2 crore pumps, Rs 5.5 Trillion at stake: 3 companies powering India’s biggest irrigation shift

Bridging the ₹3.2 Trillion Gap

Together, this translates into a potential demand for 1.2-1.4 crore solar pumps, representing an estimated market opportunity of ₹3.2 trillion, assuming an average cost of a pump (₹2.5 lakh). In addition, the current replacement demand of 80-90 lakh offers an opportunity worth ₹2.2 trillion. In total, solar pumps offer a market potential of ₹5.5 trillion, as per CRISIL Intelligence.

Better economics and government policies are acting as a tailwind. For farmers, solar pumps reduce long waiting periods for grid connections, remove recurring diesel and maintenance costs, and provide a reliable source of irrigation.

Capital Allocations Under PM-KUSUM

At the centre of this shift is the PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme with a financial outlay of ₹34,422 crore. Against this backdrop, this article examines three listed companies that are among India’s leading solar pump manufacturers, with a significant share of their revenue derived from the solar pump business.

#1 Shakti Pumps holds a 25% market share under the PM-KUSUM scheme

Shakti Pumps is a pioneer in the solar pumping industry. The company has been manufacturing 100% energy-efficient stainless-steel submersible solar pumps and motors since 1982. Shakti Pumps holds a 25% market share under the PM-KUSUM scheme.

How Technical R&D Anchors a 25% Market Share

Shakti provides end-to-end solar pumping solutions from 0.5 horsepower (HP) to 300 HP, supporting extensive configurations across various operational power bands. This makes them suitable for everything from domestic village water supplies to heavy agricultural and industrial irrigation.

The company differentiates itself through strong in-house R&D, supported by a portfolio of 15 patents. Its product portfolio integrates advanced technologies, including a Smart Remote Monitoring System, patented innovations, and both AC and DC solar pump variants.

Through the PM-KUSUM scheme alone, Shakti Pumps has directly installed over 1,52,594 solar pumps. The company is also a leading supplier to state-level initiatives such as the Magel Tyala Saur Krushi Pump Yojana in Maharashtra.

Monetizing the Backlog: Inside Shakti’s ₹1,500-Crore Execution Timeline

Shakti has shown strong execution in meeting high demand. In FY26, the company increased its total solar pump installations by 20% year-on-year to 86,086 units. It entered the new year with a highly robust order book of approximately ₹1,500 crore, ensuring strong revenue visibility.

Management expects to fully execute these orders over the next two quarters. The underlying demand is strong. The Maharashtra government’s portal for 25,000 pumps was fully subscribed by farmers in just 25 minutes.

Expanding the Factory Floor to Meet Surging Order Volumes

To meet this growing demand, the company is expanding its pump and motor manufacturing capacity from 5,00,000 units to 10,00,000 units annually. The company is also moving up the value chain by backward integrating into solar cells.

De-Risking the Supply Chain: The Strategic Imperative of the 2.2-GW MP Plant

To comply with stringent domestic content requirements for government tenders and to secure its supply chain, Shakti Pumps is investing ₹1,200 crore to build a 2.2-gigawatt (GW) solar DCR cell and PV module plant in Madhya Pradesh. The first 0.5 GW capacity is expected to be commissioned by the end of Q2FY27.

The commissioning of this in-house solar panel plant in FY27 could boost margins, as these components typically account for 40-50% of the total cost of a solar pump set. Shakti is also targeting the export market. Its export revenue has already grown at a 24.8% CAGR over recent years.

Looking ahead, Shakti is targeting demand of over 2,70,000 solar pumps across 22 countries by the International Solar Alliance. It is already executing major milestones abroad, including a US $35.3 million drinking water project in Uganda.

