Value Added Product Mix Shift
Expected: CurrentHIGH confidence
What: Solar Revenue Share: 90%
Impact: Margin expansion to 13.4%
“The role of the EV chargers is lower than 10% this time and the major revenue has come from solar.”
Servotech Renewable Power System Ltd: Is It a Deep Value Opportunity?
WeakAccelerating
As of , Servotech Renewable Power System Ltd (Capital Goods - Electric General) has a deep value score of 28/100 (rated Weak). Earnings are accelerating. 1Y return vs Nifty 500: -24%.
Servotech Renewable Power System Ltd Key Facts
- PE Ratio
- 62.7x
- Market Cap
- ₹2,105 Cr
- Value Score
- 28/100
- Margin of Safety
- -41%
- PAT Growth YoY
- +38%
- Revenue Growth YoY
- +49%
- OPM
- 10.0%
PE: Cycle BottomWatch Value
What's Happening
📊PE near cycle lows — valuation reset is underway
💪Debt reduced 28% YoY — balance sheet strengthening
👔Promoter stake down 0.7% this quarter
🌐FII stake decreased 4.2% this quarter
💰Trading 41% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Value Added Product Mix Shift
CurrentHIGH
2. New Product Or Brand Launch
March 2026HIGH
3. Geographical Expansion
1-2 yearsMEDIUM
Key Risks
1. Withdrawal of hardware subsidies under FAME has caused the EV charger market to
HIGH2. Fluctuating prices of silver and copper impacting margins
MEDIUM3. US tariff removals providing relief for global expansion plans
LOWSector-Specific Signals
Solar Revenue Contribution90%
EV Charger Revenue Contribution10%
Monthly Inverter Production10,000 units
Monthly Battery Production Target5,000 units
Key Numbers
PAT Growth YoY
+38%
Stable
Revenue YoY
+49%
Stable
Operating Margin
10.0%
+200 bps YoY
PE Ratio
62.7
PEG Ratio
1.55
Current Price
₹93
Dividend Yield
0.05%
3Y PAT CAGR
+43%
Market Cap
2.1K Cr
Valuation
Significantly OvervaluedWhy Are Servotech Renewable Power System Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
New Product Or Brand Launch
Expected: March 2026HIGH confidence
What: Battery Production Target: 25,000 units/month
Impact: ₹100 crore+ revenue
“60,000 additional battery pack we are planning... which impact in our business could be more than 100 crore.”
Geographical Expansion
Expected: 1-2 yearsMEDIUM confidence
What: Subsidiary Count: Dubai, Mauritius
“Our main purpose to establish a subsidiary in UAE is that we are planning to expand to the other parts of the globe.”
Operating Leverage Inflection
Expected: Next 3 monthsMEDIUM confidence
What: Inverter Production Target: 25,000/month
“we are currently making over 10,000 inverters per month, our target is, that we reach 25,000 inverters manufacturing per month.”
Mandatory Industry Norms
Expected: FY27MEDIUM confidence
What: PM Surya Yojana / Kusum: 90% Solar Mix
“government understood this which is why after the FAME I, FAME II, and FAME III, the government came up with the PM E-Drive Scheme.”
Consolidated PAT of ₹15.5 crore
HIGH confidence
What: Consolidated PAT of ₹15.5 crore
“Importantly, this improvement has come from the operational execution rather than a one-off item.”
What Are the Key Risks for Servotech Renewable Power System Ltd?
Earnings deceleration risks from management commentary
Withdrawal of hardware subsidies under FAME has caused the EV charger market to
HIGHTrigger: Government shifted focus from hardware subsidies to infrastructure development subsidies.
Impact: PAT impact: EV charger revenue fell to <10%
Management view: Refocused entirely on solar and high-capacity inverters.
Monitor: regulatory
Fluctuating prices of silver and copper impacting margins
MEDIUMTrigger: Global price volatility in key raw materials for electrical components.
Impact: PAT impact: Small impact on profits
Management view: Working on costing and flexibility to manage price wiggles.
Monitor: commodity
US tariff removals providing relief for global expansion plans
LOWTrigger: Change in US trade policy regarding renewable components.
Management view: Expanding global footprint via Dubai hub.
Monitor: geopolitical
What Is Servotech Renewable Power System Ltd's Management Saying?
