Servotech Renewable Navigates Q2 FY26 with Strategic Recalibration and Global Expansion

Servotech Renewable Power System Limited (NSE: SERVOTECH), a prominent player in India's clean energy sector, recently announced its financial results for the second quarter and first half of fiscal year 2026. The period, described by Managing Director Raman Bhatia as one of "moderation," saw a temporary softness in revenues and profitability, influenced by evolving market dynamics. Despite the short-term headwinds, the company highlighted significant strategic advancements aimed at bolstering its long-term growth trajectory and global footprint.

For Q2 FY26, Servotech reported a consolidated total revenue of ₹107.66 crore, with EBITDA at ₹7.44 crore and Profit After Tax (PAT) at ₹0.395 crore. The first half of FY26 concluded with a consolidated revenue of ₹244.82 crore and PAT of ₹4.94 crore. These figures reflect a year-on-year moderation, which the management openly addressed, attributing it to broader market realignments and specific challenges within the EV charging segment.

Strategic Shifts and Global Ambitions

Servotech's Q2 FY26 performance was significantly impacted by a slump in the EV charger market. The withdrawal of government subsidies on hardware led to a near standstill in many projects. In response, the company has strategically diversified its focus, becoming more aggressive in solar projects and collaborating with automobile manufacturers. This adaptive approach underscores management's commitment to course-correcting based on market realities.

The company's strategic roadmap includes a robust international expansion. A key highlight was the formation of Servotech Renewable International FZCO, a new subsidiary in Dubai, on October 14, 2025. This move positions Servotech to tap into the rapidly expanding Middle Eastern market for EV charging stations and advanced solar energy systems, aligning with the UAE's net-zero emissions goals. The Dubai entity will serve as a central hub for business development and strategic partnerships across the GCC region.

Further strengthening its global presence, Servotech partnered with Mauritius-based Enovra Energy Solutions Limited to distribute EV chargers and solar solutions across Mauritius and surrounding regions. Domestically, the company entered a partnership with China-based Zhuhai Piwin for the local manufacturing of advanced Battery Energy Storage Systems (BESS) in India, supporting the 'Make in India' initiative and expanding its footprint in the BESS sector. Additionally, a 60:40 joint venture with Bekem Infra aims to secure large-scale government renewable energy projects.

Innovation and Operational Excellence

Servotech's commitment to innovation is evident in its dedicated Research and Development (R&D) department, comprising 40-50 engineers. The company has multiple tie-ups with IITs and has filed and received several patents for energy management and EV charger technology. This focus on R&D enables Servotech to continuously upgrade its product offerings, such as grid-tied inverters up to 30 kW and hybrid inverters, which are among the top technologies in India.

The company also emphasized its investment in infrastructure. Over the past six months, Servotech has enhanced its production capabilities, giving it the capacity to multiply last year's revenue by four times without requiring significant additional capital expenditure. This operational efficiency is crucial for scaling its diverse product portfolio, which includes solar panels, inverters, batteries, EV chargers, and servo stabilizers.

Outlook and Investor Confidence

While Q2 FY26 presented a period of moderation, management views this as a temporary phase, essential for preparing for a significant leap in growth. Raman Bhatia assured investors that the company's plans are ambitious, the market is vast, and the focus remains on increasing market share and profitability. He highlighted that the promoter's shareholding has continuously increased since the company's inception and listing, signaling strong confidence in Servotech's future trajectory.

Servotech's proactive approach to market challenges, coupled with its strategic expansions and unwavering commitment to innovation, positions it for sustained growth. The company's ability to adapt to policy changes and diversify its revenue streams, while investing in scalable infrastructure, reinforces its potential to be a significant contributor to India's green energy transformation and a global player in clean energy solutions.