultural sector, and reduce environmental pollution. PM Kusum Scheme focuses on solarizing 14L grid-connected agricultural pumps and provides subsidies to individual farmers who have grid-connected pumps to retrofit their pumps with solar panels b) PM Surya Ghar Muft Bijli Yojna

A flagship Government of India program (~ 75,000 crore outlay) aimed at enabling rooftop solar adoption across 1 crore households, providing up to 300 units of free monthly electricity while accelerating residential solar penetration Government provides subsidy of ~60% of benchmark cost (up to 2 kW) and ~40% on incremental cost (2–3 kW), capped at 3 kW system capacity The Government of India has allocated 22,000 crore for the PM Surya Ghar Muft Bijli Yojana in the Union Budget 2026–27, underscoring its continued commitment to expanding rooftop solar energy across one crore households.

Avg. Monthly Electricity Consumption (units)	Suitable Rooftop Solar Plant Capacity	Subsidy Support
0-150	1-2 kW	30,000 – 60,000
150-300	2-3 kW	60,000 – 78,000
>300	Above 3 kW	Capped at 78,000

As of August 7, 2026, approximately 7.80 million applications have been received, 15.01 GW installed, and 5.07 million households covered. c) Maharashtra State Scheme: Magel Tyala Saur Krishi Pump Scheme

The Magel Tyala Saur Krushi Pump Yojana (MTSKPY) is a flagship initiative of the Government of Maharashtra aimed at providing off-grid solar-powered agricultural pumps to farmers with assured water sources. Implemented by MSEDCL, the scheme seeks to ensure reliable daytime irrigation, reduce dependence on conventional electricity and diesel pumps, and improve farm productivity through clean energy adoption. Under the scheme, eligible farmers contribute only 10% of the pump cost (5% for SC/ST farmers), with the balance funded through Central and State Government subsidies.

As part of the States long-term renewable energy roadmap, the scheme targets the installation of 10 lakh (1 million) solar agricultural pumps by FY2029. The Maharashtra Government has earmarked 8,096 crore towards the implementation of the scheme under its approved FY2025-26 capital expenditure budget, underscoring its strategic importance.

DCR Policy

Domestic content requirement (DCR) mandates the use of both solar cells and modules manufactured domestically as per specifications and testing requirements fixed by the Ministry of New and Renewable Energy (MNRE). They are regulations enacted by the government mandating a particular percentage of a products value to be sourced locally. As of January 2024, DCR modules (Mono PERC) were priced at approximately INR 22-23/Wp, while non-DCR modules were priced at around INR 16-17/Wp, creating a gap of about INR 6/Wp, which is approximately 30% of the price. DCR solar panels find extensive application in various governmental projects, government-assisted initiatives, schemes, programs, as well as in open access and net-metering projects. DCR modules are also mandatory to use under PM Surya Ghar Yojana. and component B & C of PM-KUSUM scheme. However, in August 2024, the government relaxed the DCR norms for solar cells used for feeder-level solarization (FLS) under component C of PM-KUSUM until March 31, 2024.

Approved List of Models and Manufacturers (ALMM) ALMM is list of solar cell and module types of manufacturers in India that have been certified by the BIS (Bureau of Indian Standards). The list contains all the relevant certifications in specific BIS certification and manufacturing capabilities data of enlisted manufacturer. The BIS certification is mandatory for solar modules & inverters.

Key Growth Drivers

1. Technological advancements

• Growing demand as advanced technologies like IoT and AI are revolutionizing pump manufacturing

2. Stringent government regulations

• Stricter regulations for wastewater treatment are leading industries to invest in energy-efficient pumping solutions

3. Government initiatives

• Subsidies offered through government initiatives like PM KUSUM (India), REAP (USA), and Solar Rebate Program (UAE) o REAP (USA): USDA announced US$145 million in funding in 2023 for 700 loans and grants through REAP to help agricultural producers and rural small business owners improve energy efficiency o Solar Rebate Program (UAE): Provides financial incentives or rebates to individuals and businesses for installing solar panels

4. Rapid industrialization

• Industrial growth in mining, petrochemicals, and other sectors is driving demand for efficient pumping systems for water supply and fluid transfer

