Servotech Renewable Power System Limited (SERVOTECH)

Capital Goods · Electrical Equipment · NSE · Updated 15 July 2026

₹95.76 ↓ 34.48% (1Y)

🎯 Key Takeaways

Servotech Renewable Power System Limited is in a strategic expansion phase, transitioning from early-stage project execution to scaling through government-backed partnerships and infrastructure investment. The company is actively positioning itself in the clean energy manufacturing sector with significant capital commitments, though its financial performance remains volatile with inconsistent profitability and high valuation multiples.
Revenue grew 8.3% QoQ to ₹216 in Q3FY25.
⚠️ 1) Revenue growth is project-driven and concentrated in volatile sectors like infrastructure and renewables, exposing the company to execution and reg

Market Cap

₹2,105

P/E Ratio

72.8

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

Servotech Renewable Power System Limited is in a strategic expansion phase, transitioning from early-stage project execution to scaling through government-backed partnerships and infrastructure investment. The company is actively positioning itself in the clean energy manufacturing sector with significant capital commitments, though its financial performance remains volatile with inconsistent profitability and high valuation multiples.

📰 What's Happening

In the last quarter, Servotech secured a 1415 kW solar rooftop project order from South Central Railway, marking expansion into the railway infrastructure segment, and signed a Memorandum of Understanding with the Haryana government to invest approximately ₹400 crores in clean energy manufacturing. Additionally, 58,50,000 convertible warrants lapsed without conversion, resulting in the forfeiture of Rs. 24,48,22,500, reflecting limited investor appetite for dilution instruments. The company also re-appointed its cost auditor and recommended a 2% final dividend for FY2025-26, pending shareholder approval.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY23	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	115	80	86	52	136	112	200	216
Operating Profit	9	7	6	3	6	9	19	17
OPM %	3.8%	8.7%	6.2%	5.8%	4.1%	7.4%	9.5%	7.5%
Net Profit	6	4	3	1	3	4	11	9
EPS	₹0.57	₹0.39	₹0.15	₹0.05	₹0.16	₹0.20	₹0.51	₹0.41

Revenue has shown an upward trend over the past year, rising from ₹80 lakhs in Q1FY24 to ₹216 lakhs in Q3FY25, with operating profit peaking at ₹19 lakhs in Q2FY25 before moderating. However, profitability remains fragile, with net profit declining from ₹11 lakhs in Q2FY25 to ₹9 lakhs in Q3FY25 and earnings per share falling to ₹0.41, indicating margin pressure despite revenue growth. The company's OPM has fluctuated between 3.8% and 9.5% over the period, reflecting sensitivity to cost structure and execution efficiency.

🔮 Management Outlook & What's Next

Management has not provided explicit forward guidance in the latest filings, but the MoU with Haryana Enterprises Promotion Centre signals intent to scale manufacturing capacity with government support. The company continues to pursue project-based growth, as evidenced by the South Central Railway order, though execution timelines and scalability remain dependent on project pipelines and regulatory clearances.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Electrical Equipment

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Hitachi Energy India Limited	1.45 L Cr	172.4	—	—	—
Bharat Heavy Electricals Limited	1.39 L Cr	267.3	—	—	—
ABB India Limited	1.35 L Cr	48.8	—	—	—
CG Power and Industrial Solutions Limited	1.32 L Cr	136.7	—	—	—
Siemens Limited	1.28 L Cr	45.2	—	—	—
GE Vernova T&D India Limited	1.11 L Cr	104.1	—	—	—
Siemens Energy India Limited	1.10 L Cr	83.9	—	—	—
Waaree Energies Limited	86,928	22.4	—	—	—
Suzlon Energy Limited	73,843	64.1	—	—	—
Thermax Limited	53,625	81.9	—	—	—

🔗 Peer Stock Analyses

POWERINDIA BHEL ABB CGPOWER SIEMENS

⚠️ Risk Factors

1) Revenue growth is project-driven and concentrated in volatile sectors like infrastructure and renewables, exposing the company to execution and regulatory risks. 2) Persistent margin compression despite revenue expansion suggests operational inefficiencies or cost overruns. 3) High P/E multiple of 72.8 reflects market skepticism about near-term profitability, with limited visibility on sustainable earnings growth.

📋 Recent Filings

🧠 Analyst's Read

Investors should monitor management's ability to convert MoU commitments into tangible capex execution and deliver consistent operating margins. The next earnings call will be critical for clarity on order pipeline, margin trajectory, and capital allocation strategy.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-15.

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