India’s agricultural shift to solar irrigation presents a ₹5.5 trillion market opportunity, driven by the PM-KUSUM scheme. Companies like Shakti Pumps, Oswal Pumps, and Australian Premium Solar are scaling capacity to meet demand from millions of farmers transitioning away from diesel-powered pumps.
India is witnessing a significant shift in its agricultural landscape as solar-powered irrigation replaces traditional diesel and grid-dependent systems. This transition is backed by the government’s PM-KUSUM scheme, which has an outlay of ₹34,422 crore to subsidize the adoption of solar pumps. Market estimates suggest that over 11 crore farmers currently lack reliable irrigation, while nearly 90 lakh continue to rely on diesel pumps. This gap represents a total market potential estimated at ₹5.5 trillion, including both new installations and the replacement of existing diesel units.
Several domestic manufacturers are scaling their operations to capture this demand. Shakti Pumps, which holds a 25% market share under the PM-KUSUM initiative, reported revenue of ₹2,697.6 crore in FY26, a growth of 7.2%. To meet domestic content requirements and improve its margins, the company is investing ₹1,200 crore into a 2.2 GW solar cell and PV module plant. Shakti Pumps has a long operational history dating back to 1982 and has installed over 1,52,594 solar pumps under the government scheme.
Oswal Pumps, another major player, has seen its solar pump business grow at a compound annual growth rate of 54.7% over the last five years. The company reported FY26 revenue of ₹2,064.4 crore, marking a 44.3% increase. It is currently in the process of expanding its pump and motor manufacturing capacity by 2.3 times and its solar module production to 2.1 GW. Meanwhile, Australian Premium Solar (APS) has also seen its solar pump division become a primary revenue driver, contributing ₹308 crore in FY26. The company’s total consolidated income reached ₹708.8 crore in FY26, representing a 60.7% growth, with current EBITDA margins standing at 12%.
While the demand outlook is strong, investors should be aware of specific industry risks. The business model for these manufacturers is heavily dependent on government schemes, meaning delays in payments from state agencies can impact cash flow. Additionally, companies in this sector are currently facing margin pressure due to rising costs, as seen in the recent financial performance of both Shakti Pumps and Oswal Pumps. Raw material price volatility and the pace of new government order inflows remain critical factors that could affect profitability. The next important step for these companies will be the successful commissioning of their announced manufacturing expansions and their ability to maintain operating margins in a competitive, policy-driven market.