Rs 273 Crore Solar Jackpot: This Stock Bags Major Telangana Project

Oswal Pumps Limited has secured an order worth Rs 273.19 crore, excluding GST, from the Telangana Renewable Energy Development Corporation Limited to install 46.7 MW of on-grid rooftop Solar capacity across 9,937 government schools in Telangana.

The project, which has a total value of about Rs 297.50 crore including GST, will cover 46,705 kW of rooftop solar plants across 33 districts. The installations will include 2 kW, 5 kW and 10 kW systems, along with Mono PERC or TOPCon solar modules, mounting structures, remote monitoring systems and comprehensive maintenance for five years.

The company said it is required to complete the installation and commissioning work within 180 days of receiving the work order. It described the contract as its first major order from Telangana, marking an entry into a new state market as it expands its renewable energy EPC activities beyond solar pumping systems.

The order is sizeable relative to Oswal Pumps’ existing business. Based on its FY26 consolidated revenue from operations of Rs 2,064.39 crore, the contract value excluding GST is equivalent to around 13.2 per cent of annual revenue. The comparison is indicative, as project revenue recognition will depend on execution milestones and accounting terms.

The Telangana contract also supports the company’s stated strategy of increasing exposure to rooftop solar, utility-scale projects and commercial and industrial solar applications. Oswal Pumps has traditionally derived much of its revenue from solar pumping systems and government-backed agricultural programmes, particularly PM-KUSUM-linked projects. Its management has been seeking to diversify the business mix amid delays in the next phase of PM-KUSUM and aggressive tender pricing in certain state programmes.

In its latest quarterly performance, the company reported net sales of Rs 473.56 crore, down 7.9 per cent year-on-year, while profit after Tax fell 42.7 per cent to Rs 53.96 crore. Operating margin, measured by PBIDT excluding other income, declined to 15.7 per cent from 27.4 per cent in the corresponding quarter a year earlier. Management had attributed the pressure to lower tender realisations, higher raw material costs and a larger contribution from relatively lower-margin solar module sales.

Against that backdrop, the Telangana order offers execution visibility in rooftop solar, though its profitability will depend on procurement costs, installation efficiency and working capital discipline. Government and state agency contracts remain important to Oswal Pumps’ business model, but they can also involve extended receivable cycles. The company had earlier flagged delayed collections from state nodal agencies as a factor behind elevated working capital.

Commenting on the order, the company said selection for a programme of this scale reflected its technical and execution capabilities. It added that it intends to build a presence in Telangana while contributing to the state’s clean energy targets.

As of 9:41 AM on September 23, 2026, Oswal Pumps shares were trading at Rs 293.80, up 7.21 per cent from the previous close of Rs 274.05. Even after the Intraday rise, the stock remained about 62.5 per cent below its 52-week high of Rs 783.05 and around 8.9 per cent above its 52-week low of Rs 269.90. Over the past year, the shares have declined 66.18 per cent, compared with a 3.73 per cent fall in the BSE 500.

Disclaimer: The article is for informational purposes only and not investment advice.