The shares of the solar advisory and execution services provider gained 5.4 percent after the company bagged a prestigious order with Rs 780 crore for the Solar PV Project.
With a market capitalization of Rs 3,183.03 crore, the shares of Gensol Engineering Ltd were trading at Rs 840.50 per share, increasing around 3.07 percent as compared to the previous closing price of Rs 815.50 apiece.
Reason for Rise:-
The shares of the company have seen positive movement after Gensol Engineering Ltd bagged a prestigious order with Rs 780 crore from a leading public sector utility in Maharashtra for the development of a 150 MW ground-mounted solar PV power plant, with a total contract value of Rs 780 Crore, which is set to be executed over a 15-month period.
Additionally, the contract includes three (3) years of operation and maintenance (O&M) services for the project, inclusive of maintenance of the plant’s switchyard and its extensive transmission infrastructure.
Moreover, the project aligns with the forward-looking policy introduced by the Ministry of New and Renewable Energy (MNRE) in April 2022, aimed at enhancing Maharashtra’s energy infrastructure while making a significant contribution to India’s sustainable energy goals. The awarding of this contract to Gensol highlights the company’s growing expertise and proven track record of delivering renewable energy projects on time.
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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