Oswal Pumps shares fall 7% as Q2 net profit plunges 59%

Oswal Pumps Ltd shares fell 7% in Friday's trade after the company reported a sharp decline in its consolidated profit and operating earnings for the September quarter of FY27. The solar pump manufacturer reported a nearly 59% year-on-year (YoY) fall in profit attributable to owners of the parent, while its EBITDA declined more than 53%, reflecting pressure on operating margins.

The company's consolidated profit attributable to owners of the parent stood at Rs 39.6 crore in Q2 FY27, compared with Rs 97.5 crore in the corresponding quarter last year. Revenue from operations declined 6.2% YoY to Rs 506.3 crore from Rs 539.6 crore. Total income fell 6.4% to Rs 511.8 crore from Rs 546.5 crore in the year-ago quarter.

Oswal Pumps shares touched a low of Rs 222 on Friday, falling 7.29% from their previous close of Rs 239.45. The stock opened at Rs 226.05 and touched a high of Rs 229.95 during the session.

The company's EBITDA declined 53.4% YoY to Rs 62.8 crore from Rs 134.8 crore, while its EBITDA margin contracted to 12.3% from 24.7% a year ago. Diluted earnings per share (EPS) stood at Rs 3.34, down 60.4% from Rs 8.43 in the corresponding quarter last year.

Oswal Pumps on Q2 performance

Commenting on the results, Vivek Gupta, Chairman and Managing Director of Oswal Pumps, said, "The Company reported sequential growth in Q2 FY27, with Total Income increasing by 6.2% quarter-on-quarter to ₹5,118 million. Revenue from Operations increased by 6.9% quarter-on-quarter to ₹5,063 million, supported by steady execution of its solar pump order book despite a competitive pricing environment."

Oswal Pumps expands solar manufacturing capacity

Alongside its existing business, the company is looking to strengthen its backward integration capabilities. Through its wholly owned subsidiary, Oswal Solar Energy Private Ltd, it plans to establish a 1.2 GW TOPCon solar cell manufacturing facility in Karnal, Haryana.

The project is estimated to cost around Rs 455.85 crore, with Rs 296 crore proposed to be funded through debt and the remaining Rs 159.85 crore through the reallocation of unutilised IPO proceeds, subject to shareholders' approval. The facility is expected to meet around 75% of the subsidiary's solar cell requirements and reduce its dependence on external suppliers.