Oswal Pumps Ltd (NSE: OSWALPUMPS) Q3 2026 Earnings Call dated Feb. 09, 2026
Corporate Participants:
Renu Baid
Sanjeev Sancheti
Vivek Gupta — Managing Director
Subodh Kumar — Chief Financial Officer
Analysts:
Aashish Upganlawar — Analyst
Karthik Bhat — Analyst
Anand Kulkarni — Analyst
Aditya Vora — Analyst
Shashikant — Analyst
Surabhi Saraogi — Analyst
Gaurav Shukla — Analyst
Rudraksh Kalra — Analyst
Vivek Gupta — Analyst
Presentation:
operator
Ladies and gentlemen, please stay connected. The conference call will begin in next few minutes. Thank you ladies and gentlemen, you connected for the Oswal Pumps conference call. Please stay connected. The call will begin in next few minutes. Thank you. Ladies and gentlemen. Good day and welcome to the Oswal pumps three QFY26 earnings call hosted by IIFL Capital Services Limited. As a reminder, all participant lines 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 conference call, please signal an operator by pressing Star then zero on your touchstone phone.
Please note that this call is being recorded. I now hand the conference over to Ms. Renu Bed from IIFL Capital Services Ltd. Thank you Anne. Over to you.
Renu Baid
Thank you. A very good afternoon everyone. On behalf of iFil Capital, I’d like to welcome the management of Oswal Pumps for discussing the third quarter FY26 earnings call today from the management team. We have with us Mr. Vivek Gupta, Chairman and Managing Director. Mr. Shivam Gupta, Full Time Director, Mr. Subodh Kumar, Chief Financial Officer and Mr. Sanjeev Sancheti, the Investor advisor for Oswal Farms. Without taking much time, I now hand the session to Mr. Vivek Gupta for his opening comments. Thank you. And over to you sir.
Sanjeev Sancheti
Yeah. Hi Sanjeev here. Thank you and good afternoon everyone. It is my pleasure to welcome you to The Oswal pumps Q3 FY26 earnings call. Joining me today on the call are the members of the senior management team of Oswal pumps. Mr. Vivek Gupta, Chairman and Magnitude, Mrs. Subot Kumar, Chief Financial Officer and Mr. Tubam Gupta, Full time Director. Before we begin, I would like to draw your attention to the Safe harbor statement included in the earnings presentation which contains forward looking statements and is also available on BSE and NSE websites. With that I will now hand over the call to Mr.
Vivta for his opening remarks. Over to you Mr. Vivek.
Vivek Gupta — Managing Director
Thank you Sanjeev Ji and good afternoon everyone. On behalf of Oswald Pumps Ltd. I warmly welcome all of you over Q3FY26 earning call and thank you for taking the time to join us today. The third quarter of FY26 marked another period of strong operational execution and improvement in profitability. Despite a competitive pricing environment across government led solar pumping programs. During the quarter the company reported a total income of 507.7 crore. Delivering a strong year on year growth of 33.4%. Operating revenue for the quarter stood at Rs 501.1 crore reflecting a healthy year on year growth of 31.9%.
For the nine month period ended December 25, total income stood at 1,569.2 crore representing a robust year on year growth of 47%. Operating revenue for the nine month period came in at 1,554.7 crore growing by 45.9% year on year. This growth was primarily driven by consistent execution under the PM Kusum scheme, continued traction under state specific programs such as Magal Tela and our ability to scale efficiency efficiently across multiple states. Operating EBITDA for Q3FY26 stood at 127.1 crore translating into an operating EBITDA margin of 25.4% representing a sequential improvement of 164 basis points. For the nine month period operating EBITDA was 395.8 crore and with margins of 25.5%.
While competitive tender pricing continue to exert pressure on margins, particularly government led solar pumping programs, we are encouraged by quarter on quarter margin expansion driven by value engineering initiatives, cost optimization measures and early benefits from further backward integration. Operationally we continue to strengthen our leadership position in the solar pumping ecosystem. As of 1-31-26 we have executed over 90,000 solar pumping system under various government programs. Our current order book stands at our 24,500 pumps comprising direct PM Kusum Bhagal, Tela, indirect PM Kusum and export orders. Additionally we have a strong near term pipeline exceeding 25,000 pumps providing healthy revenue visibility for the coming quarters.
