Synopsis: Servotech Power Systems Limited reported Q4FY26 revenue of Rs. 217.32 crore and net profit of Rs. 10.49 crore, reflecting a decline of 31.75 percent QoQ. However, on a year-on-year basis, revenue grew 48.57 percent and profit increased 35.92 percent, indicating strong growth momentum despite sequential margin pressure.
Servotech has a total market capitalization of Rs. 2,145.53 crore, according to data on the NSE. The stock was listed on the exchanges on September 02, 2021. Servotech shares were trading at Rs. 95 apiece on the National Stock Exchange on Thursday. The stock has gone up around 5.47 percent over the last five sessions, while it has surged about 38.79 percent in the 30 days. Over a six month period, the stock has given a negative return of 20.36 percent, whereas on a year-on-year basis it has declined nearly 22.03 percent, reflecting declining overall performance. The stock’s 52-week high was Rs. 168.5 and 52-week low was Rs. 57.51.
Servotech Power reported a strong set of results for the quarter ended March 31, 2026, showing robust growth on a yearly basis but some moderation on a sequential basis. The company posted revenue from operations of Rs. 217.32 crore in Q4FY26, compared to Rs. 211.07 crore in Q3FY26, registering a growth of around 3 percent QoQ. On a year-on-year basis, revenue increased sharply from Rs. 146.28 crore reported in Q4FY25, reflecting a strong growth of approximately 48.57 percent, driven by higher demand across its EV charging and solar solutions segments.
On the profitability front, the company reported a net profit of Rs. 11.21 crore in Q4FY26, compared to Rs. 15.52 crore in Q3FY26, marking a decline of around 27.77 percent on a sequential basis. Despite this, profit increased significantly from Rs. 7.72 crore reported in Q4FY25, translating into a growth of approximately 45.21 percent on a year-on-year basis. This indicates that while the company continues to scale up operations, profitability has seen some pressure in the latest quarter.
Margins showed compression compared to the previous quarter. EBITDA stood at Rs. 24.20 crore, compared to Rs. 28.46 crore in Q3FY26, reflecting a decline of around 14.97 percent QoQ. EBITDA margin also declined to around 11.05 percent in Q4FY26 from approximately 13.46 percent in the previous quarter. However, on a year-on-year basis, margins remained relatively stable, supported by operating leverage.
Total expenses increased in line with business growth. Cost of goods sold rose significantly due to higher volumes, while other operating expenses also increased, leading to pressure on margins. Despite this, the company maintained profitability due to strong revenue growth and scale benefits.
At the operating level, profit before tax stood at Rs. 13.04 crore in Q4FY26, compared to Rs. 20.27 crore in Q3FY26, reflecting a decline of around 35.67 percent QoQ. On a year-on-year basis, PBT increased from Rs. 10.51 crore, indicating a growth of approximately 25.7 percent, highlighting strong underlying operational performance despite sequential pressure.
For the full financial year FY26, the company reported revenue of Rs. 671.64 crore compared to Rs. 674.44 crore in FY25, reflecting a decline of around 0.42 percent. Net profit for the year stood at Rs. 30.80 crore, compared to Rs. 32.64 crore in the previous year, indicating a decline of approximately 5.6 percent, suggesting steady expansion in earnings.
Earnings per share (EPS) for Q4FY26 stood at Rs. 0.53, compared to Rs. 0.63 in Q3FY26 and Rs. 0.34 in Q4FY25, reflecting a sequential decline but strong improvement on a yearly basis.
Overall, the Q4FY26 results indicate that Servotech Power Systems is witnessing strong growth momentum supported by rising demand in EV and renewable segments. However, the decline in margins on a sequential basis highlights cost pressures and execution challenges as the company scales up. Going forward, the company’s performance will depend on its ability to sustain growth while improving margins and cost efficiency.
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