The shares of the solar advisory and execution services provider gained 2.3 percent after the company announced a partnership to develop India’s first and largest green steel production facility.
With a market capitalization of Rs 3,150.8 crore, the shares of Gensol Engineering Ltd were trading at Rs 829.00 per share, increasing around 0.55 percent as compared to the previous closing price of Rs 824.50 apiece.
Reason for Rise:-
The shares of the company have seen positive movement after Gensol Engineering Ltd announced a partnership with Matrix Gas & Renewables, a key player in natural gas aggregation and green hydrogen to develop India’s first and largest green steel production facility.
Furthermore, this plant will use 100% green hydrogen, which represents a big step forward in sustainable steel manufacturing. It is one of three pilot projects sanctioned by MECON under the National Green Hydrogen Mission, in collaboration with the Ministries of Steel (MoS) and
New and Renewable Energy (MNRE), and represents a significant technical leap in India’s sustainable steel manufacturing.
Moreover, the project’s total capital expenditure (capex) is anticipated at Rs 321 crore, with the Government of India offering 50% capex incentives to encourage this trailblazing endeavor. The investment demonstrates the government and consortium’s joint commitment to promoting sustainable growth and reducing carbon emissions in the steel sector.
Financial performance:-
Looking into Gensol Engineering Ltd’s performance, revenue climbed by 103 percent from Rs 145 Crore in Q1FY24 to Rs 295 Crore in Q1FY25. During the same duration, net profit climbed by 50 percent from Rs 10 crore to Rs 15 crore.
Business Segments Overview:-
Gensol, a top solar EPC player in India, has executed projects across 19 states and internationally. Its acquisition of Scorpius Trackers and leadership in Battery Energy Storage Systems (BESS) fuel growth, with a solar order book of ₹4,700 Cr as of July 2024.
Let’s EV, Gensol’s subsidiary, saw rapid growth, achieving ₹50 Cr in revenue in Q1 FY25, marking a 98% YoY increase. This expansion reflects strong demand in the EV leasing market and Gensol’s commitment to sustainable mobility solutions.
Gensol is set to launch a compact, all-electric 2-seater car designed for urban India. Manufactured in Pune with a capacity of 30,000 units annually, the vehicle received ARAI approval in 2024 and is undergoing road tests ahead of its market debut.
Market condition:-
The renewable energy sector is growing rapidly, driven by demand for round-the-clock, fixed-dispatch solutions to meet peak energy needs. Gensol’s future-proof strategy capitalizes on this shift, supported by a robust order book and bid pipeline, positioning it for continued success in the evolving market.
Upcoming Projects and Developments:-
Gensol anticipates significant growth in the BESS market, valued at ₹15,000-₹20,000 Cr over the next year, with a bid pipeline of ₹6,500 Cr. Its integrated EV leasing and manufacturing model aims to boost customer value and streamline operations for greater efficiency and profitability.
Management guidance:-
Gensol projects a consolidated EBITDA of over ₹400 Cr for FY25, while its EV manufacturing segment is expected to reach breakeven at 12,000 vehicles. Production is set to scale up in FY26, positioning the company for strong financial performance and growth in the coming years.
Company profile:-
Gensol Engineering Limited provides solar consultation services, as well as engineering, procurement, and construction (EPC). The company offers technical due diligence, comprehensive engineering, quality control, construction monitoring, and other consulting services for solar projects in numerous countries, including India.
Written by:- Abhishek Singh
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