Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Oswal Pumps Ltd (NSE: OSWALPUMPS) Q4 2026 Earnings Call dated May. 18, 2026
Corporate Participants:
Sanjeev Sancheti — Investor Relations
Vivek Gupta — Managing Director
Subodh Kumar — Chief Financial Officer
Analysts:
Renu Baid — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, Good day and welcome to The Oswal pumps Limited Q4 and FY26 earning conference call. As a reminder, all participant line 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 please signal an operator by pressing Star then zero on your touch tone phone. I now hand the conference to Ms. Renu Bait from IIFL Capital Services Limited. Thank you. And over to you Ma’.
Am.
Renu Baid — Analyst
Thank you, Riya. On behalf of IFL Capital, I like to welcome the management of Osquant with us today to discuss the 4Q FY26 earnings from the management team. We have with us Mr. Vivek Gupta, Chairman and Managing Director. Mr. Amulya Gupta, Whole Time Director. Mr. Subodh Kumar, Chief Financial Officer. Mr. Avdesh K. Singh, President and Chief Operating Officer and Mr. Sanjeev Sancheti. They are IR advisor Euris Advisors. Now I hand over the call to Mr. Sanjeev Sancheti for his opening comments.
Thank you. And over to you sir.
Sanjeev Sancheti — Investor Relations
Thank you Renu and good afternoon everybody. It is my pleasure to welcome you to the Oswalpam Q4FY26 and full FY26 earnings call. As already said by Renu, we have with us the senior management team of OSWALPAM which includes Mr. Vivek Gupta, Chairman and Dining Director, Mr. Amali Gupta, Director, Mr. Shivam Gupta, own time Director, Mr. Abdish Casings, President and CEO and Mr. Subot Kumar, the CFO. Before we begin, I would like to draw your attention to the Safe harbor statement included in the earnings and strategy presentation which contains forward looking statements and is also available on the BSE website.
I will request all of you to go through that thoroughly. With that I will now hand over the call to Mr. Vivek Gupta for his opening remarks. Over to you Vivek Ji.
Vivek Gupta — Managing Director
Thank you Sanjay Ji. And a very good afternoon everyone. On behalf of Roswell Pumps Ltd. I warmly welcome all of you to our Q4FY26 and full year FY26 earning call. And thank you for taking the time to join us today. I am delighted to report that FY26 for the full year operating income reached 2,064 crore. The highest in the company’s history. Marking a robust year on year growth of 44.3%. Closing the year on a strong note, Q4FY26 operating income stood at 510 crore reflecting a year on year growth of 39.8% underpinned by disciplined and large scale education under PM Kusum and various state government schemes and further reinforcing our position as a trusted leader in solar power irrigation solution across India.
Operating EBITDA for Q4FY26 stood at 118 crore translating into a margin of 23.2% for the full year. Operating EBITDA grew 22.4% year on year to 514 crore with a healthy margin of 24.9%. The sequential moderation in Q4 margins is attributable to competitive tender pricing and input cost pressures stemming from prevailing geopolitical uncertainty. These headwinds are being proactively addressed through structured value engineering exercise and targeted cost optimization initiatives across all our operations.
FY26 also marked a historic milestone of on the profitability front with PAT reaching 376 crore, the highest of the company ever has ever recorded representing a year on year growth of 34.1%. The momentum carried strongly into a final quarter as well with Q4FY26 PAT coming in at 93 crore. A year on year increase of 44.8%. PAT margin stood at 17.9% for the quarter and 18% for the full year reflecting the underlying earning quality and the resilience of our business model. Turning to our order book, the company continues to maintain a robust business pipeline.
Our current executable order book as of May 15th stood at 19,912 pumps. Additionally we have a near term pipeline exceeding 25,000 pumps providing healthy revenue visibility for the coming quarters. On a cumulative basis since ending the solar pumping space, we have executed over 1,6122 solar pumping system directly under PM Kusum and allied state government schemes across 15 states cementing our position as one of the largest supplier of turnkey solar pumping systems in India. We are also closely tracking the anticipated rollout of PM202 which we expect to scale meaningfully in FY27 and represent a significant incremental opportunity for the company.
