Servotech Q1 profit jumps 75% on strong solar revenue growth
Servotech Renewable Power System reported a 75% surge in first-quarter profit driven by its solar division, signalling resilient demand despite a sharp recent stock market correction.
Servotech Renewable Power System posted a 74.5% year-on-year increase in first-quarter net profit to ₹7.94 crore, driven by a 57.7% surge in revenue to ₹216.29 crore. However, the headline growth masks a sequential slowdown, with profit declining from ₹11 crore in the preceding March quarter while revenue remained essentially flat at ₹217 crore.
The robust annual revenue expansion was underpinned by the company's core solar business. Solar plants contributed nearly half of total sales at 49.7%, followed by solar panels and balance of systems at 25.8%, and solar inverters at 19.3%. Emerging segments like EV chargers and power backup remained marginal, accounting for 2.5% and 2.7% of revenue respectively.
For investors, the results indicate that underlying demand for utility-scale and commercial solar installations in India remains resilient despite broader market volatility. Raman Bhatia, managing director of Servotech Renewable Power System, attributed the growth to the "growing market acceptance of our integrated clean energy solutions." He added that the momentum reflects the company's ability to capitalise on opportunities emerging across the renewable energy, BESS, and EV charging sectors.
The company is backing this operational guidance with tangible capital expenditure. Servotech recently secured a 1,415-kW rooftop solar project from the South-Central Railway's Vijayawada Division. More significantly for its medium-term production capacity, it signed a ₹400 crore memorandum of understanding with the Haryana government to expand its manufacturing footprint in the state.
Despite the solid operational performance, the stock's trajectory tells a more complicated story. After losing roughly 70% of its value between November 2024 and January 2026, shares have rebounded 61.3% from their March low to trade around ₹100.50. The stock surged 52% in April alone, its best monthly performance since March 2023.
Even with the recent recovery, the shares remain 51% below their all-time high of ₹205.40. Yet retail investors have retained their conviction, maintaining a combined 41.3% stake in the June quarter, up from 38.4% a year earlier. This steadfast retail base contrasts with the extreme volatility of a stock that previously delivered a 22,420% cumulative return between 2020 and 2024.
