5,751% rally in five years! Green energy stock to be in focus on Monday; here's why

Shares of Servotech Renewable Power System, a multibagger green energy stock, will be in focus on Monday after the company announced the signing of a Joint Venture (JV) Agreement with BEKEM Infra Projects Private Limited. The partnership has been established to jointly participate in government-led renewable energy initiatives, including rooftop solar and allied infrastructure projects under flagship schemes such as the PM Surya Ghar: Muft Bijli Yojana.

Purpose of the Agreement

According to the company’s filing, the JV will combine the strengths of both partners to execute renewable energy projects at scale. By leveraging expertise and resources, the collaboration aims to capture emerging opportunities driven by government-led clean energy initiatives. This move is expected to reinforce Servotech Renewable Power System’s footprint in the solar and green energy sectors, which are witnessing rapid growth.

Key Disclosures

In its regulatory submission, Servotech clarified that it does not hold any shareholding in BEKEM Infra Projects. The agreement also does not include provisions for appointing directors, first right of subscription, or restrictions on capital structure changes. The company further confirmed that neither party is related to the promoter group or group companies of Servotech. Additionally, the transaction does not qualify as a related-party deal, and there will be no equity issuance or stakeholding in the JV entity.

Strategic Significance

With India’s renewable energy push gathering pace, including ambitious solar targets, the JV marks a significant step for Servotech. Participation in large-scale government projects is expected to accelerate its role in the country’s clean energy transition while creating new avenues of growth for the company.

Q1 Performance

In Q1 FY26, Servotech Renewable Power reported a 17 percent rise in consolidated net profit to ₹5.24 crore, supported by a 22.5 percent increase in net sales to ₹137.44 crore compared to Q1 FY25. The results underline the company’s consistent growth momentum in the renewable energy sector.

Stock Price Trend

Servotech shares have delivered exceptional long-term gains, rising 5,751 percent over the past five years. However, the stock has faced pressure in the near term, losing 15 percent in the last one year and 26 percent in 2025 year-to-date, with positive returns recorded in just three of the eight months so far. Despite the recent volatility, the multibagger performance underscores the company’s strong potential in the renewable energy space.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.