Servotech Renewable Power System Q4 FY25 results: net profit up 123.8% to ₹7.72 crore, revenue up 7.4%

How did Servotech Renewable Power System perform in Q4 FY25?

Servotech Renewable Power System reported Q4 FY25 consolidated revenue of ₹146.28 crore for the January–March 2025 quarter, up 7.4% from ₹136.17 crore in Q4 FY24 but down 32.4% from ₹216.30 crore in the previous quarter. EBITDA rose 119.0% year on year to ₹12.20 crore, and the EBITDA margin widened 4.2 percentage points to 8.3% from 4.1%. Against Q3 FY25, EBITDA was lower by ₹3.99 crore, or 24.6%, though the margin was 0.8 percentage points higher.

Profit before tax was ₹10.51 crore in Q4 FY25, up 126.0% from ₹4.65 crore a year earlier and down 18.1% from ₹12.83 crore in the previous quarter. Net profit for the period was ₹7.72 crore, against ₹3.45 crore in Q4 FY24 and ₹9.19 crore in Q3 FY25. Profit attributable to shareholders was ₹17.44 crore, up 408.5% year on year, and basic EPS was ₹0.35, up from ₹0.16 a year earlier and down from ₹0.41 in the previous quarter.

On a standalone basis, Q4 FY25 revenue was ₹126.13 crore and net profit was ₹7.85 crore. Standalone profit before tax was ₹3.2 crore, and revenue growth for the quarter was 4.4%.

What changed in Servotech Renewable Power System's costs and profit?

Total expenses rose 3.7% to ₹136.95 crore in Q4 FY25 from ₹132.01 crore in Q4 FY24. Cost of materials consumed was the largest line at ₹136.62 crore, up ₹15.56 crore or 12.9%, while employee cost rose ₹1.28 crore or 31.7% to ₹5.32 crore and finance costs rose ₹0.43 crore or 78.2% to ₹0.98 crore. Depreciation rose ₹1.04 crore or 120.9% to ₹1.90 crore, and other expenses fell ₹0.68 crore or 6.9% to ₹9.11 crore.

Other income rose ₹0.70 crore or 145.8% to ₹1.18 crore from ₹0.48 crore in the year-ago quarter. There was no exceptional item in either period. Tax expense rose ₹1.60 crore or 134.5% to ₹2.79 crore from ₹1.19 crore, and the profit margin widened 2.8 percentage points to 5.3% from 2.5%. Against the previous quarter, other income was up ₹0.65 crore, total expenses were lower by ₹67.06 crore, and tax was lower by ₹0.85 crore.

Versus Q3 FY25, cost of materials consumed fell ₹37.18 crore or 21.4% to ₹136.62 crore, finance costs fell ₹1.40 crore or 58.8% to ₹0.98 crore, and other expenses fell ₹3.31 crore or 26.7% to ₹9.11 crore. Employee cost rose ₹0.25 crore or 4.9% to ₹5.32 crore and depreciation rose ₹0.38 crore or 25.0% to ₹1.90 crore.

How did Servotech Renewable Power System do in FY25 as a whole?

For the full year FY25, consolidated revenue was ₹674.44 crore, up 90.7% from ₹353.68 crore in FY24, while total income rose 90.5% to ₹676.8 crore from ₹355.26 crore. Profit before tax was ₹44.81 crore, up 177.1% from ₹16.17 crore, and net profit for the period was ₹32.64 crore, up 176.6% from ₹11.80 crore.

Basic EPS for FY25 was ₹1.46, up 170.4% from ₹0.54 in FY24. The profit margin on revenue was 4.8% in FY25 against 3.3% in FY24, and the company's press release reported EBITDA of ₹5,793.8 lacs for FY25 against ₹2,236.5 lacs in FY24. The statutory auditors issued an unmodified opinion on both the standalone and consolidated results.

What do the balance sheet and cash flow show?

Total assets stood at ₹409.84 crore on 31 March 2025, against ₹348.86 crore on 30 September 2024, while total equity was ₹237.60 crore compared with ₹177.07 crore. Borrowings were ₹75.14 crore against ₹73.06 crore, and cash was ₹14.27 crore against ₹9.49 crore. Inventories rose to ₹70.55 crore from ₹55.43 crore, trade receivables were ₹145.38 crore against ₹146.18 crore, and trade payables fell to ₹54.31 crore from ₹68.18 crore.