On the IPO objects front, I would like to share a brief update on our capital expenditure plans. Pump and Motor Plant Capacity Expansion and Automation we expect to complete bulk of ordering towards capacity expansion and automation of our pump and motor facility by Q4FY26 with the entire CAPEX program scheduled for completion by Q2FY27. Solar Module Plant Capacity Expansion and Backward Integration with respect to our solar module facility, we expect the first phase of expansion comprising 1 GW of solar capacity to be completed by Q1FY27. The remaining 0.5 GW expansion is planned to completed by Q3FY27 in line with our phased execution strategy.
Looking ahead, the structural drivers for solar power irrigation remains firmly intact supported by government focus on renewable energy water security and farmer income enhancement backed by our integrated manufacturing platform, expanding capacities and proven execution capabilities. We believe Oswald Pumps is well positioned to capitalize on these policy tailwinds and deliver sustainable long term value for our all stakeholders. With that I will now hand over the call to our CFO Mr. Subodh Kumar who will take you to the financial performance in more detail. Over to Subodh. Thank you.
Subodh Kumar — Chief Financial Officer
Thank you Vivek Sir. Good afternoon everyone. So now I will now take you through the key financial highlights for the quarter three financial year 26. I trust you have had a chance to review our earning presentation and the financial disclosure. Mr. Vivek Gupta has already covered the top line performance and ebitda so I will focus on the profitability, balance sheet, parts, cash flow and the other our outlooks. So starting with the profitability, profit before Tax for Quarter 3 for the financial year 26 stood at 119.2 crore translating into a PVT margin of 23.5%. This includes a one time exceptional labour code impact of Rs.
1.9 crore. Excluding these items, normalized PBT would have been 121.1 crore with a margin of 23.8% reflecting a healthy year on year growth of 16%. For the nine month period PBT stood at 370.7 crore. Adjusted for the exceptional item, PBT would have been 372.6 crore delivering a strong 30.5% year on year growth with margin sustained at 23.7%. Moving to the bottom line, profit after tax for the quarter came in at 91.6 crore with a margin of 18%. For the nine month PAT stood at 283.7 crore reflecting a strong 13.9% year on year growth and a margin of 18.1%.
This level of profitability despite pricing pressures over the past two quarter clearly demonstrated the structural strength and resilience of our business model. Our deep backward integration, disciplined cost structure, frugal operating mindset continue to enhance cost competence, protect margin and reinforce learn efficient and manufacturing. From a balance sheet perspective we continue to maintain a healthy and conservative financial position. As of 12-31-2025 net debt stood at approximately 188 crore. Net debt to equity was 0.12x. Net debt to operating EBITDA was 0.36x. The sequential increase in net debt during the quarter was primarily due to higher working capital requirements largely driven by delay in receivable from state nodal agencies under government backed program such as PM, GoSwam and etc.
Importantly, this is purely operational and transitional in nature and not indicative of any structural changes in our leverage profile on working capital efficiency. Our cash conversion Cycle stood at 177 days in December compared to 157 days in September reflecting a 20 day increase quarter on quarter basis. This elimination was primarily due to receivable days increasing to 157 days from 138 days driven by collection timing from government linked customers. I would like to emphasize that these receivables are largely from government and government backed entities and and remain fully secure. Based on our historical collection experience and ongoing discussions, we expect payment cycle to normalize over the medium term which should improve the cash conversion cycle, release working capital, reduce interest cost Regarding capital allocations, IPO proceed, continue to be deployed strictly in line with the stated objectives including capacity expansion, automation, backward integration, debt reductions.
These initiatives will further strength margins, improve efficiency and enhance returns ratio over the long term. Now coming to the outlook backed by strong order book, robust execution pipeline, favorable industry tailwinds. We are maintaining Our financial year 26 Revenue growth guidance of around around 50% year on year basis. Over the medium terms we continue to target at 30 to 35% revenue on a CAGR basis. From a profitability standpoint of view. Operating EBITDA margin of 4 quarter 4 financial year 26 are expected in the range of 25.5% to 26% PAT margin for financial year 26 are expected between 17.5% to 19%.
Supported. Supported by structural demand for solar pumping solutions, expanding manufacturing capacity, our integrated and cost efficient business model. So not the last. With that now we open for the questions. Thank you. Thank you very much.
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchdown telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We’ll take a first question from the line of Ashish Upkanlawar from InvestQ PMS. Please go ahead.
Aashish Upganlawar — Analyst
Yeah. Thank you for this opportunity. I have a few questions. So first one would be. I mean this receivables extension. Is it to do with the Maharashtra Government receivables And what is the status on that? When are we expecting and what is the hurdle on that? Right now?
