Servotech Renewable Power System Limited (SERVOTECH) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Q4FI26 Investor Earnings Conference Call for Servotech Renewable Power System Ltd. As a reminder, our participant clients will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during this call, please signal an operator by pressing star and then zero on your touchtone telephone. Please note that this conference call is being recorded. I now hand the conference over to Mr. Raman Bhatia, the Managing Director of Servotech Renewable Power System Ltd. Thank you and over to you, sir.

Thank you. Good morning, ladies and gentlemen, and a warm welcome to the Q4 and full year F526 earning conference call of Servotech Renewable Power System Ltd. Thank you for joining us today. I am Raman Bhatia, Managing Director, and I am joined by our Chief Financial Officer, Mr. Vipin Koshik. We will walk you through the results, the context behind them, and our outlook, after which we will be happy to take your questions. FI26 was a transformational year for Servotech. We excited the year with our strongest quarter ever recorded as a listed company. Let me start with what defines the year. In Q4 and 526, the quarter just ended on 31st March 2026. Our standalone revenue was 211.2 crores, growing 67% year-on-year. Our standalone EBITDA was 23.2 crores, growing 70% year-on-year. And our standalone PAC was 11.7 crores, growing 49% year-on-year. On a consolidated basis, Q4 revenue was 290, up 49% year on year, and consolidated EBITDA was 24.2 crore, up 81% year on year. This is not a one-quarter phenomenon. The strength is in the second half of the year. Strength alone revenue in H2, FI26 was 411 crore year on year, while EBITDA margin in H2 was 12%, the highest in our listed history. In short, we entered FI27 with our strongest run rate ever, and with capacity already commissioned to support continued growth. Coming to the full year, on a standalone basis, revenue firm operations was 637 growth, growing 8.4% year-on-year, on a higher basis of 587 growth in FI26-25. Operating EBITDA was 74.2%, growing 26.5% year-on-year. EBITDA margin expanded to 11.6%. The highest in our listed history, up from 9.7% in FI25 and expansion of 161 basis points. Profit after tax was 36.3 growth, growing 8.3%. The reason, fat growth, lacked EBITDA growth. While that we commissioned 64 crore of a new manufacturing capacity during the year, the full-year impact of higher depreciation and finance costs from the commissioning is reflected in the profit and loss. From FI27 onwards, we expect the capex flow through to be left and the operating regulation fully reflect in the bottom line. On a consolidated basis, FI26 revenue was 675 crore compared to 676 crore in FI25.

Broadly, plan, consolidated EBITDA was 71 growth,

growing 22% while profit after tax attributable to shareholders was 33.5 growth, broadly in line with FI 25, 32.7 growth. I want to address the consolidated revenue directive. The flat consolidated number compared to stand-alone growth of 8.5% reflects a deliberate scale-down of low-margin trading activities in our medical equipment subsidiaries. Rebase Medical Device. Rebase revenue moved from 98 crores in FI25 to 32 crores in FI26. Collection. As we focus capital on our higher-margin core renewable energy and EV businesses. Excluding the single subsidiary effect, our consolidated revenue grew approximately 12% year on year. The fat impact of re-bridge scale-down is minimal. Thus, subsidiary remained profitable just at the lower scale. Officially, FI26 was the year of significant capability building. First capacity, we commissioned new manufacturing line for solar hybrid inverters and grid-tied models. which is now our flagship growth product for battery energy storage systems and for a lithium-ion battery packs. We also added quality testing and R&D infrastructure. Total capex for the year was 64 growth. Importantly, this capex program is now substantially complete and it will help us to deliver the growth ahead in April 26-27. We expect 27 capex to moderate to a lower run rate funded entirely from internal accruals. Second, product mix. The shift towards solar inverter and higher-capacity DC chargers in the 120kW to 60kW models and BESS is the structural vision for our 200 basis point margin expansion. This is not a one-year benefit. As solar DC chargers and BESS volume grow, we expect this margin profile to be sustained or modestly improved. Third, retail and brand extension. Our daily channel, which was just 2 growth per month in FY22, is now running at approximately 25 growth per month, with major growth expected ahead. To support this scaling, we have signed brand measure, run TV advertisement campaigns, and undertake extensive above-the-line and below-the-line marketing activities to create a structured platform for these brand-building initiatives. We have organized our event management, deal of engagement, and content production capabilities through three group entities, Servatex Sports and Entertainment, Heartland Pistols, and our investment in cricket through the Holy Good Strikers franchisee. Cricket is the most powerful brand-building platform in India, and these initiatives are directly in supporting the retail channel scale-up

that drove our FY26 growth. Good morning, everyone. EPC and project execution.

