Servotech Stock Rebounds After Major Railway Solar Project Win
In a significant development for the renewable energy sector, Servotech Renewable Power System witnessed a notable recovery in its share price during Friday's trading session. The rebound came after the company announced it had secured a substantial order worth ₹16.31 crore from Railway Energy Management Company Ltd (REMCL), a joint venture between RITES Ltd and the Ministry of Railways.
Details of the Landmark Solar Project
The official announcement made on 21 November 2025 revealed that Servotech has been awarded a contract for a comprehensive ground-mounted and rooftop on-grid solar project. According to the filing submitted to stock exchanges, the company will undertake the Design, Engineering, Supply, Installation, Testing, and Commissioning of solar power plants with multiple capacities.
The project will be executed at the Dedicated Freight Corridor Corporation of India Limited (DFCCIL) Complex in Noida, marking an important step in integrating renewable energy solutions within India's railway infrastructure. This partnership with REMCL underscores the growing emphasis on sustainable energy adoption in government-backed transportation projects.
Immediate Market Impact and Stock Performance
The announcement triggered an immediate positive response in the stock market. Servotech Renewable shares, which had hit an intraday low of ₹95.60, rebounded to reach ₹96.91 during Friday's session. Although the stock eventually closed 1.51% lower at ₹96.05 compared to the previous close of ₹97.52, the recovery from day's low demonstrated investor optimism about the new contract.
This market movement occurred against a backdrop of mixed historical performance. While the company's shares have delivered an extraordinary 3,711% return since their market debut in 2021, recent trends show challenges. The stock has declined over 44% in the past year and has lost 42.73% year-to-date in 2025.
Long-term Perspective and Investment Outlook
Servotech's current market capitalization stands at ₹2,169.24 crore as of the market close on Friday, 21 November 2025. The stock reached its 52-week high of ₹189.67 on 9 December 2025, while the 52-week low was recorded at ₹95.15 on 19 November 2025, just days before the REMCL order announcement.
Despite recent downward pressure, the company's latest contract win signals potential for recovery and growth. The partnership with a railway ministry entity provides stability and opens doors for future government contracts in the renewable energy space. Investors are now closely watching how this project execution might influence Servotech's financial performance in the coming quarters.
The renewable energy sector in India continues to receive government support and increased attention, positioning companies like Servotech for potential long-term growth despite short-term market volatility.
