Gensol Engineering Shares Plunge 40% in Five Days Amid Credit Downgrades & Fraud Allegations

Gensol Engineering shares continue their steep decline, falling nearly 40% in the past five days after credit rating downgrades and allegations of falsified loan repayment documents.

Gensol Engineering Share Price Today

Shares of Gensol Engineering Ltd. witnessed a sharp 10% drop in early trading on Friday, March 7, 2025. The stock has been locked in a lower circuit for three consecutive trading sessions. As of today, Gensol shares are down 4%, extending their recent losing streak. Over the past five days, the stock has plunged 40.57%, marking a 56.53% decline over the past month and a 58.63% fall year-to-date. On Thursday, March 6, Gensol's stock hit its lower circuit limit at Rs. 335.35, following a 10% decline.

Why Is Gensol Engineering Stock Falling?

The recent slump in Gensol Engineering's stock price began after CARE Ratings downgraded the company's credit rating due to delays in debt servicing. Following this, ICRA also downgraded Gensol's rating, citing allegations that the company had falsified loan repayment documents as per reports circulating online.
Earlier this week, Gensol shares hit a 20% lower circuit, prompting a revision in the circuit limit, leading to two successive 10% lower circuits. These back-to-back rating downgrades have ignificantly eroded investor confidence, driving further sell-offs in the stock.

Gensol Engineering Q3 FY25 Financial Report

Gensol Engineering reported a mixed financial performance in Q3 FY25, with net profit declining 22.11% quarter-over-quarter to Rs. 17.86 crore, while revenue from operations saw a marginal 0.42% dip to Rs. 345.34 crore. Profit before tax also dropped 35.70% to Rs.15.97 crore. However, on a year-on-year (YoY) basis, overall income grew 30% to Rs. 345 crore, and consolidated net profit increased 6% to Rs. 18 crore. EBITDA rose 19% YoY to Rs. 63 crore, though the EBITDA margin slipped from 20.1% in Q3 FY24 to 18.3% in Q3 FY25.

About Gensol Engineering

Founded in 2012, Gensol Engineering Limited is a key player in India's solar power and electric vehicle (EV) sector. The company specializes in engineering, procurement, and construction (EPC) services and has delivered over 700 MW of solar projects globally. Beyond renewable energy, Gensol has diversified into EV manufacturing with a state-of-the-art production facility in Pune, India. The company produces electric three-wheelers and four-wheelers, with approvals from the Automotive Research Association of India (ARAI).

Additionally, Gensol offers EV leasing solutions for PSUs, multinational corporations, government agencies, logistics firms, and ride-hailing services. The company recently acquired Scorpius Trackers, a leader in solar tracking technology, to further strengthen its position in the renewable energy industry.