Our government EPC business includes state EV charging tenders and railway projects. Contract has grown into a meaningful portion of revenue. We have also strengthened our institutional relationship with railway and the major oil marketing companies supported by a strong order pipeline.

Now, I am talking about balance sheet, working capital,

and FI27 plans. I want to take a moment to address our balance sheet movement directly because I expect it will be on your minds. Our standard borrowing increased from 75 crore to 196 crore during the year. Our trade receivables increased from 155 crore to 43 crore. Operating cash flow was negative for the year. These movements reflect three specific data factors and each has a clear path to normalization in FY27. First, CapEx and asset purchase of our 121 growth of fresh debt during the year, approximately 79 growth was deployed into a capital expenditure and asset purchase and investment in Uh, solar PV manufacturing company, including the new manufacturing capacity I mentioned earlier. This is a invested capital, not consumed working capital. The asset base grew from 64th road to 117th road and increased that support our future revenue capacity. Second, receivables. The increase in receivables has two specific drivers. Approximately 40 crores is stuck with oil marketing companies. IOTL, PPCL, HPCL due to infrastructure-related payment delays. We have already engaged with our bankers on this and we are working through commercial mechanism to release this position. Approximately 60 crore is in respect of railway projects which were work in progress as of 31st March. Our payment terms on these contracts are 60% against delivery and 40% against commissioning. As these projects commissioned in the current financial year, the cash will flow in. Together, these two specific situations account for approximately 100 crore of our receivable increase, and both have a clear part to release. Third, working capital cycle structure. As our government EPC business has grown, our working capital cycle has structurally strengthened. Bystander billing, retention money over five years, performed bank entities, and the absence of mobilization advances are inherent features of this business model. We are addressing these through specific operational years in FI27, including incremental growth in channel sales, where working capital is less than 30 days, conversion of retention money to bank-garantic instruments, to release working capital, and dedicated treasury follow-up on running bill realization. Looking forward, FI27 is a year of operational consolidation. We have planned no fresh long-term debt. CapEx moderate significantity, our focus is on three measurable outcomes, restoring positive operating cash flow, reducing our gearing back below half a turn over the year, and bringing receivable collections back to industry's typical level. Importantly, the order book and the run date we have cited before will give us the confidence in our top-line trajectory while we execute this normalization. Now, hand over to Vipin Koshif.

Thank you. Just to summarize the key ratios for the financial FY26 on a standalone basis, operating EBITDA margin is 11.6% compared to 9.7% in FY25. Interest coverage on EBITDA basis was 6.2 times, which was well above the stress level. Debt to equity at the year end, 0.2%. 1.674 times. Net debt to EBITDA is 1.8 times within a comfortable lender ranges. Current ratio is 1.5 times. Return on equity is 14.7 percentage. Earning per share basis basics 1.61 per share, growing 8% year on year. Our credit rating from Informatics remains at BBB plus with a stable outlook on the long term and A2 on short term. An upgrade we received in September 25. We engaged to continue more productively with the rating agencies. I will hand over to Mr. Mansell.

Looking ahead to FI27, we see strong demand visibility across our core segments, solar, inverters, DC chargers, driven by the Central Government EV Infrastructure Rollout, BHS, driven by both grid scales and behind-the-meter application, and our project execution pipeline, supported by Healthy Autobook. FI-27 will be a year of operational consolidation built on FI-26 capacity addition. Our focus will be on operating leverage flow through working capital organization and disciplined capital allocation. Margin expansion in FI-26 was structural and we expect to sustain a modesty improve from current level. We will continue to engage productively with our bankers, our rating agencies, and our investor community throughout FI-27. With that, I would like to thank you for your time and your continued support. We can start with the questions. Please open the line for questions.

