This article first appeared on GuruFocus .
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Stand-alone Revenue:INR202 crores in Q3 FY26.
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Stand-alone EBITDA:INR27 crores in Q3 FY26.
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Stand-alone PAT (Profit After Tax):INR14.7 crores in Q3 FY26.
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Consolidated Revenue:INR212 crores in Q3 FY26.
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Consolidated EBITDA:INR28.5 crores in Q3 FY26.
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Consolidated PAT (Profit After Tax):INR15.5 crores in Q3 FY26.
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Release Date: February 03, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Servotech Renewable Power System Ltd ( NSE:SERVOTECH ) reported a strong rebound in revenue and profitability in Q3 FY26, with revenue increasing to INR202 crores on a stand-alone basis.
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The company achieved an improvement in EBITDA to INR27 crores and PAT to INR14.7 crores, reflecting better cost discipline and improved product mix.
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Servotech is targeting the production of 5,000 lithium batteries per month for the next year, indicating a focus on expanding its battery business.
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The company is expanding its distribution network, aiming to increase its retailer base from 4,000 to 10,000 in India.
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Servotech is integrating AI into its operations, which could enhance operational efficiency and offer potential for future revenue growth.
Negative Points
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The company faced disruption and policy-related execution challenges in Q2, which impacted its performance.
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There was a lack of updates on EV projects in Q3, raising concerns about the company's focus and progress in this area.
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Servotech's revenue from the previous year was only INR80 crores, indicating a need for significant growth to meet future targets.
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The company is not a battery manufacturer or retailer, which may limit its control over the supply chain and cost structure.
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There is uncertainty about the execution and growth potential of the KUSUM scheme and its impact on the company's performance.
Q & A Highlights
Q: Can you provide details on the capacity and growth expectations for the lithium battery business? A: Raman Bhatia, Managing Director, stated that they are targeting around 5,000 batteries per month for the next year, which translates to 60,000 additional battery packs. This expansion is expected to generate more than INR100 crores, primarily for auto rickshaws and 3-wheelers.
Q: What are the top financial metrics investors should track to assess Servotech's growth in renewable and EV charging? A: Raman Bhatia emphasized the importance of monitoring the remote monitoring system and operational efficiency as key indicators of sustainable growth.
Q: What is Servotech's plan regarding the solar and EV projects, given the lack of updates in Q2? A: Raman Bhatia explained that they are focusing on expanding their distribution network, aiming to increase from 4,000 to 10,000 retailers in India. They are also working on increasing their revenue from INR160 crores to INR500 crores in the coming year.
Q: What is Servotech's long-term vision for the next five years? A: Raman Bhatia mentioned that the company aims to provide consistent returns and focus on expanding their renewable energy and EV charging infrastructure.
Q: How is Servotech integrating AI into its operations, and what is the expected impact? A: Raman Bhatia noted that AI integration is underway, with potential to enhance operational efficiency and drive future revenue growth. The company is excited about the government's push on AI and its potential business applications.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