5. Rising urbanization

• Rising need for water in residential and commercial sectors requires investments in water treatment and sewage systems o Increasing residential construction activities, such as high-rise buildings, are driving demand for efficient water supply and waste management systems

6. Infrastructure development

• High focus on infrastructure development, particularly in developing countries, is increasing the adoption of pumping systems

7. Grants and loans

Grantsandfinancialassistancefromorganizations like the World Bank are supporting governments in enhancing and expanding water infrastructure Sources:

1. 1Lattice Report titled "Pumps and Solar Rooftop Industry Report", May 2025

2. PIB

3. www.mahadiscom.in 4. www.pmsuryaghar.gov.in

Company Overview

Oswal Pumps Limited is one of Indias leading vertically integrated manufacturers of solar pumping solutions, offering a comprehensive portfolio of solar-powered and grid-connected submersible and monoblock pumps, induction and submersible motors, and solar modules under the ‘Oswal brand. Backed by over 23 years of expertise in engineering, product design, manufacturing and testing, the Company has built a strong presence across agricultural, residential, commercial and industrial applications, addressing a wide range of water management and pumping requirements.

Since commencing operations in 2003 with the manufacture of low-speed monoblock pumps, the Company has steadily expanded its product portfolio to include high-speed monoblock pumps, grid-connected submersible pumps, electric motors and integrated solar pumping solutions, strengthening its position in the renewable energy ecosystem.

The Company operates an integrated manufacturing facility with an installed capacity of 4,704.02 MT of pumps and 1,985.52 of motors, consistently maintaining healthy capacity utilisation, reflecting efficient operations and strong demand for its products.

Our Company got listed on BSE (Scrip Code: 544418) and NSE (Symbol: OSWALPUMPS) on June 20, 2025.

Business Verticals / application wise

The Company serves a diversified customer base across agriculture, residential and industrial applications, with agriculture remaining its primary end-use segment

	Fiscal 2026		Fiscal 2025
Particulars	Amount ( million)	%	Amount ( million)	%
Agriculture	16,427	83.6%	12,816	97.0%
Residential	3,042	15.5%	236	1.8%
Industrial	180	0.9%	159	1.2%
Total	19,649	100.0%	13,211	100.00%

Revenue excludes revenue from the sale of traded goods and other operating revenue and adding back discounts and incentives;

The Company caters to a diversified customer base comprising government entities, institutional customers, distributors and export markets, with government entities constituting the largest share of revenue.

	Fiscal 2026		Fiscal 2025
Particulars	Amount ( million)	%	Amount ( million)	%
Institutional customers	1,385	7.0%	979	7.4%
Government entities	14,984	76.3%	9,841	74.5%
Sales through Distributors	2,808	14.3%	1,878	14.2%
Exports	413	2.1%	503	3.8%
Others*	59	0.3%	10	0.1%
Total	19,649	100.0%	13,211	100.00%

Revenue excludes revenue from the sale of traded goods and other operating revenue and adding back discounts and incentives; *Others include direct customers including farmers, households, hospitals and hotels who do not fit into any of the other categories mentioned above.

Manufacturing Capacity and Backward Integration

Over 23 years, Oswal Pumps has transformed from a pump manufacturer into a vertically integrated provider of end-to-end solar pumping solutions through continuous backward integration. The Company has progressively developed in-house manufacturing capabilities across key pump components, including castings, plastic moulding, stamping, wires, controllers and electric motors, while also expanding into solar PV module manufacturing. Its integrated value chain today encompasses pumps, motors, solar modules, structures, controllers and balance-of-system (BoS) components, enabling the Company to deliver complete solar pumping systems. The integrated manufacturing platform strengthens quality assurance, enhances supply chain reliability, improves cost efficiencies and supports timely execution of customer orders. In addition, the Company continues to invest in automation, advanced manufacturing processes and technological capabilities to further improve operational efficiency.

The table below presents the installed capacity and capacity utilisation for the reported periods.

