Servotech Renewable Power System Ltd – EV Charger King with Solar Side Hustle: Sales ₹699 Cr, PAT ₹33 Cr, P/E 90x
1. At a Glance
Servotech is that ambitious kid in class who plays cricket, dances, and still tries to top maths. EV chargers (26% of India’s installed base), solar projects, and LEDs – all packed in one ₹133 stock. Order book? ₹600 Cr+. Valuation? A stratospheric P/E of ~90x. Market cap ₹3,012 Cr for annual profits of just ₹33 Cr. Dalal Street clearly believes Servotech is India’s Tesla + Waaree + Philips rolled into one.
2. Introduction
Founded in 2004, Servotech started with inverters and power backup systems, then rode the solar wave, and today it’s pitching itself as an EV charging infrastructure leader. Out of India’s ~25,000 registered chargers, Servotech claims 7,000 units – a fat 26% share.
But here’s the twist: margins are wafer-thin (OPM ~8%), promoters have been quietly reducing stake (from 69% in 2022 to 58.6% now), and order inflows, though chunky, take time to convert into cash. Yet, every few weeks, they announce a new solar/EV order – from railways, airports, or state governments – enough to keep the hype engine charged.
It’s a classic Indian growth story: smallcap with big dreams, execution challenges, and a valuation multiple that looks like an EV battery’s voltage reading.
3. Business Model – WTF Do They Even Do?
Three verticals define Servotech:
EV Chargers (62% revenue, Q2FY25) – Mix of AC (21%), DC fast chargers (41%), plus OEM sales. Clients: IOCL, BPCL, Daimler, airports, railways.
Solar (15.5%) – Rooftop and on-grid solar plants. Recently bagged orders from UPNEDA (2 MW), North Western Railway (7.3 MW), and MP Urja Vikas Nigam (16 MW).
LED & Others (1.5%) – Legacy business, now an afterthought.
Subsidiaries are a curious mix:
Servotech EV Infra (Incharz) – Charging infra.
Rebreathe Medical Devices – Oxygen concentrator parts (COVID hangover business).
Servotech Sports & Entertainment – Yes, they even dabble in sports promotion.
Basically, Servotech is trying to be everywhere – a Swiss Army knife of renewables. But does every blade cut?
4. Financials Overview
Metric
Latest Qtr (Jun’25)
YoY Qtr
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue (₹ Cr)
137
112
146
21.9%
-6.2%
EBITDA (₹ Cr)
10.4
8.3
12.2
25.3%
-14.8%
PAT (₹ Cr)
5.2
4.5
7.7
17.0%
-32.0%
EPS (₹)
0.23
0.20
0.35
15.0%
-34.0%
Annualised EPS = ₹1.50. CMP ₹133 → P/E ~89.9x. The market is valuing this like it’s already a bluechip EV infra giant.
