Oswal Pumps Ltd (NSE: OSWALPUMPS) Q1 2026 Earnings Call dated Aug. 05, 2025
Corporate Participants:
Sanjeev Sancheti — Founding Partner
Vivek Gupta — Chairman and Managing Director
Subodh Kumar — Chief Financial Officer
Analysts:
Achal Lohade — Analyst
Aman Saifee — Analyst
Sagar Dhawan — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to The Oswald pumps Q1FY20 Earnings conference call hosted by Nuvama Institution Equities. As a reminder, all participant clients will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the call, please signal an operator by pressing Star then zero on your touchstone phone. I now hand the conference over to Mr. Achal Lohade from Nuvama Institutional Equities. Thank you. And over to you, sir.
Achal Lohade — Analyst
Yeah, thank you. Good afternoon everyone. On behalf of Nawama Institutional equities, we welcome you all for the mailing conference call of Osal Pumps Limited. The management is represented by Mr. Vivek Gupta, Chairman and Managing Director, Mr. Shizam Gupta hold time Director Mr. Subodh Kumar, Chief Financial Officer and Mr. Sanjeev Sancheti, Utel’s Advisors, LNP. Without further delay, I hand over the call to Mr. Sanchetti and then we will start with the Q and A session. Over to you Sanjeevi.
Sanjeev Sancheti — Founding Partner
Thank you and good afternoon to all the participants on the call. We really appreciate you taking out time for the call and welcome you to the Osho Pumps Q1 FY26 results call. Joining me today are the members of the senior management team of Oshwal Pump, Gupta Chairman and Manu Director who is the whole time Director of the company. And this is about Kumar, the Chief Financial Officer of the company. Before we begin, I would like to draw your attention to the Safe harbor statement included in the earnings presentation which has been uploaded onto the BSC and MSC website for your reference. With that I will now hand over the call to Mr. Vivek Gupta for his opening remarks. Over to you Vivek ji.
Vivek Gupta — Chairman and Managing Director
Thank you, Sanjeev Ji and very good afternoon everyone. On behalf of Forswall Pumps, Jim Kit, I warmly welcome all of you to our Q1FY26 earning call. Let me begin by sincerely thanking all our investors and stakeholders for the overwhelming response over ipo. We are truly humbled by the trust you have placed in us. And this sport inspires us to stay focused on our commitment to excellence, transparency and long term value creation. Now just give you a quick background. Oswald Pumps was established in 2003 and over the last two decades we have grown to become one of India’s most trusted and fastest growing manufacturer of solar pumping systems. Our product portfolio includes solar powered and grid connected submersible monoblock pump, electric motors and solar TV modules. One of our biggest strength is that we are fully backward integrated. We manufacture the entire solar pumping system starting from pumps motors to modules structure and bof. Kit, either in house or through our subsidiaries and associates. Pump and motors manufactured by Oswald Pumps Ltd. Is integrated across all core processes right from CI casting, investment casting, injection, plastic molding, aluminum die cast, husk bearing, winding, wire unit, automating, winding, wire unit, cable manufacturing, stamping and touching. The solar modules are produced through our fully owned subsidiary that is Oswald Solar Structure Private Limited. Solar structure and bio kit come from our associate company Valser Solar Solution Private Limited which we hold around 38.5% stake. Our deep integration helps us ensure consistent product quality, reduce dependency on external vendors, manage cost and delivery timelines more effectively and consequently achieve industry leading margins. Now coming to the market Environment over the last few years we have aligned ourselves with government initiatives that promote renewable energy in agriculture. One such initiative is the PM Kusum Scheme and I’m very happy to share that we have been a consistent contributor to it. As of June 30th 25th we have supplied for around 48,900 Tanki Solar Pumping System directly under this program with direct participation through supplies to our EPC players. Our live to date market share stands at 31%. Our deployment span across key states like Maharashtra, Haryana, Rajasthan, Uttar Pradesh where we have built strong relationship with our stakeholders. As of 7-31-25 our order book stood at 29,961 pumps and and we continue to see healthy momentum backed by both sectoral tailings and policy support. Importantly, we are also anticipating to launch of PM Kusum 2 by the end of this fiscal and we expect it to be to be larger in scope compared to the first phase and given our integrated model and execution capabilities we are very well positioned to benefit from from these upcoming opportunities. Now moving to our financial performance, I am happy to report that Q1FY26 has been a record quarter for Oswald Pumps. We have achieved our highest ever quarterly operating income. EBITDA and PAD operating income stood at around 5139 million. That growth of 36.8% year on year and 40.9% quarter on quarter. Our PAC also grew 48.2% quarter on quarter and 9. 47 million with an industry leading margin of 18.4%. With that I will now hand over to our CFO, Mr. Subodh Kumar who will walk you through the financial and model over to Subodh.
