Synopsis: A clean energy company kicked off FY27 with sharp gains across revenue, profit, and margins, while also expanding its manufacturing footprint through a large state-backed investment commitment. The quarter also brought fresh order wins and product certifications across its EV charging and solar businesses.
Some quarters are just good numbers. Others come with a clear sense of direction attached to them. This looks like the second kind. A renewable energy company built around solar, EV charging, and energy storage has posted one of its stronger quarters in recent memory, and it’s doing so while simultaneously locking in the manufacturing capacity it says it will need for what comes next.
With a market capitalization of Rs. 2,281 crore, the shares of Servotech Renewable Power System Limited were trading at Rs. 105 per share; the stock jumped 5 percent after the announcement, and they are trading at a P/E of approximately 61x.
A Strong Start to FY27
On a consolidated basis, revenue for the quarter came in at ₹216.29 crore, up 57.69% YoY from ₹137.17 crore. Gross profit grew even faster, up 86.75% YoY to ₹48.56 crore, with gross margin expanding to 22.45% from 18.96% a year ago. That’s a meaningful improvement, and it shows up further down the P&L too: EBITDA rose 93.35% YoY to ₹20.94 crore, with EBITDA margin climbing to 9.68% from 7.9%.
Profit after tax came in at ₹7.94 crore, up 74.51% YoY from ₹4.55 crore, while including the company’s share of profit from associates, total profit after tax stood at ₹8.05 crore, up nearly 77% YoY. Diluted EPS nearly doubled to ₹0.41 from ₹0.23 a year earlier. On a standalone basis, the numbers tell a similar story, with revenue up 66.31% YoY and PAT up 47.01% YoY, suggesting the growth isn’t just coming from consolidation effects but from the core business itself.
Building Out Manufacturing Capacity
The bigger strategic move this quarter was a ₹400 crore MoU signed with the Government of Haryana to expand manufacturing capabilities in the state, where the company already runs two plants: one in Kundli for lithium batteries and solar inverters, and another in Safiabad dedicated to EV chargers. The timing matters: EV charging and renewable energy demand in India have been climbing, and having capacity ready ahead of that curve tends to matter more than catching up after the fact.
The company also picked up BEE 5-Star Ratings for its 60 kW and 120 kW DC fast chargers during the quarter, a certification that should help its EV charging products compete more effectively as adoption accelerates. On the solar side, it secured a 1,415 kW rooftop solar project order from South Central Railway’s Vijayawada division, adding to its presence in government-backed renewable energy contracts, an area that tends to offer more predictable, larger-ticket order flow than retail-driven demand.
A Business Built Across Multiple Segments
What stands out about this company’s model is that it isn’t leaning on one product line. Solar plants made up nearly half of segment revenue in the quarter, with solar panels and BOS, solar inverters, power products, and EV chargers rounding out the rest. That spread matters, because it means the company isn’t fully exposed to a slowdown in any single segment, whether that’s a dip in EV charger demand or a lull in solar EPC orders.
The distribution network has expanded significantly, now involving over 800 distributors and more than 6,000 retailers across 370 towns in India, with a partner retention rate exceeding 70%. The company boasts 21 years in the power and energy sector, two manufacturing plants, over 600 employees, a dedicated R&D team, and four patents filed, three of which have been granted.
Its structure has diversified further, including a CSR foundation, an EV charging infrastructure arm, a sports and entertainment subsidiary, an international presence in the UAE, and a 27% stake in a solar panel and cell manufacturer for backward integration. Additionally, it is embracing AI initiatives to enhance manufacturing and operational efficiency, aiming to position itself as a technology-first energy player rather than merely a manufacturer.
Conclusion
Growth on this scale, across revenue, gross profit, and margins together, isn’t easy to sustain quarter after quarter, and the market will likely want to see this repeated before fully re-rating the stock. But the combination of a stronger balance sheet, a diversified product mix, and a large capacity commitment backed by state government support gives the company more room to execute than it’s had in past cycles. Whether that translates into a sustained re-rating, or simply a good quarter in an otherwise volatile stock, is what the next few results will tell.
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