Metrics raised 2
- BESS production capacity target raised to 2x in ~6 months, 3x by 21 March 2027 and 10x within 2 years (current capacity fully utilized and unable to meet demand)
- FY27 debt guided to increase within a controlled range (no prior amount/range stated; debt-led funding preferred over equity)
Event Participants
Executives
2
Raman Bhatia, Vipin Kaushik
Analysts
7
Atul, Darshil, Gaurav Singh, Muskan Bansal, Neha, Pradeep Kumar, Satyam Choudhary
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Standalone Total Revenue | ₹208.10 crore | +66.31% YoY vs ₹125.14 crore in Q1 FY26; driven by sustained demand across solar, BESS and EV charging segments |
| Consolidated Total Revenue | ₹216.29 crore | +57.69% YoY vs ₹137.17 crore in Q1 FY26 |
| Standalone EBITDA | ₹47 crore | Management cited +62.85% YoY from ₹23.18 crore in Q1 FY26 (as-stated figures are internally inconsistent); supported by operational efficiencies and disciplined execution |
| Consolidated EBITDA | ₹20.94 crore | +93.35% YoY; BESS scale-up contributing to profitability |
| Standalone PAT | ₹11.10 crore | Positive standalone profitability on strong revenue growth |
| Consolidated PAT | ₹7.95 crore | +74.51% YoY; consolidated PAT below standalone level reflects losses at loss-making subsidiary Servotech Sports & Entertainment |
Geographic & Segment Commentary
Solar (Rooftop): Secured a major rooftop solar order from South Central Railway during the quarter. PM Surya Ghar Yojana is driving channel distribution expansion to cater to growing market demand; channel partner network is being expanded across South India, North India and North East India.
Battery Energy Storage Systems (BESS): Existing battery pack production capacity is fully utilized and unable to meet demand; a new plant under the Haryana government MOU is under construction, with building and structure work commenced. Received an additional 900 kW BESS order from Uttar Pradesh. Management targets 2x capacity within 6 months, 3x by 21 March 2027 and 10x within 2 years; BESS is stated to be EBITDA-accretive with good returns.
EV Charging & EV Chargers: DC/AC charger growth is currently muted, with management describing the market as "stagnant," though EV truck chargers are already being manufactured and installed. BEE 5-star rating received for 60 kW and 120 kW DC chargers, with 240 kW certification in process. Under PM E-drive, the company will supply chargers and Servotech EV Infra will expand its charging network across states; e-rickshaw products are being sold in the e-rickshaw segment.
Company-Specific & Strategic Commentary
Capacity Expansion & Manufacturing: New manufacturing plant being set up under the Haryana government MOU; BESS capacity to scale 2x/3x/10x on a defined timeline. Management clarified this is production capacity growth, not a 10x capital jump - investments will not exceed previously declared amounts.
Order Pipeline & Channel Model: Revenue mix is shifting from large confirmed government procurement orders to a channel-partner-driven model, making order books less visible on paper but more stringent with lower drop-out risk. Management stated orders currently exceed production, driving the capacity expansion.
Product Certifications: BEE 5-star ratings received for 60 kW and 120 kW DC chargers, with 240 kW in process - strengthening competitive positioning in the EV charging segment.
Subsidiary Portfolio: Servotech Sports & Entertainment (event management for Servotech and external companies, cricket team franchise owner, Dream League of India owner) is not yet profitable; management expects long-term profitability as the domain expands.
Funding Strategy: Growth will be funded through debt rather than equity given current market conditions; management aims to grow profits and network to maintain a balanced debt-equity ratio.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue momentum (FY27) | Sustain Q1 FY27 run-rate; no formal range | Management's "entire effort" is to continue at Q1 levels, supported by distribution expansion, new product lines and FY26 capex benefits flowing through; H2 historically stronger than H1 (5-10 year trend) |
| BESS production capacity | 2x in ~6 months; 3x by 21 March 2027; 10x in 2 years | Current BESS capacity fully utilized and unable to meet demand; Haryana plant under construction |
| Margins (FY27) | Improving trajectory; no formal target | Management treats margin as a "by-product" of delivery capability and momentum; consolidated EBITDA already grew 93.35% YoY |
| Debt (FY27) | Increase within a controlled range | Debt-led funding preferred over equity given market conditions; debt-equity ratio to be balanced via profit and network growth |
| Capex | Within previously declared investment amounts | 10x production capacity growth will not require 10x capital |
Risks & Constraints
| Risk | Context |
|---|---|
| Capacity bottleneck | Current production cannot match order demand ("we are not able to make as much material as there are orders"); revenue execution depends on timely completion of the Haryana plant and BESS capacity ramp-up |
| EV charger market stagnation | DC/AC charger growth is currently limited, with management calling the market "stagnant"; recovery timeline uncertain, though PM E-drive and e-bus rollouts are potential future tailwinds |
| Subsidiary losses | Servotech Sports & Entertainment is loss-making in Q1 FY27 (event management, cricket franchise, Dream League of India), dragging consolidated profitability by the gap between standalone and consolidated PAT (~₹3.15 crore); long-term profitability expected but not assured |
| Competitive intensity | Large players are active in BESS and EV charging as government rollouts (e-bus, PM E-drive) accelerate; management maintains Servotech features in major vendor lists, but competitive pressure could intensify |