India’s increasing focus on energy transition, agriculture, solarisation, water efficiency and distributed renewable infrastructure continues to create long term structural opportunity for the company. As part of our long term growth strategy, the company is proactively diversifying beyond government driven solar irrigation into rooftop solar utility and commercial and industrial solar projects, producing single scheme dependency and broadening our addressable market. FY26 marked a significant strategic milestone with our anti into rooftop solar segment through the first order under the Government of India’s PM’s Mufti Bizi Yojana.
Our wholly owned subsidiary Oswald Solar Energy Private Limited has also incorporated a special purpose vehicle, Oswald Doon Baran Bundi Solar Projects Limited in partnership with Doon Infrastructure Infra Power Projects Private Limited holding a 60% stake to execute a rooftop solar photovoltaic power project on State government building in Rajasthan. Under the hybrid annot mode across the rooftop solar utility and CNI solar segment, we have built a healthy combined pipeline of approximately 300 megawatt as of 8.
Together these segments provide strong top line visibility and reflect growing market transaction as we scale these verticals. On the IPO objects front, I would like to share a brief update on our capital expenditure plan, pump and motor capacity expansion and automation in pumps and motor we expect the entire CAPEX program scheduled for completion by Q3FY27 in solar module plant. With respect to our solar module capacity, we expect the first phase of expansion comprising 1 gigawatt of solar module to be completed by Q1FY27.
The remaining 0.5 gigawatt expansion is planned to be completed by Q3FY27 in line with our phased execution strategy. With a strong foundation in solar power irrigation, a growing presence across multiple renewable energy segments and a proven ability to execute at scale, the company enters its next phase of growth from a position to of considerable strength. Ongoing capacity expansion, a diversifying revenue mix and India’s clean energy tailwind together create a compliant platform for sustained value creation for our farmers, our communities and our shareholders.
With that, I will now hand over the call to our CF for Business Boat Workmark who will take you through the financial performance in.
Subodh Kumar — Chief Financial Officer
Thank you, thank you Vivek sir and good afternoon everyone. I will now take you through the key financial highlights for Q4 financial year 2026 and the full year FY26. I trust you have had the opportunity to review our earning presentation and financial disclosure. While Mr. Vivek Gupta has already covered the operational and the business performance, I will focus on the Company financial positions, cash flow, working capital profile and IPO fundual license. From a balance sheet perspective, the Company continued to maintain strong and well capitalized financial position.
As of 3-31-2026, net debt stood at approximately 135 crore translating into a net debt to equity ratio of 0.08x and net debt to operating EBITDA of 0.226x. On the cash flow front, the Company witnessed a significant improvement in operating cash flow during FY2 2026. Operating cash flow improved from negative 142 crore in financial year 25 to 77 crore in financial year 2026 supported by better working capital discipline and improved collection efficiency. Importantly, collection exceeding 116 crore received on 4-2-2026 effectively converted the full year operating cash flow positioning into a positive rupees 39 crores highlighting the strong underlying cash generation capability of the company.
Further reinforcing this improving trend, operating cash flow for quarter four financial year 2026 stood positive at 171 crore. Our cash conversion cycle as of March 31, 2026 stood at 172 days as compared to 177 days as of December 31, 2025 reflecting gradual improvement in working capital efficiency. Receivable days remained elevated at 155 days relative to historical levels primarily due to delay in collection from state nodal agencies under the PM Kusam and Mughal Tal schemes. We would like to reiterate that these receivables entirely from government and government backed counterparties and therefore remain fully secure in nature.
Over the last few months we have started witnessing early sign of normalization in collection supported by continuous engagement with the respective authorities. As the collection cycle improve further, we expect a meaningful reduction in the cash conversion cycle along with corresponding benefit in finance costs and continue to be deployed in line with stated objectives including capacity expansions, automations, backward integrations and debt reductions, all of which are expected to strengthen the company long term profitability and return metrics.
