Servotech Renewable Power System Limited (SERVOTECH.NS) Q3 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q3 FY '26 Investor Earnings Conference Call for Servotech Renewable Power System Limited. [Operator Instructions] Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Raman Bhatia, the Managing Director of Servotech Renewable. Thank you, and over to you, sir.

Thank you. Good afternoon, everyone, and thank you for joining the call. Q3 FY '26 marks a clear sequential recovery for Servotech following the disruption and policy-related execution challenges we faced in Q2. Over the last quarter, our focus has been on restoring execution discipline, strengthening manufacturing efficiency and tightening cost control. These actions are reflected in our Q3 performance, where we saw a strong rebound in revenue and profitability on a quarter-on-quarter basis. Importantly, this improvement has come from the operational execution rather than one-off item. On a stand-alone basis, revenue increased to INR 202 crores, EBITDA improved to INR 27 crores and PAT stood at INR 14.7 crores in Q3 FY '26. On a consolidated basis, revenue was INR 212 crores, EBITDA was INR 28.5 crores and PAT stood at INR 15.5 crores for the quarter. The margin improvement reflects better cost discipline, improved product mix and more efficient utilization of our manufacturing and operational resources. While Q3 represents a meaningful recovery, our focus remains on consistency and predictability, not short-term escalation. We continue to prioritize disciplined execution, operational efficiency and margin-led growth as we move into Q4. With that, I will hand it over for questions.

[Operator Instructions] Our first question comes from the line of [ Prashant Omkar ] an individual investor.

[Foreign Language].

[Foreign Language].

The next question comes from the line of [ Sadagopan Ramesh ] an individual investor.

So in terms of your plans for this lithium battery and the solar business, can you give us some sense in terms of what is the capacity of this lithium battery business? And how do you see the growth in that business over the next 1 or 2 years?

[Foreign Language]. So it will be complement by default. [Foreign Language] We are targeting around 5,000 batteries per month for the next one year, right? So that means 60,000 additional battery pack we are planning [Foreign Language] could be more than INR 100 crores.

Okay. So this is for the auto rickshaws 3-wheelers?

Yes, correct. [Foreign Language]

[Foreign Language] What is the final output you are delivering to the market? Is it the solar panels with battery energy storage? And what is the kind of capacity range in megawatt hour or kilowatt hours you are operating in.

[Foreign Language]

That is solar modules or solar panels?

[Foreign Language].

Okay. So basically that goes into solar power projects. And so you are offering [Foreign Language].

[Foreign Language].

[Foreign Language] What is the kind of growth you can expect in the next 1, 2 years?

[Foreign Language].

[Operator Instructions] Our next question comes from the line of [ Abhishek Kumar ] an individual investor.

Congratulations for your quarter. And sir, my question is as Servotech is expanding strongly in renewable and EV charging, what are the top 2 financial metrics investors should track to judge it, where this growth are healthy and sustainable over the next few years?

[Foreign Language].

[Foreign Language].

[Foreign Language] Like I already said in the last call also [Foreign Language].

[Operator Instructions] The next question comes from the line of [ Deepika Sharma ] individual investor.

Sir, congratulations on your Q3 results. I just want to know that [Foreign Language].

[Foreign Language]. So it will be better than last year quarter.

[Foreign Language].

[Foreign Language].

The next question comes from the line of [ Mahesh Waje ] an individual investor.

First of all, congratulations on great results. [Foreign Language].

[Foreign Language]. It is a part of a whole ecosystem [Foreign Language] and we are totally focused on solar as on date and with the new innovative plans. But number two, still we are looking very, very seriously [Foreign Language].

[Operator Instructions] The next question comes from the line of [ Gaurav Singh ] an individual investor.

First of all, congratulations on such great results. My question was around Mahesh's questions for me that [indiscernible] EV and particularly solar. In the last Q2, there was almost no update from EV after residual tender, but there were many updates on the solar tenders and the order book that you had. But in this particular quarter, I was going through your IP and all. So there are almost no projects for EV and for solar projects. So is there a particular reason for that? What is the plan for that? Now government is pushing on solar panels as well and even eDrive and there has been Suryodaya Yojana in this particular project. So what is your plan about that?

