This leading Indian manufacturer of clean energy solutions, specialising in solar products and electric vehicle (EV) charging infrastructure, is worth watching closely. We’re talking about Servotech Renewable Power System Limited (formerly known as Servotech Power Systems Limited), engaged in the business of manufacturing LED lights, EV Chargers and Solar power products.
Servotech offers a comprehensive range of AC and DC chargers that are compatible with various Electric Vehicles (EVs), catering to multiple applications such as commercial and domestic.
In this article, we’ll take a closer look at the company’s financial performance, key growth drivers, product portfolio, business model, and other critical factors that position it for future growth.
With a market cap of Rs. 2,970 crores, shares of Servotech Renewable Power System Limited closed in the green at Rs. 131.5 on Friday. The stock has delivered over 768 percent returns in the last 3 years.
Product Portfolio and Key Clients
Servotech Renewable offers a diverse range of clean energy products, including EV chargers, solar inverters, lithium batteries, and key components. Its portfolio includes solar panels, solar inverters, solar batteries, and energy storage systems, alongside AC and DC chargers for EVs, and essential EV charger components such as onboard chargers, AC/DC modules, charging cables (CCS2 & Type 2), control cards, and industrial sockets.
The company’s manufacturing operations are supported by two advanced facilities. The Safiabad Manufacturing Facility, commissioned in 2023, is the company’s newest and most technologically advanced plant, purpose-built to support India’s e-mobility mission and specialising in the production of EV chargers and critical components.
The Kundli Manufacturing Facility, initially focused on the production of LED products, power & backup oxygen concentrators and UVC devices, has been transformed into a strategic hub to manufacture clean energy solutions. It now manufactures solar inverters, battery storage systems and advanced solar technologies.
Servotech’s client base is primarily B2B and includes marquee institutional and government partners such as Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL), Indian Oil Corporation (IOCL), Tata Motors, UPNEDA, Adani Gas, ITC Hotels, NCC, and various state nodal agencies.
Business Model and Revenue Strategy
Servotech’s business model is built on a synergy of advanced manufacturing capabilities, technology-driven innovation, and a customer-focused approach that together create value across high-growth sectors like clean energy and electric mobility.
The company’s revenue model leverages multiple monetisation channels to ensure diversified and sustainable inflows. These include projects and government tenders, channel distribution networks, direct retail sales, online platform transactions, as well as installation and after-sales services.
Servotech’s key resources are anchored in its vertically integrated operations, spanning product development and manufacturing. The company’s strengths include expertise in printed circuit boards (PCBs), switchgear components, integrated circuits, lithium-ion cells, and metal mechanical parts, supported by robust in-house R&D, technical know-how, skilled manpower, and a strong brand reputation.
Financial Performance
In Q1 FY26, Servotech Renewable reported a consolidated revenue from operations of Rs. 137 crores, a decline of around 6.5 percent QoQ but a growth of nearly 22 percent YoY. Similarly, the company’s net profit for the quarter stood at Rs. 4.55 crores, representing a drop of nearly 41 percent QoQ but a marginal rise of 1.3 percent YoY.
In terms of financial ratios, Servotech Renewable has reported a RoE of 17.3 percent and ROCE of 19.7 percent, with a debt-to-equity ratio of 0.32. Further, the stock is currently trading at a P/E of 89.9, compared to the industry average of 39.8.
Latest Major Developments
In Q1 FY26, Servotech secured a 16MW rooftop solar project from Madhya Pradesh Urja Vikar Nigam Limited to be implemented across the government buildings, alongside additional rooftop solar orders from Indian Railways’ Waltair and North-Eastern divisions, totalling 1.1 MW capacity.
Strengthening its position in the EV charging space, the company received an order from Kempegowda International Airport, Bengaluru, for installing 10 high-speed 240 kW DC EV chargers, amounting to 2.4 MW total capacity. Further, the company was granted a patent for its proprietary peak shaving technology in EV chargers, designed to reduce power costs and optimize grid load management.
Expanding its manufacturing capabilities, Servotech acquired a 27 percent equity stake in Rhine Solar Limited, securing a steady supply of solar modules and enhancing its vertical integration in solar product manufacturing.
Industry Tailwinds
Government support for renewables is a key driver of industry growth, with initiatives like the PM Suryoday Yojana, which aims to solarise 1 crore households, and subsidies for EV infrastructure accelerating the adoption of clean energy solutions across the country.
Favourable policy and budgetary measures, such as the Pumped Storage Policy and customs duty exemptions on lithium, are expected to reduce input costs and attract greater investment in renewable energy projects.
At the same time, the rising adoption of electric vehicles is fuelling the need for widespread EV charging infrastructure, creating significant opportunities for solution providers and technology innovators.
Additionally, the growing focus on achieving net-zero emissions and promoting sustainable living is expanding demand for green energy solutions, smart charging systems, and energy-efficient technologies.
Key Growth Drivers
Servotech’s growth is underpinned by a technology and innovation-driven approach, with consistent investments in R&D to develop advanced EV chargers and solar solutions tailored to meet the evolving demands of the market. The company’s robust execution capabilities are demonstrated by the successful deployment of over 150 solar PSU projects and more than 12,500 EV chargers, earning customer trust and proving its implementation strength.
Deep customer access through long-standing relationships with key stakeholders, including PSUs, petroleum companies, and government nodal agencies, further strengthens its market position.
With a pan-India presence spanning more than 21 states, the company is well-positioned to scale rapidly and serve diverse regions. Additionally, its strong product portfolio, offering a comprehensive range of EV chargers, solar inverters, and components, enables it to address multiple segments and use cases effectively.
Written by Shivani Singh
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