For financial year 2027 we are targeting overall growth of 20 to 25% over the previous this year is expected to have a distinctly backed ended growth profile with the first two quarters likely to witness a moderate but temporary revenue decline due to the timing of project award and execution schedules, with acquisition momentum building progressively in the second half of the year. This phasing is closely linked to the anticipated rollout of PM Kusum 2 which we believe is imminent. The timing of announcement will have a direct bearing on near term order inflow and evolution schedules at the same time, as discussed by our MD sir, we have been actively building a pipeline across multiple other project segments to diversify growth drivers beyond custom linked opportunities.
We expect these initiatives to start contributing meaningfully from the third quarter onward and support a broader execution base going forward. Looking beyond financial year 2027, we are targeting a sustained growth momentum of 30 to 40% in the medium term as execution across these multiple front gather pace. From a profitability standpoint, we expect operating EBITDA margin for FY 2027 to be in range of 22 to 23%. The slightly lower margin are due to elevated input costs arising from ongoing geopolitical tensions along with competitive pricing dynamics.
In the tending environment, which we believe in transitionary beyond financial year 2027, we do expect margin to improve gradually as operating leverage strengthen and market conditions normalize. However, we will provide firmer guidance on the margin treasury as we progress. We would encourage investors to evaluate our margin on an annual basis, as quarterly margin may vary with the phasing of execution. PAT margin are expected to be in range of 15 to 16% for financial year 2027, broadly in line with the operating margin interest gain.
With that, we would now be happy to take your question. Thank you. Thank you very much.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may put a star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. First question is from the line of Ms. Renu Beth from IIFL Capital Services Ltd. Please go ahead.
Renu Baid
Thank you. So my first question would be you did allude to fiscal 27 to be a back ended year for growth and first half probably likely to see decline. So if possible can you share what is the expected growth that you’re looking or decline that you’re anticipating in first half and in your view what percentage of the growth guidance is dependent on incremental new orders being awarded under PM Kusum 2? So in case if there are further delays from Kusum 2 is your 2020 5% revenue growth guidance for the year at risk?
That’s the first question.
Vivek Gupta
Thank you Renuji. Basically definitely as we got information from Ministry and we are expecting PM Kusum to launch at any at any time an expected first meeting from the ministry immediately. So definitely. Number one. In the meantime diversification already start. Q1 or q2. Diversification line. We are little conservative. Otherwise as a order book we are quite very safe and strong. Thank you.
Renu Baid
First half that you are indicating
Vivek Gupta
First half as a order book last year even we can do more than last year revenue but slightly diversified business. So. Sure.
Renu Baid
So second question you have built up strong order book for rooftop solar. There’s an SPV also which you have created for projects in Rajasthan. So yay rooftop projects. May what is the expected profitability that we are looking at given that we are new in the segment cost structures Are different. And these are early stage of understanding and executing orders. So what is approximately the margin differential versus a core business here?
Vivek Gupta
Okay, fine. Backward integrated facility. We are making all structure as well as solar modules pos or even we are going to start our inverter production. So profitability definitely first phase. Expenses experience in a future way. Backward integration available infrastructure available or market. So definitely profit as compared to. We are very sure. Thank you.
Renu Baid
Sure. Thank you.
Operator
Thank you. Next question is from the line of Nitin Kaushik from AFN Capital Private Limited. Please go ahead.
Unidentified Participant
Hello. Good afternoon, sir.
Vivek Gupta
Good afternoon. Thank
Unidentified Participant
You for the opportunity. So my question was could you provide some guidance on expected capex for FY27 and in which areas this investment would primarily be directed towards?
Vivek Gupta
Okay, yeah. Thank you. Nitinji. Automation and capacity. And the second. 0.600 gigawatt megawatt 2.1 gigawatt as well as backward indication like aluminium extrusion plant EVA and so on. So facility Q3. End of this year I think we will infuse.