The Realization Squeeze: Unpacking the 840-Basis-Point EBITDA Margin Contraction

From a financial perspective, Shakti’s revenue grew by 7.2% year-on-year to ₹2,697.6 crore in FY26, driven by strong execution. However, EBITDA fell 30.1% to ₹421.7 crore, while margins fell 840 bps to 15.6%. Consequently, net profit fell 36.9% to ₹257.6 crore. Lower realizations, higher raw material costs, and increased logistics and freight costs impacted profit.

The company successfully reduced trade receivables by over ₹420 crore in FY26. Receivables dropped from ₹1,697 crore in December 2025 to ₹1,275.7 crore by March 2026. This improved receivables by 77 days. It generated a Cash Flow from Operations of ₹124.1 crore in FY26.

Shakti Pumps Share Price

#2 Oswal Pumps’ Solar Pump Business has grown at 54.7% CAGR

Oswal Pumps is a leading fully integrated turnkey provider of solar pumping systems in India. Oswal not only manufactures pumps and motors but also solar panels, mounting structures, and balance-of-system kits. The company’s solar pump manufacturing business has grown at 54.7% CAGR over the last five financial years.

Assessing the PM-KUSUM Footprint and State-Level Volumes

It is one of the largest suppliers of turnkey solar pumping systems under the PM-KUSUM scheme. Cumulatively, till now, Oswal Pumps has installed over 1,06,122 solar pumping systems across 15 Indian states under the PM-KUSUM and state government schemes.

Its largest footprint is in Maharashtra, where Oswal has supplied 26,792 pumps under standard schemes and an additional 42,119 pumps under the Magel Tyala scheme, followed by Haryana with 24,831 pumps. The company supplied 87,323 solar pumps in FY26, up 22.7%.

Order Pipeline Execution Dynamics and Near-Term Visibility

The company maintains strong revenue visibility for the near future. As of mid-May 2026, Oswal Pumps had an executable order book of 19,912 solar pumps. This will be executed in Q1FY27. The pipeline exceeds 25,000 pumps, which management expects to convert into orders over the next 3 to 4 months.

This will provide revenue coverage for Q2FY27. However, management expects growth to pick up from H2FY27. Management expects this order book to drive revenue growth of 20-25% in FY27. To meet this demand, Oswal Pumps is also expanding its capacity.

Capital Expenditure: The 2.1-GW Module Expansion Timeline

Oswal Pumps is expanding its pump and motor manufacturing capacity by about 2.3 times. This is slated for completion by Q3FY27. It is scaling its solar module capacity from around 0.6 GW to 2.1 GW. Of this, 1 GW is expected to be completed in Q1FY27, and the final 0.5 GW by Q3 FY27.

It is also backward-integrating by adding an aluminum extrusion plant and an ethylene-vinyl acetate manufacturing plant. Management projects that these combined capacity upgrades can unlock peak turnover potential exceeding ₹6,000 crore.

FY26 Financial Audit: Balancing Revenue Gains with Margin Compression

From a financial perspective, Oswal Pumps’ revenue grew by 44.3% year-on-year to ₹2,064.4 crore in FY26, driven by large-scale execution under the PM-KUSUM scheme. While EBITDA grew 22.4% to ₹513.9 crore, margins fell 450 bps to 24.9%, similar to Shakti Pumps. Despite the compression, net profit grew 34.1% to ₹376.3 crore.

Oswal Pumps Share Price

#3 Australian Premium Solar is a Fast-Growing Solar Pump Player

The solar pump segment is a major and highly profitable part of Australian Premium (APS). APS added solar pumps to its product range in 2018 and has since successfully installed over 5,500 solar pump projects. The company also recognises the PM-KUSUM scheme as a growth catalyst.

Acceleration: Analyzing the Solar Pump Revenue Run Rate

The solar pump division was a key growth driver for APS in FY26. The solar pump business contributed ₹308 crore to FY26 revenue of ₹689 crore. Revenue accelerated significantly in the second half of the year. In H1 FY26, the pump business generated about ₹105 crore, while in H2 FY26, it nearly doubled to ₹203 crore.