Vivek Gupta — Managing Director
Okay. Basically definitely Maharashtra State government under this scheme receivable delay due to Maharashtra State Government funds. Secondly state government. But now state agencies but they are very much confident funding. Second internal approvals. So they are very pretty sure. Or. So I think. But we are very much sure. Coming months.
Aashish Upganlawar — Analyst
How is the funding from the State side you mentioned.
Vivek Gupta — Managing Director
Okay. Originally 10% farmer share here 30% central government or 60% mechanism. But in case of Magal Tela 10% farmer share or 90% state government share this may central government instantly. But central government. So state Government Capacity Extra 30% Fund B India Bonavala so Abi state government Apnea total owned funding resources. From other electricity charges. Definitely. But because the government internally. For the time time being temporarily all schemes may use government. Internally. Hamlo detail Malum nature but age rule face Kia hamney. So now they are very much confident. In time.
Aashish Upganlawar — Analyst
Okay. So problem limited to Maharashtra, right? I mean it’s not there in other states that we work with.
Vivek Gupta — Managing Director
Or state government Maharashtra subsequent aggressive or bakijo states.
Aashish Upganlawar — Analyst
Okay sir, one more thing. You are expecting.
Vivek Gupta — Managing Director
Okay. This is PM question 2 primarily. As a legal term one. Officially announced or PM Kosum one time period have 31st March 26 so JC period finance department. Creation. So I think end of March or early April we are expecting this PM couldn’t do.
Aashish Upganlawar — Analyst
Okay. Okay. Except. Even Haryana I think Rajasthan is there. We have seen other states also coming up. What is the kind of acceptance overall.
Vivek Gupta — Managing Director
External funding. So I think so PM Kusum2 May Quantum Bhatbari Level pay allocation or every state is very excited. Next PM2 kajo shape figure or Joe size and that different. And we are very much optimistic.
Aashish Upganlawar — Analyst
Okay. Okay sir any guidance on the margins how they will shape up for you? I mean.
Vivek Gupta — Managing Director
Margins may we are continuously working. Definitely. Metal prices be all time high or tenders be continuously. Even then. Maybe 1 or 1.2 1.3%. So I think profitability.
Aashish Upganlawar — Analyst
Okay sir. Thank you so much.
Vivek Gupta — Managing Director
Thank you Ashiji.
operator
Thank you. We’ll take our next question from the line of Kartik Bhat from LFC Securities. Please go ahead.
Karthik Bhat — Analyst
Congratulations. Good set of numbers. So I had first question for any commentary on the PM cushion allocation. So it has been in line with the Revised estimate of 5000 crores.
Vivek Gupta — Managing Director
Okay. Hi Karthiki budget May 5000cr key allocation practically announcement. Allocation majorly Joe PM Kusum 2 announced Honeywalah visibility say Hamari continuously Hamlock tachme or une Bhat clear indicate Kia Japtak 31st March. Officially. Number 1.2-second volume Side B internally or allocation of funds. So government is very. You know very positive or government.
Subodh Kumar — Chief Financial Officer
Okay. Can I. Can I just add one point here which is important and leave here. So if you look at. If you look at the way the budgets have been in the past given if I go back to 2425 the budget was 1496. Then actual performance was 2525. So they did a revised estimate of 250 was 2525. Actual budget 1496. Actual achievement 2525. Which is a revised estimate. But budget has not been the limitation over the last two years. Every year the actual allocation has been almost double of the budget. So budget cannot be the indicator of what volume will come in the future.
Of course we will take it to the next level which we have to wait as we will get announced. I just wanted to share this.
Vivek Gupta — Managing Director
Yeah. Thank you. Or in fact component C we are again we are very much confident. Component team is 100 capable for entire component B as well as C. So component C will be more more clearer than as per last scheme. So it will be again. So again this is a very good news for us. Or. So Pump Hamara Pichle quarter Maybe Hamney Kafiya develop Kaliyata. In fact develop Kiato market May Hamlo launch planning maybe. But Torah south. Better quality, better performance. But practically a product launching station launching stage.
Karthik Bhat — Analyst
The last question. Any commentary on competitive landscape.
Vivek Gupta — Managing Director
Competition or. Definitely number of participants Continuously. Profitability carry Kara number 1 point Hamaripas Pura service setup total her cheese product backward integration expertise in house. So. Or continuously. Oswal is one of the biggest players. Maximum states May Jahabi tendering. Or maximum participation. Definitely pricing will be the last of her. I can say will be the last person.