Unidentified Participant
Okay, sir. Sir, with the PV modules now contributing sizable share of revenue. So how should we think about its profitability? Like the market reduced. So is it because that TV modules are gaining significant share of revenue or is it due to the PM scheme segment or solar pump segment?
Vivek Gupta
Okay, primarily solar modules expansion. The plan basic agenda focus current integration. So definitely. Margins. So definitely. So in fact. Other rooftop other system may be helpful. And regarding profitability because geopolitical issue or raw materials price. So multiple regions. Geopolitical issues resolve. So we are quite very confident. Yeah, thank you.
Unidentified Participant
Sir. The next question is for example, In future would this PV modules here as a presentation decline.
Vivek Gupta
Company of Ache scheme dependent Nahidaniwali so company multiple schemes. The focus career or OC agenda focus Ko Lake company Agay Baregi target different schemes make company contribution scheme. Overall profitability major impact. Thank you.
Unidentified Participant
Direct super mess. Thanks.
Operator
Thank you. Next question is from the line of Puneet J from Zaveri and company. Please go ahead.
Unidentified Participant
Receivable days 157 days 2nd April cash flow and receivables. But primarily reason specific states. Current receivable days specific states Broadly issue across states agencies to release the receivables.
Vivek Gupta
Okay. Yeah, thank you. Cash flow and receivable. So FY25 cash flow negative December purchase May 247 cash flow negative Quarter 4 completion as per books. Thirtieth. Second of the April reflect. Cash flow. The 70 crore minus the KARA was 40 crore plus number 1 point alone last fourth quarter. 286 crore cash flow. So due to receivable timely cash flow is very comfortable. Number one point. Second definitely major business Maharashtra government. So. Last year political elections plus. Guinness book of world record.
Overall receivable time improve last year 157 days. So it is improved from last year. As a routine matter. So it is in between 150 to 160 days. Basically 120 days or 90% payment expectations. 150 to 160 days. So as per our old expectations definitely PM2 May government we are expecting. And government is very very positive about this receivable cycle 30 to 40 days. Yeah. Thank you.
Unidentified Participant
Because current order books and Last year roughly 87,000 supply roughly these percent last year current order book here. But Q1 may coffee. Right. So expectations remaining quarter two.
Vivek Gupta
But as a conservative side. Uncertainty geopolitical position behavior. But hobby sakta. May hamlog both q3 and q4 may. Yes. For instance. Effectively is cover curling.
Sanjeev Sancheti
I just want to add here apart from the firm. So it’s not that I am depending on two quarters for only 19,912 come 199112 is largely for the first quarter.
Unidentified Participant
Okay, thank you.
Vivek Gupta
Thank you.
Operator
Thank you. Next question is from the line of Karan Kamdar from choice Institutional equities. Please go ahead.
Unidentified Participant
Hello sir. Thank you for the opportunity, sir. Realization. And going forward. That is my first question.
Vivek Gupta
Okay, thank you. Due to political elections. Due to other reasons Last year payments. But now MSDC is on track or quarter four result. So I think quarter to quarter may variation. But msdcl payments number one point. And definitely pm2 modifications. Schemes. Definitely entire industry. In terms of receivables. In terms of policy. Yeah, thank you. I
Sanjeev Sancheti
Would also like to add here slightly unrelated. But just if you. If you look at the situation to the geopolitical situation. I think the government is also clear that their requirement for solar energy of energy you cannot depend on fossil fuel only. And obviously the alternate source is becoming even more important. It’s just that this whole phase is slightly transitionary. Solar is going to come in a big way. To come in a big way. It’s just a matter of time.
Unidentified Participant
Sure, sir. I agree on the solar part. Very. I think Kusum 2 will be very beneficial. Is the second question.
Vivek Gupta
Definitely. Definitely. We are expecting prices increase. But definitely number of participants, multiple log. Expenses.
Unidentified Participant
Got it, sir. Got it, sir. Thank you. If I can ask one more question, sir. H2 may and h1 will be similar to fy26. So do you mean key h1 to h1 or h1 to h2 of fy26.
