Author: PPD Team Date: 17/03/2025
Gensol Engineering Limited has approved fundraising of up to Rs 6 billion to strengthen its balance sheet and move towards a zero net-debt position. The company plans to raise Rs 4 billion through foreign currency convertible bonds (FCCBs) and Rs 2 billion via warrants issued to promoters.
Alongside the fundraise, Gensol is divesting assets, including vehicle sales and the sale of a subsidiary, to further enhance financial stability. The company expects these divestments to generate Rs 6.15 billion, boosting its reserves to Rs 12 billion. This will help reduce debt to approximately Rs 5.3 billion, significantly improving its debt-equity ratio from 1.95 to 0.44.
Gensol’s latest investor presentation highlights strong revenue growth across its solar and electric vehicle (EV) leasing segments. For H1 FY25, the company reported a 49 percent year-on-year increase in total revenue, reaching Rs 7.10 billion, with EBITDA growing 138 percent. Its PAT margin also expanded by 52 percent, showing improved profitability.
The fundraise aligns with Gensol’s broader strategy of financial optimization, as the company transitions from high debt levels to a more stable capital structure. In H1 FY25, Gensol’s total debt stood at Rs 1.21 billion, down from Rs 1.39 billion in March 2024. The planned reduction to Rs 5.3 billion further strengthens its balance sheet, providing greater financial flexibility.
Gensol is aggressively expanding its business in renewable energy and EVs. The company has an unexecuted solar order book worth Rs 3.4 billion and contracts under award worth Rs 2 billion. It has also secured a 570 MW/1140 MWh battery energy storage system (BESS) project, with an expected revenue of Rs 3.1 billion over 12 years.
In the EV segment, Gensol is focusing on leasing and manufacturing. Its subsidiary, Gensol EV Lease Pvt. Ltd. (branded as Let’sEV), is growing rapidly, serving logistics companies, PSUs, and fleet operators. The company’s Pune-based EV manufacturing facility has a capacity of 30,000 units per year.
The company is diversifying its revenue streams while maintaining profitability. By lowering its debt burden, Gensol is ensuring long-term financial stability, making it better equipped to capitalize on India’s push for green energy and electric mobility.