We are very serious in a channel distribution network. [Foreign Language] Right now, we have more than 4,000 retailers in India, and we are targeting how to take it up to 10,000 retailers in India. We are making every day more than 2 to 3 distributors per day and even more than that. [Foreign Language]. We are working on that also. [Foreign Language] Last year our revenue was just INR 80 crores. Currently they are going to reach around INR 160 crores after our investment. And this coming year, we are planning -- they should reach up to INR 500 crores. [Foreign Language].

And since you talked about the export and [Foreign Language] I also read about the average [Foreign Language] You are going to start or you have already started. So what is that going to work on?

[Foreign Language].

[Foreign Language] You have been talking about lithium batteries. [Foreign Language].

[Foreign Language].

[Foreign Language] Now you have launched 3 wheeler battery and chargers. [Foreign Language].

[Foreign Language].

By what time?

One year.

[Operator Instructions] The next question comes from the line of [ Hansh Wadhwa ] an individual investor.

What is the long term vision of Servotech for the next 5 years?

[Foreign Language].

[Foreign Language].

[Foreign Language].

The next question comes from the line of [ Jitesh Parmar ] an individual investor.

[Foreign Language].

[Foreign Language]. Battery is the part of the solar because [Foreign Language] because we are not a battery retailer nor battery manufacturing company. It is the captive consumption. [Foreign Language].

[Foreign Language].

[Foreign Language].

[Operator Instructions] Our next question comes from the line of [ Meet Mehta ] from Prasun Exponentials.

What exactly do you do in battery energy storage system [Foreign Language] Are you making -- manufacturing some products in that? And second question is from KUSUM scheme [Foreign Language] are you expecting more execution in the industry compared to the last year?

[Foreign Language].

First question is from battery energy storage system [Foreign Language].

[Foreign Language]. EMS energy management system is a part of the server, apps also. And there is a BMS and container -- not a container, battery X that we are making in India, and we are assembling it here and along with the PCS or the hybrid inverter. So all these things we are making in India. That means if we remove or eliminate battery cells, then more than 70%, 80% things we are doing here. And if we add lithium cells, then around 40%, 50% we are doing here.

Okay, understood and KUSUM scheme?

[Foreign Language].

[Foreign Language].

[Foreign Language].

[Operator Instructions] The next question comes from the line of [ Jitesh Parmar ] an individual investor.

[Foreign Language] where do you see us trend, is it like distribution network, pricing, where does Servotech stands out?

[Foreign Language].

[Foreign Language]. that is beyond our captive consumption that we are trying to expand. Am I understanding it right?

[Foreign Language]. It is a good deal. [Foreign Language] as a good supplier, as a good after service company [Foreign Language].

[Foreign Language]. I mean how do you see these contracts and what is the typical duration in payment terms like?

[Foreign Language].

[Foreign Language] we are in a phase where we are trying to become from INR 500 crore company to INR 2,500 crore company. [Foreign Language].

[Foreign Language].

[Operator Instructions] The next question comes from the line of [ Gaurav Singh ] an individual investor.

My another question for you. I've been following a lot on LinkedIn and Instagram. So I guess yesterday, you posted, you attended ASSOCHAM's event for the budget -- union budget. So you have mentioned you are quite excited about the AI integration and the government push on AI. So -- and you also mentioned that Servotech also doing AI integration in the organization itself. So is it a inclusive thing [Foreign Language] that you see some potential in it in the business terms as well for future and for more revenues?

[Foreign Language].

[Foreign Language] about the business and the organization but how is it going to [indiscernible] in the long-term?

[Foreign Language].

[Foreign Language] You have indicated AI or you are on the way to integrate AI in the organization. So what is the long term vision? [Foreign Language].

[Foreign Language].

Last question for you, Servotech since is a renewable and green energy company, you have been into green energy and renewable market player for the longest time [indiscernible] but now you have also acquired Hertz & Pixelz. You have also like launched a subsidiary Servotech Sports [Foreign Language]. Is Servotech going to new addition and how is that managed [Foreign Language].

[Foreign Language].

[Operator Instructions] Ladies and gentlemen, as there are no further questions for today, I would now like to hand the conference over to Mr. Raman Bhatia for the closing remarks.

Thank you. Thank you for your questions and for the constructive discussion today. As we have outlined, our priority remains consistent execution, maintaining cost discipline and strengthening the quality of our earnings. We appreciate your continued engagement and interest in Servotech, and we look forward to updating you as we progress in the coming quarters. Thank you, and have a good day. Thank you.

Thank you, sir. Ladies and gentlemen, on behalf of Servotech Renewable Power System Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.