Vivek Gupta
H1 can be similar to FY26 or can be declined from FY26 number 1 point but overall FY26 27 key so definitely minimum growth expected in entire. Business models. Diversified business, Government business. So definitely my year on year but quarter on quarter. That’s why
Unidentified Participant
Sir, one last question if I can all the capex is on track Any delays expected there
Vivek Gupta
Absolutely. Otherwise.
Unidentified Participant
Got it, Got it. Thank you so much sir. All the best. Thank you. Thank you.
Operator
Thank you. Next question is from the line of Prakhar Tibriwal from Choice Institutional Equities. Please go ahead.
Unidentified Participant
Hello sir. Thank you for the opportunity. Congratulations on a good set of numbers Solar panel and module basically targeted business.
Vivek Gupta
Okay, Number one point along with. In regarding profitability. So definitely first motto so Kia strategic. Multiple projects. Available. After getting all these practical experience. That’s why
Unidentified Participant
Okay sir, that’s it. From my side. Thank you.
Vivek Gupta
Thank you.
Operator
Thank you. Next question is from the line of Darshal Zaveri from Crown Capital. Please go ahead.
Unidentified Participant
Hello Good evening sir. Thank you so much for taking my question. Just as a date upon some.
Sanjeev Sancheti
Sorry, I think before answer I want to just correct that the order in hand is about 19,000 but there is a pipeline of 25,000 which is again largely related to Kutum and Mangala. It is not just for 19,000 so I think part of the second quarter gets covered there rest I will leave.
Unidentified Participant
Okay. Okay sir. So fair enough. Thank you for that clarification sir. So Agar just wanted to understand timeline ramp up. Gets announced. So just as a hypothetical key upon analyze what is the lead way for that? Sir, Hello.
Sanjeev Sancheti
Hello.
Unidentified Participant
Hi sir.
Sanjeev Sancheti
Hello. I think the I I fear that the other side the company line may have dropped. Can I request the moderator to see if you can just line them back and maybe you will have to repeat the question a part of it I’ve already answered
Unidentified Participant
That part is helpful sir. So just the second part would be. Yes
Sanjeev Sancheti
And we’ve also covered it in the in our presentation and opening remark. So you will be able to get it in the skit as well and the presentation I think maybe for some reason they would have got lost.
Vivek Gupta
Yeah. Hello. Hello.
Unidentified Participant
So part of my question got answered. For us to receive the order there’ll be a process right Tender upon I can analyze. It two months, three months. How much time it for? Number one we getting the order and number two add execution and revenue starting up
Vivek Gupta
Okay. In the month of June. So practically. Q3 we are expecting from November. Execution part within two months. So maximum. September so it’s a safe side May execution side of Bhatkara number onwards may execution Hojaga.
Unidentified Participant
Opportunity. Because you know West Asia crisis government. Correct understanding.
Vivek Gupta
Diesel petroleum. Country agriculture based country major population agriculture or Hamari economy. Even it will be more coming in a very very more aggressive way from last both aggressive indications we are very very confident.
Unidentified Participant
Fair enough. That’s it from my side thank you so much sir
Vivek Gupta
Thank you thank you
Operator
Thank you. Next question is from the line of Nitin Babulal Gandhi from innoQuest Advisors Private Limited please go ahead
Unidentified Participant
Yeah thanks for taking my question. Or subsidiary investment potential peak
Vivek Gupta
Maybe 29. 1 gigawatt capacity and so definitely. Expect away in coming years so continuously present year F27 otherwise next. Aggressive mode Nita diversify business May Joham peace person. Maybe more than that. Thank you.
Sanjeev Sancheti
In the scheme of things of what we are doing and what we have presently both on the pump and the solar module segment I think the you can correct me if I am slightly off but I think six and a half thousand six thousand is what we can absolutely do.
Unidentified Participant
From current capacity of 26800 existing with expanded.
