Gensol Engineering Ltd, a leading solar energy solutions provider in India, is currently facing financial turbulence. Despite strong revenue growth, the company has seen a sharp decline in stock prices following a credit rating downgrade and liquidity concerns.
Gensol’s Financial Performance
Gensol has reported impressive financial results for the first nine months of FY 2025:
- Revenue surged by 42% to ₹1,056 crore.
- EBITDA increased by 89% to ₹246 crore.
- Profit After Tax (PAT) rose by 34% to ₹67 crore.
Despite these positive numbers, concerns over liquidity mismatches and loan servicing delays led to a credit rating downgrade by CARE Ratings.
A 40% Drop in 3 Days
Following the rating downgrade, Gensol’s stock plummeted by nearly 40% in just three trading sessions, hitting a 52-week low of ₹335.35 on the Bombay Stock Exchange (BSE).
Market Reactions
- Investors are concerned about the company’s short-term financial health.
- Analysts warn that liquidity constraints could slow down project execution.
- Some investors see this as a buying opportunity, given Gensol’s long-term growth prospects.
Gensol’s Response: A Strong Order Book and Future Plans
In response to market concerns, Gensol emphasized:
- It has a strong order book worth over ₹7,000 crore, ensuring revenue visibility.
- The company is addressing liquidity challenges by improving customer payment collections.
- It denies allegations of financial misrepresentation, calling them baseless rumors.
What’s Next for Gensol?
Despite the current crisis, Gensol remains a key player in India’s renewable energy sector. The company is:
- Focusing on liquidity management to restore investor confidence.
- Leveraging its strong order book to ensure future growth.
- Engaging with stakeholders to clarify concerns about its financial position.