Shakti Pumps vs Oswal Pumps: Which Solar Pump Stock Is Better Positioned for Growth?

Synopsis: India’s solar irrigation market is growing rapidly, supported by PM-KUSUM and increasing renewable energy adoption in agriculture. Two major players are benefiting from this trend, but with different approaches. One focuses on large-scale government project execution, while the other is building an integrated renewable energy platform with exposure beyond solar pumps. The comparison reflects scale versus diversification in a fast-growing sector. 

India’s solar irrigation market is entering a multi-year growth phase driven by strong government support under the PM-KUSUM scheme. The program targets the installation of 14 lakh standalone solar pumps and the solarization of 35 lakh existing agricultural pumps, creating one of the largest solar irrigation opportunities globally. With more than 7 lakh solar pumps already installed and fresh policy initiatives such as PM-KUSUM 2.0 under consideration, solar pump manufacturers are expected to benefit from sustained demand as farmers increasingly shift away from diesel and grid-powered irrigation systems 

Among the key beneficiaries are two leading listed players in the solar pumping industry. Both have built strong positions in supplying solar-powered irrigation systems across India, but their approaches are quite different. One has focused on strengthening its leadership in solar pumps through large-scale project execution, while the other is building a more integrated renewable energy platform with interests extending beyond irrigation. 

FY26 Financials: How Both Companies Performed

Shakti Pumps reported its highest-ever revenue in FY26 at Rs. 2,698 crore, compared to Rs. 2,516 crore in FY25. EBITDA stood at Rs. 422 crore with margins of 15.6 percent, while profit after tax came in at Rs. 258 crore. The company maintained a strong order book of Rs. 1,500 crore as of May 2026 and generated operating cash flow of Rs. 124 crore during the year. Solar pump installations increased by 20 percent year-on-year, reflecting continued execution strength under government programs.

Oswal Pumps delivered stronger growth during FY26. Revenue rose 44 percent year-on-year to Rs. 2,064 crore, while EBITDA increased to Rs. 514 crore with a margin of 24.9 percent. Profit after tax reached a record Rs. 376 crore, up 34 percent year-on-year. The company also improved working capital efficiency and reported positive operating cash flow of Rs.170 crores in the fourth quarter, pulling full-year operating cash flow into positive territory with Rs.39 crores. While Shakti generated higher revenue, Oswal delivered superior profitability and faster growth.

Where the Two Businesses Meet

The biggest overlap between the two companies is solar-powered irrigation. Both companies are among the leading beneficiaries of the PM-KUSUM scheme and supply turnkey solar pumping systems for farmers. They manufacture pumps, motors, and related equipment while participating in state and central government tenders. Both are also heavily dependent on the expansion of solar irrigation infrastructure across India.

The companies compete directly for government contracts in states such as Maharashtra, Madhya Pradesh, Rajasthan, Haryana, Karnataka, and Uttar Pradesh. As PM-KUSUM enters its next phase, both players are expected to remain key contenders for large-scale solar pump deployments.

Where the Business Models Diverge

Shakti Pumps is primarily an execution-driven solar pumping company. Its business is heavily linked to government orders, with government projects contributing the majority of revenue. The company currently has a Rs. 1,500 crore order book spread across Karnataka, Maharashtra, Madhya Pradesh, Haryana, Uttar Pradesh, Rajasthan, Jharkhand, and Uttarakhand.

Its key strength lies in project execution, industry experience, and a strong market position in solar pumps. Management has focused significantly on improving receivables, cash flows, and balance-sheet quality during FY26.

Oswal Pumps, meanwhile, follows a more integrated approach. The company manufactures pumps, motors, solar modules, mounting structures, and balance-of-system components under one roof. It operates a 570 MW solar module manufacturing facility and has supplied over 64,000 solar pumps under PM-KUSUM. The company also has an extensive distribution network of more than 1,300 distributors across India.

The company currently has an order book of 19,912 pumps across PM-KUSUM, Magel Tyala, indirect PM-KUSUM, and export orders, supported by a near-term pipeline of over 25,000 pumps.  Unlike Shakti, Oswal is actively expanding beyond irrigation into rooftop solar, utility-scale solar, and commercial & industrial (C&I) solar projects.

FY27 Growth Triggers: What Could Drive Growth Ahead?

Shakti Pumps enters FY27 with strong revenue visibility supported by an order book of around Rs.1,500 crore, nearly 56% of its FY26 revenue. The company installed 20% more solar pumps during FY26 and reduced receivables by over Rs.420 crore during Q4, improving cash flows and execution efficiency. Continued momentum under PM-KUSUM, state solar irrigation schemes, and fresh government allocations for agricultural solarization could further strengthen growth. 

Oswal Pumps is pursuing growth through both solar irrigation and broader renewable energy opportunities. The company has an order book of over 19,900 pumps and a near-term pipeline exceeding 25,000 pumps. It is also closely tracking PM-KUSUM 2.0 while building a 300 MW pipeline across rooftop, utility-scale, and C&I solar projects.

Beyond its core solar irrigation business, Oswal Pumps is expanding into rooftop, utility-scale, and commercial & industrial (C&I) solar projects, with a 93 MW order book, a 300 MW project pipeline, participation in 2,483 MW of tenders, and visibility on more than 4 GW of upcoming solar opportunities, providing strong long-term growth visibility. 

Investor Overview

Shakti Pumps offers investors exposure to a proven market leader with a sizeable order book and deep expertise in solar pump execution. Its future growth remains closely tied to government solarization programs.

Oswal Pumps, on the other hand, combines strong solar pump leadership with deeper backward integration and broader renewable energy ambitions. Its expansion into rooftop, utility, and C&I solar gives it a wider growth runway beyond irrigation alone.

For investors looking for a pure-play solar pumping leader, Shakti Pumps remains a compelling option. For those seeking a broader renewable energy platform with higher profitability and diversification potential, Oswal Pumps appears better positioned for the next phase of growth.

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