	FY26 Installed	FY26 Installed	FY25 Installed	FY25 Capacity
Category	Capacity (MT/MW)	Capacity (MT/MW)	Capacity (MT/MW)	Utilization
Pumps and Motors
Stainless Steel Pumps	1,160.07	95.1%	1,160.07	79.0%
Cast Iron Pumps	3,544.13	81.7%	3,544.13	58.0%
Stainless Steel Motors	1,314.72	86.3%	1,314.72	79.6%
Cast Iron Motors	670.80	67.4%	670.80	43.2%
PV Modules
Solar Modules (MW)	570	71.4%	570	57.4%

Strategic differentiators and Competitive Positioning

One of Oswal Pumps key strategic differentiators is its fully integrated manufacturing platform, built through continuous backward integration over the past two decades. The Company has established in-house capabilities across the solar pumping value chain, encompassing pumps, electric motors, solar PV modules, controllers, structures and key pump components, including castings, stampings, plastic moulded parts and submersible wires. This integrated manufacturing ecosystem enables superior quality control, cost efficiencies, supply chain reliability and execution capabilities, while reducing dependence on external suppliers and supporting scalable growth.

Oswal Pumps has established a strong market position under the PM-KUSUM Scheme, one of Indias flagship initiatives for promoting solar-powered irrigation. As of April 30, 2026, the Company had directly and indirectly supplied approximately 27% of the 1.09 million solar pumps installed under the scheme, reflecting its strong execution capabilities, established relationships with government agencies and channel partners, and extensive manufacturing capacity. The Companys significant participation under PM-KUSUM reinforces its position as one of the leading players in Indias solar pumping market.

Order Book

The Company has secured orders from multiple state governments, indirect channels and export markets under various solar pumping initiatives. The table below provides the outstanding order book as on July 31, 2026.

Particulars	Maximum No. of Solar Pumping Systems to be Supplied
Government of Maharashtra	5,000
(Magel Tyala)
Government of Uttar Pradesh	3,749
Government of Uttarakhand	116
Government of Ladakh	100
Government of Madhya Pradesh	1,010
Other Indirect Orders	9,050
Export Orders (only pumps)	3,000
Total	22,025

As of July 31, 2026, the Company had an order book of 22,025 pumps and an additional pipeline of over 12,500 pumps, providing strong revenue visibility and supporting future growth. The Company continues to scale its presence across Rooftop Solar, Utility and Commercial & Industrial (C&I) Solar EPC segments. As on August 07, 2026 the order book across these businesses stands at approximately 72 MW, backed by a wider pipeline of 359 MW.

Geographic Revenue Bifurcation

The Companys revenue is geographically diversified across multiple states, reflecting its participation in government tenders and institutional projects across India. The table below presents the state-wise revenue contribution:

State	FY26	FY25
Maharashtra	54.9%	48.1%
Haryana	20.2%	29.2%
Karnataka	5.4%	0.4%
Uttar Pradesh	3.4%	6.7%
Punjab	3.2%	2.5%
Rajasthan	3.0%	4.9%
Uttarakhand	2.1%	2.0%
Others	5.8%	2.4%

The Company has consistently demonstrated execution agility by dynamically shifting its focus towards states with higher demand, enabling sustained participation in large-scale government programmes and diversified revenue generation.

New Segment and Product diversification initiatives

Oswal Pumps aims to strengthen its growth trajectory by diversifying its product portfolio with offerings such as industrial pumps, helical pumps, boiler feed pumps, and chemical pumps. The Companys continued investments in R&D and energy-efficient technologies are expected to enhance its competitiveness and position it strongly to capitalize on emerging industry trends. In addition, the Companys has also started to actively participate in the Pradhan Mantri Surya Ghar Muft Bijli Yojana, which presents a compelling growth avenue, as rising household solar adoption is expected to drive incremental demand for solar-compatible pumping solutions. The Company is well-positioned to leverage this policy tailwind and expand its presence in the residential solar segment going forward.

Opportunities and Threats

The resilient performance of the Indian economy, supported by strong consumption and infrastructure growth, is creating attractive opportunities for Oswal Pumps Limited. We continue to witness increasing demand for our wide range of pumps and motors, driven by the needs of agriculture, industries, and households. With our strong brand presence, extensive distribution network, and deep understanding of customer requirements, we are well-positioned to capitalize on this momentum. Our growth strategy includes expanding into underpenetrated regions, strengthening our dealer network, and introducing focused marketing initiatives to enhance visibility and market reach.

