Servotech Renewable Power System has once more captured attention in the primary markets, with shares climbing higher following the announcement of a strategic joint venture (JV) with BEKEM Infra Projects. The Servotech-BEKEM Infra JV is designed to participate in government-backed renewable energy initiatives, particularly under flagship programs like the PM Surya Ghar: Muft Bijli Yojana.
Servotech-BEKEM Infra partnership carries symbolic weight but, more importantly, underscores the company’s larger ambition of becoming a major force in India’s renewable energy and EV infrastructure ecosystem.
Servotech-BEKEM Infra JV Agreement
Corporate JV announcements often raise speculation around hidden shareholding arrangements, but Servotech has proactively clarified the structure of this collaboration:
- No Equity Dilution: Servotech will not issue shares to BEKEM.
- No Cross-Holding: Neither company holds equity in the other.
- No Governance Clause: There is no provision for board seats, subscription rights, or restrictions on Servotech’s future capital structure.
- Not a Related-Party Deal: Both entities are independent, with no connection to promoter groups or affiliates.
The JV is strictly an operational partnership—essentially a consortium model—to jointly bid for and execute renewable energy projects. In India’s tender-driven clean energy landscape, such collaborations are crucial, enabling companies to pool financial resources, technical know-how, and execution capabilities.
Strategic Significance
India’s renewable energy momentum is accelerating, with a national target of 500 GW non-fossil fuel capacity by 2030. Schemes like PM Surya Ghar are adding further urgency, making the solar and EV sectors highly competitive.
Servotech’s established strengths in solar solutions, EV chargers, and backup power systems are closely aligned with government priorities. Through this JV, the company is better placed to:
- Compete in large-scale rooftop solar projects under central and state tenders.
- Participate in complementary projects like energy storage, smart metering, and EV infrastructure.
- Build stronger credentials as a preferred partner in government-led green initiatives.
Servotech-Bekem Infra partnership is less about today’s project pipeline and more about securing the company’s long-term growth in a rapidly expanding clean energy market.
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Beyond the Servotech-Bekem Infra JV
The announcement follows Servotech’s recent contract win worth INR 28.84 crore from North Western Railway (Jaipur Division) for a 7.3 MW rooftop solar project (19 August 2025). This project, involving the full implementation of on-grid solar PV systems, highlights the company’s ability to execute utility-scale clean energy ventures.
In parallel, Servotech is making headway in EV charging infrastructure. In July 2025, it secured a landmark order from Bengaluru International Airport (BIAL) to install 10 ultra-fast 240 kW DC chargers for electric buses operating airside. This will be India’s first and largest dedicated EV charging hub for airport operations.
The BIAL contract covers supply, erection, testing, commissioning, and five years of maintenance—ensuring long-term revenue streams and enhancing Servotech’s reputation in high-growth EV infrastructure.
Financial Performance: Growth Momentum Intact
Servotech’s Q1 FY26 results reaffirm its steady upward trajectory:
- Revenue: INR 137.44 crore, up 22.5% YoY (vs. 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.
The company is not only expanding revenues but also improving profitability at a faster pace, signaling operating leverage as its order book grows.
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Outlook
The Servotech-BEKEM JV marks a decisive strategic step, reflecting the company’s ambition to play a larger role in India’s clean energy mission.
With a strong order book, diverse revenue streams, and solid financials, Servotech stands at an inflection point. If execution continues to match its ambitions, the company could evolve from a midcap player into a mainstream green energy leader within the next 3–5 years.