From ₹1,126 to ₹303: Gensol Engineering shares slump 73% in 9 months; here’s why

Shares of Gensol Engineering continued their losing streak for the ninth straight session on Friday, with the stock price hitting fresh 52-week low in early trade amid growing concerns about liquidity risk. The flagship company of the Gensol Group has lost 48% of its market value in nine sessions, while it nosedived 73% in the past nine months, from its 52-week high levels.

Continuing its losing streak, Gensol Engineering share price plunged 9.6% to hit a fresh 52-week low of ₹303 in opening trade today. However, the microcap stock staged a strong recovery, rebounding 16.5% to touch a high of ₹352.9.

At the time of reporting, Gensol shares were trading 0.6% lower at ₹333.40, with a market capitalisation of ₹1,267 crore. The stock is down 73% from its 52-week high of ₹1,125.75 on June 24, 2024.

In the last one year, Gensol share price has fallen 67%, while it lost 64% in six months and 57% in the calendar year 2025. In the past one month, the counter plummeted 55%, hitting multiple 52-week lows.

Gensol Engineering Ltd (GEL) was listed on BSE SME platform on October 11, 2019, and later in September 2023, it also debuted on NSE platform. In July 2023, the company got itself listed on BSE main platform.

Why Gensol shares are under stress?

The recent sell-off in Gensol Engineering shares was triggered after ICRA and Care Rating downgraded the renewable power company, raising serious concerns about liquidity risk.

On March 4, ICRA downgraded the credit ratings of various loan facilities amounting to ₹2,050 crore, citing ongoing delays in debt servicing.

ICRA in the rating report mentioned that certain documents shared by GEL on its debt servicing track record, were apparently “falsified”, which raises concerns on its corporate governance practices, including its liquidity position. In the investor call transcript dated February 13, 2025, the management had highlighted total liquidity in the books of about ₹250 crore, in addition to access to working capital limits. However, the rating agency received feedback from the company’s lenders about the ongoing delays in debt servicing.

The rating agency also flagged the deterioration in the financial flexibility of the company with an increase in promoter’s share pledge to 85.5% of its holding in GEL in February 2025 from 79.8% in September 2024.

The increase in share-pledge amidst a continuous decline in share price of GEL over the past few months can constrain the ability of GEL to raise capital to support its future growth plans. On the equity raising plans, as against ICRA’s earlier expectations of equity infusion in GEL of ₹244 crore in FY25 through preferential share warrants, only ₹140 crore has been infused till date, with the balance infusion to be deferred till December 2025, reflecting a delay of around one year compared to the agency’s previous expectation.

“Timely equity infusion is critical for GEL’s growth plans, given the expected investment required for its various businesses,” it added.

Raising similar concerns on on-going delays in debt repayment, CARE Ratings also downgraded the ratings assigned to the bank facilities of GEL on March 5. “GEL’s liquidity remains poor as reflected by the ongoing delay in the debt servicing,” it said in a note.

In a fresh development, Ankit Jain, chief financial officer (CFO) and key managerial personnel, resigned on March 06, 2025. In a meeting yesterday, its board appointed Jabirmahendi Mohammedraza Aga as the CFO, effect from March 07, 2025.

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