Key quotes from recent conference calls
“This current situation is very short-term. It might last six months, three quarters, or a maximum of four quarters, but it will not continue far into the future. [Previous Short-term Outlook guidance]”
“we want to make UAE a global procurement hub so the subsidiary will be handling all the global procurements so we can be more cost effective. [Initiative: Dubai FZCO Subsidiary]”
“60,000 additional battery pack we are planning... which impact in our business could be more than 100 crore. [Initiative: Lithium Battery Launch]”
“We are implementing AI in every department. We are doing it at an agentic level... futuristic dashboards and predictions. [Initiative: AI Integration]”
What Did Servotech Renewable Power System Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹212 crore
QoQ +96.9%
Why: Revenue rebounded due to restored execution discipline and manufacturing efficiency following policy-related disruptions in the previous quarter.
Consolidated revenue saw a massive sequential jump from ₹107.65 crore in Q2 to ₹212 crore in Q3.
EBITDA
₹28.5 crore
Margin 13.4%
Why: Margin improvement reflects better cost discipline, improved product mix, and more efficient utilization of manufacturing and operational resources.
EBITDA margins expanded significantly from 6.9% in Q2 to 13.4% in Q3.
PAT
₹15.5 crore
QoQ +3822.8%
Why: Profitability recovered as the company moved past the hardware subsidy withdrawal shock and focused on higher-margin solar projects.
PAT recovered from a low of ₹39.51 lacs in Q2 to ₹15.5 crore in Q3.
Other Highlights
• Standalone revenue reached ₹202 crore with PAT of ₹14.7 crore.
• EV charger contribution fell below 10% of total revenue mix.
• Solar segment now contributes approximately 90% of total revenue.
What Sector Metrics Matter for Servotech Renewable Power System Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Solar Revenue Contribution
90%
Why: Strategic pivot away from EV chargers due to subsidy withdrawal.
EV Charger Revenue Contribution
10%
QoQ Significant Decrease
Why: Slump in market due to government policy changes and subsidy withdrawal.
Monthly Inverter Production
10,000 units
Why: Current operating level with a target to reach 25,000.
Monthly Battery Production Target
5,000 units
QoQ New Segment
Why: Entering the 3-wheeler lithium battery market.
Monthly Solar Capacity Operating
5-10 MW
Why: Current monthly run rate for solar modules/panels.
Retailer Network
4,000
Why: Targeting expansion to 10,000 retailers.
Rhine Revenue Post-Investment
₹160 crore
YoY +100%
Why: Revenue grew from 80cr to 160cr after Servotech's investment.
Govt Contract Working Capital Impact
Present
Why: Standard impact for companies working with government contracts.
What Is Servotech Renewable Power System Ltd's Management Guidance?
Forward-looking targets from management for FY26
OPM Guidance
13.4%
Capex Plan
₹100 Cr
Revenue Outlook
Close to record high
Margin Outlook
Margins are expected to stay close to current levels despite RM fluctuations.
Capex Plan
₹50 to ₹100 crore
Lithium battery plant expansion and infrastructure.
Volume
Targeting significant increase in inverter and battery production.
Management Tone: BULLISH
Guidance Changes
LOWERED
EV Charger Revenue Mix: Significant focus → Lower than 10%
How Fast Is Servotech Renewable Power System Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +49% | +34% | Stable |
| PAT (Net Profit) | +38% | +43% | Stable |
| OPM | 10.0% | +200 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Deep Value Stocks in Capital Goods - Electric General
Frequently Asked Questions: Servotech Renewable Power System Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is Servotech Renewable Power System Ltd's deep value score?
Servotech Renewable Power System Ltd has a deep value score of 28/100 (rated Weak). This score is calculated from three components
- Earnings Score: 30/40 — measures PAT growth momentum across quarters
- Underperformance Score: 14/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 12/25 — operational quality (margins, revenue growth, valuation)
Is Servotech Renewable Power System Ltd fundamentally improving?
Servotech Renewable Power System Ltd's quarterly profit (PAT) growth trajectory
- Latest Quarter PAT Growth (QoQ): -32%
- Previous Quarter PAT Growth (QoQ): +500%
- 2 Quarters Ago PAT Growth (QoQ): -91%
- PAT Acceleration: +29.7pp (profits are accelerating)
Why is Servotech Renewable Power System Ltd underperforming despite good earnings?
