Servotech Renewable Reports Stellar Q4 Results as Full-Year Revenue Margins Expand

Servotech Renewable Power System Ltd., a prominent Indian manufacturer of solar solutions, battery energy storage systems, and electric vehicle chargers, has declared its financial results for the quarter and fiscal year ending 31st March 2026, marking what the company characterises as a transformational period in its trajectory as a listed entity.

The quarter ending in March 2026 emerged as the company's most robust since its stock market listing, propelled by accelerating business momentum in the second half of the financial year. This performance stemmed from an improved mix of products, strengthened manufacturing infrastructure, and consistent operational discipline. The company attributes its margin expansion and operational gains to deliberate capacity investments and a strategic reorientation toward premium-margin renewable and clean mobility segments.

Quarterly Performance Metrics

On a standalone basis, Servotech's fourth quarter revenue reached Rs. 21,120 lakh, representing a 66.6% increase from Rs. 12,674 lakh in the corresponding quarter of the prior year. Earnings before interest, tax, depreciation, and amortisation (EBITDA) climbed 70.16% to Rs. 2,320 lakh, up from Rs. 1,363 lakh. Profit after tax expanded 49.5% to Rs. 1,173 lakh from Rs. 784 lakh, while profit before tax grew 41.74% to Rs. 1,489 lakh against Rs. 1,051 lakh previously. Gross profit increased 58.24% to Rs. 4,222 lakh from Rs. 2,668 lakh.

Consolidated figures for the same quarter showed revenue growth of 48.52% to Rs. 21,900 lakh from Rs. 14,746 lakh. EBITDA expanded more substantially at the consolidated level, rising 80.86% to Rs. 2,420 lakh from Rs. 1,338 lakh. Consolidated profit after tax rose 35.92% to Rs. 1,048 lakh compared to Rs. 771 lakh, with profit before tax increasing 24.16% to Rs. 1,304 lakh from Rs. 1,050 lakh. Consolidated gross profit surged 72.18% to Rs. 4,787 lakh from Rs. 2,780 lakh.

Full-Year Financial Position

For the complete fiscal year, standalone revenue grew 8.92% to Rs. 64,166 lakh from Rs. 58,911 lakh in the prior year. EBITDA expanded 26.54% to Rs. 7,419 lakh from Rs. 5,863 lakh, with EBITDA margins broadening to 11.56% from 9.95%—a gain of 161 basis points. Profit after tax increased 8.34% to Rs. 3,625 lakh from Rs. 3,346 lakh, while profit before tax grew 4.6% to Rs. 4,737 lakh from Rs. 4,528 lakh. Gross profit climbed 27.39% to Rs. 14,851 lakh from Rs. 11,657 lakh.

On a consolidated basis, revenue remained essentially flat at Rs. 67,536 lakh in FY26 versus Rs. 67,680 lakh in FY25. This stability reflects a deliberate pullback from lower-margin trading operations at Rebreathe Medical Devices, the company's medical equipment subsidiary, as management channelled capital toward core renewable and EV businesses with superior margins. Consolidated EBITDA grew 22.46% to Rs. 7,095 lakh from Rs. 5,794 lakh. Profit attributable to shareholders expanded 2.5% to Rs. 3,355 lakh from Rs. 3,274 lakh, remaining broadly steady. Consolidated gross profit increased 39.72% to Rs. 16,245 lakh from Rs. 11,626 lakh.

Strategic Positioning

Raman Bhatia, Managing Director of Servotech Renewable Power System Limited, characterised the financial year as defining for the organisation, underscored by a potent quarter and a deliberate transition toward efficiency-driven, sustainable expansion. He attributed the second-half surge to earlier strategic initiatives focused on manufacturing strength, product portfolio optimisation, and operational cost management.

The commissioning of fresh manufacturing capacity for solar inverters, EV charging infrastructure, and battery storage solutions has positioned the company to capitalise on expanding demand across renewable energy and clean mobility markets, Bhatia noted.

The company's second half performance proved particularly instructive. Standalone revenue for the six-month period reached Rs. 411 crore, expanding 34% year-on-year, with EBITDA margins reaching 12%—the highest margin the company has achieved during its time as a listed entity. This trajectory, Bhatia remarked, demonstrates the success of the company's strategic emphasis and operational discipline.

As Servotech transitions into fiscal 2027, it carries forward its strongest operational run-rate to date, supported by newly activated manufacturing capabilities and enhanced visibility into growth opportunities. The company maintains its commitment to innovation, operational excellence, and generating sustained value for shareholders.