Karthik Bhat — Analyst
Okay sir. Thank you.
operator
Thank you. Next question is from Anand Kulkarni from Front Wave Research. Please go ahead.
Anand Kulkarni — Analyst
Thank you for the opportunity I had.
operator
Anand, can you use your handset mode please? Your audio is not very clear.
Anand Kulkarni — Analyst
First of all, what is the number. Of pump sold in this quarter?
Vivek Gupta — Managing Director
Between solar and non solar and export and domestic. Okay. Total solar pumps 20,460. 63. 20,463 pumps. And what about export numbers and all this? Indirect direct exports everything 20,463. Around. 17,000 pumps and remaining 3,623. 3,623.
Anand Kulkarni — Analyst
Yes. Okay. Or export versus domestic.
Vivek Gupta — Managing Director
And domestic market and export market. Domestic and export market of 1440-0581-5811-4581. It’s my exports. Export or domestic immediate available. Okay. It will take little time. In the meantime.
Anand Kulkarni — Analyst
Okay.
Vivek Gupta — Managing Director
Current order book constituent pipeline. Joki Hamara Q4 intact or 25,000 numbers. Your pipeline expected to come here so next quarter upcoming quarters. Clear PM2K visibility.
Anand Kulkarni — Analyst
Okay sir. Understood. Thank you.
Vivek Gupta — Managing Director
Thank you. Hello. Around number around 2000 numbers.
operator
Okay sir. Thank you. Take the next question from the line of Aditya Vora from Soham amc. Please go ahead.
Aditya Vora — Analyst
Yeah. Thank you for the opportunity. Good afternoon Vivekji and Subotji. I was looking at the realization. Solar pumpkin or non solar pumps have significantly gone up realization have 170 say 2 lakh rupees or non solar pump KJo realization 35,000 253,000. So can you just help me understand.
Vivek Gupta — Managing Director
Solar pumping Solar pumpkin prices KJO realization would depend Kata Kikiskis area May Kakka has power K pump or rating K pump rating K order Milleto religion difference Second definitely Agaram pumping system. Known solar pumping A again Chuki Hamaripas Bhatbari range of pumping hair exports maybe agriculture season case Known agriculture season case export maybe different different countries Agaram Nai countries may explore Kara. 0.5 has powers around more than 100 SP so different different adma requirement.
Aditya Vora — Analyst
Right? So basically realization. Right? Despite the fact that Apkijo Mete Wape Doe quarter say realization Kamore but because you’re the product mix is going much faster upkeep blended realization. Right? Right.
Vivek Gupta — Managing Director
Right. Absolutely right.
Aditya Vora — Analyst
Sure. Thanks. So secondly structurally that considering that especially Maharashtra payment so how do we look at it? Could there be a possibility that will we have to not take further incremental orders from Maharashtra? Because working capital Currently because you’ve raised and also liquidity position. But as you go ahead could there be a possibility that your receivables comes at the expense of your sales Additional incremental sales.
Vivek Gupta — Managing Director
Okay. Hamlog Bahat balance sheet Co company co company operations Closely observe Karthi every month every time hablo Karthi Hamari main important Yehe company key working balance. Continuously central government or state government. Or either say Jabhami confidence state government continuously tender or Nikalri or state government. Temporarily level tag Hamari balance sheet or Hamari internal accruals or Hamari external funding such type of risk bold. Otherwise we are very mature State governments historical Data available Number 1.1 second as per CMDS or job officials commitment level visibility level or aggressive plans confidence ata. Future visibility Decre department supply May her cheese may sport Karna Definitely department visualize due to lack of fund or top officials.
So definitely company department soft corners due to quantum due to business. So we are quite very confident.
Aditya Vora — Analyst
Right? So thank you. Thank you so much for that. Just related question to that receivables December or receivable days are December or February.
Vivek Gupta — Managing Director
So last date has things improved directly final release Kara or Mastaki Mastak Hamiyavala. But.
Aditya Vora — Analyst
Thank you so much. I’ll come back.
operator
Thank you. Next question is from the line of Shashi Khan from Brightermind Equity advisor. Please go ahead.
Shashikant — Analyst
Good afternoon sir. Hello sir. Brighter mindset sir. Basically.
Vivek Gupta — Managing Director
Total 36 days. 36 days. Hamara is quarter 36 days total normally cycle. 30 to 40 days.
Shashikant — Analyst
Okay. Okay sir. Commodities prices.
