Synopsis:
Small-cap Solar stock is in focus today after receiving a domestic order from NREDCAP worth Rs. 73.70 crore.
A Small-cap company that manufactures EV Chargers, Solar Products, and Power & Backup Products, is in the spotlight after receiving a domestic order from the New & Renewable Energy Development Corporation of Andhra Pradesh Ltd.
With the market capitalization of Rs. 2,188.44 crore, the shares of Servotech Renewable Power System Limited closed at Rs. 96.90, down by 0.01 percent from its previous day’s close price of Rs. 96.91.
What’s the News?
Servotech Renewable Power System Ltd has received a domestic order from the New & Renewable Energy Development Corporation of Andhra Pradesh Ltd (NREDCAP) to set up solar rooftop plants for end users under the PM Surya Ghar Yojana. The contract, governed by general conditions, is valued at Rs. 73.70 crore and is to be executed within six months of the issuance of the Letter of Award (LOA).
Servotech Renewable will design, supply, install, test, and commission rooftop solar plants for 5,886 SC and ST households under a Utility-Led Aggregation (CAPEX) model. The project includes 5 years of comprehensive Operation & Maintenance (O&M) support.
Management View
According to Sarika Bhatia, Whole-Time Director of Servotech Renewable Power Systems Ltd., the order from NREDCAP underscores the company’s dedication to advancing inclusive clean energy. She stated that it demonstrates Servotech’s ability to execute large-scale distributed solar projects efficiently, bringing solar power directly to communities and contributing to India’s sustainable and energy-secure future.
About the Company
Servotech Renewable Power System Limited, based in New Delhi and incorporated in 2004, manufactures and sells LED lighting, solar power products, EV chargers, and UV-C disinfection devices in India and internationally. Its offerings include LED lights (tubes, streetlights, floodlights, bulbs, downlights), solar products (inverters, panels, batteries, management units), and EV charging components. The company also provides UV-C sterilization products and engages in sports, events, and promotions.
A return on equity (ROE) of about 19 percent, a return on capital employed (ROCE) of about 20.8 percent and debt to equity ratio of 0.63 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 80.4x higher as compared to its industry P/E 36.3x.
Servotech Renewable Power System Ltd reported a sharp decline in revenue and profit in Q2FY26, with revenue at Rs. 102 crore, down 44 percent YoY from Rs. 182.34 crore in Q2FY25 and down 17.4 percent QoQ from Rs. 123.44 crore in Q1FY26. Profit fell even more steeply to Rs. 2.27 crore, a 80 percent drop YoY from Rs. 11.38 crore and a 70 percent decline QoQ from Rs. 7.55 crore, reflecting significant pressure on margins and operational performance.
Written by Akshay Sanghavi
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