Gensol Engineering share price falls 20% to 52-week low: Here is what led to the crash

CARE downgraded Gensol’s long-term bank facilities worth ₹639.7 crore to “CARE D” from the previous “CARE BB+” with a stable outlook. Furthermore, it also revised its ratings lower for other long-term/short-term bank facilities from “CARE BB+” with a stable “CARE A4+” outlook to “CARE D”.

As per CARE, issuers with a CARE D rating are in default or are expected to be in default soon. Additionally, a BB+ rating means an issuer has a moderate risk of defaulting on its debt obligations.

Delays in debt servicing and pending over dues

Gensol came under scrutiny after its lenders gave feedback on delays in debt servicing, pending over dues and a looming Special Mention Account (SMA) classification, CARE said in a note.

“CARE Ratings Limited has revised the ratings assigned to the bank facilities of Gensol Engineering Limited (GEL) on account of ongoing delays in the servicing of term loan obligation as per feedback from its lenders. The rating action is in line with CARE’s policy on default recognition,” the ratings agency further explained. “GEL’s liquidity remains poor as reflected by the ongoing delay in the debt servicing,” it added.

Gensol Engineering stock past performance

Shares of Gensol closed at the lower-circuit at ₹413.30 on the NSE on Tuesday.

Shares of Gensol have slumped 7.53% in the last eight days and 27.91% since February 1, 2025. The scrip has fallen 45.51% on a year-to-date basis.

The EPC firm shares had touched its 52-week high of ₹1,124.90 on June 24, 2024.

Gensol Engineering has a total market capitalisation of ₹1,570.64 crore as of March 4, 2025, on the NSE.

About Gensol Engineering

Gensol Engineering, the flagship company of the Gensol Group is an Engineering, Procurement, and Construction (EPC) firm primarily focused on solar power projects. It has also ventured into electric vehicle (EV) manufacturing and leasing solutions spaces.