Solar stock jumps 4% after it partners with LESSzwei GmbH for EV charging infra in Germany

The shares of this solar product manufacturer gained up to 4 percent after the company partnered with german based company for EV Charging Infrastructure.

With a market capitalization of Rs 4,169.42 crore, the shares of Servotech Power Systems Ltd (NS:SERO) were trading at Rs 187.36 per share, increasing around 3 percent as compared to the previous closing price of Rs 182.36 apiece.

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Reason for Rise:-

The shares of the company have seen bullish movement after Servotech Power Systems Ltd entered into a strategic partnership with LESSzwei GmbH (LESS2) to develop and deploy innovative 100% solar-powered EV charging infrastructure for micro-mobility, such as e-bikes, e-scooters, and e-cargo bikes in urban areas of Germany.

Moreover, this project, named “EnerMAAS”, will create a sustainable and scalable charging ecosystem. It utilizes AI-driven energy management systems to optimize energy use and reduce environmental impact. EnerMAAS will focus on transforming existing photovoltaic systems and energy storage into innovative street charging points (BIKE-Ports).

Furthermore, these stations will supply self-sufficient energy via 100% solar power, allowing for rapid and consistent charging around the clock. Each station has the capacity to charge four two-wheelers at the same time, totaling 3.3 kW of power. This project has also obtained grant funding from Germany’s Federal Ministry for Economic Affairs and Climate Action (WA:ACT) (BMWK) for a 2.7-year period.

Additionally, Servotech will also handle the production and delivery of these solar-powered EV charging stations. LESS2 will concentrate on all elements of Artificial Intelligence and Application Development. Servotech will initially offer the first 100 systems, with two charging stations installed in each of 50 selected German towns.

Financial performance:-

Looking forward to the company’s financial performance, revenue magnified by 171 percent from Rs 67 crore in Q2FY24 to Rs 182 crore in Q2Y25. During the same period, net profit stretched drastically by 267 percent, from Rs 3 crore to Rs 11 crore.

EV Market Insights:-

Government initiatives to reduce fossil fuel dependency and promote EVs have boosted the market. Securing large DC fast charger orders from major oil companies and OEMs, with current 60% capacity utilization, positions for doubling capacity as infrastructure develops.

New development:-

The company launched solar inverters, including hybrid and microinverters, energy storage systems, and solar pump controllers, targeting PM Surya Ghar Yojana, commercial, iand institutional sectors, and end users. Revenue impact from these solar products is expected in Q4 FY25.

International Expansion:-

The business plans to expand internationally, targeting 40-50 countries. Current H1 FY25 export figures are ₹10 crores from sampling, with last year’s exports totaling around ₹40 crores, highlighting a strong foundation for growth in global markets.

Order Book and Future Guidance:-

The company’s current order book exceeds ₹600 crores, with 70% from EV and 30% from solar. Management aims to achieve a production capacity of 2,000 units monthly, contingent on resolving infrastructure bottlenecks, reflecting strong optimism for future growth.

Company snapshot:-

Servotech Power Systems Limited manufactures, sources, and distributes a variety of modern solar goods, medical gadgets, and energy-saving lighting solutions. The company is working on a variety of initiatives, including the installation of solar panels for battery charging and photovoltaic (PV) ports.

Written by:- Abhishek Singh

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