Shares of Servotech Power Surge After Partnering With 62 DISCOMs

On Tuesday, shares of Servotech Power Systems Ltd. surged by 8.51%, reaching an all-time high of Rs 145.65 per share, up from the previous closing price of Rs 134.23 per share. This rally propelled the company's market capitalization to over Rs 3,200 crore. Over the past three years, Servotech's stock has demonstrated remarkable growth, skyrocketing from Rs 2.52 to Rs 145.65 per share, delivering multibagger returns of 5,680%.

Servotech Power Systems Ltd, has recently partnered with 62 distribution companies (DISCOMs) across India under the Pradhan Mantri-Surya Ghar Mufti Bijli Yojana. This initiative is part of the company's broader strategy to make sustainable energy solutions more accessible and affordable.

According to the company, "This strategic move not only solidifies Servotech's position in the renewable energy sector but also directly benefits consumers by enabling them to avail government subsidies when purchasing solar solutions from the company."

The Pradhan Mantri-Surya Ghar Mufti Bijli Yojana aims to promote the solarization of households and encourage green growth. The program has already garnered significant attention, with over 1.28 crore registrations and 14 lakh applications. Sarika Bhatia, Director of Sales at Servotech Power Systems Ltd., commented on the development, stating, "This enrollment allows us to leverage our expertise in solar solutions to empower individuals and communities to embrace clean energy, reduce their carbon footprint, and achieve long-term cost savings. The overwhelming response to the PM Surya Ghar Muft Bijli Yojana is a testament to the nation's growing awareness and commitment to sustainable practices. We are proud to be at the forefront of this transformative journey."

In addition to its achievements in solar energy, Servotech Power Systems has secured a contract to install 12 EV charging stations from the Agency for New and Renewable Energy Research and Technology (ANERT), Department of Power, Government of Kerala. As part of this contract, Servotech will supply, commission, and construct 12 EV charging stations with 30KW Fast DC EV Chargers at various locations of the Kerala Motor Vehicle Department. The project will be executed in phases, with the first phase involving the installation of four EV charging stations and the second phase encompassing the remaining eight.

The company has also announced that it secured a 1.2 MW order worth approximately Rs 10.20 crore earlier this month for deploying solar energy storage and grid-connected systems. The order, placed by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA), involves installing multiple 75-kW solar-based energy storage systems to provide reliable and uninterrupted power supply across Uttar Pradesh. Additionally, Servotech will design, manufacture, supply, erect, test, and commission 20 kW and 40 kW grid-connected solar power systems, supporting the state's renewable energy objectives.

Servotech Power Systems reported a strong financial performance for the quarter ending in June. Revenue from operations increased by 41% to Rs 112.19 crore, up from Rs 79.57 crore in the same quarter last year. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose by 20%, from Rs 7.13 crore in Q1 FY24 to Rs 8.54 crore in Q1 FY25. Additionally, the gross profit increased by 29%, from Rs 15.78 crore in Q1 FY24 to Rs 20.38 crore in Q1 FY25. Net profit after tax (PAT) saw a growth of 9%, reaching Rs 4.49 crore in Q1 FY25 compared to Rs 4.11 crore in Q1 FY24.

With over 20 years of experience in electronics, Servotech Power Systems has established itself as a trusted brand with a nationwide presence. The company continues to innovate in the fields of solar energy and electric vehicle charging solutions, positioning itself as a key player in India's transition to sustainable energy. Backed by a history of technological advancements, Servotech remains committed to shaping the future of e-mobility and renewable energy in India.