A key enabler of our long-term growth is the governments continued push for rural electrification, solar energy adoption, and water management. The PM-KUSUM scheme has accelerated the adoption of solar pumps and efficient irrigation systems—areas where Oswal Pumps has already established a strong foothold with its proven product portfolio. Further, the Company is actively participating in the Pradhan Mantri Surya Ghar Muft Bijli Yojana (PMSG:MBY), which aims to provide free solar electricity to households across India and presents a significant opportunity to expand our solar-compatible pump offerings. The Government is expected to launch PM-KUSUM 2.0 in FY 2026-27, which is anticipated to further accelerate solar pump adoption across the agricultural sector, deepening the addressable market for our products. Additionally, state-level schemes continue to gain traction, with Maharashtra being a particularly active market where government-supported programs are running smoothly and driving healthy on-ground demand.

The aftermarket segment remains another key pillar of our long-term success, where Oswal ensures reliable customer support through prompt service delivery. This not only enhances customer satisfaction but also builds durable relationships and recurring revenue streams.

Our ongoing investments in automation and digitalization are improving manufacturing efficiency, reducing costs, and reinforcing our competitiveness, enabling us to navigate evolving market conditions with confidence.

Oswal Pumps Limited operates in a highly competitive industry that faces several external threats, including rising raw material costs, which can impact margins. Intense competition, coupled with price sensitivity in the agriculture and rural markets, poses risks to market share. In addition, fluctuations in government policies, subsidy programs, and rural financing schemes directly influence demand for pumps, especially in the solar and agricultural segments. Dependence on monsoon patterns and climatic conditions also creates demand volatility, while rapid technological advancements and the growing need for energy-efficient solutions require continuous investment in R&D to stay relevant. Furthermore, global uncertainties in supply chains and currency fluctuations may exert additional pressure on operations and profitability.

Segment–wise or product-wise performance

During the year under review, Oswal Pumps activity falls within one broad segment, i.e., various types of Solar, Pumps & Motors. Within India, revenue from customers accounted for 19,999.99 Million and Outside India accounted for 412.80 Million.

The table below presents the product-wise revenue contribution:

Product Category	FY26	FY25
(% of Revenue)
Turnkey Solar Pumping	69.7%	65.1%
Systems (Submersible
Pumps)
Turnkey Solar Pumping	6.6%	9.4%
Systems (Monoblock Pumps)
Solar Submersible Pumps	3.4%	5.0%
Solar Monoblock Pumps	0.8%	1.2%
Non-Solar Submersible	2.3%	3.6%
Pumps

 

Product Category
(% of Revenue)	FY26	FY25
Non-Solar Monoblock Pumps	0.2%	0.4%
Electric Motors	2.3%	4.3%
Solar PV Modules	13.0%	9.4%
Others	1.8%	1.6%

Revenue excludes revenue from the sale of traded goods and other operating revenue and adding back discounts and incentives

Outlook

Oswal Pumps Limited looks ahead with confidence, underpinned by a strong performance track record over the past three years and an unwavering commitment to sustainable, long-term growth. Indias resilient economic environment bolstered by agricultural modernization, the Governments sustained push for solar pump adoption among farmers, and the broader shift towards renewable energy, presents a highly conducive business landscape for the Company. Against this backdrop, Oswal Pumps is strategically positioned to capitalize on emerging opportunities across agriculture, industry, and the residential solar segment.

While we remain optimistic about the road ahead, we are mindful of external headwinds, particularly volatility in raw material prices and its potential impact on input costs. Nonetheless, with a sharp focus on operational excellence, digital integration, and customer-centric innovation, we are well-equipped to navigate these challenges effectively. We are confident that these strategic priorities will enable us to sustain our growth momentum, strengthen profitability, and deliver enduring value to all our stakeholders.

