Oswal Pumps Ltd

- The company is exploring invoice discounting facilities with banks to improve short-term cash flow. - There is no mention of new equity fundraising; IPO proceeds are being utilized as planned for capacity expansion, automation, backward integration, and debt reduction. - Net debt as of December 31, 2025, was INR188 crores, with a conservative leverage profile maintained. - The management emphasizes this is a temporary cash flow phase due to delayed government payments, not indicative of structural leverage changes. - No explicit announcement or plan for fresh large-scale debt or equity raising was made. - The company aims to manage working capital prudently and will be vigilant about order intake to avoid cash stress, even willing to sacrifice revenue temporarily if needed.

- Pump and motor plant capacity expansion and automation: Bulk of ordering expected to complete by Q4 FY '26, with full capex program scheduled for completion by Q2 FY '27. - Solar module plant capacity expansion and backward integration: - 1 GW solar capacity first phase to be completed by Q1 FY '27. - Remaining 0.5 GW expansion planned by Q3 FY '27. - These investments align with IPO objectives and support phased execution strategy. - Aim is to strengthen integrated manufacturing platform and scale operations efficiently.

- FY '26 revenue growth guidance maintained at around 50% year-on-year. - Medium-term revenue CAGR target of 30% to 35%. - Current order book: over 24,500 pumps with a strong near-term pipeline exceeding 25,000 pumps. - PM KUSUM 2 scheme expected to drive significant future growth; company is 100% confident the scheme will launch. - In case of PM KUSUM 2 delay, diversification into PM Surya Ghar, exports, private solar pumps, and large rooftop EPC verticals planned to sustain growth. - Capacity expansions: 1 GW solar module expansion by Q1 FY '27 and additional 0.5 GW by Q3 FY '27 to support increased volumes. - Despite short-term receivables challenges, the company is confident in handling growth efficiently with underlying strong demand and government support.

- FY ’26 revenue growth guidance is around 50% year-on-year, supported by robust order book and execution pipeline. - Medium-term target revenue CAGR is 30%-35%. - Operating EBITDA margins for Q4 FY ’26 expected between 25.5%-26.0%. - PAT margins for FY ’26 expected between 17.5%-19.0%, supported by structural demand and cost efficiencies. - Despite pricing pressures, margin expansion expected from value engineering and backward integration. - PM KUSUM 2 scheme delay may temporarily impact growth in H1 FY ’27 but overall long-term growth outlook remains positive. - Diversification into private solar pump market, exports, PM Surya Ghar, and EPC large rooftop systems to support growth beyond government schemes. - Confident of continued profitability and stable margins with strong visibility on orders and pipeline. - Management assures integrity and efficiency to meet growth and profitability targets.

- Current order book stands at 24,500 pumps, confirmed for Q4 of FY '26 with clear visibility. - An additional 25,000 pumps are in the pipeline, expected in upcoming quarters. - These figures exclude the rollout of PM KUSUM 2.0, which will add further volume. - Around 2,000 pumps in the current orders are export orders. - The company has strong visibility on orders excluding PM KUSUM 2.0. - Oswal Pumps is actively participating across multiple states and expects robust order inflows. - Management is confident about order inflows due to government plans and program expansions, with no significant risk of order denial, though some delays may occur.