Sure, sir. Thank you very much. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may enter star followed by one on the touchstone telephones. If you wish to remove yourself from the question queue, you may enter star and two. Participants are requested to please use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the queue assembles. The first question is from the line of Randeer Kumar Singh from RandeerHUF. Please go ahead. Randeer, your line is unmuted. You may go ahead and ask your question.

Hello, sir. Thanks for the opportunity.

V, what I want to say?

Sir, I want to know that you have filed in four patents, three grants, so these are the four patents, which are the nature of nature, and do you have to create an IP and other work in order to create an IP?

Yes, these are the solar and electric vehicle chargers, and the topology, which I have shared with the patents, which I have shared with the patents, which are detailed. Good morning, everyone, and welcome to the call.

Sir, I saw that in your fixed asset, you have a lot of jump in 4-5 times. So, this fixed asset, will your FI27 revenue contribution come in?

This is what I have given in my comments. I repeat that yes, it will come. It will be done. Thank you. Hello, everyone, and welcome to the call.

Thank you.

Good morning, everyone, and welcome to the call.

So sir, EFI 27 EV charger का share revenue में, EFI 27 में बढ़ेगा या फिर कुछ constant charger काशा है?

Sir, अभी भी जो share है, अगर आप देखेंगे, तो वो करीब करीब 40% gaspust है. अभी तरह ही ने? हाँ, लगबग अगर आप देखेंगे, 43% gaspust है, charger का share है, लगबग 43% है, और 51% जो है, वो solar है.

We have a question from the line of Prashant Pardesi, an individual investor. Please go ahead.

Hello, sir, my question is, is there a big government project or a automobile company partnership for working on the company?

Partnership?

You mean, with the automobile company partnership?

Hello?

Yes, sir. Uh-huh.

Hi, everyone, and welcome to the call. Thank you, sir. Good morning, everyone, and welcome to the call.

Okay, sir. Sir, are there any new business to enter the plan or company?

No, there are no new business to enter the plan. In these products, we are doing some work on innovation, but there are no new product to enter the plan. Because there is a lot of scope and we are doing a lot of work.

Okay, sir. Thank you, sir.

Thank you.

Thank you. As a reminder, if you have any questions at this time, you may enter Star and Panu. The next question is from the line of Mahesh Vaz, an individual investor. Please go ahead.

Yeah. Hi. Namaskar Ramonji. Thank you. There are two things I wanted to know. One is the battery segment, and the government has done the branding, and the other is the last three or six months, which has been working on the company's distribution level for the company, and you can tell us a little detail about it.

Thank you.

The first thing is that we are talking about lithium batteries. We have already started the batteries and many OEMs with OEMs, which are an electrician. So, we had to start with the battery. But, if you have the battery, we can get the battery, and the battery will be approved by the product. So, it is a time taking process. But, all the results are coming. So, the pickup is slow. But, simultaneously, we have batteries for solar, 1.2 kilowatt, 2.5 kilowatt, 5 kilowatt, 10 kilowatt. And, we have the models also have been on our channel sales. Good morning, everyone. And the solar hybrid, the solar grid-tried inverter, the production capacity has 12-15,000 units per month, and we have achieved it. And I have told you that when we started the channel sales, 2006-2006, our average revenue was 2,000,000,000. Good morning, everyone, and welcome to the call. Thank you very much.

Okay. Okay. Thank you.

Thank you. To ask a question, please enter star and one. The next is a follow-up from the line of Randeer Singh. Please go ahead.

Sir, I want to know that the fixed asset created is the utilization level in the percentage system. There will be FI 27.

FI 27 is the target of 100%?

First quarter will start. First quarter, we can see that we can see that we can see that the top-line quarter, year-on-year basis in this quarter, 66% is increased. Overall year-on-year-base, if you compare it to the year-on-year-base, if you compare it to the year-on-year-base, there is no growth, so can you tell the FI27 about the percentage of the top line?

Good morning, everyone, and welcome to the call.

The next question is from the line of Gitesh Parmar, an individual investor. Please go ahead.

Yes, I thank you.