Sanjeev Sancheti
Obviously is going to going up by almost two and a half three times. Yeah so that will give me a 6000 plus supply without adding any further capacity expansion.
Unidentified Participant
Supply chain car disruption or price escalation. Competitive analysis.
Vivek Gupta
So future may unscented. Joe situation rich profit of margin Hamari increase fundamentally. Or even value engineering. But Joe situation external controls beyond our control so definitely.
Sanjeev Sancheti
Also most of it and most of it is transitionary so you may see impact on a quarter or two but it I don’t think some of these are really permanent Most of these are transitionary
Unidentified Participant
Right.
Vivek Gupta
Or Kahunachi business Kitnaji so Chuki business expect overall government so definitely Joe Hamara targets growth car. Or a number of pump installation so that we can definitely. Exact figures.
Unidentified Participant
All the best
Vivek Gupta
Yeah thank you. Thank you very much.
Operator
Thank you. Next question is from the line of Hardik from HPMG Please go ahead.
Unidentified Participant
Hi sir. Congratulations on a set of numbers. Am I audible? So. So the question was on the lines of first key Is it correct? Are we entering into the solar inverter space?
Vivek Gupta
Yes definitely electronics. So we are little very hopeful.
Unidentified Participant
Right. So is it a back end to end product? Is it more of an assembly work which we will be doing?
Vivek Gupta
No. Starting in coming few months we are going to start assembly with assembly but parallel electronically. So we are quite very sure end to end within next six Months to seven months internal production start.
Unidentified Participant
Right sir, from what I’ve seen in the market and heard from other people, other players, the segment is very, very cutthroat. Most of the players are facing extensive competition from Chinese players. And bottom line, I think they are just even on the cash cash front. So what are your thoughts on that? Will these be dragging our margins in the near future?
Vivek Gupta
You’re talking about inverter. Yes,
Unidentified Participant
Yes,
Vivek Gupta
Definitely. As a backward integration. Solo. Model. Backward integration in terms of supply chain to control the quality as well as profit enhancement. So it will be part of that entire project.
Unidentified Participant
Right. So it will be like a package deal?
Vivek Gupta
Yeah, package. And secondly controlling sector in terms of quality data. And definitely. We are quite very sure profitability. So it’s a sort out all type of bug complete to capture all the basket. We are in plus position. We will be in plus position.
Unidentified Participant
Right, Right. And the second question was key just on those same line key. When will you launch this product? When will revenue start kicking in? And second again on the same lines key. Assuming this Kosum 2.0 doesn’t come for the near like at least for the for one or two quarters. Right. So. And there is a slow. Assuming there is a slowdown on the other individual state tax. Right. So Agarham Pura’s Pumpka revenue side. So from the pm, from the PM and any other schemes what we are targeting what kind of base revenue excluding pump we are looking on a quarterly basis
Vivek Gupta
Hypothesis. Simultaneously. Fundamentally Oswal is very strong. Fundamentally team financial or infrastructure as well as network. Temporary turbulence can he be demotivated. Hamara decline. Or confident. Scenario may diversified or business in terms of fundamentally.
Unidentified Participant
Right, sir, but my question was not on that line. Question was more from export pumps for a pump as a whole segment. Right. Agarham Sif Suryagar solar Solar panel sales Solar panel installation or inverter on an average quarterly basis.
Vivek Gupta
Experience become Karnavalay Kaka experiment experience Karnavalay her tenders may her market make Kitna aggressive.
Unidentified Participant
Financial.
Vivek Gupta
Business. Expect along approximately. Clear vision practically.
Unidentified Participant
That’s it from my end. All the best, sir. Thank you.
Vivek Gupta
Thank you.
Operator
Thank you. That was the last question of the day. I now hand the conference over to management for closing comments.
Sanjeev Sancheti
Thank you everybody. On behalf of management I would like to thank everybody. I would like to hand over the call for the closing remark to
Vivek Gupta
Thank you very much. So we are very assured. Thank you very much. Thank you all of you.
Operator
Thank you on behalf of the Oswal Pumps limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.