Vivek Gupta — Managing Director
Definitely government. Second. Challenging in terms of price number one. Second commodity metal cap prices all time high. So Hamari team continuously value Engineering. Value engineering 2nd Hamney cover up Kia suppliers. Suppliers for consolidate BK Joe suppliers. So as a company. So we are quite confident. Metal Koleki price equal prices. May he challenge ni.
Shashikant — Analyst
Apna Joe market share is total. Market share.
Vivek Gupta — Managing Director
Pm kushu1 may. Out of that around 28 total directly indirectly. Same level of competitive intensity in terms of. Competition competition in terms of number of bidders. So number one point cannot. Price competition. Price competition Mujalaktaki agar Koi price competition. Ultimately suppliers ultimate profitability. Will be the last sufferer. Backward integration. Industry maker Oswal is the most prominent player in this industry Japan backward integration behave service network be in house sales installation. In spite of competition.
Shashikant — Analyst
Okay, thank you. Thank you.
Vivek Gupta — Managing Director
Thank you.
operator
Thank you. Next question is from Surbhi Sarauki from ncml. Please go ahead. Thanks for taking my question. Handset mode please. Is it better now? Yes, little better. Please go ahead. Okay, so my question is that supposing in case PM Kusum 2 does not get launched in April, it gets delayed a bit more. Then what will be the driver for our for the growth in revenue and what are the growth rates that we are expecting for financial year 27.
Vivek Gupta — Managing Director
Okay, So definitely diversification. Already available. Like pm suryagar mehamlog apnea trials hamlo start kadi or uska backward integration joe jitna aladdi hamaripas. Second export team Kobe export Kabi time export Kibi third domestic market. Next year may Voic vertical Biham boss strengthen Karangay apart of solar or private solar pump market be both aggressively open. Steps taken care Plus a part of all these. Capacities. Apple May 1 GW key added ore in case. Network Hamaripas team experience. In case. Definitely. So definitely temporarily maybe H1 tag effect otherwise. Or maybe. Aggressively internally. Thank you.
Surabhi Saraogi — Analyst
Okay, great sir. Thank you.
Vivek Gupta — Managing Director
Thank you. Thank you very much.
operator
Thank you. Next question is from the line of Gaurav Shukla from Finvestors. Please go ahead. Gaurav, please go ahead with your question.
Gaurav Shukla — Analyst
Yes, hello. Definitely. Optimistic or positive. Diversification point Ayahe or Hamney internal Es Hojaki company different verticals may or the diversify future may Koibi government scheme. Otherwise. Definitely number 1 point second historically. In terms of margin but a stressful die but was stress Hamnik Sahimbi balance sheet may margin may nahiyanidiya both Kam Kia in fact Abhibi continuously Hamari team Kam Korea price margin ah Hamkoi boss test may Nayon subset facilities entire industry or continuously price Kolagay we are very confident profitability. Okay. But Hamara your beneficiary was state government so Hamari receivable State Government Number 1.2 Definitely major receivables Total receivables may say around 70% 75% receivable so again so definitely.
Gaurav Shukla — Analyst
Okay sir and FY27.
Vivek Gupta — Managing Director
So torah q1 slow jasta but yebi bought earlier. Part of Kusum Trugal our big company Capac visibility.
Gaurav Shukla — Analyst
27Kle growth.
Vivek Gupta — Managing Director
May in fact Muji Abita Kisi taaga doubt nahilagaragya growth Nikarpayangi growth. Denial Hojata so definitely Hosta Broadbury growth Nalipai per. Handle Karpang Asahona exemption yes. The central government K State government. Kisimi telegaya. Future plans. Almost we are 100% sure. Thank you Basically. So I can definitely say key Puri integrity Kesat Puri Jim ownership. In spite of external. Otherwise efficiency. We are very much confident about our future about all our future so temporarily timing.
Gaurav Shukla — Analyst
Thank you sir thank you thank you.
operator
Thank you we’ll take our next question from the line of Rudraksh Kalra from MP Investment Please go ahead Good afternoon.
Rudraksh Kalra — Analyst
Good afternoon. Management cash flows. Or long term career. Or are we looking at invoice discounting? Is that an option available with the company. Long term phase quarter and maybe. Definitely. Or should be a part of yes, Temporarily revenue sacrifice. Hello.
operator
One moment, sir. Yes sir, his line is disconnected and we’ll take that as the last question for today I now hand the conference over to management for closing comments over.
Rudraksh Kalra — Analyst
To you, sir so thank you thank.
Vivek Gupta — Managing Director
You all of you Definitely. So really we are very thankful to you thank you very much.
operator
Thank you on behalf of IIFL Capital Services Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.