1:10 Stock Split Ahead: Gensol Engineering Expands Solar Footprint In Jharkhand

Construction engineering and renewables leader Gensol Engineering Limited held an extraordinary general meeting on April 12 with the intention of resolving their capital structure, focusing on aligning shareholder value.

The company disclosed plans during the meeting for a proposed ordinary resolution regarding the sub-division (stock split) of equity shares, which also concerned reducing the face value of equity shares from Rs 10 to Rs 1. The second resolution that was passed pertained to the issuance of securities on a preferential basis to the promoter group's select members. Unlike the first resolution, this one remained a special resolution. As are most voting outcomes, this one is still under scrutiny and analysis or awaiting results from the scrutinizer.

The split is projected to make the stock far more liquid, meaning it will be easier to trade while making shares substantially more approachable to a growing list of investors. Promacingly direct allotments such as these will further bolster muscle retention of the main promoters and, in turn help bring additional funding, which alongside these, aims to meet aggressive targets set by the company.

In a leap forward of operational achievement, Gensol has commissioned a large-scale, ground-mounted solar power plant located in the Panchet town of Dhanbad district in Jharkhand. This 40-acre project, which will yield more than 15 million units of clean commercial energy per year, was developed under an EPC contract worth Rs 40 Crores. Additionally, the project will include five years of comprehensive operations and maintenance (O&M) support.

The Plant possesses a striking technical elegance, as its location in loose soil, hard rock mining-excavated land renders the terrain quite complex. Gensol was able to guarantee maximum energy output by employing advanced Mounting Structure Systems (MMS) alongside high-efficiency PV modules. With the plant, the state is expected to make significant strides toward their clean energy goals by cutting down CO₂ emissions by approximately 21,000 metric tonnes yearly.

Gensol is still delivering a strong performance. In Q3 FY25, the company's net sales increased by 30% year-on-year to Rs 345 crore, which led to an increment in the net profit of 6% to Rs 18 crore. Furthermore, for the nine months period ending FY25, net sales increased by 42% to Rs 1,056 crore. EBITDA increased by 89% to Rs 246 crore, and the net profit increased by 34% to 67 crore. Cumulatively for FY24, Gensol's net sales increased by 142% to Rs 963 crore, and the net profit also saw an increase of 129% compared to FY23 and reached Rs 53.5 crores.

Gensol Engineering was founded in 2012 and has developed a strong portfolio across solar EPC in India and the Middle East, Scorpius Trackers solar tracking systems, and EV leasing and manufacturing. Along with more than 770 MW of solar capacity already executed, Gensol is further venturing into battery energy storage and green hydrogen, which showcases the company's commitment towards sustainable and scalable renewable energy solutions.