Servotech Renewable To Accelerate Solar Adoption Under PM Surya Ghar Yojana

Servotech Renewable Power System Ltd (NSE: SERVOTECH), a frontrunner in the development of green energy solutions, has reached a deal with CIMSME (Chamber of Indian Micro Small and Medium Enterprises) to work towards increased solar energy adoption in the country. This collaboration also complements the government's PM Surya Ghar Muft Bijli Yojana program, which has a goal of placing 100,000 solar rooftop systems on houses by the year 2026.

An important part of this project is the creation of a customer-friendly mobile application by CIMSME and Servotech. This app will attempt to make the entire journey of solar adoption easier, beginning from documentation, roof inspection, through to installation, monitoring of the system, and help with subsidy applications.

This digital application will carry the burden of restructuring the tedious procedure of solar installation which, if executed successfully, can enable several households to shift towards sustainable energy. It also aims to expand comprehensive solar adoption by increasing transparency and providing greater efficiency.

In order to provide effective implementation across the country, CIMSME will set up approximately 30,000 personnel to function on a PIN code system. This cadre will be responsible for sales, customer support, and supervision of installations. Their local approach will help in resolving community-specific issues which will make it easier for homeowners to shift to solar energy.

Servotech will also become a holistic service provider as well as a distributor of components as it is already registered with 62 DISCOMs. These are the providers that will service users through installations of Solar Photovoltaic Generation Systems (SPGS) from 2kW to 10Kw which Cater to all energy needs within a given household. Servotech will also help in the management of the installed systems through Maintenance Service Contracts (MSC) guaranteeing the customers' satisfaction.

Servotech Renewable Power System Limited (SRP) posted an astonishing quarterly revenue growth of 315.3%, totalling Rs 21,683.2 lakh as opposed to Rs 5,220.6 lakh in Q3FDY24. EBITDA rose by Rs 1,351.2 crore, which is an increase of 420.1% from last year's figure of Rs 321.6 lakh. Servotech's profit after tax also rose to Rs 798.7 lakh, indicating an increase of 616.8% from the previous year's figure of Rs 111.4 lakh.

For the first 9 months of FY25, the company's revenue continued to grow and was reported at Rs 52,934 lakh, up from Rs 21,861 lakh during the 9MFY24, a percentage increase of 142.1%. EBITDA came in at Rs 4,455.9 lakh, reflecting a large jump of 173.1% compared to the previous year's figure of Rs 1,631.5 lakh. PAT also rose from Rs 834.8 lakh to Rs 2,371.9 lakh, marking an increase of 184.1%, with margins improving from 3.8% to 4.5%.

In January of 2025, Foreign Institutional Investors (FIIs) bought 9,28,856 shares which increased their shareholding to 3.10% from December 2024. Servotech also maintains a strong profit growth CAGR of 30% over the past five years and a median sales growth rate of 22.5 percent over the last decade. The stock is trading at more than Rs 2,700 crore market cap which is an over 60% increase from its 52 week low of Rs 73.50 per share multibagger returns of over 9000% in 5 years.

Servotech recently received a supply order of about 1,100 Grid Connected Agriculture Pumps under the KUSUM Component C-1 Scheme from the U P New and Renewable Energy Development Authority (UPNEDA). This is a huge step towards solarizing agriculture and moving towards a solar economy in India.

India's leading manufacturers of Electric Vehicle (EV) chargers and solar power along with backup solutions, Servotech Renewable Power System Ltd are proud to announce its financial performance for the quarter and nine months ending on the 31st day of December 2024. Servotech demonstrated stellar growth focusing on core metrics and their business strategy throughout the year.

Servotech's total revenue for the FY25, Q3 period was recorded at 21,683.20 Lakhs which marks a 315.30% increase compared to 5,220.6 Lakhs in the same quarter the previous year. With an impressive EBITDA growth, the value rose to 1,672.80 Lakhs which is 420.10% more than 321.6 Lakhs from the previous year's Q3. The Profit Before Tax (PBT) increased remarkably from 185 Lakhs to 1,282.50 Lakhs marking an increase of 590.20%. The highlights of the earnings - Profit After Tax soared by 616.80%, reporting 798.70 Lakhs compared to 111.4 Lakhs in Q3 FY24.

In the nine months that ended on 31st December 2024, the company's total revenue for the period also increased reporting a value of 52,934.00 Lakhs. In contrast, commanding a 142.10% increase from the previous year's period value of 21,861.00 Lakhs.

Finally, the PAT touched almost Rs. 2371.9 Lakhs achieving an impressive increase of 184.1% alongside the EBITDA growth of 173.1% reaching, Rs. 4455.9 Lakhs. In addition, there was an improvement in margins of 3.8% from that of the last period, moving to 4.5%.

The board of directors of the company passed a resolution to convert 600,000 warrants into equity shares with each share being issued at Rs. 83.4. This conversion raised Rs. 3.75 Crores, which as was clear from the above statement, shows the belief investors have on Servotech's vision and growth expectations.

Raman Bhatia, Managing Director - Servotech Renewable Power System Ltd, shed light on the company's strategy and performance trends. He explained the fantastic gouging growth is driven by the focus put by Servotech on technology-based solutions for EVs and solar energy. The company already has a 35 - 40 percent share of India's EV charging market. Now the company plans to scale it to 50 - 55% by FY25. In order to achieve this target, the company has decided to manufacture 12000 DC fast chargers. Servotech expects EV chargers business to be 70 - 75% of Servotech revenue. It is also supported by its line of innovative solar products.

According to Bhatia, Servotech's deep commitment towards sustainability and innovation makes it a leader and an expert in Renewable Energy and Smart Energy Solutions. He sounded optimistic and mentioned the company is well-positioned to deliver long-term value to stakeholders while meeting the green future expectations.

Servotech Renewable Power System Ltd. Since its listing on the NSE has been in the business of electronics for over 20 years and now specializes in modern EV charging solutions.

The company has developed a complete range of AC and DC chargers suitable for all kinds of electric vehicles used commercially and personally. Servotech has revolutionized the country's EV infrastructure and renewable energy targets with a rich warranty and innovation-first approach. Today, they have a presence across the country.

Servotech share price increased by 4.07% on Wednesday reaching an intraday high of 162.40 rs suggesting a good outlook for the company. The stock's 52-week high is still 205.40 rs so there is room for growth in the renewable energy sector.