Why did Servotech Renewable shares hit 20% upper circuit today?

Synopsis: Servotech Renewable Power System Ltd hit 20% upper circuit today after it reported a strong financial performance in Q3. Revenue rose 98% QoQ to Rs 211 cr, EBITDA jumped 282% QoQ with margins at 13.46%, and net profit surged by a staggering 3,826% QoQ to Rs 15.52 cr, boosting investor confidence.

The shares of this company, engaged in manufacturing EV Chargers, Solar Products, and Power & Backup Products, are in focus after the company reported a robust financial performance in Q3, especially if compared to its previous quarter. In this article, we will dive more into the details of it.

With a market capitalisation of Rs 1,600 crore, the shares of Servotech Renewable Power System Ltd reached a day-high of Rs 70.86 per share (upper circuit), up 20 percent from its previous day’s closing price of Rs 59.05 per share. In the last one year, the stock has already corrected nearly 50 percent, as compared to NIFTY 50’s positive return of 9 percent.

Q3 Highlights

The revenue from operations for Servotech Renewable stands at Rs 211 crores in Q3 FY26 compared to Q3 FY25 revenue of Rs 216 crores, down by 2.4 per cent YoY. However, on a QoQ basis, it reported a sharp growth of 98 percent from Rs 106 crore. 

Also, EBITDA stood at Rs 28.46 crore in Q3 FY26, a growth of 70 percent as compared to Rs 16.73 crore in Q3 FY25. Additionally, on a QoQ basis, it reported a robust growth of 282 percent from Rs 7.45 crore. Also, coming to the margins front, EBITDA margins grew by a staggering 575 bps YoY and by 654 bps QoQ, reaching 13.46 percent in Q3 FY26.

Coming down to its profitability, the company’s net profit stood at Rs 15.52 crore in Q3 FY26, a growth of 69 percent as compared to Rs 9.2 crore in Q3 FY25. Additionally, on a QoQ basis, it reported a staggering growth of 3,826 percent from just Rs 39.5 lakh.

Servotech Renewable Power System Ltd manufactures and sells LED lighting, EV chargers, and solar power products for the Indian and foreign markets, including LED lights, solar inverters, panels, batteries, and servo stabilisers. The company offers UV-C disinfectant products, oxygen concentrators, and provides some components of EV charging, like power modules and control circuits etc.

The company has over 12,500 AC & DC EV Chargers deployed across different parts of the nation and has a robust clientele network, including BPCL, HPCL, India Oil, Nayara Energy, etc.

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