Oswal Pumps wins ₹500+ crore Bihar rooftop solar deal

Oswal Pumps Ltd has moved deeper into residential rooftop solar after winning projects in Bihar that together offer a cumulative revenue opportunity of over ₹500 crore. The award covers 63 MW of rooftop solar capacity and includes a mandatory 10-year operation and maintenance (O&M) component, giving the company a longer revenue runway beyond one-time EPC execution.

The projects sit under the PM Surya Ghar initiative and are positioned as a diversification step for a company better known for its solar pumping systems under the PM-KUSUM scheme. The company has also been building solar capabilities through its wholly owned subsidiary, Oswal Solar Energy Private Limited, which has pursued both rooftop and larger platform-based opportunities.

What Oswal Pumps won in Bihar

Oswal Pumps said it has secured rooftop solar installation projects with a cumulative revenue opportunity exceeding ₹500 crore. The total project capacity is 63 MW, spread across 57,492 consumer installations.

The revenue opportunity is split between an installation order value of ₹247 crore and an additional long-term revenue potential of ₹257 crore from O&M services over 10 years. The scope is structured to include both upfront execution and multi-year servicing, rather than only a single EPC contract.

The company framed this as a strategic entry into large-scale residential rooftop solar, aligning its offering with the PM Surya Ghar rollout.

CAPEX plus RESCO model and annuity-style cash flows

A key feature highlighted is the use of a CAPEX plus RESCO (Residential Energy Service Company) model. This is relevant because it ties part of the project economics to longer-duration service delivery rather than just installation milestones.

In Oswal Pumps’ case, the 10-year O&M period creates a defined annuity-like component, quantified in the announcement as ₹257 crore over the decade. The company also noted that this shift improves revenue visibility compared with businesses driven largely by scheme cycles.

Where the Bihar projects will be executed

The projects are to be executed across Motihari, Saharsa, and Ara circles in Bihar. Oswal Pumps’ scope includes design, engineering, procurement, installation, commissioning, financing, and the mandatory 10-year O&M period.

The commissioning timeline is set at nine months from the Power Purchase Agreement (PPA) execution. That timeline places emphasis on project management and supply-chain execution, particularly given the consumer-scale footprint and the large number of installations involved.

Key project data at a glance

Diversification away from PM-KUSUM dependence

Oswal Pumps linked the Bihar award to a deliberate attempt to reduce reliance on demand historically driven by PM-KUSUM. The company is among the largest suppliers under the PM-KUSUM scheme and has supplied over 64,033 turnkey solar pumping systems directly.

While the solar pump business is linked to irrigation and agriculture procurement cycles, rooftop solar under PM Surya Ghar expands the addressable market toward residential consumers and distribution utility-led aggregation models. The added O&M element also changes the revenue profile, increasing the share of contracted service income.

Recent moves through Oswal Solar Energy and a new Rajasthan SPV

Oswal Pumps has been expanding through its wholly owned subsidiary, Oswal Solar Energy Private Limited (formerly Oswal Solar Structure Private Limited). The company announced that Oswal Solar Energy Private Limited incorporated a new special purpose vehicle (SPV), Oswal Doon Baran Bundi Solar Projects Limited, on May 06, 2026.

Oswal Solar will hold a 60% stake in the SPV, with Doon Infrapower Projects Private Limited holding the remaining 40%. Oswal Solar subscribed to 6,000 equity shares of ₹0.0006 crore (₹60,000) in total, corresponding to the 60% controlling stake described.

The SPV is intended to deliver rooftop solar photovoltaic projects on state government buildings across Rajasthan under the Hybrid Annuity Mode (HAM), including operation and maintenance services for 25 years from commissioning. The incorporation followed a successful bid for a 33 MW capacity project, as per the letter of award issued by Rajasthan Renewable Energy Corporation Limited on March 30, 2026.

Another rooftop solar order: Andhra Pradesh under PM Surya Ghar

Separately, Oswal Pumps said its wholly owned subsidiary Oswal Solar Energy Private Limited has secured an order worth about ₹39.40 crore (inclusive of GST) from Swashakthi Energy. The order is for deploying 7.46 MWp of grid-connected rooftop solar systems under PM Surya Ghar: Muft Bijli Yojana.

The project covers 3,729 SC and ST consumers across the Pulivendula and Puttaparthy divisions in Andhra Pradesh under Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL). The scope includes design, engineering, supply, installation, and commissioning, along with a five-year comprehensive maintenance contract.

Market context: policy allocation and tender activity

Oswal Pumps’ chairman and managing director Vivek Gupta linked the timing of the company’s rooftop solar entry with a higher Union Budget allocation for PM Surya Ghar: Muft Bijli Yojana, stated as an increase from ₹17,000 crore to ₹22,000 crore.

Separately, broader solar tender activity continues across India. Gujarat Urja Vikas Nigam Ltd (GUVNL) concluded its 625 MW solar PV tender auction, with a discovered tariff of ₹2.34 per kWh, and awards including 300 MW each to Welspun New Energy Ltd and NLC India Limited.

Market Impact

For Oswal Pumps, the Bihar award changes the mix of contracted revenue by adding a defined 10-year O&M stream of ₹257 crore alongside ₹247 crore of installation value. In practical terms, that increases visibility because the O&M component is tied to a fixed tenure rather than only the pace of new order inflows.

The large installation count in Bihar also underscores execution intensity. Delivering 57,492 installations within a commissioning window linked to PPA execution (nine months) adds operational complexity, while also expanding the company’s presence beyond its core irrigation-led customer base.

On the solar pump side, the company has continued to win orders under PM-KUSUM. Oswal Pumps rose 1.71% to ₹464.60 after receiving a Letter of Award worth ₹119.92 crore from Karnataka Renewable Energy Development for 3,263 off-grid DC solar pumping systems, with work scheduled in line with MNRE timelines on or before March 31, 2026.

Analysis: why the Bihar win matters

The Bihar project stands out because it combines scale (63 MW) with a long servicing obligation (10-year O&M) and a model (CAPEX plus RESCO) that the company itself describes as more predictable. This is structurally different from equipment-heavy orders where revenue is recognised mainly at delivery and commissioning.

It also helps explain why the company is simultaneously building an SPV-led approach in Rajasthan, including a 25-year O&M commitment under HAM for rooftop solar on government buildings. Together, these moves indicate a broader push to build recurring service-linked income streams alongside EPC capabilities.

Key orders and expansion steps mentioned

Conclusion

Oswal Pumps’ Bihar rooftop solar win, valued at over ₹500 crore in total revenue opportunity, marks a clear push into residential rooftop solar with a meaningful 10-year O&M component. Alongside smaller rooftop wins and the formation of an SPV for a 33 MW Rajasthan project with 25-year O&M, the company is broadening beyond PM-KUSUM-led pump orders. The next operational milestone will be the commissioning progress against the nine-month timeline from PPA execution in Bihar and the execution rollout across the specified circles.