Sir, I have a lot of good news for the number. Sir, I have a question that I want to ask you. Maybe it will be repetitive. Sir, when you talk about the introduction of the Retail Channel, you have a sponsor of the Retail Channel, which is the 2-25 sponsor, which is in your presentation. This ratio, especially for 2027, how do you see between the PSU and Retail Channel? How does this look like for your annual sales?

No, I had a question for one minute, but I had a question for two to five, and I had a question for two to five, and I had a question for two to five, so I will repeat it again.

How do you see the replay channel and the rest of the other channel ratio in 2027, in terms of your sales?

Yes, 50% of the produce revenue, or tender revenue versus channel and rating, so we will be trying to cross more than 50%, and we are working on that.

Okay. And sir, in this channel, how do the working capital requirements are different? How will the impact of the receivables come from the details? What number of deals are generally for retail and what is happening in government?

Sir, are you asking about business strategies? Good morning, everyone, and welcome to the call. Thank you. Good morning, everyone, and welcome to the call. Good morning, everyone, and welcome to the call.

Oh, um, thank you.

Aha, that's right.

Thank you. Good morning, everyone, and welcome to the call. But if we look at the standard analysis,

it is around more than 140 days. 138 days just for us.

Okay. Hello. Sir, thank you. Yes, sir, I'm listening. Thank you, sir. Thank you. Thank you very much. Thank you.

To ask a question, you may enter star and one. We have the next question from the line of Jai Shah from HDFC Securities. Please go ahead.

Hi, sir. I just wanted to ask a couple of questions that, what is the revenue, like, breakup in terms of, so the EV and... Product oil? Product oil, who's the guy? Sorry, yes.

You want to ask product-wise? Correct.

So, there is any contribution in terms of each and every product like this?

Correct. Solar products, we are calculating in total. So, it is around 51% of the total revenue. Okay. And if we are talking about DC charges, so it is around 15%. And if we are talking about AC and small charges, then it is around 27 percent. And energy storage is still only 1 percent because it has just started. And power will have been around 1 percent. IMC and AMC, which will become a very big chunk in coming years, that is around 4 percent. So its total is around 100 percent.

Okay, and the margin contribution similar to that, what would be?

Margin is like a big one, because when we talk about GP, we haven't started to bifurcate it, so I won't tell you much about it, but it's like a big one, because it's not easy to do a lot of money. Thank you.

Okay. And like going forward for FY27, FY28 onwards, so what are your plans in terms of growing the company towards like solar-based or you are like planning to penetrate more in EV segment? So like I can see in the presentation, but I just wanted to know from you like what is your view for like couple of years down the line.

I would like to clarify that the rest of the investors who are listening to this, I would like to clarify that I don't have any confusion. We, the EV chargers or solar chargers, both are very distant because this is all renewable power. We talk about green energy. Right? So, it's not too far. It's just a portfolio of products. It's not too far from us. It's not too far from us. Because we are looking at green energy. And the third thing, when we say that it's not different, I will mix it up again. The first charger we installed last year with a battery energy storage. That means now we have a charger with solar, with battery energy storage also. So, EV charger with energy storage. That is number one. So, energy storage is also a part of the EV. Energy storage is a part of the solar. So, you know, where you can complement one another. And you can connect one another. So, you don't have to be very easy.

I just wanted to know that going forward, in terms of capacity, and in terms of, sorry?

Thank you. Hello, everyone, and welcome to the call. We have no need to do any alterations in the setting, because it will be a different cut-up. It's not that when I say that if I make a roto mold, then it will be a different technology, and when I talk about injection molding, then it will be a different technology. Or when I make a housing, then I make a sheet metal and CNC. It's not in electronics. More than 70-80% of processes are very common. So, our production line supports us, but the thought process is clear that this ratio will be 60-40, 60% solar, and 40% EV.

Okay. And going forward, what would be the guidance? Like, I know that you are not willing to give exact numbers, but in terms of percentage, I mean, so that you can build a percentage.

Good morning, everyone, and welcome to the call. Good morning, everyone, and welcome to the call. Good morning, everyone, and welcome to the call.

We have a follow-up from the line of Gitesh Parmar, Individual Investor. Please go ahead.

Yeah, thank you. Sir, I'm going to ask you about DC Charger. We are talking about new range, 120 to 360 KV range DC Charger. Yes. What is the percentage of the high range? Give me a little love.

