Gensol Engineering Limited — Updates, 05-03-2025: Press Release

Gensol Engineering Limited has acknowledged recent credit rating downgrades by CARE and ICRA, primarily due to a short-term liquidity mismatch that is improving through customer payments. The company is setting up a committee to investigate allegations of falsification, emphasizing its commitment to transparency and accountability. Gensol has reported a solid growth trajectory, with a 42% increase in revenue to INR 1,056 Cr., an 89% rise in EBITDA to INR 246 Cr., and a 34% increase in profit after tax to INR 67 Cr. in the first nine months of FY25.

To address its current debt of INR 1,146 Cr. against reserves of INR 589 Cr., Gensol is implementing a strategic deleveraging plan involving the sale of 2,997 electric vehicles worth INR 315 Cr. and a subsidiary for INR 350 Cr. These steps are expected to lower the debt significantly, targeting a debt-equity ratio of 0.8, demonstrating a robust strategy for financial stabilization. The company aims to achieve zero net-debt status, reinforcing its confidence in navigating these challenges and emerging stronger.