Manufacturer achieves significant growth in consolidated profit and revenue following Q2 operational disruptions. Results indicate improved execution efficiency and cost discipline across solar and EV segments.
Servotech Renewable Power System Ltd. (NSE: SERVOTECH) reported a sharp sequential recovery for the third quarter ended December 31, 2025. Consolidated profit after tax (PAT) surged to Rs. 1,551.50 lacs from Rs. 39.53 lacs in the prior quarter, marking an increase of 3,824.87%. This recovery follows policy-led disruptions and execution delays noted during Q2 FY26.
Financial Performance and Growth Context
Consolidated total revenue for Q3 FY26 stood at Rs. 21,154.06 lacs, representing a 96.50% increase over the Rs. 10,765.69 lacs reported in Q2 FY26. EBITDA grew 282.31% to Rs. 2,846.93 lacs during the same period. Standalone results reflected a similar trend, with revenue growing 96.64% to Rs. 20,239 lacs and standalone PAT rising 547.15% to Rs. 1,470.46 lacs.
Future Outlook and Broader Industry Trends
The company’s growth is heavily supported by government initiatives and favorable policy changes:
• PM Surya Ghar Muft Bijli Yojana: Aims to solarize 1 crore households by March 2027, creating a massive residential revenue stream.
• PM E-Drive Scheme: Targets the deployment of 72,000 EV chargers by March 2028, presenting a significant opportunity for OEMs like Servotech.
• Regulatory Milestones: GST 2.0 has reduced taxes on solar and EV products from 18% to 5%, boosting margins and affordability.
Business Model and Market Situation
Servotech operates as a manufacturer of solar products and electric vehicle (EV) charging solutions. The business model utilizes over two decades of electronics expertise to develop AC and DC chargers for domestic and commercial applications. The company is currently focused on strengthening its manufacturing-led portfolio in solar and energy storage while maintaining a pan-India presence. This strategy aims to address broader industry trends toward tech-enabled EV infrastructure development in India.
Management Commentary and Guidance
Management indicated that Q3 results reflect successful operational stabilization, improved margin discipline, and cost controls. Future guidance suggests that the operational momentum achieved this quarter will persist into Q4 FY26. The company plans to prioritize institutional and infrastructure projects while focusing on consistent execution and balanced growth.
Regulatory Milestones and Segment Updates
The company highlighted a return to manufacturing efficiency following the policy transitions that impacted Q2 FY26. Segment updates focus on the expansion of the EV tech infrastructure, where Servotech provides a range of chargers compatible with various electric vehicles.
Where Does Servotech Renewable Power System Ltd Stand Today?
Servotech is currently positioned as a leading NSE-listed provider for India’s green energy and EV infrastructure. It maintains a strong pan-India presence and is expanding its role in the national EV ecosystem through advanced technology development.