Servotech Renewable Power System Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- 1-Year Return vs Nifty 500: -24%
- 6-Month Return vs Nifty 500: -3%
- 3-Month Return vs Nifty 500: +13%
- Yet average quarterly PAT growth is +126% — earnings are improving
- The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.
What is the earnings momentum for Servotech Renewable Power System Ltd?
Servotech Renewable Power System Ltd's earnings momentum is Accelerating — profit growth is speeding up.
- PAT QoQ progression: -91% → +500% → -32% (2Q ago → 1Q ago → latest)
- Acceleration: +29.7pp
- PAT YoY Growth: +38%
Is Servotech Renewable Power System Ltd undervalued?
Servotech Renewable Power System Ltd's valuation metrics
- Price-to-Earnings (PE): 63.0x
- Price-to-Book (PB): 7.6x
- PEG Ratio: 1.6x
- Margin of Safety: -32% (appears overvalued)
What are the revenue and margin trends for Servotech Renewable Power System Ltd?
Servotech Renewable Power System Ltd's revenue and margin trends
- Latest Quarter Revenue Growth (QoQ): +3%
- Average Quarterly Revenue Growth: +26%
- Revenue Acceleration: +12.5pp
- Latest OPM Change: -2.9pp (margins contracting)
- Average OPM Change: +0.9pp
- Revenue YoY: +49%
What is Servotech Renewable Power System Ltd's trailing twelve month (TTM) performance?
Servotech Renewable Power System Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹32 Cr
- TTM PAT Growth: 0.0% YoY
- TTM Revenue: ₹671 Cr
- TTM Revenue Growth: -0.5% YoY
- TTM Operating Margin: 9.9%
What sector does Servotech Renewable Power System Ltd belong to?
Servotech Renewable Power System Ltd key facts
- Sector: Capital Goods - Electric General
- Market Cap: ₹2.1K Cr
- Rank in Capital Goods - Electric General: #1 by value score
- Overall rank among all deep value stocks: #50
Is Servotech Renewable Power System Ltd a good deep value opportunity to study?
Servotech Renewable Power System Ltd shows limited deep value signals currently — score is 28/100 (Weak). Monitor for improvement.
- Value Score: 28/100 (Weak)
- Earnings: Accelerating
- 1Y Underperformance: -24% vs Nifty 500
What is the bull and bear case for Servotech Renewable Power System Ltd?
Research Signals (Bull Case)
- Earnings accelerating — profit growth speeding up
- Revenue growth also accelerating
- Operating margins expanding
Risk Factors (Bear Case)
- Appears overvalued despite underperformance
Which other Capital Goods - Electric General stocks are deep value opportunities?
Other deep value stocks in Capital Goods - Electric General
- Exicom Tele-Systems Ltd — Score 15/100, Very Weak
How does the Capital Goods - Electric General sector look for deep value?
Capital Goods - Electric General deep value sector overview
- 1 deep value stocks in this sector
- Average value score: 22/100
- Avg PAT acceleration: +29.7pp
- Top pick: Servotech Renewable Power System Ltd
What is deep value investing?
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
How is the deep value score calculated?
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
What are the growth catalysts for Servotech Renewable Power System Ltd?
Servotech Renewable Power System Ltd has 6 key growth catalysts identified from recent earnings analysis
- Value Added Product Mix Shift
- New Product Or Brand Launch
- Geographical Expansion
- Operating Leverage Inflection
What are the key risks in Servotech Renewable Power System Ltd?
Servotech Renewable Power System Ltd has 3 key risks worth monitoring
- Withdrawal of hardware subsidies under FAME has caused the EV charger market to
- Fluctuating prices of silver and copper impacting margins
- US tariff removals providing relief for global expansion plans
What did Servotech Renewable Power System Ltd's management say in the latest earnings call?
In Q3 FY26, Servotech Renewable Power System Ltd's management highlighted
- "This current situation is very short-term. It might last six months, three quarters, or a maximum of four quarters, but it will not continue far into ..."
- "we want to make UAE a global procurement hub so the subsidiary will be handling all the global procurements so we can be more cost effective. [Initia..."
- "60,000 additional battery pack we are planning... which impact in our business could be more than 100 crore. [Initiative: Lithium Battery Launch]"
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.