Our revenue from operations increased by 44.33%, from 14,303.07 million in Fiscal 2025 to 20,643.89 million in Fiscal 2026. Revenue from customers in

India stood at 19,999.99 million, while revenue from customers outside India was 412.80 million. Revenue from the supply of Turnkey Solar Pumping Systems directly by us under Government schemes increased from 7,743.20 million in Fiscal 2025 to 14,984.13 million in Fiscal 2026.

Profit & Loss Statement

Fiscal 2026 compared to Fiscal 2025 Total Income

Our total income increased by 45.57% from 14,329.23 million in Fiscal 2025 to 20,859.05 million in Fiscal

2026, primarily due to an increase in our revenue from operations as discussed below.

Revenue from operations

Revenue from operations grew by 44.33% from

14,303.07 million in Fiscal 2025 to 20,643.89 million in Fiscal 2026. This growth was primarily driven by a 44.84% increase in revenue from sale of products, which rose from 14,093.37 million to 20,412.79 million over the same period.

The increase in product revenues was attributable to two key drivers. First, revenue from the supply of Turnkey Solar Pumping Systems executed directly by the Company under Government Schemes increased significantly from 7,743.20 million in Fiscal 2025 to 14,984.13 million in Fiscal 2026, reflecting continued momentum in government-supported solar irrigation programmes.

Other Income

Our other income increased by 722.62% from 26.16 million in Fiscal 2025 to 215.16 million in Fiscal 2026, primarily as a result of an increase in interest income from 6.79 million in Fiscal 2025 to 175.27 million in

Fiscal 2026. The increase in interest income was driven by increase in Bank balances other than Cash and cash equivalents from 77.88 million in Fiscal 2025 to 2,919.79 million in Fiscal 2026.

Total Expenses

Our total expenses increased by 50.42% from 10,651.79 million in Fiscal 2025 to 16,021.90 million in

Fiscal 2026, primarily due to an increase in (i) cost of materials consumed from 7,313.05 million in Fiscal 2025 to 11,726.55 million in Fiscal 2026, (ii) employee benefits expense from 655.50 million in Fiscal 2025 in 854.96 million for Fiscal 2026, (iii) depreciation cost from 127.91 million in Fiscal 2025 to 164.54 million in Fiscal 2026 and (iv) other expenses from 1,460.05 million to 2,122.00 million in Fiscal 2026

Cost of Materials Consumed

Cost of materials consumed increased by 60.35% from

7,313.05 million in Fiscal 2025 to 11,726.55 million in

Fiscal 2026. This increase was primarily attributable to two factors: first, a significant growth in revenue from

14,303.07 million to 20,643.89 million over the same period, which correspondingly drove higher material procurement volumes; and second, an elevated input cost environment, reflective of broader commodity price pressures during the year.

Purchase of stock-in-trade

Expenditure on the purchase of stock-in-trade decreased by 16.83% from 850.39 million in Fiscal 2025 to 707.31 million in Fiscal 2026 due to an decrease in the sale of traded goods from 907.93 million in Fiscal 2025 to 788.46 million in Fiscal 2026.

Change in inventories of finished goods, work-in-progress and stock-in-trade

Changes in inventories of finished goods, Stock-in-

Trade, and work-in-progress shifted from (174.44) million in Fiscal 2025 to 93.98 million in Fiscal 2026, indicating a net drawdown of inventories during the year as against a net build-up in the previous year. This movement was primarily attributable to changes in closing inventory levels across all three categories:

(i) finished goods inventory decreased from 741.01 million at the beginning of Fiscal 2026 to 652.96 million at the end of Fiscal 2026; (ii) Stock-in-Trade inventory increased from 8.15 million at the beginning of Fiscal 2026 to 36.13 million at the end of Fiscal

2026; and (iii) work-in-progress inventory decreased from 108.98 million at the beginning of Fiscal 2026 to 75.09 million at the end of Fiscal 2026. The overall reduction in closing inventories is consistent with the significant increase in business activity, with revenue from operations growing by 44.33% from Fiscal 2025 to Fiscal 2026, resulting in higher offtake of finished stock during the year.

increase in salaries, wages and bonus, which rose from 599.17 million in Fiscal 2025 to 771.54 million in

Fiscal 2026. The increase was driven mainly by (i) a rise in headcount from 1,797 employees as of March 31, 2025 to 1,805 employees as of March 31, 2026, and (ii) salary revisions for existing employees.

