Energy Stock In Spotlight On Incorporating New Subsidiary & Order Win From Indian Railways

Servotech Renewable Power System Ltd., formerly a penny stock, garnered focus on April 28, 2025, when it notified market participants about subsumption. This comes after the company has cumulatively grown close to 4,900% returns in the past four years. Servotech informed exchanges regarding the incorporation of its wholly owned subsidiary, which goes by the name Dream League of India (T10) Private Limited.

In an exchange announcement, Servotech reported that Dream League of India serves the purpose of a subsidiary of Servotech Sports and Entertainment Private Limited, which is in turn wholly owned by Servotech Renewable Power System Ltd. The newly formed entity is yet to become operational and is positioned under the Sports and Entertainment brackets. It has been established as a special purpose vehicle (SPV) eligible to undertake projects concerning sports teams, players, leagues and franchises as well as their management under a singular umbrella.

Servotech has invested in the paid-up share capital of Dream League of India through a cash inflow of Rs 10 lakh. The company strategically sees this diversification in scope towards sports and entertainment as venture opportunities and further divergence from its roots in renewable energy and EV fast charge infrastructures.

The announcement came after another key milestone. On April 23, Servotech came into the limelight as they reportedly received a significant order for a 4.1MW on-grid rooftop solar project from the Waltair Division of East Coast Railway located in Visakhapatnam, Andhra Pradesh. This project is expected to cost around 15.8 crore, which adds value to the company's expansion in India's solar energy sector.

Furthermore, the Servotech board is expected to convene on May 06, 2025, to analyze and sanction the audited financial statements of the company for the financial year that concludes on March 31, 2025. The board is also expected to recommend a dividend, further demonstrating that the company is focusing on shareholder returns.

Servotech has strengthened its financial position. During the most recently concealed quarter, total revenue surged at a staggering rate of 3.153% to Rs 216.832 crores from Rs 52.206 crores. Profit After Tax (PAT) also rose by 616.8% - provided they went from 111.4 Rs crores to Rs 798.7 crores over the period. For the nine months ending in December 2024, revenue was reported to have risen by 142.1%, reaching Rs 52.934 crores, while PAT experienced a 184.1% increase, amounting to Rs 2.3719 crores.

As a result, the stock rallied on Monday by 5.61% and closed at Rs 131.75, showing strong bullish sentiments. Servotech has delivered remarkable value to shareholders, claiming Rs 2.58 in September 2021, nearing Rs 130 today, giving out a whopping 4,977% increase over 4 years. Moreover, its shares have also demonstrated extraordinary returns over the past year, reaching a 52 week high of Rs 205.40 and a low of Rs 75.50 traded on NSE.

Servotech Renewable Power System Limited (previously known as Servotech Power System Limited) is an Indian company traded on NSE, dealing in technology-powered EV charging systems and solar-powered energy systems. Having over 20 years of experience in the electronics domain, Servotech is complementing the building of India's EV infrastructure by sponsoring AC and DC chargers for commercial and residential buildings, further driving innovation in various sectors with a dedicated presence throughout India.