Subodh Kumar — Chief Financial Officer
Thank you. Thank you very much Vivek and good afternoon everyone. So I will now take a few moments to walk you through the financial highlights of the quarter and the 30th June 2025. So as mentioned earlier I hope you have had a chance to review our earning planning session and press release. Let’s begin with the top line so you know Operating income for quarter one financial year 26 stood at 5139 million which represent a 36.8% growth year on year and a 40.9% increase quarter on quarter basis. Operating EBITDA came in at 1,408 million reflecting it 38.7% year on year and 42.4% quarter on quarter growth. This translates to an EBITDA margin of 27.4%. Profit after tax was 947 million up by 34.2% year on year and 48.2% quarter on quarter basis with a tight margin of 18.4%. Now on to return ratios and balance sheet metrics. Despite the capital infusions and our returns ratios remain strong. Return on net worth stood at 41.6%. Return on capital employed was 50.6%. Our cash conversion cycle stood at 136 days. At the end of June 2025 we reported a net debt position of negative 89 million supported by strong cash flow and repayment of our borrowing through IPO proceeds. Speaking of the ipo as you aware the primary objective were to fund capacity expansions and and reduce debt out of the total fresh issue proceed of 8415 million. We have already deployed approximately 3085 million towards these goals. Looking ahead, backed by our strong order backlog and supportive industry tailwind we are confident in sustaining our growth momentum for financial year 26. We are targeting revenue growth in the range of 50 to 60% within medium term goal of maintaining a CAGR of 30 to 35% on the profitability fund. We are guiding for operating EBITDA margin in the range of 27 to 29% and a fat margin between 18 to 20%. We remain committed to disciplined executions, financial prudence and sustainable growth. And now last what with that now we are open the floor for the questions. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask questions may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question key. You may press star and two participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from Aman Sefi from Stalin Asset Management. Please go ahead.
Aman Saifee
Hello. Hi I hope I’m audible.
Vivek Gupta
Yes, but it is you’re audible?
Aman Saifee
Yeah. So sir, we have an order book which we have reported around 30,000 odd. What is the period of execution for this order?
Vivek Gupta
So basically within 120 days of entire order we have a time to execution is around 120 days maybe [Foreign Speech] so typically maximum days of implementation is 150 days.
Aman Saifee
Got it, got it. So within two quarters we can see the execution of this 30,000 odd ones happening?
Vivek Gupta
Yeah, absolutely. Within time we will Execute all these 30,000 pumps.
Aman Saifee
Got it. Until my second question is around, our performance has been very resilient for the last two quarters. That’s very superb. But we are seeing that our competitor is experiencing some slowdown in terms of execution and their order book as well has been compressing. Is there some challenges which is there in the industry in terms of self supplies or anything even we are being experiencing.
Vivek Gupta
[Foreign Speech]
Aman Saifee
Understood, sir. And just one last question. What kind of EBITDA margin is sustainable for the coming years? We can expect 28, 29% kind of operating margin.
Vivek Gupta
[Foreign Speech] we are looking the EBTIDA margin is around 27 to 29% [Foreign Speech] So absolutely we are very confident.
Aman Saifee
Got it, Got it. Thank you so much for this.
Operator
Thank you. Next question is from Sagar Dhawan from ValueQuest. Please go ahead.
Sagar Dhawan
Yeah, thanks for the opportunity and congratulations on a good set of numbers, sir. We are seeing significant uptick in the state level execution which is X of PM Kusum which you have shown in the PPT of 253 crores of execution happening in the quarter. Just wanted to understand how much is Mang Kella as part of this or is it largely Magel Taya’s case?
Vivek Gupta
So basically — yes basically [Foreign Speech]
Sagar Dhawan
[Foreign Speech]
Operator
[Operator Closing Remarks]