1. At a Glance – Blink and You’ll Miss the Irony
Servotech Renewable Power System Ltd is currently a ₹1,334 Cr market-cap company trading at ₹59, down ~60% YoY, despite reporting ₹202 Cr quarterly revenue and ₹14.7 Cr PAT in Q3 FY26, up 54.7% YoY. Yes, welcome to Indian markets where earnings grow faster than investor patience.
The company operates in hot themes—EV charging, solar EPC, BESS, batteries—basically every buzzword that gets politicians excited and retail investors emotional. ROCE sits at 20.8%, ROE at 19%, OPM at ~11%, and yet the stock trades like it personally offended the market.
Debt is ₹152 Cr, promoter holding is 58.6%, pledged shares ~4%, and working capital days have ballooned to ~75 days, which tells you where the stress is hiding.
So what’s going on here? Is the market blind, or is Servotech just very good at selling dreams on credit? Let’s investigate. 🕵️♂️
2. Introduction – From Darling to Disowned
Servotech is not new. Incorporated in 2004, it spent years quietly doing power backup and stabilizers, before reinventing itself as a clean-energy superhero. EV chargers? ✔️ Solar EPC? ✔️ Batteries? ✔️ Patents? ✔️ Foreign partnerships? ✔️
Between FY21 and FY25, sales jumped from ₹86 Cr to ₹587 Cr. Profits compounded at 108% over 5 years. On paper, this is the kind of company WhatsApp forwards are made of.
And yet—price collapse. From ₹168 highs to ₹59. Why? Because markets don’t just read P&L; they
read cash flow, execution, and credibility.
Question for you: Would you trust a fast-growing EPC company that constantly needs more working capital?
Hold that thought.
3. Business Model – WTF Do They Even Do?
Servotech is a hardware + EPC + services cocktail:
- EV Chargers (83% of FY25 revenue)
- AC chargers (20%)
- DC fast chargers (63%)
- Solar EPC & products (11%)
- Installation, O&M, AMC (4%)
- Everything else: emotional support revenue
Their sweet spot? PSU orders, railways, oil marketing companies, and government schemes. Translation: large orders, thin margins, slow payments.
They also manufacture charger components in-house, dabble in BESS, and acquired 27% in Rhine Solar for backward integration. Smart strategically—but capital hungry.
Explain this to a lazy investor:
Servotech sells chargers and solar systems, gets paid late, borrows money meanwhile, and hopes scale will save margins.
Will it? That’s the billion-rupee question.
4. Financials Overview – Numbers Don’t Lie, But They Do Tease
Q3 FY26 Performance Table (₹ Cr)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 202 | 181 | 102 | 11.2% | 98% |
| EBITDA | 26 | 16 | 9 | 62% | 189% |
| PAT | 14.7 | 9.5 | 2.0 | 54.7% | 635% |
| EPS (₹) | 0.65 | 0.43 | 0.10 | 51% | 550% |