Other Expenses

Other expenses increased by 45.34% from 1,460.05 million in Fiscal 2025 to 2,122.00 million in Fiscal 2026, primarily driven by the following increases:

• Installation and commissioning charges rose from 334.33 million to 676.66 million, directly consequent to the significant growth in revenue from Turnkey Solar Pumping Systems executed directly by the Company under Government

Schemes increased significantly from 7,743.20 million in Fiscal 2025 to 14,984.13 million in Fiscal

2026;

• Advertisement and business promotion expenses increased from 113.85 million to 242.57 million, reflecting the Companys enhanced focus on brand building and market development initiatives;

• Consumption of stores and spare parts increased from 98.77 million to 155.83 million, in line with higher manufacturing activity;

• Freight and handling charges increased from

87.86 million to 143.72 million, commensurate with the growth in sales volumes;

• Provision for expected credit loss increased from

37.76 million to 88.24 million;

Insurance expenses increased from 16.02 million to 33.43 million;

Rent expenses increased from 2.12 million to 8.38 million;

• Corporate Social Responsibility expenditure increased from 16.64 million to 37.64 million, in line with the Companys higher net profits and consequent statutory CSR obligations;

Miscellaneous expenses increased from 65.57 million to 96.05 million; and

• Fee for increase in authorised share capital of

22.88 million was incurred during Fiscal 2026, being a one-time charge with no corresponding expense in the prior year.

Tax Expense

Our total tax expense increased by 23.16% from

890.32 million in Fiscal 2025 to 1,096.47 million in

Fiscal 2026, primarily due to a corresponding increase in profit before tax. This primarily constituted an increase in tax paid in the current year from 909.09 million in Fiscal 2025 to 1,131.16 million in Fiscal 2026.

Profit for the year

As a result of the foregoing factors, our profit for the year was 3,762.78 million in Fiscal 2026 compared to 2,806.14 million in Fiscal 2025 and PAT margin was

18.0% in Fiscal 2026 compared to 19.6% in Fiscal 2025.

Cash Flow Statement

Operating Activities Fiscal 2026

Net cash outflow from operating activities was

770.76 million in Fiscal 2026. The Company recorded a net profit before tax of 4,825.43 million for the year.

Key non-cash and other adjustments to reconcile profit to operating cash flows included finance costs of 352.56 million, depreciation and amortisation expense of 164.54 million, provision for warranties of 67.85 million, and provision for expected credit loss of 88.24 million. These were partially offset by interest income of 175.27 million.

Operating profit before working capital changes was

5,382.30 million in Fiscal 2026. The main working capital adjustments in Fiscal 2026 comprised increase in trade and other receivables of 5,596.99 million, increase in inventories of 88.12 million and increase in trade and other payables of 880.63 million.

Fiscal 2025

Net cash outflow from operating activities was 1,421.41 million in Fiscal 2025. The Company recorded a net profit before tax of 3,677.44 million for the year. Key non-cash and other adjustments to reconcile profit to operating cash flows included finance costs of

419.33 million, depreciation and amortisation expense of 127.91 million, provision for warranties of 48.19 million, provision for expected credit loss of 37.76 million, and net loss on sale or discard of property, plant and equipment of 1.15 million, resulting in an operating profit before working capital changes of

4,316.81 million. The main working capital adjustments in Fiscal 2025 comprised increase in trade and other receivables of 4,181.48 million, increase in inventories of 900.76 million and increase in trade and other payables of 234.10 million.

Investing Activities Fiscal 2026

Net cash outflow used in investing activities in Fiscal

2026 was 3,973.36 million, primarily due to purchase of property, plant and equipment of 1,348.89 million and net increase in fixed deposits of 2,834.17 million.

Fiscal 2025

Net cash outflow used in investing activities in Fiscal

2025 was 546.74 million, primarily due to purchase of property, plant and equipment of 493.60 million and net increase in fixed deposits of 50.74 million .

Financing Activities Fiscal 2026

Net cash inflow from financing activities in Fiscal 2026 was 5,721.52 million, primarily on account of proceeds from issue of share capital of 8,415.14 million, which was largely offset by repayment of current borrowings of 2,330.33 million and finance cost paid of 337.63 million.

