Oswal Pumps experienced a significant drop in its second-quarter profit for the fiscal year 2027, with net profit falling by 59.4% compared to the same period last year. The company’s shares tumbled 7% following the announcement, reflecting investor concerns over declining profitability and margins.
- Net profit declined to ₹39.63 crore in Q2 FY27 from ₹97.5 crore in Q2 FY26.
- Revenue from operations decreased by 6.2% year-on-year to ₹506.3 crore.
- EBITDA margin contracted by 1,239 basis points to 12.3%.
- Operating profit (EBITDA) fell 53.4% to ₹62.8 crore.
- Order book stands at 9,487 pumps with a pipeline of about 10,000 pumps.
What caused Oswal Pumps’ profit decline in Q2 FY27?
Oswal Pumps’ consolidated net profit dropped sharply by 59.4% year-on-year to ₹39.63 crore in the second quarter of fiscal year 2027. This decline was primarily due to a fall in revenue and higher costs impacting operating margins. The company’s revenue from operations fell 6.2% to ₹506.3 crore compared to ₹539.64 crore in the same quarter last year.
At the operational level, the company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) decreased by 53.4% to ₹62.8 crore. The EBITDA margin contracted significantly by 1,239 basis points, from 24.7% in Q2 FY26 to 12.3% in Q2 FY27. This margin decline was mainly due to increased raw material costs and higher operating expenses.
How did the stock market react to Oswal Pumps’ Q2 results?
Following the release of the Q2 results, Oswal Pumps’ shares dropped approximately 7%, trading at ₹224.49 per equity share around 10:59 AM on November 13, 2026. The stock has seen a downward trend recently, declining 2% in the past week and 14% over the past month. Year-to-date, the share price has fallen by 57%.
The stock’s 52-week high was ₹678 per share on November 17, 2025, while the 52-week low was ₹201 on October 30, 2026. The company’s market capitalization stood at ₹2,552.80 crore as of November 13, 2026.
What is Oswal Pumps’ outlook for the future?
Oswal Pumps currently holds an order book of 9,487 pumps, supported by a near-term pipeline of approximately 10,000 pumps. These orders come from various programs including direct and indirect PM-KUSUM, Magel Tyala, and export opportunities, which provide visibility on future execution.
Vivek Gupta, Chairman and Managing Director of Oswal Pumps, stated that the company is focused on disciplined execution of its order book. The company aims to restore operating margins through cost optimisation and improved operational efficiencies. Additionally, Oswal Pumps plans to build a more diversified and integrated business platform to drive sustainable growth and create long-term value for its stakeholders.
Frequently Asked Questions
Q: What was Oswal Pumps’ net profit in Q2 FY27?
A: The net profit was ₹39.63 crore, a 59.4% decrease compared to ₹97.5 crore in Q2 FY26.
Q: Why did Oswal Pumps’ EBITDA margin decline?
A: The EBITDA margin declined due to higher raw material costs and increased operating expenses, falling from 24.7% to 12.3% year-on-year.
Q: What is the current order book for Oswal Pumps?
A: The order book stands at 9,487 pumps, with a near-term pipeline of approximately 10,000 pumps across various programs and export opportunities.
Q: How has Oswal Pumps’ stock performed recently?
A: The stock fell 7% after the Q2 results announcement, trading at ₹224.49 per share, with a 57% decline year-to-date.
