Gensol Engineering Share Price in Focus on Sale of US Subsidiary

Shares of Gensol Engineering Limited, a key player in the EV and solar energy sectors, were in focus as the stock saw a slight uptick of 0.05% at 10:07 AM. The movement followed management’s clarity on pledged shares and debt reduction, reassuring investors about the company’s financial position.

Promoter Share Sale to Reduce Pledged Holdings

In a strategic move towards financial stability, Managing Director Anmol Singh Jaggi sold 2,15,000 shares—less than 1% of the total promoter holding—to long-term investors. The proceeds from this sale have been entirely allocated towards releasing pledged shares and repaying associated loans.

As of December 31, 2024, 81.7% of promoter shares were pledged, primarily as collateral for loans secured from Power Finance Corporation (PFC) and IREDA for the company’s EV leasing business. Management clarified that Gensol has already deleveraged ₹300 crore, which will lead to a corresponding reduction in pledged shares upon the completion of the Refex transaction.

Additionally, the company is exploring similar transactions in the coming quarters, which will further reduce the promoter pledge and strengthen financial flexibility.

Sale of US Subsidiary 

Gensol Engineering Limited has entered into a strategic transaction worth ₹350 crore, involving the sale of its US subsidiary, Scorpius Trackers Inc., to a prominent renewable energy solutions provider in the United States. 

This deal includes the transfer of global intellectual property rights, excluding India, for Scorpius Trackers’ advanced solar tracking technology. The transaction will be executed in two phases, with completion expected by March 2026, subject to due diligence and regulatory approvals. 

The proceeds will be reinvested into Gensol’s expansion in India’s renewable energy market, bolstering its solar EPC business and advancing its clean energy initiatives. Retaining ownership of Scorpius Trackers’ Indian operations, Gensol aims to enhance its market position and accelerate its leadership in the solar sector.

Financial Performance: Steady Growth Despite Margin Pressure

Gensol Engineering’s Q3 FY25 financial results reflect steady growth:

• Total Revenue: ₹345 crore, a 30% increase from ₹266 crore in Q3 FY24.
• EBITDA: ₹63 crore, up 19% from ₹53 crore in Q3 FY24.
• EBITDA Margin: Declined 180 basis points to 18.3% in Q3 FY25, compared to 20.1% in Q3 FY24.
• Profit After Tax (PAT): ₹18 crore, growing 6% from ₹17 crore in Q3 FY24.

While revenue and EBITDA posted healthy growth, the decline in EBITDA margin suggests increased costs or competitive pricing pressures in the sector.

Major Solar EPC Project Secured

Strengthening its position in the renewable energy space, Gensol recently won a significant EPC contract from a well-known Public Sector Undertaking (PSU) for the development of a 275 MW Solar PV Project at RE Solar Park, Khavda Rann of Kutch, Gujarat.

• Total contract value: ₹1,061.97 crore (including GST).
• Scope of work: Includes a 3-year operation and maintenance (O&M) contract.

This project further solidifies Gensol’s role in advancing India’s solar energy infrastructure.

EV Leasing Business: Strategic Partnership with Refex Green Mobility

Gensol Engineering has partnered with Refex Green Mobility (Refex eVeelz) for the transfer of 2,997 electric four-wheelers (e4Ws). This collaboration is expected to boost sustainable mobility in India.

• Refex eVeelz will take over Gensol’s ₹315 crore loan, helping streamline operations.
• The partnership will expand EV adoption across key cities, including Chennai, Bengaluru, Hyderabad, Mumbai, and Pune.

This strategic realignment aims to enhance operational efficiency while contributing to the broader push towards electric mobility in India.

Conclusion 

With clarity on pledged shares, a strong financial performance, a major solar EPC project, and a strategic EV partnership, Gensol Engineering remains focused on financial stability and sustainable growth. The company’s ongoing efforts to reduce pledged shares and deleverage debt highlight its commitment to strengthening its balance sheet and supporting India’s renewable energy and electric mobility transition.

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