The company reports half-yearly earnings. The solar pump segment is a high-margin business for APS. The company expects this division to maintain strong EBITDA margins of 12% to 14% next year. The demand visibility remains very strong. As of May 2026, APS has an order book of over ₹150 crore specifically for solar pumps, out of the total order book of ₹220 crore.

Performance is expected to remain strong in FY27 as well. Management expects solar pumps to contribute approximately 35%-40% of total revenue in FY27. Furthermore, total revenue is projected to grow by 30-35% in FY27.

Subsidies and Working Capital: Dissecting the 120-Day Collection Strain

The rapid growth of the pump business has impacted the company’s working capital due to its payment structure. Pump installations are linked to government subsidies, and the payment cycle itself is long, typically taking 90 to 120 days.

Since most of the installations happened in Q4FY26, receivables increased to ₹160 crore. However, receivables declined as APS collected ₹30-40 crore in the first two months of FY27. APS is also expanding into module manufacturing and Battery Energy Storage Systems (BESS).

Capacity Upgrades: The 1.2-GW Solar Module Expansion Plan

APS’s plant in Gujarat currently has a total capacity to produce 0.8 GW of solar modules. An additional 0.4 GW is currently under construction and is expected to be operational by August 2026. Management expects this capacity to capture 2-2.5% of the Indian solar market. APS is also expanding beyond its stronghold in Gujarat.

Consolidated Financials: Margin Resilience Amid Inexpensive Volatility

APS’s consolidated performance was also strong. Total income increased 60.7% year-over-year to ₹708.8 crore. EBITDA increased 62.6% to ₹95.6 crore, while margins expanded by 16 bps to 13.5% despite volatility in raw material costs. As a result, net profit grew by 44.3% to ₹57.8 crore.

Australian Premium Share Price

Here’s a summary of where each of these companies is at this juncture:

Particulars (FY26)	Shakti Pumps	Oswal Pumps	APS*
Revenue (₹ crore)	2,697.6	2,064.4	308.0
Net Profit (₹ crore)	257.6	376.3	NA
Order Book	₹1,500.0 crore	19,912 Pumps	₹150.0 crore
Execution Timelines	2 Quarters	1 Quarter	1 Quarter
Source: Management Commentaries and Investor Presentations (*Solar Pump Business)

Shakti Pumps is one of the largest players in the solar pump sector, followed by Oswal. APS is still emerging as a strong contender, albeit from a smaller base. Solar pump orders are typically short-term and executed quickly, which is why the order books of all three players could be completed within 1-2 quarters.

Structural Valuation: Returns Analysis vs Peer Averages

APS has a higher Return on Capital Employed (ROCE) and Return on Equity (ROE) than Oswal and Shakti Pumps. Valuation-wise, all three players are trading at a discount to the industry median. Compared to its median valuation over the past five years, Shakti is trading at a slight premium.

Peer Comparison (X)
Company	Price-to-Earnings Multiple			Return Ratios
	Company	5Y Median	Industry	ROCE (%)	ROE (%)
Shakti	27.8	24.4	48.1	23.7	18.0
Oswal	12.4	NA	48.1	38.2	35.2
APS	10.7	NA	37.9	55.9	45.4
Source: Screener.in (Data as of 10 July 2026)

To conclude, the opportunity is clearly sizeable, but execution will determine who captures the most value. While Shakti Pumps leads through scale and technology, Oswal Pumps combines backward integration with a robust order pipeline, and APS is emerging as a fast-growing niche player. Although execution is ongoing, there remains a long way to go.

A major risk for solar pump companies remains payment delays, raw material price volatility, and a slowdown in order inflows, given that the sector is heavily dependent on governments for orders.

That said, these names could be kept in your watchlist to track their execution.

Disclaimer:

Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data was unavailable have we used an alternative, widely used, and accepted source of information.

The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.

About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.

A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.

Disclosure: The writer and his dependents do not hold the stocks discussed in this article.

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