Servotech Reports Q2 Net Profit Of ₹9.4 Crore As Revenue Reaches ₹167 Crore

Market snapshot: Servotech Renewable Power System reported strong consolidated financial performance for Q2, with net profit surging to ₹9.4 crore compared to ₹1.3 crore in the year-ago period. Consolidated revenue from operations increased to ₹167 crore from ₹110 crore YoY, supported by significant expansion in operational margins.

Data Snapshot

• Consolidated Net Profit: ₹9.4 crore in Q2 vs ₹1.3 crore in Q2 prior year.
• Consolidated Revenue: ₹167 crore in Q2 vs ₹110 crore in Q2 prior year.
• Consolidated EBITDA: ₹21.85 crore in Q2 vs ₹6.3 crore in Q2 prior year.
• Consolidated EBITDA Margin: 13.07% in Q2 vs 5.9% in Q2 prior year.

What's Changed

• Q2 consolidated net profit increased to ₹9.4 crore from ₹1.3 crore YoY.
• Q2 consolidated revenue rose to ₹167 crore from ₹110 crore YoY.
• EBITDA margin expanded by over 710 basis points YoY to 13.07%.

Key Takeaways

• Substantial net profit growth was driven by top-line expansion and operational efficiency.
• Consolidated EBITDA reached ₹21.85 crore compared to ₹6.3 crore in the year-ago quarter.
• Top-line growth of over 50% YoY reflects sustained demand across solar equipment and EV charging solutions.

SAHI Perspective

Servotech's Q2 performance demonstrates operating leverage as expanded top-line scale directly enhanced bottom-line earnings. The widening of EBITDA margin to 13.07% indicates cost efficiency across its renewable products and EV infrastructure delivery.

Market Implications

The sharp recovery in operational profitability provides momentum for the company following previous moderation. Market participants will look for continued execution stability across long-term solar panel and EV charger orders.

Trading Signals

Market Bias: Bullish

Directional bias is supported by Q2 consolidated net profit increasing to ₹9.4 crore from ₹1.3 crore YoY and EBITDA margin expanding to 13.07%.

Overweight: Renewable Energy, EV Infrastructure, Solar Equipment Manufacturing

Trigger Factors:

• Execution pacing on solar rooftop projects
• Delivery timelines for AC and DC EV charging station rollouts
• Raw material cost trends for solar components

Time Horizon: Near-term (0-3 months)

Industry Context

India's renewable energy and EV infrastructure sectors are receiving strong policy and investment tailwinds. Equipment manufacturers with integrated solar and charging offerings benefit from expanding institutional and commercial adoption.

Key Risks to Watch

• Fluctuations in component procurement costs affecting gross profit margins.
• Working capital expansion tied to government order execution.

Recent Developments

Servotech Renewable Power System reported a 74.5% YoY rise in Q1 FY27 consolidated net profit to ₹7.94 crore on consolidated revenue of ₹216.29 crore.

Closing Insight

Servotech's operational turnaround and margin double-up showcase strength in the growing EV charging and solar solutions market.

High Performance Trading with SAHI.