According to heavyindustries.gov, the electrical equipment sector in India is poised for significant growth, projected to reach USD 52.98 billion by 2027, with a CAGR of 11.68% from 2023 to 2027. This sector, crucial for infrastructure and energy distribution, contributes approximately 1.5% to India’s GDP and employs over 2.2 million individuals.
With a market capitalization of Rs 2,882.13 crore, the shares of Gensol Engineering Ltd closed at Rs 761.00 per share, increased around 7 percent as compared to the previous closing price of Rs 713.35 apiece
Matter explanation:-
As of November 2024, Gensol Engineering Ltd boasts a robust order book inflow of Rs 9,055 crore, representing 3.31 times its market capitalization, highlighting the company’s strong growth potential and substantial demand for its services.
Financial and EV Expansion:-
Looking into Gensol Engineering Ltd’s performance, revenue climbed by 13 percent from Rs 305 Crore in Q2FY24 to Rs 346 Crore in Q2FY25. During the same duration, net profit climbed by 28 percent from Rs 18 crore to Rs 23 crore.
H1 FY25 saw 49% revenue growth to ₹710 crores, PAT growth to ₹50 crores, and debt reduction by ₹185 crores. EV leasing achieved ₹800 crore AUM. “Let’s EV” supports lifecycle management, while its two-seater EV, launching Q1 FY26, boasts a 30,000-unit capacity.
Key Achievements:
Gensol excels in solar EPC, winning ₹463 crore projects at Khavda Park and entering BESS, anticipating ₹3,100 crore revenues over 12 years. Internationally, it secured a 23 MW rooftop project in Dubai and plans U.S. entry for its Scorpius Tracker. Green hydrogen projects with Matrix Gas and Westinghouse further diversify growth.
Market Dynamic:-
The renewable energy sector’s growth positions Gensol advantageously. Management remains confident in sustaining healthy margins in the solar EPC segment despite rising competition, highlighting their technical expertise and ability to execute complex projects as key strengths driving their competitive edge in the evolving market.
Management Comments:-
The management remains confident in meeting the EV launch timeline despite challenges. It emphasizes continuous deleveraging and maintaining robust cash flows. To strengthen liquidity, the company plans a ₹750 crore Qualified Institutional Placement (QIP), showcasing its commitment to financial stability and strategic growth.
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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