Shakti Pumps, Oswal Pumps: Target prices, Q1 preview, key trigger for solar pump stocks
Choice said both Shakti Pumps and Oswal Pumps are entering the solar inverter segment, targeting demand from PM Surya Ghar Muft Bijli Yojana.
- Jul 2, 2026,
- Updated Jul 2, 2026 8:59 AM IST
Choice Institutional Equities, in its Q1 preview note on solar pump makers, maintained an 'Add' rating on Shakti Pumps (India) Ltd and Oswal Pumps Ltd, saying June was a policy-gap quarter. It said the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) 2.0 had not been formally notified by the Ministry of New and Renewable Energy (MNRE) and, based on discussions with various stakeholders, the scheme could be announced by the end of H1FY27, September-end. The domestic brokerage said shares of Shakti Pumps (India) Ltd and Oswal Pumps Ltd have appreciated and are trading close to its target prices, adding that any further upside and re-rating potential would likely depend on the scheme's announcement.
Q1 results preview
For the June quarter, Choice expects Oswal Pumps to report 25.4 per cent drop in profit after tax at Rs 70.60 crore on 6.9 per cent YoY fall in sales at Rs 478.70 crore. Ebitda margin is seen falling 409 basis points to 23.3 per cent YoY. Choice expects Shakti Pumps' Q1 profit to fall 74.5 per cent YoY to Rs 24.70 crore on 12 per cent YoY rise in revenue at Rs 697.20 crore. Ebitda margin is seen contracting 1,365 bps to 9.4 per cent.
Key trigger to watch
For now, the policy signal is unambiguous. At the 4th National Agro-RE Summit in March 2026, Union Minister Pralhad Joshi announced PM KUSUM 2.0, which will include a dedicated 10-GW Agri-PV component allowing farming to continue beneath elevated solar panels.
Choice said the new scheme is expected to have higher execution targets as well as improved realisation. "Material cost has stabilised at elevated levels, reducing margin at current realisation. We expect revenue visibility and margin expansion only after a full-fledged scheme announcement. Therefore, we maintain a “Neutral” stance till the announcement," it said.
Target prices for Shakti Pumps, Oswal Pumps
For now, revenue visibility and diversification are key monitorables for the sector. Choice has, therefore, revised its margin guidance downwards awaiting policy catalyst to account for higher material cost and lower realisation for the current order book.
"We, therefore, maintain our target prices for Shakti Pumps and Oswal Pumps and rate the stocks as “ADD” due to lower remaining upside," it said while suggesting targets of Rs 640 for Shakti Pumps and Rs 450 for Oswal Pumps.
Choice said both Shakti Pumps and Oswal Pumps are entering the solar inverter segment, targeting demand from PM Surya Ghar Muft Bijli Yojana. The scheme has received over 63 lakh applications and benefitted 32 lakh households as of May 2026, with a target of 1 crore households by FY27E.
Shakti Pumps' inverters carry a claimed 10 per cent efficiency advantage over peers; while Oswal Pumps is starting with assembly operations before scaling up, Choice noted.
Choice Institutional Equities, in its Q1 preview note on solar pump makers, maintained an 'Add' rating on Shakti Pumps (India) Ltd and Oswal Pumps Ltd, saying June was a policy-gap quarter. It said the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) 2.0 had not been formally notified by the Ministry of New and Renewable Energy (MNRE) and, based on discussions with various stakeholders, the scheme could be announced by the end of H1FY27, September-end. The domestic brokerage said shares of Shakti Pumps (India) Ltd and Oswal Pumps Ltd have appreciated and are trading close to its target prices, adding that any further upside and re-rating potential would likely depend on the scheme's announcement.
Q1 results preview
For the June quarter, Choice expects Oswal Pumps to report 25.4 per cent drop in profit after tax at Rs 70.60 crore on 6.9 per cent YoY fall in sales at Rs 478.70 crore. Ebitda margin is seen falling 409 basis points to 23.3 per cent YoY. Choice expects Shakti Pumps' Q1 profit to fall 74.5 per cent YoY to Rs 24.70 crore on 12 per cent YoY rise in revenue at Rs 697.20 crore. Ebitda margin is seen contracting 1,365 bps to 9.4 per cent.
Key trigger to watch
For now, the policy signal is unambiguous. At the 4th National Agro-RE Summit in March 2026, Union Minister Pralhad Joshi announced PM KUSUM 2.0, which will include a dedicated 10-GW Agri-PV component allowing farming to continue beneath elevated solar panels.
Choice said the new scheme is expected to have higher execution targets as well as improved realisation. "Material cost has stabilised at elevated levels, reducing margin at current realisation. We expect revenue visibility and margin expansion only after a full-fledged scheme announcement. Therefore, we maintain a “Neutral” stance till the announcement," it said.
Target prices for Shakti Pumps, Oswal Pumps
For now, revenue visibility and diversification are key monitorables for the sector. Choice has, therefore, revised its margin guidance downwards awaiting policy catalyst to account for higher material cost and lower realisation for the current order book.
"We, therefore, maintain our target prices for Shakti Pumps and Oswal Pumps and rate the stocks as “ADD” due to lower remaining upside," it said while suggesting targets of Rs 640 for Shakti Pumps and Rs 450 for Oswal Pumps.
Choice said both Shakti Pumps and Oswal Pumps are entering the solar inverter segment, targeting demand from PM Surya Ghar Muft Bijli Yojana. The scheme has received over 63 lakh applications and benefitted 32 lakh households as of May 2026, with a target of 1 crore households by FY27E.
Shakti Pumps' inverters carry a claimed 10 per cent efficiency advantage over peers; while Oswal Pumps is starting with assembly operations before scaling up, Choice noted.