Shares of Servotech Renewable Power System witnessed a notable recovery on Wednesday, climbing 3% to reach an intraday high of ₹97.95 after the company announced securing a major rooftop solar project from the Andhra Pradesh government.
Major Solar Project Win
Servotech Renewable Power System has secured a substantial ₹73.70 crore order from the New & Renewable Energy Development Corporation of Andhra Pradesh Ltd. (NREDCAP). This project falls under the central government's ambitious PM Surya Ghar: Muft Bijli Yojana, aimed at promoting solar energy adoption across the country.
The comprehensive mandate involves the implementation of grid-connected rooftop solar systems throughout the Kavali division. This initiative represents a significant step forward in expanding solar energy access to underserved communities in Andhra Pradesh, particularly focusing on marginalized households.
Project Specifications and Implementation
The clean-energy manufacturer will be responsible for the complete project lifecycle, including design, engineering, supply, installation, testing, and commissioning of rooftop solar plants with varying capacities. The project specifically targets 5,886 households belonging to Scheduled Caste and Scheduled Tribe communities, ensuring clean energy reaches those who need it most.
Servotech will execute the project using a Utility-Led Aggregation (CAPEX) model and has committed to providing comprehensive operations and maintenance services for five years following installation. This long-term commitment ensures the sustainability and optimal performance of the solar systems.
Market Performance and Financial Results
The project announcement triggered a positive market response, with Servotech's stock rebounding from an early decline of 1.8% that saw it touch ₹95.15 to eventually surge 3% to its day's high. This recovery comes amid challenging market conditions for the stock.
Recent financial performance shows mixed results, with the company reporting standalone revenue of ₹10,292.63 lakh for Q2FY26, representing a 17.5% decline from the previous quarter's ₹12,513.59 lakh. Profit after tax saw a significant drop of 69.9% to ₹227.23 lakh, down from ₹755.06 lakh in Q1FY26. Operating profit (EBITDA) stood at ₹974.18 lakh, marking a 31.55% sequential decline.
Despite recent setbacks, the company has demonstrated remarkable long-term performance, delivering multibagger returns of 710% over the past three years, though it has faced pressure in the shorter term with declines of over 21% in the last month and 45% over the past year.
Leadership Perspective and Future Outlook
Sarika Bhatia, Whole-Time Director at Servotech Renewable Power System Ltd., expressed enthusiasm about the project, stating that the company feels honored to collaborate with NREDCAP on this community-focused initiative. She emphasized that this order reflects Servotech's dedication to advancing inclusive clean energy growth and showcases their capability in executing large-scale distributed solar deployments with precision and quality.
This project is positioned as a significant milestone in Servotech's mission to scale clean-energy infrastructure and support India's broader push toward sustainability and energy security. The large-scale deployment is expected to strengthen distributed solar penetration in rural and semi-urban regions while delivering reliable, clean, and affordable power to thousands of beneficiaries.
Servotech Renewable Power Systems remains a key player in India's clean-energy manufacturing sector, known for producing EV chargers, solar solutions, power electronics, and lithium-powered systems. This latest project win reinforces their position in the renewable energy market and demonstrates their continued commitment to empowering communities through sustainable energy solutions.
