Servotech Power Systems Ltd. (SERVOTECH) AI Stock Analysis

Servotech Power Systems Ltd.

(NSE:SERVOTECH)

Select Model

Rating:44Neutral

Price Target:INR 60.00▼(-5.85% Downside)

Action:upgraded

Date:11/01/26

Servotech scores below average primarily due to weak cash generation — deeply negative operating and free cash flow despite reported profits — combined with a sharp slowdown in revenue growth and margin compression, alongside a projected tripling of debt in FY2026. Technicals reinforce the caution, with the price trading below all key moving averages and a negative MACD, although oversold RSI and Stochastic readings hint at scope for a short-term bounce. Valuation offers little support: a P/E of 37.4 and a negligible dividend yield price in growth that recent results have not delivered. The long-term revenue scale-up remains a genuine positive, but execution and financing risks currently dominate.

Positive Factors

Strong Revenue ExpansionThe sharp multi-year revenue increase indicates substantial business scaling and expanding demand for the company’s power and energy solutions. A larger operating base can support broader customer reach, improve fixed-cost absorption, and create a stronger platform for future growth.

Negative Factors

Weak Cash ConversionRepeatedly negative operating cash flow shows that reported earnings are not consistently converting into cash. The sharply negative 2026 free cash flow increases reliance on external funding and could constrain investment flexibility until working-capital and cash conversion improve.

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

Market Cap: INR 15.85B
Dividend Yield: 0.03%
Average Volume (3M): 385.39K
Price to Earnings (P/E): 37.4
Beta (1Y): 1.61
Revenue Growth: 7.40%
EPS Growth: 15.11%
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

Revenue has scaled nearly 8x since FY2021 to ₹6.74B and net income has risen to ₹327M, but growth stalled to ~0.9% in FY2025 and gross margins compressed from ~17.3% to ~13.2% (Income Statement: 62). The balance sheet shows improved leverage (D/E 0.32) and steady equity growth, yet FY2026 projections imply debt nearly tripling to ₹2.11B and assets expanding 67%, raising financial risk (Balance Sheet: 48). The biggest weakness is cash flow (25): operating cash flow was ₹-627M in FY2025 with free cash flow of ₹-808M and an estimated ₹-1.17B in FY2026, signalling poor earnings quality and heavy reliance 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	7.51B	6.72B	6.74B	3.54B	2.78B	1.44B
Gross Profit	1.39B	1.12B	889.85M	568.54M	481.44M	185.69M
EBITDA	788.77M	672.18M	579.38M	223.93M	190.94M	89.69M
Net Income	374.65M	335.55M	327.35M	117.62M	110.41M	40.38M
Balance Sheet
Total Assets	0	6.85B	4.10B	2.77B	1.67B	894.01M
Cash, Cash Equivalents and Short-Term Investments	707.13M	707.13M	425.43M	664.25M	171.73M	79.56M
Total Debt	0	2.11B	778.61M	759.75M	435.73M	213.45M
Total Liabilities	-2.96B	3.89B	1.72B	1.34B	845.70M	431.24M
Stockholders Equity	2.96B	2.88B	2.37B	1.42B	820.91M	462.70M
Cash Flow
Free Cash Flow	-1.05B	-1.17B	-807.98M	-253.76M	-372.60M	48.93M
Operating Cash Flow	-19.43M	-140.70M	-626.76M	7.92M	-242.77M	75.06M
Investing Cash Flow	-1.14B	-1.14B	-163.10M	-259.80M	-128.77M	-24.02M
Financing Cash Flow	1.44B	1.56B	478.36M	753.89M	454.51M	-5.42M

Servotech Power Systems Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price63.73

Price Trends

50DMA73.07Negative

100DMA84.04Negative

200DMA82.22Negative

Market Momentum

MACD-2.81Positive

RSI29.57Positive

STOCH29.95Neutral

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 63.73 is below the 20-day moving average (MA) of 67.59, below the 50-day MA of 73.07, and below the 200-day MA of 82.22, indicating a bearish trend. The MACD of -2.81 indicates Positive momentum. The RSI at 29.57 is Positive, neither overbought nor oversold. The STOCH value of 29.95 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 104.59B	32.39	―	0.97%	17.84%	-2.60%
IN:BBL	57Neutral	INR 26.39B	20.32	―	1.50%	26.44%	-11.83%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:HIRECT	54Neutral	INR 33.82B	78.62	―	0.15%	41.95%	-3.11%
IN:EXICOM	50Neutral	INR 17.44B	-6.50	―	―	55.63%	-13.55%
IN:HPL	50Neutral	INR 14.56B	15.90	―	0.44%	14.96%	-4.12%
IN:SERVOTECH	44Neutral	INR 13.96B	37.40	―	0.03%	7.40%	15.11%

* 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.	62.09	-57.16	-47.93%
IN:BBL	Bharat Bijlee Limited	2334.90	-641.63	-21.56%
IN:EXICOM	Exicom Tele-Systems Ltd.	125.35	-12.35	-8.97%
IN:HIRECT	Hind Rectifiers Limited	953.90	20.15	2.16%
IN:HPL	HPL Electric & Power Limited	226.45	-212.17	-48.37%
IN:VOLTAMP	Voltamp Transformers Limited	10338.30	2958.63	40.09%

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 01, 2026

Servotech Power Systems Ltd. AI Stock Analysis