Servotech Power Systems Stock Rallies On Joining Hands With German Company

Servotech Power Systems Ltd shares rose 4% intraday today, on Monday, reaching an intraday high of ₹189.67 before trading 2.92% higher at ₹187.69 as of 12:11 PM. The stock has surged 140.18% in the last 12 months and 144.77% year-to-date. 

Collaboration Highlights

The company announced a partnership with Germany-based LESSzwei GmbH (LESS2) to develop and deploy 100% solar-powered EV charging infrastructure in Germany. The initiative, titled “EnerMAAS,” focuses on micro-mobility solutions such as e-bikes, e-scooters, and e-cargo bikes. Supported by Germany’s Federal Ministry for Economic Affairs and Climate Action, the project is set to span 2.7 years.

Project Details

EnerMAAS aims to transform existing photovoltaic (PV) systems and energy storage units into “BIKE-Ports,” innovative charging stations powered entirely by solar energy. Each station will feature a total output of 3.3 kW, allowing simultaneous charging of up to four two-wheelers. Servotech will oversee the manufacturing and supply of these solar-powered EV chargers, while LESS2 will manage app development and AI-driven energy management. An initial rollout of 100 stations across 50 cities in Germany is planned.

Q2FY25 Financial Highlights

Servotech recently reported Q2 FY25 financial results, with net profit surging 260% to ₹11.24 crore compared to ₹3.12 crore in Q2 FY24. Revenue rose by 131% year-on-year to ₹200 crore, while EBITDA increased by 223% to ₹19.29 crore. The company’s market capitalization stands at ₹4,180.57 crore, and its shares trade at a price-to-earnings ratio of 200.

All in all, the partnership marks Servotech’s foray into international markets with its solar-powered EV solutions, potentially contributing to Germany’s sustainable energy goals. With micro-mobility gaining traction globally, this collaboration shows the integration of renewable energy and urban transportation.

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