Fiscal 2025

Net cash inflow from financing activities in Fiscal

2025 was 1,975.17 million, primarily on account of net proceed from current borrowings of 2,352.40 million, proceeds from non-current borrowings of

75.35 million and loan received from the directors and others of 23.11 million, which was largely offset by finance cost paid of 402.02 million, repayment of non-current borrowings of 31.82 million and loan refunded back to directors and others of 23.11 million.

Key Financial Ratios

	FY26	FY25	Change %
Debtors Turnover	2.35	3.30	(28.63%)
Inventory Turnover	9.61	8.55	12.30%
Interest Coverage Ratio	14.72	9.77	50.67%
Current Ratio	4.55	1.61	182.64%
Debt / Equity Ratio	0.13	0.99	(86.46%)
Operating Profit margin	24.9%	29.4%	(15.19%)
Net Profit Margin	18.0%	19.6%	(7.89%)
Return on Net Worth	35.7%	93.0%	(61.60%)

1. Change in debtors turnover is due to significant increase in trade receivables

2. Change in interest coverage ratio is due to significant decrease in short term borrowings

3. Change in Current ratio due to higher trade receivables, increased bank balances, and lower short-term borrowings

4. Change in Debt/Equity ratio is due to decrease in debt and increase in equity

5. Change in Return on Net Worth due to increase in Net Worth following funds raised through public issue

Cash Conversion Cycle

Particulars	Mar26	Mar25
Receivable Days	155	111
Inventory Days	38	43
Payable Days	21	19
Cash Conversion Cycle	172	135

Cash Conversion Cycle has been calculated on Operating Revenue

Human Resources

Your Company considers its people as the cornerstone of its manufacturing excellence and continued growth. As on March 31, 2026, the Company had 1,805 permanent employees on a standalone basis (previous year: 1,797), supported by 356 contract workers deployed across its manufacturing operations. The workforce is predominantly engaged in manufacturing (1332), Engineering and R&D (73), Material Management and Logistics (53), Service and IT (209), Sales and Marketing (76), Finance, Accounts and Legal (34) and Support and Admin (28). During the year, the Company continued to invest in a safe and compliant workplace, conducting structured training programmes including awareness sessions under the Prevention of Sexual Harassment framework. The Companys safety performance improved meaningfully during the year, with lost time injuries reducing to one incident in FY26 from two in FY25 and no fatalities reported. Industrial relations remained cordial throughout the year and there were no work stoppages or labour disputes. The Company remains committed to attracting, developing and retaining talent to support its growth ambitions across the solar pumping and renewable energy value chain.

Internal Control Systems and Their Adequacy

Your Company has in place adequate internal control systems commensurate with the size, scale and complexity of its operations. These systems are designed to provide reasonable assurance regarding the reliability of financial reporting, the orderly and efficient conduct of business, adherence to Company policies, safeguarding of assets, prevention and detection of frauds and errors, and the accuracy and completeness of accounting records. The internal audit function evaluates the efficacy and adequacy of internal controls, internal processes and compliance with applicable laws and regulations, and its findings are reviewed periodically by the Audit Committee of the Board. Based on the reports of the internal auditors, process owners undertake corrective actions in their respective areas, thereby strengthening the control environment on an ongoing basis. The statutory auditors have also reviewed the internal financial controls with reference to the financial statements and found them to be adequate and operating effectively. The Audit Committee reviews the adequacy of the internal audit function, significant audit findings and the follow up actions thereon, ensuring continuous improvement in the Companys governance and control framework.

Cautionary Statement

ThestatementsintheBoardsReportandManagement Discussion & Analysis describing the Companys objectives, projections, estimates, expectations or outlook may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions, expectations and assessments of future events, many of which are beyond the control of Oswal Pumps Limited. Actual results, performance or achievements may differ materially from those expressed or implied due to various factors, including changes in government policies and renewable energy schemes, economic and market conditions, tender awards, raw material prices, technological developments, climatic conditions, competitive intensity, foreign exchange movements and interest rate fluctuations. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.