Servotech Power Systems: Charging Ahead

Brokerage Free Team • February 10, 2024 | 4 min read • 3122 views

Servotech Power Systems has emerged as a standout player in India's evolving electric vehicle (EV) charging infrastructure landscape, driven by the supportive policies of FAME-II. With the Indian government committing Rs 800 crore to aid oil marketing companies in establishing EV charging stations, the company has witnessed remarkable success, delivering an extraordinary 3,900% return over the past three years and a notable 321% surge in the last year alone.

The surge in demand for EV charging infrastructure comes as India aims for 30% electrification of automobiles by 2030, requiring around 46,397 charging stations. In response, Servotech Power Systems is on track to contribute approximately 7,000 new charging stations within the next 18 months.


The success story of Servotech is underlined by its diversified business model. Initially entering the industry with Sine-Wave inverters, the company expanded its product range to include LED lighting solutions, solar street lights, solar-hybrid inverters, and medical-grade equipment like Oxygen Concentrators and UV-C disinfectant products during the COVID-19 pandemic.


In 2022, Servotech strategically entered the EV market, marking its foray into EV charging technology infrastructure across India. This diversification has since extended to the Middle East and Africa, showcasing the company's adaptability and commitment to exploring new opportunities in emerging markets.


Servotech Power Systems operates across various business segments, including solar, EV chargers, power and backup solutions, LEDs, medical-grade devices, and servo stabilizers. The company has demonstrated expertise in solar panel installation, manufacturing EV chargers approved by TATA and MG, and providing power solutions ranging from inverters and UPS to tubular batteries.


Business Segments


Solar Solutions


Servotech specializes in solar panel installation with a focus on quality and cost efficiency. Their expertise spans Rooftop On-Grid, Off-Grid, and Hybrid Solar Solutions, catering to a wide range of applications such as PCUs, Panels, Servport, EPCs, and batteries.


EV Charger Manufacturing


With a rich history in inverters and UPS since 2001, Servotech has become a prominent manufacturer of Electric Vehicle (EV) Chargers. Their range covers products from 3 kW to 360 kW, including AC and DC fast chargers for various EVs like two-wheelers, cars, buses, and trucks. Notably, TATA and MG have approved Servotech's EV chargers for their respective vehicles.


Power and Backup Solutions


Originating as a manufacturer of Inverters, UPS, and servo stabilizers, Servotech Power Systems now offers a diversified range of domestic and commercial inverters and UPS, along with tubular batteries. This segment provides comprehensive power and backup solutions.


LED Lighting

In the LED sector, Servotech entered production in 2011, focusing on crafting energy-efficient luminaries for residential, industrial, and commercial use. Their LED product line includes a variety of lights such as bulbs, downlights, floodlights, panel lights, tube lights, bay lights, and outdoor lights like street and floodlights.


Medical-Grade Devices

Servotech extends its services to medical-grade devices, addressing respiratory disorders with UVC lights and oxygen concentrators. The subsidiary, Rebreathe, contributes premium components essential for the development of such medical devices.


Servo Stabilizers


Renowned for cost-effectiveness and reliability, Servotech’s servo stabilizers serve as electrical solutions to prevent hazards associated with irregular voltage flows. These stabilizers ensure optimal voltage levels for appliances, combining affordability with high performance.



In the fiscal year 2023, Servotech reported substantial revenue growth of 85.8%, reaching ₹249 crore, and a noteworthy increase in net profit, surging by 175% to ₹11 crore. The company displayed a robust Compound Annual Growth Rate (CAGR) of 42.5% in revenue over the four-year period from FY2020 to FY2023.


Servotech's solid financial metrics in FY23, with a Return on Equity (ROE) of 13.46%, Return on Capital Employed (ROCE) of 18.33%, and a debt-to-equity ratio of 0.54, underline its financial stability and efficient capital management.


Looking forward, Servotech's future appears promising, especially in the Electric Vehicle (EV) segment. The company secured a significant order for 2,649 EV chargers from Bharat Petroleum Corporation under the BPCL E-drive Project. This strategic initiative involves manufacturing, supplying, and installing AC EV Chargers across India, contributing significantly to the widespread adoption of EV charging solutions.


Internationally, Servotech has entered partnerships with Al-Ansari Motors LLC in the UAE and EMCOR Power Solutions to provide EV Charging Stations in the Middle Eastern and African markets. Moreover, collaborations with the Government of Uttar Pradesh, IIT Roorkee, and the filing of patents in EV charger technology demonstrate Servotech's commitment to innovation and expansion.


In conclusion, Servotech Power Systems' ambitious plans and strategic initiatives position the company for significant growth beyond its already impressive performance. The impact of this growth on the company's valuation sparks discussions and speculation, inviting thoughts and insights from industry observers. Share your thoughts in the comments below!