Servotech Renewable Power System's Q2 FY 2025-26 Quarterly Results

Result Summary

• Servotech Renewable Power System Ltd reported a 21.5% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 46.2%.
• Its expenses for the quarter were down by 18.0% QoQ and 42.0% YoY.
• The net profit decreased 91.4% QoQ and decreased 96.5% YoY.
• The earnings per share (EPS) of Servotech Renewable Power System Ltd stood at 0.06 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Servotech Renewable Power System Ltd operates within the renewable energy sector, focusing on providing solutions related to solar power systems. The company engages in the design, development, and installation of solar power systems that cater to both residential and commercial needs. Although specific recent developments are not detailed in the provided data, companies in this sector often experience shifts due to regulatory changes, technological advancements, and evolving market demands. Servotech's products typically include solar panels, inverters, and other related components essential for harnessing solar energy. The company's mission aligns closely with global trends toward sustainable energy solutions.

Revenue

In the second quarter of the fiscal year 2026, Servotech Renewable Power System Ltd reported a total income of ₹107.66 crores. This represents a sequential decline of 21.5% compared to the first quarter of FY26, where total income was ₹137.17 crores. On a year-over-year basis, there was a 46.2% decrease from the ₹200.07 crores reported in the second quarter of FY25. The significant reduction in revenue both quarterly and annually suggests a substantial shift in the company's financial inflow over the past year. These figures indicate changes in market conditions or company operations that have impacted revenue generation.

Profitability

For the quarter ending in Q2FY26, Servotech's profit before tax stood at ₹0.53 crores, a sharp decline from ₹6.57 crores in the previous quarter and ₹15.33 crores in the same quarter the previous year. The profit after tax for the quarter was ₹0.39 crores, reflecting a decrease of 91.4% quarter-over-quarter and 96.5% year-over-year from ₹4.55 crores and ₹11.25 crores, respectively. Earnings per share also fell to ₹0.06, down 73.9% from the previous quarter and 88.2% from the previous year. These significant declines in profitability metrics indicate that the company's earnings have been adversely affected over both the short and long term.

Operating Metrics

The company's total expenses for Q2FY26 were ₹107.13 crores, which is 18.0% lower than the ₹130.59 crores incurred in Q1FY26 and 42.0% lower than the ₹184.75 crores reported in Q2FY25. This reduction in expenses both quarter-over-quarter and year-over-year suggests a potential restructuring or cost optimization effort. However, despite the reduction in expenses, the profit margins have decreased significantly, as indicated by the reduced profit before and after tax. The tax expense in Q2FY26 was ₹0.13 crores, a decrease of 93.6% QoQ and 96.8% YoY, in line with the declines in profit before tax. This data reflects a comprehensive view of the company's financial performance in terms of operational efficiency and cost management.