| Limited disclosure / visibility | Management declined to disclose absolute production capacity and detailed order book figures publicly, citing competitive sensitivity - reducing external visibility into scale and execution capacity |
Q&A Highlights
FY27 Revenue & Margin Outlook
- Question: With ~50% YoY growth in Q1, what is the FY27 revenue and margin outlook? (Darshil, Crown Capital)
- Answer: Management's entire effort is to sustain Q1 momentum, supported by distribution network expansion, new product lines and FY26 capex in plant/machinery now coming onstream. Margin is de-emphasized - "margin becomes a by-product" when the company delivers what customers need; margins expected to improve as momentum builds. (Raman Bhatia)
Order Book & Revenue Phasing
- Question: What is the current order book size? (Darshil, Crown Capital)
- Answer: Composition has shifted from large confirmed government procurement orders to a channel-partner-driven model, so the order book is less visible on paper but the pipeline is stringent with low fall-out risk. Demand exceeds production - "we are not able to make as much material as there are orders" - necessitating capacity expansion. (Raman Bhatia)
- Question: Was Q1 revenue driven by old or new orders? (Gaurav Singh)
- Answer: New orders typically do not execute within 1-2 months; Q1 revenue reflects execution of previous orders, with recent wins (South Central Railway, UP BESS) contributing to coming quarters. (Raman Bhatia)
BESS Capacity Expansion & Returns
- Question: What is the demand scenario and expansion plan for BESS/battery packs? (Satyam Choudhary)
- Answer: Installed BESS capacity is fully utilized and the company cannot meet demand; next-phase expansion is underway with a new plant under the Haryana MOU and construction already started; expects significantly better performance from this segment. (Raman Bhatia)
- Question: What is the timeline and capital requirement for capacity expansion? (Darshil, Crown Capital)
- Answer: BESS capacity will double in ~6 months, reach 3x by 21 March 2027 and 10x in 2 years - production capacity, not capital, will scale 10x. BESS is EBITDA-accretive with good returns; investments will not exceed previously declared amounts. (Raman Bhatia)
EV Charging & PM E-Drive
- Question: How is the DC/AC charger business growing, and are EV truck chargers being made? (Pradeep Kumar)
- Answer: Growth is currently muted as the market is "stagnant," though future growth is expected; EV truck chargers are already being manufactured and installed. (Raman Bhatia)
- Question: With Delhi closing registrations for 3-wheelers/CNG/petrol, what is Servotech's role under PM E-drive? (Gaurav Singh)
- Answer: Two initiatives: supply chargers and expand Servotech EV Infra's charging network across states. Clarified that Servotech does not make EV battery packs - only solar/BESS packs - and its e-rickshaw products are being sold in the e-rickshaw segment. (Raman Bhatia)
Funding Strategy
- Question: Will debt increase or decrease this year? (Satyam Choudhary)
- Answer: Growth requires capital; given market conditions, equity is not practical, so the company will move toward debt. Debt may rise but will remain within a range, with profit and network growth used to maintain a balanced debt-equity ratio. (Raman Bhatia)
Subsidiary Performance
- Question: Is Servotech Sports & Entertainment profitable? (Atul)
- Answer: Not profitable in Q1 FY27. (Raman Bhatia)
- Question: What business does that subsidiary handle? (Neha)
- Answer: It is an event management company for Servotech and external companies, and owns cricket team franchises and Dream League of India; expansion spending in these domains has delayed profitability, though it is expected to be profitable in the long term. (Raman Bhatia)
Government Schemes & Channel Expansion
- Question: How is Servotech benefiting from PM Surya Ghar Yojana? (Muskan Bansal)
- Answer: Channel distribution is being expanded specifically to cater to scheme-driven market demand. (Raman Bhatia)
Capacity Disclosure & Market Commentary
- Question: What is the current total production capacity? (Satyam Choudhary)
- Answer: Management declined to disclose absolute capacity figures publicly, citing competitive sensitivity ("giving the idea in the public domain is very dangerous"), and noted ~50% utilization of current overall production capacity. (Raman Bhatia)
- Question: Why has the share price fluctuated over the last 3 quarters despite strong results? (Neha)
- Answer: No comment on the market; the company has no control over or focus on the stock price and can only deliver business results. (Raman Bhatia)
Key Takeaway
Servotech Renewable Power System Limited opened FY27 with strong growth: standalone revenue rose 66.31% YoY to ₹208.10 crore, consolidated revenue 57.69% to ₹216.29 crore, consolidated EBITDA 93.35% to ₹20.94 crore and consolidated PAT 74.51% to ₹7.95 crore (standalone EBITDA ₹47 crore and PAT ₹11.10 crore, as stated). The quarter delivered a South Central Railway rooftop solar order, a 900 kW BESS order from UP, BEE 5-star certifications for 60 kW/120 kW DC chargers and an Haryana MOU for a new manufacturing plant. With BESS capacity fully utilized, management targets 2x capacity in six months, 3x by 21 March 2027 and 10x in two years, funded within previously declared capex. Channel partner expansion across South, North and North-East India continues under PM Surya Ghar. Guidance is for sustained Q1-level momentum with a seasonally stronger H2; watch items include stagnant EV charger demand, the loss-making Sports & Entertainment subsidiary, and capacity execution risk.