Amid Allegations, Gensol Engineering Brings Back Former CFO Aga

Gensol Engineering, a prominent player in India's renewable energy sector which is facing allegations of financial improprieties, has announced the re-appointment of Jabirmahendi Aga as its Chief Financial Officer, following the exit of the current CFO.

Aga, who previously served as CFO for the company, returns with over 14 years of financial experience and deep familiarity with Gensol's operations, and replaces Ankit Jain.

In a candid statement about the transition, Anmol Singh Jaggi, Chairman & Managing Director of Gensol Engineering, remarked, "We are going through a tough time, and Jabir is the man best suited to lead us through it." 

Jaggi expressed confidence that Aga's expertise and proven track record would be "invaluable in driving the company's future growth and success."

The company's stock, which used to trade closer to Rs 1,100 in June, has seen a sharp correction in recent weeks to trade at around Rs 317 at present.

Jaggi has recently denied any wrongdoing in response to ratings agency ICRA's allegation of falsification of loan repayment documents.

"There has been zero wrongdoing, as far as we are aware, and we will continue to work with high ethical standards," hei said, adding that an independent committee has been formed to verify the allegations. "We are committed, we are strong and we will bounce back."

Established in 2012, Gensol Engineering has positioned itself as a leading provider of solar power engineering, procurement, and construction (EPC) services. 

The company has completed over 770 MW of diverse solar projects across India, including rooftop, ground mount, and floating solar installations. Gensol ranks among the top 10 EPC players in India and is in the top 5 among independent EPC providers.

Gensol Engineering Limited is currently facing a tough period due to a combination of financial and operational challenges that have impacted its stock performance and overall stability. As of March 6, 2025, several key factors stand out based on available information.

The company has encountered significant liquidity issues, which led to delays in servicing its debt obligations.

This prompted CARE Ratings to downgrade Gensol’s long-term and short-term bank facilities to a “CARE D” rating on March 3, 2025, signaling a default or high risk of default. 

This downgrade reflects poor liquidity and ongoing delays in debt repayment, as noted by CARE, with feedback from lenders indicating pending overdues and a Special Mention Account (SMA) classification. 

The downgrade triggered a sharp decline in its stock price, with shares dropping 20% to ₹413.95 on March 4.

Financial strain is further compounded by a high Debt to EBITDA ratio (reported at 3.27 times in early March 2025), indicating challenges in managing debt with current earnings. 

The company's numbers suggest that while Gensol has been expanding, it may have overextended itself, particularly with large project executions, leading to a short-term liquidity mismatch.