Oswal Pumps Q1 FY27 Results (NSE: OSWALPUMPS)
Signal: Revenue declined
The read
The key inflection is a fourth consecutive quarter of margin contraction: consolidated EBITDA margin fell to 17.4% from 27.3% YoY and 23.3% QoQ as gross margin compressed 720bps and raw material cost rose to 60.6% of revenue; the subsidiary contribution cushions the group result, but standalone PAT fell 70.7% and ₹2355.48 million of IPO proceeds remains largely unutilised.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹473.56 Cr | -7.9% | -7.1% |
| EBIT | ₹76.82 Cr | -44.4% | |
| Net profit | ₹53.84 Cr | -43.1% | |
| EPS | ₹4.86 | -43.2% | |
| EBIT margin | 17.4% |
P&L walk
Consolidated revenue declined 7.9% YoY and gross margin compressed 720bps to 32.9% as raw material cost rose to 60.6% of revenue; EBITDA fell 41.9% to ₹824.70 million, EBIT fell 44.4% to ₹768.20 million and PAT fell 43.1% to ₹539.64 million.
Segments
There is no reportable segment table, but consolidation materially lifted results: consolidated revenue was ₹4735.60 million versus standalone ₹3441.21 million and consolidated PAT was ₹539.64 million versus standalone ₹216.71 million, including ₹254.81 million of revenue and ₹2.08 million of PAT from newly controlled Walso Solar Solution during June 8-30, 2026.
Key positives
- Consolidated finance costs fell 35.2% YoY to ₹83.94 million, partially offsetting the operating decline.
- Consolidation added ₹1294.39 million of revenue and ₹322.93 million of PAT versus the standalone result, including Walso Solar Solution's ₹254.81 million revenue and ₹2.08 million PAT contribution.
- ₹2800.00 million of IPO proceeds earmarked for debt repayment had been utilised, while the group reported ₹2326.70 million of remaining proceeds temporarily placed in fixed deposits.
Key concerns
- Consolidated EBITDA margin contracted 990bps YoY to 17.4% and gross margin fell 720bps to 32.9%, with raw material cost rising from 53.0% to 60.6% of revenue; the filing does not disclose the cause.
- Standalone PAT fell 70.7% YoY to ₹216.71 million and standalone EBITDA margin fell to 11.5% from approximately 25.6%, indicating significant weakness in the parent manufacturing business.
- Revenue declined 7.9% YoY to ₹4735.60 million despite the newly consolidated subsidiary contribution, while EBITDA fell 41.9% to ₹824.70 million.
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