Gensol Engineering has announced plans to raise Rs 6 billion (~$68.9 million) through a combination of Rs 4 billion (~$45.9 million) in foreign currency convertible bonds and Rs 2 billion (~$22.9 million) from promoter warrants. The capital infusion aims to enhance the company’s financial health by improving its debt-equity ratio and creating long-term value for stakeholders.

Debt Reduction and Financial Restructuring The company currently holds a debt burden of Rs 11.46 billion (~$131.6 million) against reserves of Rs 5.89 billion (~$67.6 million). Following the fundraising, Gensol expects its reserves to increase to Rs 12 billion (~$137.8 million), significantly improving its debt-equity ratio from 1.95 to 0.44.

In addition to the bond issuance, the company has Rs 6.16 billion (~$70.7 million) of divestments underway, including the sale of vehicles and a subsidiary, which will further reduce its debt to approximately Rs 5.3 billion (~$60.8 million). Managing Director Anmol Singh Jaggi emphasised that strengthening the balance sheet remains the company’s top priority as it continues expanding in the renewable energy and electric mobility sectors.

Gensol’s Growing Presence in Clean Energy and EVs Gensol has successfully executed over 770 MW of solar projects, spanning rooftop, ground-mounted, and floating installations. The company is also making strides in electric mobility with an EV manufacturing facility in Chakan, Pune, and a growing portfolio of EV leasing solutions.

In January 2025, Gensol partnered with Refex Green Mobility to transfer 2,997 electric four-wheelers along with the associated Rs 3.15 billion (~$36.43 million) debt, reinforcing its focus on sustainable transport solutions.

Financial Performance and Strategic Divestments Gensol Engineering reported consolidated revenue of Rs 3.45 billion (~$39.69 million) for Q3 FY2025, marking a 30% year-over-year increase from Rs 2.66 billion (~$30.6 million). Despite this growth, profit after tax stood at Rs 180 million (~$2.07 million), highlighting the company’s ongoing efforts to optimise profitability while expanding operations.

Additionally, Gensol recently signed a Rs 3.5 billion (~$40.1 million) non-binding term sheet to sell its U.S. subsidiary, Scorpius Trackers, to an undisclosed renewable energy firm. The deal is structured in two tranches and is expected to close by the end of March 2025.

Renewable Energy Market and Industry Outlook India’s renewable energy market is experiencing rapid expansion, driven by favourable policies, corporate investments, and global sustainability commitments. With the Indian government targeting 500 GW of non-fossil fuel capacity by 2030, companies like Gensol Engineering are well-positioned to capitalise on this transformation.

The falling costs of solar power, advancements in battery storage, and the push for electric mobility have accelerated demand for clean energy solutions. Gensol’s strategic focus on solar energy and electric vehicles aligns with India’s green transition, ensuring long-term growth and market leadership in the renewable energy sector.

Future Outlook for Gensol Engineering With this fundraising initiative, Gensol is on track to strengthen its financial foundation, expand its solar and EV portfolio, and reduce debt to more sustainable levels. The company’s divestments and new capital inflows will provide the necessary financial flexibility to scale its operations and enhance profitability in the coming years.