Gensol Engineering Ltd. expects its revenue to increase to Rs 4,000 crore by financial year 2026 from Rs 393 crore in 2022–23, with all businesses contributing to the growth, Chairperson Anmol Singh Jaggi said on Thursday.
The comments come a day after the company has informed the exchanges that its board would meet on Jan. 1 to consider raising funds through either a qualified institutional placement, preferential issue or combination of both.
Jaggi told NDTV Profit in an interview that Gensol needs at least Rs 200–300 crore more, given its existing orderbook. "When all the businesses grow at a breakneck speed, they need to be capitalised adequately."
The company plans to arrive at a comfortable 1:1 debt-to-equity ratio through the fundraise and business expansion, the managing director said. "We will further be able to accelerate, take more orders, give more cars on lease and build the business even faster."
Jaggi exuded confidence that the revenue growth would come from all segments. "I believe that the whole theme of renewable energy and electric mobility are things of the future, and we have extremely strong footing when it comes to both of these."
Businesses Growth
In the engineering, procurement and construction business, Gensol expects to triple the revenue in the next three years. The current order book stands at Rs 1,100 crore and there are orders worth another Rs 700 crore for which it has emerged as the lowest bidder. Before Feb. 15, the order book should be in excess of Rs 1,500–1,600 crore, according to Jaggi.
In this EPC segment, the MD said growth was coming from customers in the commercial and industrial space. In fiscal 2026, he expects a revenue of Rs 2,500 from this business, out of which Rs 350 crore will be added to the Ebitda.
For its EV manufacturing business, Gensol plans to make a small urban utility car and the plant is awaiting the last bit of approvals, Jaggi said. "The trial production is expected to start by March 2024."
The chairperson said the Production capacity of the plant would be 30,000 vehicles. "At full capacity, we can produce about Rs 1,800 crore of revenue, which is one and a half times the revenue we are going to do this year."
Jaggi said Gensol would only be able to break even in this business in the next fiscal by selling 10,000 vehicles at Rs 6 lakh each and adding Rs 600 crore of topline.
In fiscal 2026, the company will be able to enjoy full production revenue of Rs 1,600–1,800 crore. It expects its assets under management in the EV-leasing business to reach Rs 2,500 crore, generating Rs 500 crore, out of which Rs 450 crore will be added to the Ebitda.
Jaggi described the credit lines as "great", saying that the company had drawn Rs 500 crore out of the Rs 1,400 crore of credit lines available. "We have huge headroom to grow (the) AUM."
Gensol plans to reduce the contribution of BluSmart in its leasing business. "As of now, the aim is to take BluSmart book to 20% of Gensol's EV leasing from the current 60% as we continue to grow non-BluSmart."
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