Announced Wed, 24 Sept · 17:35 IST

Servotech Renewable Power System Limited has informed the Exchange about Credit Rating

Rating UpgradedNew Credit FacilityCredit & Debt View source PDF

SERVOTECH · price

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Infomerics Ratings has upgraded Servotech Renewable Power System Limited's credit ratings on its bank loan facilities. The long-term bank facility rating moved up from IVR BBB-/Stable to IVR BBB+/Stable, and the short-term bank facility rating improved from IVR A3 to IVR A2. The total sanctioned limit was also enhanced from Rs. 168.64 crore to Rs. 298.86 crore, with long-term limits rising to Rs. 228.86 crore and short-term limits to Rs. 70 crore. The upgrade was driven by a sharp jump in revenue (Rs. 587.30 crore in FY25 vs Rs. 305.69 crore in FY24, up 92%), improved EBITDA margin (9.68% vs 6.61%), and a stronger financial profile with gearing falling to 0.39x from 0.77x. Strong demand from the solar and EV charger segments, where Servotech operates, supported the upgrade. The rating outlook remains stable, reflecting expected continued growth and profitability.

Likely market impact

Positive for shareholders — a credit rating upgrade and higher sanctioned borrowing limit signal stronger financial health, easier access to cheaper funds, and lender confidence in the company's solar and EV charger business. This could support future expansion and improve sentiment around the stock.