For FY25, operating cash flow was negative ₹55.41 crore against ₹0.76 crore in FY24, and investing cash flow was negative ₹16.31 crore against negative ₹25.98 crore. Financing cash flow was positive ₹47.84 crore compared with ₹75.39 crore, and capital expenditure was ₹18.12 crore against ₹26.17 crore. Closing cash for FY24 was ₹66.43 crore.

How has Servotech Renewable Power System done over the last 8 quarters?

Revenue rose year on year in each of the last five quarters. It fell to ₹52.01 crore in Q3 FY24, the lowest point in the series, then rose to ₹199.67 crore in Q2 FY25 and peaked at ₹216.30 crore in Q3 FY25 before easing to ₹146.28 crore in Q4 FY25. Q4 FY25 revenue was still above the ₹136.17 crore recorded in Q4 FY24.

Net profit bottomed at ₹1.11 crore in Q3 FY24 and peaked at ₹11.24 crore in Q2 FY25, before easing to ₹9.19 crore in Q3 FY25 and ₹7.72 crore in Q4 FY25. The EBITDA margin bottomed at 4.1% in Q4 FY24, peaked at 9.5% in Q2 FY25, and stood at 8.3% in Q4 FY25. Profit rose year on year in each of the last four quarters.

What else did the company announce?

In its board meeting outcome filed on 6 May 2025, the company approved the audited standalone and consolidated results for Q4 and the year ended 31 March 2025, noting an unmodified opinion from the statutory auditors, M/s. Rohit KC Jain & Co. The board recommended a final dividend of 5% per equity share, or ₹0.05 on a face value of ₹1 each, for FY25, subject to shareholders' approval at the ensuing Annual General Meeting, with payment to eligible shareholders within 30 days of that approval.

The board also appointed M/s. R&D Company Secretaries as secretarial auditors for five consecutive years from FY 2025-26 to FY 2029-30, subject to shareholder approval, and re-appointed M/s. N N Sharma & Associates as cost auditors for 2025-26. Mr. Girish Kumar Ahuja was appointed as an Additional Director in the category of Non-Executive Independent Director, subject to members' approval at the ensuing general meeting. An investor presentation on the audited results was filed on 7 May 2025.

What did Servotech Renewable Power System's management say?

On the earnings call, Raman Bhatia, Founder and Managing Director, said the biggest problem in India is that DISCOMs do not have the infrastructure to provide power connections, and that 40% of the chargers delivered are still not installed. Management said the debtor cycle has lengthened, and that the EV market has slowed because of infrastructure issues.

Management said the solar distribution run-rate tripled to ₹20-25 crore a month from ₹7-8 crore six months ago, with railway solar contracts expanding across Northern, Eastern and Central Railway. On backward integration into solar PV manufacturing, management said the initial capacity is currently 150-200 megawatts, with a target to disclose it in May, and the plan is to scale to 1 GW with a new plant.

Management said the ₹200 crore preferential allotment plan remains in place but was deferred because the current market situation is not favourable, adding that the company will wait before proceeding. Errol Musk was appointed to the advisory board to support international expansion in Africa and the US. Management's stated guidance was unchanged.

How did Servotech Renewable Power System shares react?

The results were filed after market hours, with the stock at ₹118.00 against a previous close of ₹124.00. It rose 1.3% within five minutes and 1.7% within 15 minutes, before slipping to a 0.2% decline 30 minutes after the filing. By the close of the first session that could trade on the news, the stock was down 4.4% from its pre-results close.

By the next day's close, the stock was down 6.4% from its pre-results close, and by five sessions later it was up 1.0%. Over one month, the stock was up 25.4%. The Other Electrical Equipment industry median was down 0.1% on the reaction day, down 1.1% by the next close and up 5.4% by five sessions, so the stock lagged the sector by 4.4 percentage points, 5.3 percentage points and 4.4 percentage points respectively.

Earlier results-day reactions were mixed: the stock was down 0.5% on 21 January 2025, up 5.0% on 28 October 2024, up 3.7% on 30 July 2024 and down 2.2% on 9 May 2024.

How did other Other Electrical Equipment companies do?

Among the 39 Other Electrical Equipment companies compared for this quarter, the median revenue growth was 23.6%. Eleven peers grew slower than Servotech Renewable Power System and 28 grew faster. Of the 39 peers for which profit was compared, 22 reported higher profit.