Servotech Power Systems Ltd. (SERVOTECH) AI Stock Analysis

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Servotech Power Systems Ltd.

(NSE:SERVOTECH)

Select Model

Rating:44Neutral

Price Target:INR 67.00▼(-0.53% Downside)

Action:reiterated

Date:11/05/26

Servotech scores below average primarily due to poor earnings quality: despite a strong multi-year revenue ramp and positive net income, the company has burned cash from operations in three of the last five years, with free cash flow deteriorating to ₹-808M in FY2025 and an estimated ₹-1.17B in FY2026, funded by a sharp projected increase in debt. Compounding this, revenue growth stalled to roughly 1% in FY2025 and gross margins compressed. Technicals reinforce caution, with the price below its 50-, 100- and 200-day averages and a negative MACD, though oversold readings suggest the selling may be maturing. Valuation offers little cushion, as a ~34x P/E and negligible dividend yield price in a growth rebound that has yet to materialize. A sustained improvement in cash conversion and margins would be the key catalyst for a higher score.

Positive Factors

Strong Revenue ExpansionThe sharp expansion in revenue demonstrates meaningful scaling across the company’s power-solutions and EV-charging activities. A larger operating base can improve customer reach, support broader deployment capabilities, and create a stronger platform for sustained growth over the next several quarters.

Negative Factors

Weak Cash ConversionPersistently negative operating cash flow shows that reported earnings are not consistently converting into cash. Sharply negative free cash flow further increases reliance on external funding, limiting financial flexibility and making sustained growth more dependent on improving working-capital and investment returns.

Servotech Power Systems Ltd. (SERVOTECH) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 15.21B
Dividend Yield: 0.03%
Average Volume (3M): 416.15K
Price to Earnings (P/E): 33.3
Beta (1Y): 1.48
Revenue Growth: 33.93%
EPS Growth: 102.77%
Country: India
Employees: 461
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

Servotech Power Systems Ltd. Business Overview & Revenue Model

Company Description

Servotech Renewable Power System Limited manufactures and sells light-emitting diode (LED) lights, electric vehicle (EV) chargers, and solar power products in India and internationally. The company offers LED lighting products, including LED tube lig...

Servotech Power Systems Ltd. Financial Statement Overview

Summary

Mixed-to-weak overall. The income statement (62) shows an impressive multi-year revenue ramp from ₹870M in FY2021 to ₹6.74B in FY2025 and net income growth to ₹327M, but growth stalled to ~0.9% in FY2025 and gross margins compressed from ~17.3% to ~13.2%. The balance sheet (48) improved on leverage (D/E down to 0.32 in FY2025) with equity rising to ₹2.37B, yet FY2026 estimates point to debt nearly tripling to ₹2.11B and assets expanding 67%, raising financial risk while ROE slips toward ~11.7%. Cash flow (25) is the critical weakness: operating cash flow was ₹-627M in FY2025 (and estimated ₹-141M in FY2026) with free cash flow deteriorating to ₹-808M and an estimated ₹-1.17B, meaning reported profits are not converting into cash and operations depend heavily on external financing.

Income Statement

62Positive

Balance Sheet

48Neutral

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	8.11B	6.72B	6.74B	3.54B	2.78B	1.44B
Gross Profit	1.44B	1.12B	889.85M	568.54M	481.44M	185.69M
EBITDA	933.82M	672.18M	579.38M	223.93M	190.94M	89.69M
Net Income	455.05M	335.55M	327.35M	117.62M	110.41M	40.38M
Balance Sheet
Total Assets	6.69B	6.85B	4.10B	2.77B	1.67B	894.01M
Cash, Cash Equivalents and Short-Term Investments	777.30M	707.13M	425.43M	664.25M	171.73M	79.56M
Total Debt	2.57B	2.11B	778.61M	759.75M	435.73M	213.45M
Total Liabilities	3.56B	3.89B	1.72B	1.34B	845.70M	431.24M
Stockholders Equity	3.06B	2.88B	2.37B	1.42B	820.91M	462.70M
Cash Flow
Free Cash Flow	-310.36M	-1.17B	-807.98M	-253.76M	-372.60M	48.93M
Operating Cash Flow	-155.02M	-140.70M	-626.76M	7.92M	-242.77M	75.06M
Investing Cash Flow	-258.96M	-1.14B	-163.10M	-259.80M	-128.77M	-24.02M
Financing Cash Flow	508.74M	1.56B	478.36M	753.89M	454.51M	-5.42M

Servotech Power Systems Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price67.36

Price Trends

50DMA70.53Negative

100DMA80.94Negative

200DMA82.02Negative

Market Momentum

MACD-0.67Negative

RSI47.91Neutral

STOCH72.66Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SERVOTECH, the sentiment is Negative. The current price of 67.36 is above the 20-day moving average (MA) of 66.36, below the 50-day MA of 70.53, and below the 200-day MA of 82.02, indicating a neutral trend. The MACD of -0.67 indicates Negative momentum. The RSI at 47.91 is Neutral, neither overbought nor oversold. The STOCH value of 72.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SERVOTECH.

Servotech Power Systems Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SERVOTECH against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:VOLTAMP	76Outperform	INR 98.59B	30.82	―	1.01%	17.84%	-2.60%
IN:HPL	59Neutral	INR 16.95B	18.36	―	0.38%	14.96%	-4.12%
IN:BBL	57Neutral	INR 30.92B	23.74	―	1.29%	26.44%	-11.83%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:HIRECT	53Neutral	INR 31.20B	91.43	―	0.16%	41.95%	-3.11%
IN:EXICOM	49Neutral	INR 19.87B	-7.95	―	―	45.82%	16.31%
IN:SERVOTECH	44Neutral	INR 15.47B	33.35	―	0.03%	33.93%	102.77%

* General Sector Average

Performance Comparison

IN:SERVOTECH and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SERVOTECH	Servotech Power Systems Ltd.	67.36	-32.82	-32.76%
IN:BBL	Bharat Bijlee Limited	2720.35	-211.81	-7.22%
IN:EXICOM	Exicom Tele-Systems Ltd.	139.40	8.75	6.70%
IN:HIRECT	Hind Rectifiers Limited	892.70	119.99	15.53%
IN:HPL	HPL Electric & Power Limited	263.65	-200.37	-43.18%
IN:VOLTAMP	Voltamp Transformers Limited	9848.55	1403.24	16.62%

Servotech Power Systems Ltd. Corporate Events

Servotech Reports AGM Voting Results, Financials Approved With Majority Support

Sep 26, 2026

Servotech Renewable Power System Limited has reported to the National Stock Exchange of India the results of its 22nd Annual General Meeting held on September 25, 2026 via video conferencing and other audio-visual means. All items outlined in the AGM...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 05, 2026

Servotech Power Systems Ltd. AI Stock Analysis