Solar energy consultancy and engineering, procurement, and construction (EPC) solutions provider Gensol Engineering has signed a ₹3.5 billion (~$40.1 million) non-binding term sheet to sell its U.S. subsidiary, Scorpius Trackers, to an undisclosed renewable energy solution provider.

Gensol aims to unlock the subsidiary’s capital for reinvestment into its core growth assets and strengthen its financial position.

The deal will be completed in two tranches, with full close expected by March 2026. It will enable the transfer of Scorpius Trackers’ global intellectual property (IP) rights to the U.S.-based buyer. However, Scorpius Trackers will remain a wholly-owned subsidiary of Gensol Engineering and retain its IP for Indian projects.

Shailesh Vaidya, CEO, Scorpius Trackers, said, “This agreement positions Scorpius Trackers for rapid growth in the U.S. market while allowing us to retain our market focus in India. The partnership will strengthen our technology presence globally and enable us to capitalize on the immense growth potential in India’s solar sector.”

Last year, Gensol acquired 100% equity in three newly incorporated companies to expand its renewable energy business. The company acquired 10,000 equity shares each of Shakti Sangini Energy, Innogrid Energy, and Hari Shakti Energy by investing ₹100,000 (~$1,189.45) each. These subsidiaries will carry out the business of the generation and distribution of energy using wind and solar sources, and battery storage.

Gensol reported consolidated revenue of ₹3.45 billion (~$39.69 million) in the third quarter of the financial year 2025, a 30% year-over-year (YoY) increase from ₹2.66 billion (~$30.6 million). The company reported a profit after tax of ₹180 million (~$2.07 million), a 6% YoY rise from ₹170 million (~$1.9 million).

The company also bagged an EPC contract from NTPC Renewable Energy for 225 MW of grid-connected solar power projects to be set up in Gujarat State Electricity Corporation’s renewable energy park at Khavda. The contract value is ₹8.97 billion (~$105.02 million).