Servotech Renewable Power System has released its financial performance figures for the second quarter of fiscal year 2027 (covering July to September 2026), demonstrating substantial top-line growth and a marked improvement in profitability metrics. According to corporate filings and press disclosures released on 3 November 2026, the company recorded a major rebound compared to the soft operational base seen in the corresponding period of the previous year.
Financial Highlights and Revenue Expansion
During the quarter under review, Servotech posted a consolidated profit after tax of INR 9.75 crore, marking a sharp increase from INR 0.40 crore reported in Q2 FY26. Total consolidated revenue expanded by 56.82% year-on-year to reach INR 168.83 crore, up from INR 107.66 crore a year earlier. Gross profitability and operating earnings outpaced top-line growth significantly during the period.
On a standalone basis, total revenue rose by 54.31% year-on-year to INR 158.82 crore, compared to INR 102.93 crore in Q2 FY26. Standalone profit after tax stood at INR 8.37 crore, reflecting a year-on-year expansion of 268.51%.
Margin Enhancement and Operational Efficiency
The latest disclosures highlight a structural step-up in operational profitability. The consolidated EBITDA (earnings before interest, tax, depreciation, and amortization) more than tripled, surging by 216.97% to INR 23.60 crore from INR 7.45 crore in Q2 FY26. Consequently, the consolidated EBITDA margin reached 13.13%, compared with 5.90% in the same quarter of the preceding year and 9.47% in Q1 FY27.
Sequential comparisons also point towards improving margin capture. While total sales dipped slightly from the levels seen in Q3, Q4 of FY26, and Q1 FY27, the company managed to retain a higher proportion of earnings per rupee of sales. Standalone EBITDA margin climbed to 11.70%, improving from 10.92% in the previous quarter and 8.64% in Q2 FY26.
Subsidiary Contributions and Corporate Strategy
Subsidiary operations played an additive role in the group’s consolidated earnings during the quarter. Consolidated profit before tax of INR 12.56 crore exceeded the parent company’s standalone profit before tax of INR 10.90 crore by INR 1.66 crore, marking a reversal from previous quarters where subsidiaries occasionally exerted a drag on consolidated metrics.
This follows strategic capital realignments noted in earlier earnings cycles, where management redirected resources away from low-margin trading activities within subsidiaries like Rebreathe Medical Devices toward core renewable energy and electric vehicle infrastructure segments.
Business Segments and Management Commentary
Servotech Renewable Power System specializes in manufacturing technology for electric vehicle charging and clean energy applications. Its core product portfolio includes alternating current (AC) and direct current (DC) EV chargers, hybrid and grid-tied solar inverters, battery energy storage systems, and lithium-ion battery packs tailored for both domestic and commercial deployment.
Managing Director Raman Bhatia expressed satisfaction with the positive business momentum and ongoing opportunities across key operating segments. Management pointed to a sustained focus on technological innovation, expanded manufacturing capabilities, and a robust pipeline of new product launches slated for forthcoming quarters.
Financial and Margin Analysis
The available financial data indicates that Servotech is successfully navigating past the policy-induced disruptions and execution lags that affected its performance in earlier fiscal periods. The year-on-year surge in net profit—scaling to INR 9.75 crore—is largely attributable to improved operating leverage and tighter cost management rather than pure volume growth alone.
| Metric | Q2 FY26 | Q2 FY27 | Change | Analysis |
|---|---|---|---|---|
| Consolidated Total Revenue | INR 107.66 crore | INR 168.83 crore | +56.82% | Substantial top-line expansion driven by core demand. |
| Consolidated EBITDA | INR 7.45 crore | INR 23.60 crore | +216.97% | Operating earnings tripled, outpacing revenue growth. |
| Consolidated EBITDA Margin | 5.90% | 13.13% | +7.23% | Significant margin recovery close to peak five-quarter levels. |
| Consolidated Net Profit | INR 0.40 crore | INR 9.75 crore | +2,366.21% | Dramatic recovery from a depressed baseline in the previous year. |
The company’s ability to maintain a consolidated EBITDA margin above 13% (specifically 13.13% in Q2 FY27 compared to 13.27% in Q3 FY26) demonstrates improved operational resilience. However, investors and analysts monitoring the counter will need to watch whether this margin stability persists if quarterly sales volumes scale back toward the INR 211 crore to INR 217 crore range observed earlier in the fiscal year.
Key Takeaways
- Consolidated total revenue for Q2 FY27 reached INR 168.83 crore, representing a 56.82% increase year-on-year.
- Consolidated net profit stood at INR 9.75 crore, recovering sharply from INR 0.40 crore in Q2 FY26.
- EBITDA margins expanded significantly to 13.13% on a consolidated basis, up from 5.90% previously.
- Subsidiary operations contributed positively to consolidated earnings, adding INR 1.66 crore to pre-tax profits.
- Management maintains an optimistic outlook supported by new product pipelines in EV charging and solar solutions.
Frequently Asked Questions
Yes. Consolidated net profit reached INR 9.74 crore compared to INR 0.39 crore in Q2 FY26, and increased 20.84% sequentially from INR 8.06 crore in Q1 FY27.
The consolidated EBITDA margin stood at 13.13%, while the standalone EBITDA margin reached 11.70%.
The company builds AC and DC EV chargers, hybrid and grid-tied solar inverters, battery energy storage systems, and lithium-ion battery packs.
Consolidated total revenue grew by 56.82% year-on-year to INR 168.83 crore for the quarter ended September 2026.
