Servotech Renewable Power System has once again grabbed the spotlight in the primary markets, with its shares edging higher after the announcement of a strategic joint venture (JV) with BEKEM Infra Projects. Servotech-BEKEM Infra JV aims to participate in government-led renewable energy projects, particularly under flagship schemes like the PM Surya Ghar: Muft Bijli Yojana.
While the move has immediate symbolic significance, it also signals Servotech’s deeper ambitions to cement its place as a key player in India’s renewable energy and EV infrastructure ecosystem.
Servotech-BEKEM Infra JV Agreement
The market often misreads corporate JV announcements as backdoor shareholding deals or related-party pacts. Servotech has gone out of its way to clarify that this isn’t the case:
- No Equity Dilution: Servotech will not issue shares to BEKEM.
- No Cross-Holding: Servotech holds no equity in BEKEM Infra.
- No Board Seat or Governance Clause: There is no arrangement for directors, subscription rights, or restrictions on future capital structure.
- Not a Related-Party Deal: Neither entity is connected to promoter groups or affiliated companies.
Servotech & BEKEM Infra partnership is a purely operational collaboration, a consortium-style arrangement to jointly bid for and execute projects. In India’s tender-driven renewable market, such alliances are crucial, allowing companies to combine technical capabilities, financial muscle, and execution bandwidth.
Strategic Importance
India’s renewable energy story is gaining unprecedented momentum. With a target of 500 GW of non-fossil fuel-based capacity by 2030 and an aggressive push under schemes like PM Surya Ghar, companies in the solar and EV ecosystem are racing to capture market share.
Servotech’s core strengths in solar products, EV chargers, and backup solutions align neatly with government priorities. Through the JV, Servotech is now better positioned to:
- Compete in large-scale rooftop solar projects under central and state tenders.
- Tap allied infrastructure projects (storage, smart metering, EV infra).
- Strengthen its credentials as a preferred partner for government-led green initiatives.
In many ways, Servotech-Bekem JV is less about today’s pipeline and more about future-proofing Servotech’s growth story against the backdrop of a rapidly expanding market.
Beyond the JV
Servotech-Bekem JV comes on the heels of an INR 28.84 crore order from the North Western Railway (Jaipur Division) for a 7.3 MW rooftop solar project, announced on 19 August 2025. This contract, which involves full implementation of on-grid solar PV systems, underscores Servotech’s operational credibility and capacity to handle utility-scale clean energy projects.
Additionally, Servotech is making waves in the EV charging infrastructure segment. In July 2025, the company bagged a prestigious order from Bengaluru International Airport (BIAL) to set up a hub of 10 ultra-fast 240 kW DC chargers for airside electric buses. This will be India’s first and largest EV charging hub dedicated to airport operations, marking Servotech’s leadership in a high-growth niche.
The BIAL project includes supply, erection, testing, commissioning, and five years of maintenance, creating a long-tail revenue stream while bolstering Servotech’s brand as a trusted EV infra partner.
Financial Performance: Momentum Intact
Servotech Q1 FY26 results have reinforced its consistent growth trajectory:
- Revenue: INR 137.44 crore, up 22.5% YoY (from INR 112.21 crore in Q1 FY25).
- Net Profit: INR 5.24 crore, up 17% YoY.
- EBITDA: INR 14.23 crore, up 63.65% YoY.
- Gross Profit: INR 26.57 crore, up 36.96% YoY.
This financial resilience is critical. Servotech is not merely growing topline revenues; it is expanding profitability at a faster clip, suggesting operating leverage is kicking in as its order book scales.
Outlook
Servotech-BEKEM Infra JV represents a strategic leap forward, signalling the company’s readiness to play a bigger role in India’s clean energy journey.
With a growing order book, diversified revenue streams, and robust financials, Servotech is at an inflexion point. If execution matches ambition, the company could transition from a midcap story to a mainstream green energy contender over the next 3–5 years.
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