Shares of Gensol Engineering Ltd dropped 13.58% to ₹606.95 on Tuesday after the company reported a 6.1% year-on-year (YoY) decline in net profit for Q3 FY25. The company’s net profit stood at ₹16.9 crore, down from ₹18 crore in the same quarter last year, with EBITDA margins also contracting to 18.1% from 19.6% YoY.
Despite a decline in profitability, total revenue increased by 30% YoY to ₹345 crore, compared to ₹266 crore in Q3 FY24. EBITDA rose to ₹63 crore from ₹53 crore, reflecting higher operational efficiency. However, rising expenses, including a surge in raw material costs, impacted margins.
The stock has a market capitalization of ₹23.37 billion, with a price-to-earnings (P/E) ratio of 23.70. The share price moved within a day range of ₹608.90 – ₹668.00, with a 52-week range of ₹608.90 – ₹1,376.00.
Gensol Engineering recently secured a major EPC contract from a PSU for the development of a 275 MW Solar PV Project at RE Solar Park, Khavda Rann of Kutch, Gujarat. However, despite the order win, investor sentiment remained weak due to declining net profit and narrowing margins.
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