Solar Solutions and EV Charger Manufacturer Acquires 27% Stake in Rhine Solar Ltd., Bolstering Solar Manufacturing Capabilities

The stock is up 65 per cent from its 52-week low of Rs 84.88 per share and delivered multibagger returns of 8,334 per cent in 5 years.

Servotech Renewable Power System Limited (Servotech) has executed a Share Purchase Agreement on June 20, 2025, to acquire a 27 per cent post-money valuation stake in Rhine Solar Limited (Rhine Solar) for Rs 12,14,99,555.28. This strategic investment, involving the acquisition of 9,50,106 shares at Rs 127.88 per share, is aimed at strengthening Servotech's backward integration capabilities within the solar business. Rhine Solar, incorporated on December 21, 2014, specialises in solar energy products like solar panels, lamps, lights, and home systems across India. The acquisition is expected to be completed within 90 days.

Rhine Solar has demonstrated significant growth, with a provisional turnover of Rs 8241.22 lakh for FY 2024-25, up from Rs 6001.03 lakh in FY 2023-24. This acquisition propels Servotech directly into PV module manufacturing, leveraging Rhine Solar's existing ALMM-approved facility and expertise. Servotech plans to significantly escalate Rhine Solar's manufacturing capacity from the current 100 MW to an impressive 600 MW by next year, catering to both domestic and global solar panel demand.

This synergistic move complements Servotech’s current solar solutions and EV charging business, enabling greater control over its supply chain, ensuring high-quality products, and offering more competitive solutions. The integration is anticipated to drive efficiencies, foster innovation, and enhance Servotech’s comprehensive solar solutions provider market leadership.

Raman Bhatia, Managing Director of Servotech Renewable Power System Ltd., commented, “This acquisition is a major leap forward for us as we move toward becoming a fully integrated solar solutions provider. We’ve now officially stepped into PV module manufacturing, and this is only the beginning. Our strategic entry into solar panel manufacturing is a testament to our commitment to sustainable growth and our vision of a greener future. A key focus will be on producing advanced N-type TOPCon 12 busbar panels, which are not only more efficient but also in high demand in both domestic and global markets due to their superior performance and durability. With this move, we aim to significantly accelerate India’s solar manufacturing capabilities, reduce the nation’s import dependencies on solar components, and contribute meaningfully to the government’s ambitious clean energy targets and the ‘Make in India’ vision.”

About the Company

Servotech Renewable Power System Limited (Formerly known as Servotech Power Systems Ltd.) is an NSE-listed organisation that develops tech-enabled EV Charging solutions, leveraging its over two decades of experience and expertise in the electronics space. We offer an extensive range of AC and DC chargers that are compatible with different electric vehicles and serve multiple applications, both commercial and domestic. With our comprehensive engineering capabilities, we plan to play a pivotal role in developing India's EV tech infrastructure. As a trusted brand with a strong pan-India presence, our legacy is marked by proven innovations and the development of advanced technologies.

In fiscal year 2025, the company demonstrated robust financial performance on a consolidated basis. Total revenue for the full year surged by 91 per cent to Rs 67,680.0 lakh, a significant increase from Rs 35,526.5 lakh in FY24. Concurrently, Profit After Tax (PAT) experienced an impressive 176.5 per cent rise, reaching Rs 3,263.7 lakh in FY25 compared to Rs 1,180.2 lakh in the previous year, with PAT margins improving from 3.3 per cent to 4.8 per cent. The fourth quarter of FY25 also showed positive trends, with total revenue growing by 7.9 per cent to Rs 14,746.0 lakh from Rs 13,665.4 lakh in Q4 FY24, and PAT more than doubling by 123.4 per cent to Rs 771.6 lakh from Rs 345.4 lakh in Q4 FY24.

The company has delivered good profit growth of 108 CAGR over the last 5 years and its median sales growth is 40.4 per cent over the last 10 years with a market cap of over Rs 3,100 crore. The stock is up 65 per cent from its 52-week low of Rs 84.88 per share and delivered multibagger returns of 8,334 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.