GENSOL - Gensol Engineer.

📊 NSE: GENSOL 🏢 Engineering - Turnkey Services 📅 Last Updated: 12/13/2025 22:19

💰 Financial Performance

Revenue Growth by Segment

Solar EPC (Architecture and Engineering) contributed 86.16% of total turnover in FY 2024, while EV Leasing (Renting and Leasing of Motor Vehicles) contributed 13.89%. Total consolidated revenue grew by 142% YoY to INR 963 Cr in FY 2024 from INR 398 Cr in FY 2023.

Geographic Revenue Split

Not disclosed in available documents, though the company is expanding into international markets with new solar tracker designs.

Profitability Margins

Net Profit Margin stood at 5.4% in FY 2024, a slight decrease from 5.8% in FY 2023. Profit After Tax (PAT) grew 129% YoY to INR 53 Cr in FY 2024 from INR 23 Cr in FY 2023. For 9M FY 2025, PAT grew 34% YoY to INR 67 Cr.

EBITDA Margin

EBITDA Margin was 26.1% in FY 2024, up from 20.3% in FY 2023 (a 580 bps improvement). 9M FY 2025 EBITDA margin stood at 23.3%, reflecting a 582 bps expansion YoY from 17.5% due to improved operational efficiency.

Capital Expenditure

The company raised approximately INR 540 Cr through a preferential round, with 25% (INR 135 Cr) allocated to EV manufacturing and a portion for inorganic acquisitions. Total liquidity in the books is INR 250 Cr as of December 2024.

Credit Rating & Borrowing

The company maintains a Total Debt to Equity ratio of 2.7 in FY 2024. Net Debt to EBITDA improved to 3.3 in FY 2024 from 3.916 in FY 2023. Interest expenses rose 152% YoY to INR 152 Cr in 9M FY 2025 due to increased borrowing for capital-intensive EV segments.

⚙️ Operational Drivers

Raw Materials

Key raw materials include polysilicon (for solar cells and modules) and metals (for solar trackers and EV manufacturing). Specific percentage of total cost for each is not disclosed.

Import Sources

Not disclosed in available documents, though the company monitors global markets for polysilicon and local/global suppliers for metals.

Key Suppliers

Not disclosed in available documents; however, the company maintains a diversified supplier base to mitigate concentration risks.

Capacity Expansion

EV manufacturing capacity is currently 30,000 vehicles per annum. The company is adopting a 'slow and steady' production ramp-up strategy for its first car model.

Raw Material Costs

Raw material costs are sensitive to commodity price fluctuations. Polysilicon price hikes directly impact solar module costs, while metal price volatility affects tracker and project profitability. Procurement strategies include maintaining strategic inventories.

Manufacturing Efficiency

The company is currently scaling its EV manufacturing plant toward its 30,000-unit capacity. Solar EPC efficiency is driven by a shift toward turnkey projects which offer higher margins than Balance of System (BoS) projects.

📈 Strategic Growth

Expected Growth Rate

42%

Growth Strategy

Growth is driven by a three-pillar strategy: Solar EPC, EV Manufacturing, and EV Leasing. The company is leveraging an unexecuted order pipeline of INR 7,000 Cr (as of Dec 2024) and expanding into Green Hydrogen and Battery Energy Storage Systems (BESS). It is also transitioning to higher-margin turnkey EPC projects, which constitute 80% of the current order book.

Products & Services

Solar EPC services, Operations & Maintenance (O&M), solar trackers (Scorpius Trackers), EV leasing (Let'sEV), and EV manufacturing (electric cars).

Brand Portfolio

Gensol, Scorpius Trackers, Let'sEV.

New Products/Services

New solar tracker designs for international markets and the launch of the first in-house manufactured electric vehicle.

Market Expansion

Targeting international markets for solar trackers and expanding domestic presence in Green Hydrogen and BESS sectors.

Market Share & Ranking

Positioned as a leader in the Indian renewable energy industry with a historical foundation of 33,693 MW+ in technical advisory services.

Strategic Alliances

Strategic transaction with Refex for EV leasing assets worth over INR 300 Cr to scale down direct leasing and move toward a capital-light model.

🌍 External Factors

Industry Trends

The industry is shifting toward integrated clean energy solutions including BESS and Green Hydrogen. The Indian RE sector is seeing massive growth driven by Renewable Purchase Obligations (RPO) and PLI schemes.

Competitive Landscape

The renewable sector is highly competitive; Gensol differentiates through innovation, cost-effective turnkey solutions, and brand-building activities.

Competitive Moat

Moat is built on a decade-long track record, deep technical expertise (33,693 MW+ advisory), and a diversified portfolio across the EV and Solar value chains, making it difficult for pure-play EPC competitors to match its integrated offerings.

Macro Economic Sensitivity

Highly sensitive to government RE policies; the INR 27,000 Cr budget allocation for MNRE (54% increase) acts as a significant tailwind for the EPC business.

Consumer Behavior

Increasing corporate and government shift toward sustainability is driving demand for both solar EPC and EV leasing solutions.

Geopolitical Risks

Global supply chain shifts impact the availability of solar components and raw materials like polysilicon.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by Ministry of New and Renewable Energy (MNRE) guidelines, pollution norms for manufacturing, and EV safety standards.

Environmental Compliance

The company maintains a culture of safety and environmental consciousness, though specific ESG compliance costs are not quantified.

Taxation Policy Impact

Effective tax rate for 9M FY 2025 was approximately 15.2% (INR 12 Cr tax on INR 79 Cr PBT).

Legal Contingencies

A significant insolvency petition (CP(IB)/195/AHM/2025) was filed by the Indian Renewable Energy Development Agency Limited (IREDA) against Gensol Engineering Limited, with an order pronounced on June 13, 2025.

⚠️ Risk Analysis

Key Uncertainties

Execution risk due to land acquisition delays (responsibility of customers) and commodity price volatility (polysilicon/metals) which can impact project profitability by 5-10%.