OSWAL PUMPS

Riding India's transition to solar pumps

Karnal (Haryana)-based Oswal Pumps, a vertically integrated solar pumps manufacturer, is one of the fastest growing companies in India. Established in 2003, it is today engaged in the manufacture of solar pumps, submersible pumps, monoblock pumps, pressure pumps, sewage pumps and electric motors, spanning the domestic, agricultural and industrial ranges.

Its modern manufacturing facilities span an area of 4,076 sq m and are strategically located in or around the major agricultural states of Haryana, Punjab and Uttar Pradesh. The company is ISO 9001:2015 certified and its products carry ISI and BEE certifications. It has also been given a star export house status.

The company's products are appreciated widely. Its domestic products are considered reliable for watering of gardens, sprinklers, fountains, cleaning and high-pressure washing purposes in homes and small establishments. In the industrial field, it offers a product range of electric motors for various machinery applications and high-pressure pumps for boiler and RO plants. The company's agricultural pumps are considered highly suitable for drip and sprinkler irrigation of farmland. Its solar pumps are based on MNRE guidelines and find use in residences, factories and farmland. Its international range consists of stainless steel-fabricated borewell submersible pumps that match global standards in performance and efficiency.

SALES SPURT

Of late, Oswal Pumps has emerged as one of the fastest-growing companies in India. During the last five years, its sales turnover has spurted around five and a half times from Rs 360 crore in fiscal 2022 to Rs 2,064 crore in fiscal 2026, with operating profit jumping over 14 times from Rs 39 crore to Rs 314 crore, and the profit at net level shooting up around 22 times from Rs 17 crore to Rs 376 crore. What is more, prospects for the company going ahead are all the more promising. Consider:

The outlook for solar pumps is rated bullish. According to a research report by MarkNtel Advisors, the Indian solar pump market is projected to grow at a CAGR of around 7.03% during 2026-2032 and is being primarily driven by increasing government initiatives promoting solar irrigation, the rising demand for cost-effective and sustainable farming solutions, and the growing transition from conventional diesel-powered pumps to renewable energy-based alternatives. Additionally, expanding rural electrification and water management programmes are further boosting the use of solar-powered pumping systems across the country.

According to this research report, the Indian solar pump market was valued at around $ 154 million in 2025 and is projected to grow from $ 165 million in 2026 to nearly $ 248 million by 2032, reflecting consistent expansion supported by favourable policy frameworks and rising adoption of solar irrigation technologies.

Government initiatives are accelerating solar irrigation deployment. This in turn will give a bit boost to the solar pump market. Government-led programmes like the PM Kusum scheme and Jal Jivan Mission, along with various state-level solar pumping initiatives, are playing a pivotal role in driving the growth of the Indian solar market.

FAT RESERVES

Oswal Pumps is doing quite well and its prospects ahead are all the more promising. Its financial position is very strong, with reserves at the end of March 2026 standing at Rs 1672 crore — as much as 152 times higher than its tiny equity capital of Rs 11 crore. The company has reduced its debt burden from Rs 332 crore in fiscal 2025 to Rs 267 crore, and its interest burden in fiscal 2026 was just Rs 35 crore against revenues of Rs 2,064 crore and operating profit of Rs 514 crore. The company is thus capable of expanding its operations significantly.

Oswal Pumps has already planned to diversify into inverter manufacturing. According to Vivek Gupta, Chairman and Managing Director, the inverter business will primarily function as backward integration for the company's rooftop solar and renewable energy projects. The company is entering the solar inverter manufacturing business as part of a broader strategy to diversify beyond its core solar pump business while targeting nearly Rs 1,000 crore in revenue from the non-pump business in fiscal 2027. According to Mr Gupta, the company will now aggressively expand beyond government-led solar irrigation projects under the PM Kusum scheme to rooftop solar, PM Surya Ghar installations, utility scale projects, commercial and industrial solar, and exports.

The company is simultaneously undertaking a major capacity expansion programme. It plans to increase solar modules/manufacturing capacity from 600 MW to 2.1 GW and complete most of its FY 2027 capex programme by Q3 of FY 2027.

Shares of the company are currently trading around Rs 353-363, about 59% below its 52-week high of Rs 888. Despite this, the company has a relatively low P/E ratio of 10.9 and an annualised EPS of Rs 33. It has also demonstrated strong profitability and Return on Equity (RoE) in recent quarters. Analysts are bullish over its prospects in the long term.

PERFORMANCE INDICATORS (Rs. in crore)

SWIGGY LTD.

Diversifying services at breakneck speed

Headquartered in Bengaluru, Swiggy is an Indian food-ordering and delivery company which operates in over 700 cities and offers quick commerce services under the name ‘Instamart’ in 100 cities. Food delivery and quick commerce businesses are picking up very fast. Despite competing primarily with Zomato in food delivery and with Blinkit and Zepto in quick commerce, Swiggy is doing quite well. Incorporated in 2013 with a food delivery business in Bengaluru, Swiggy expanded its operations to 8 major cities across India in 2015. After two years, it started a cloud kitchen styled ‘The Bowl’, and then a kitchen incubator business called ‘Swiggy Access’, opening a network of ready-to-occupy kitchens for its restaurant partners.

