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    Greaves Cotton Limited

    GREAVESCOTGood
    Capital Goods·31 Jul 2025
    Management Summary

    Greaves Cotton commenced FY26 on a positive note, reporting strong operational and financial performance across its core businesses. The company saw significant growth in its engineering and electric mobility segments, driven by international sales and increased market penetration. While acknowledging external headwinds, management expressed confidence in its diversified portfolio and disciplined financial approach, deferring detailed long-term strategy to the next call.

    Highlights

    8

    • Consolidated revenue stood at ₹745 crore.

    • Standalone revenues grew 22% year-on-year to ₹541 crore.

    • Standalone EBITDA increased 51% year-on-year to ₹76 crore.

    • EBITDA margins expanded by 270 basis points.

    • Greaves Engineering recorded ₹385 crore revenue, with auto segment growing 46% YoY.

    • Greaves Electric Mobility (GEML) revenue was ₹137 crore, with E2W retail sales growing 84% YoY.

    • Greaves Finance AUM reached ₹300 crore.

    • Consolidated cash reserves stood at over ₹400 crore.

    What Changed1

    vs Q2 FY26

    Risks discussed4 → 5 (+1)

    Key financials

    Single quarter

    06 metrics
    1. 01Consolidated Revenue₹745 Cr
    2. 02Standalone Revenue₹541 Cr+22%YoY
    3. 03Standalone EBITDA₹76 Cr+51%YoY
    4. 04EBITDA Margin Expansion270 bps
    5. 05Consolidated PAT₹20 Cr

    Segment breakdown

    Greaves Engineering
    ₹385 Cr Revenue46% Auto Segment Growth19% Non-Auto Segment Growth30% Genset Growth4% Genset Market Share14% Exports Contribution to Revenue
    Greaves Retail
    ₹155 Cr Revenue5% Growth40% Non-Auto Aftermarket Growth0% Auto Segment Growth
    Excel Controlinkage
    ₹60 Cr Revenue26% EBITDA Margin36.6% EBITDA Margin (Q1 FY24)
    Greaves Electric Mobility Limited (GEML)
    ₹137 Cr Revenue84% E2W Retail Sales Growth4.2% E2W Market Share3.4% E2W Market Share (last year)12% L5 3W Segment Growth31% EV Penetration in L517% EV Penetration in L5 (last year)11% L3 Market Growth4% OBD2B L5 Diesel Variant Market Share
    Greaves Finance
    ₹300 Cr AUM
    List

    Guidance & targets

    5
    CategoryTargetPriority
    Profitability
    Standalone EBITDA Margin
    13-14%
    		High
    Profitability
    Excel EBITDA Margin
    catch up
    		Medium
    Volume
    E2W Retail Sales Growth
    84%
    		Medium
    Capacity
    Capacity Expansion (Excel)
    modular fashion
    		Medium
    Other
    Fuel Strategy
    fuel agnostic
    		High

    Risks & concerns

    8
    RiskSeverity

    External macro and regulatory headwinds

    Management remains cautiously optimistic while being mindful of external macro and regulatory headwinds. — Management acknowledged

    medium

    Raw material cost fluctuations

    Despite raw material cost fluctuations, margin stability was maintained through operational efficiencies and smart procurement. — Management acknowledged

    medium

    Industry headwinds, including rare earth metal availability

    Proactive supply chain planning and localized sourcing are being used to ensure product availability despite these headwinds. — Management acknowledged

    medium

    Subdued demand in auto aftermarket segment

    The auto segment within Greaves Retail remained flat due to subdued demand, particularly for diesel three-wheelers. — Management acknowledged

    medium

    Temporary slowdown in Excel due to customer inventory recalibration

    Growth in Excel was not as strong as desired due to a large customer in an export market recalibrating inventory levels. — Management acknowledged

    medium

    Areas of Evasion(3)

    • Specific volume figures for engine segments
    • Exact EBITDA differential for export business
    • Detailed timeline for GEML IPO and specific promoter stake changes

    Q&A highlights

    3

    “So, if you go back our results over the last 8-12 quarters, we have been consistently improving our margins, and we are working towards maintaining it in the range of 13%-14%. That has been our constant endeavor and that is what we aim for and will keep on working towards.”

    This question directly addresses the sustainability of recent margin expansion, a key indicator for investors, and management provided a clear target range.

    asked by Raman KV

    2 min read6 chapters

    Detailed Narrative

    01

    Robust Q1 FY26 Financial Performance

    Greaves Cotton reported a strong start to FY26 with consolidated revenue of ₹745 crore. Standalone revenues saw a significant 22% year-on-year growth, reaching ₹541 crore. This performance was underpinned by a 51% increase in standalone EBITDA to ₹76 crore, with EBITDA margins expanding by 270 basis points, reflecting improved product mix and disciplined cost management. The company also achieved profitability at a consolidated level, reporting approximately ₹20 crore in PAT.

    02

    Greaves Engineering's Strong Growth Trajectory

    The engineering business delivered another quarter of strong growth, with revenues of ₹385 crore. The automotive segment grew by a solid 46% year-on-year, primarily driven by strong international sales of Euro-V+ auto engines. Non-auto applications also saw a 19% year-on-year growth, with gensets growing 30% and maintaining a 4% market share. Exports contributed a notable 14% to the overall revenue, indicating successful global market penetration.

    03

    Greaves Electric Mobility Scales Up

    Greaves Electric Mobility (GEML) continued its scaling efforts, reporting revenues of ₹137 crore. The electric two-wheeler (E2W) business achieved an impressive 84% year-on-year retail sales growth, increasing its market share to 4.2% from 3.4% last year. In the three-wheeler segment, the L5 category grew 12% year-on-year, with EV penetration surging to 31% from 17%. The L3 market also grew 11% year-on-year, demonstrating broad-based traction in electric mobility.

    04

    Diversification and Performance in Other Segments

    Greaves Retail grew 5% year-on-year to ₹155 crore, with strong 40% growth in the non-auto aftermarket segment, offsetting flat demand in the auto segment. Excel Controlinkage, a strategic acquisition, contributed ₹60 crore in revenue and secured new OEM orders for mechanical and electronic control systems. However, Excel's EBITDA margin was 26%, a decrease from 36.6% in Q1 FY24, attributed to internal process strengthening and investment, with management expecting a recovery in 3-4 quarters.

    05

    Financial Health and Strategic Outlook

    Greaves Finance, focusing on EV financing, expanded its Assets Under Management (AUM) to ₹300 crore, reflecting a year-on-year scale-up with prudent risk controls. The company maintains a strong balance sheet with over ₹400 crore in consolidated cash reserves, net of debt. While management deferred detailed growth plans and the FY2030 vision roadmap to the next call post H1 FY26 results, they reaffirmed commitment to sustainable growth and operational excellence across the group.

    06

    New Leadership at Greaves Electric Mobility

    The company announced the appointment of Mr. Vikas Singh as the new Managing Director of Greaves Electric Mobility Limited. With over three decades of leadership experience across diverse, consumer-driven sectors, Mr. Singh is expected to lead GEML's next phase of growth. This appointment reinforces Greaves' commitment to the electric mobility space and its belief in achieving fast-growth under new leadership.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.