Thank you.

Sir, there are some charging companies that we provide in this range, and the other thing is that the charger's majority deployment is where it is.

So, if you have a question, I will tell you, I will tell you. When the car was in India or in the world, if you look at the mobile, when it comes to the mobile, there is a lot of battery in India. And it didn't work from its battery. If we were 10-15 years old, with the iPhone and stuff like that, we used to have a small screen. It used to have a small battery, and it used to have a full battery. Do you remember? Do you understand? Do you understand what I am saying? Then, when we used the smartphone, and we used the smartphone as well, Good morning, everyone, and welcome to the call. Good morning, everyone, and welcome to the call. Good morning, everyone, and welcome to the call.

Okay, sir, and this is possible in the value terms. Generally, what are the value terms of charging for a big range of 120,000, 360,000?

Sir, in this case, the two-wheeler, the scooter, the two-wheeler, the electric, the charger is $15,000. Good morning, everyone, and welcome to the call. Now, think about the price of 1500. How much will you buy a charger? How much will you buy a charger? And how much will you buy a charger? That's why you can raise the value for a hundred. How much will you buy a charger? How much will you create a charger? How much will you create a charger? It's still a lot of money. The target is to work with a big market. Even if you have a 360, we can't do it. We can use one megawatt charger. That means, 50,000, 20,000, 44,000.

Sir, I would like to ask a question about the BESS and the battery pack of manufacturing capacity. If we look at the value chain, where we would like to be? Obviously, the value chain of battery is very long, there are many components. So, how do we look at it?

I have a question.

I have to ask you a little bit about it. Where are you looking at? As a product, do you understand?

Yes, sir, as a product. What are we doing in manufacturing? We are into assembly. When we say lithium-ion battery is manufacturing.

Sir, first of all, you will understand. In India, there are 99% of batteries, battery pack assembles, which are not made in India, even in China. There are 90% of manufacturing, which is only in China. So, if anyone says that I am manufacturing, then you will understand that it will be fine. Thank you. Thank you.

Okay, sir. Last question from my side, sir. We've talked about the last quarter. We've talked about the three-wheeler, which we want to be in the pack.

Sir, three-wheeler didn't say that. E-Rikshya said that. Please check. Sir, E-Rikshya said that. E-Rikshya said that. E-Rikshya said that. E-Rikshya, which is the Sultan's battery, is the E-Rikshya. I've talked about that. Good morning, everyone, and welcome to the call.

Sir, when will we see the material impact on our revenue in

the last quarter, the revenue has 1% of the impact on the whole year. So, that will be better.

Thank you.

We have a follow-up from the line of Randhir. Please go ahead.

Sir, now we're going to be able to do this.

Probably QIP is going to be on the call. We're going to be able to do this. We're going to be able to do this.

Sir, now we're going to be able to do this. What is the utilization level?

It's around 50% above.

Thank you.

Thank you.

Good morning,

everyone, and welcome to the call.

Thank you very much.

Thank you, sir.

All right. Thank you. As there are no further questions, I would like to hand the floor over to the management for closing comments.

Thank you. So, thank you, ladies and gentlemen, for your time and your...

Questions today, FY26 has been a defining year for Servotech, the strongest quarter in our listed history, our highest ever EBITDA margin and capacity now commissioned to support continued growth. The question you have asked today reflects the general engagement that drives us to do better, and we welcome that scrutiny. As we enter FI27, our priorities are clear, operational consolidation, working capital normalization, and disciplined capital allocation. We are committed to delivering on these priorities and to continue transparent engagement with the investor community. On behalf of Wipens and the entire surrounding team, I want to thank our shareholders for your continued trust our customers and partners for the long-lasting relationship we share and our employees for their dedication through a year of significant transformation. Should you have any further questions following this call, please reach us to our investor relations team. The contact details are available on our website. We look forward to engaging with you again at our Q1 FI27 results. Thank you and good day. Bye-bye. Thank you.

Thank you very much, everyone. On behalf of ServoTech Renewable Power System Limited, that concludes this conference call. Thank you all for joining us and you may now disconnect your lines. Thank you.