In mid-2018, Swiggy expanded its business to 16 Indian cities, a figure which increased to 500 by 2019 and 700 by 2025.

In 2019, the company diversified into general product deliveries under the name ‘Swiggy Stores’. Subsequently, it launched ‘Swiggy Go’, a package delivery service, which was later rebranded as ‘Swiggy Genie’. Thereafter, the company launched an instant grocery delivery service called ‘Instamart’. Later, the company acquired the dining and table reservation platform ‘Dineout’ from Times Internet. In 2024, it went public with an IPO at Rs 390 per share, valuing the company at $ 1.3 billion.

SALES ZOOM

With its diversifications, Swiggy has made rapid strides in its financial performance. During the last seven years, its revenues have expanded around seven times, with the operating loss declining modestly from Rs 3,824 crore in fiscal 2020 to Rs 3,235 crore in fiscal 2026, while at the net level the loss has increased from Rs 3,920 crore to Rs 4,154 crore in the same period. Despite this, prospects for the company going ahead are quite promising. Consider:

GUARDING TURF

Instamart's strong positioning and differentiation within the quick commerce market is expected to ensure that it remains a key beneficiary along with other incumbents like Zomato and Zepto, expanding its dark store footprint, thus fortifying itself against new entrants and keeping its medium-term outlook well-guarded.

In QC, Swiggy's Instamart segment has seen rapid GOV growth at 122% CAGR during FY2022-24. Research analysts at ICICI Securities expect 74.7% CAGR GOV growth over FY2024-28 as Swiggy utilises its IPO proceeds for (a) aggressively expanding its QC footprint, and (b) brand marketing investment over FY2024-27. The adjusted revenue is expected to grow at an 88.8% CAGR over FY2024-28, aided by higher tax rates, product commissions and ad/customer fees, while contribution level losses have narrowed significantly from 32% in FY2022 to 19% in 2025, with breakeven anticipated improvement to 3% by FY2028. The adjusted EBITDA breakeven for Instamart is expected by FY2028, supported by operating leverage on corporate costs and cost-efficiency improvements. CAGR is estimated at 35.4%-36.1% over FY2024-28, with EBITDA margin improving from 19.6% in FY2024 and 15.5% in FY2025 to 7.1% in FY2026, 7.1% in FY2027 and 7.4% in FY2028.

Research analysts at ICICI Securities are bullish on Swiggy. They point out that given the increased competitive intensity in quick commerce, the path to profitability for all incumbents has been delayed. But on the flip side, Swiggy is expanding its dark store footprint, thus fortifying the space against new entrants and keeping its medium-term outlook well-guarded. Alongside, Swiggy has demonstrated its execution prowess with ‘Swiggy Bolt’, a 10-minute food delivery offering, and ‘Swiggy BLCK’, a premium loyalty offering. Say the ICICI analysts, “We opine these should help Swiggy increase marketshare in food delivery in the near term. Additionally, Swiggy offers a more reasonable valuation for each business segment compared to Zomato. We rate Swiggy ‘BUY’ at a target price of Rs 740.”

TECH ADVANTAGE

Swiggy has significant advantages and differentiations over new entrants in the market with its (a) Technology infrastructure: Swiggy's four years of experience in QC (quick commerce) has enabled the development of highly trained algorithms for real-time demand forecasting and fleet optimisation. Its proprietary technology infrastructure, combined with advanced data analytics, drives route optimisation and inventory forecasting. This technological advantage creates a strong competitive mover, setting Swiggy apart from newer entrants and ensuring sustained operational excellence; (b) Logistics strength: Swiggy's established delivery network and fleet optimisation provide it with the ability to fulfil orders across different services quickly; (c) Brand recall: Swiggy benefits from strong brand recognition thanks to its first-mover advantage and consistent service quality, which gives it an edge over newer competitors still building their reputations; (d) Assortment breadth: As on September 24, 2025, Instamart offered over 19,000 SKUs across grocery and household categories and operates a large network of 609 active dark stores across 44 cities in India, up from 27 cities in March 2024.

SHARE POTENTIAL

Swiggy had come out with an IPO in 2024 and shares were issued at a price of Rs 390 per piece. Today, in a market depressed by geopolitical tensions on account of the US-Iran war, the market price has come down to the Rs 250-252 range. But the worst seems to be over, and once geopolitical tensions decrease the share price will chart an upward journey to recover lost ground.

Most research analysts are bullish on Swiggy. As against the current price of Rs 252, JM Financial has set a target of Rs 370, HSIE Rs 400, IIFL Rs 535 and ICICI Securities Rs 740 within a period of one year. We feel that discerning investors should accumulate these stocks at every decline so as to reap rich benefits within the next 2-3 years.

PERFORMANCE INDICATORS (Rs. in crore)