Solar Stock Jumps 7% After Signing ₹400 Cr MoU With the Haryana Government

Synopsis: A clean energy solutions company has signed an MoU with the Haryana Government to invest around Rs.400 crore in the state. The agreement aims to support industrial development and expand clean energy manufacturing, strengthening the company’s growth plans amid India’s accelerating transition towards renewable energy and EV infrastructure.

India’s clean energy sector continues to attract significant investments as the country pushes toward higher renewable energy capacity, EV adoption, and domestic manufacturing. Supported by government initiatives and rising demand for sustainable energy solutions, companies operating across solar, battery storage, and EV charging infrastructure are increasingly expanding their manufacturing footprint to capture long-term growth opportunities.

With a market capitalization of Rs. 2,300crore, the shares of Servotech Renewables Power System were trading at Rs. 102 per share, with a 52-week range of Rs. 168.50to Rs. 57.51. It is trading at a P/E of approximately 63x. The stock gained nearly 7 percent from the day’s low after the announcement as investors reacted positively to the company.

MoU Update

Servotech Renewable Power System Limited has entered into a Memorandum of Understanding (MoU) with the Haryana Enterprises Promotion Centre (HEPC), Government of Haryana, to strengthen its manufacturing presence in the state. The agreement establishes a framework for cooperation between the company and various departments of the Haryana Government, aimed at promoting industrial development and supporting the growth of clean energy manufacturing.

As part of the agreement, the company plans to invest approximately Rs. 400 crore in Haryana to expand its business operations and manufacturing capabilities. The proposed investment is expected to support the company’s long-term growth strategy while contributing to the state’s ambitions of becoming a major hub for renewable energy and advanced manufacturing.

The Haryana Government, through HEPC, has committed to providing facilitation support and ease-of-doing-business assistance to help ensure the successful implementation of the company’s proposed projects. The collaboration is expected to accelerate approvals, improve operational efficiency, and create a conducive environment for future expansion.

Financial Snapshot & Business Overview

Servotech Renewable Power System Ltd. is a clean energy solutions provider operating across solar products, EV charging infrastructure, battery energy storage systems (BESS), and lithium-ion battery solutions. The company has over 21 years of experience in power electronics, two manufacturing facilities in Haryana, and a workforce of more than 500 employees.

The company delivered healthy profitability growth in FY26. On a standalone basis, revenue increased 8.9 percent year-on-year to Rs. 642 crore, while gross profit rose 27.4 percent to Rs. 149 crore. EBITDA grew 26.5 percent to Rs. 74 crore, with EBITDA margins expanding to 11.6 percent from 10 percent in FY25. Profit after tax rose 8.3 percent to Rs. 36 crore.

The March quarter witnessed particularly strong momentum, with revenue surging 66.6 percent YoY to Rs. 211 crore. EBITDA jumped 70.2 percent to Rs. 23.2 crore, while PAT increased 49.5 percent to Rs. 11.7 crore.

During FY26, the company commissioned new capacities for solar inverters, DC fast chargers, BESS, and lithium-ion battery packs, while also securing nearly 67 percent of PSU and OMC DC fast charger tenders, strengthening its position in India’s rapidly growing clean energy and EV ecosystem.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Solar Stock Jumps 7% After Signing ₹400 Cr MoU With the Haryana Government appeared first on Trade Brains.