Greaves Cotton Limited — Q1 FY26 earnings call

Call held 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

  • 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.

Key financials

  1. Consolidated Revenue ₹745 Cr
  2. Standalone Revenue ₹541 Cr +22%YoY
  3. Standalone EBITDA ₹76 Cr +51%YoY
  4. EBITDA Margin Expansion 270 bps
  5. Consolidated PAT ₹20 Cr
  6. Consolidated Cash Reserves ₹400 Cr

What they filed

Q1 FY27: revenue up 30.7%, net profit down 70.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue705 751 823 745 815 +16%875 +17%1,000 +22%974 +31%
EBITDA23 40 46 57 52 +125%62 +57%68 +49%56 −1%
Net profit-14 7 2 21 6 +144%6 −11%2 +44%6 −70%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

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

Guidance & targets

Profitability

  • Standalone EBITDA Margin Profitability · ongoing · High confidence 13-14%
    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.

    — Akhila Balachandar, CFO, GCL

  • Excel EBITDA Margin Profitability · next 3-4 quarters · Medium confidence catch up
    So, essentially, you're right if I go back to Q1 of 2024 we had a performance of 36.6% EBITDA margin and this quarter we are at 26%. What I would like to say there is that we are diversifying that business and strengthening a lot of our internal processes. We are investing some money into the business and therefore this is currently a catch-up phase I would say and going forward maybe in the next 3-4 quarters we should see traction of those that we are currently doing.

    — Akhila Balachandar, CFO, GCL

Volume

  • E2W Retail Sales Growth Volume · quarters ahead · Medium confidence 84%
    I did cover this in my opening remarks. In Quarter 1, we maintained an 84% year-on-year retail sales growth, which is a very healthy delivery. And we are making all efforts to ensure that we maintain this rate of growth in the quarters ahead.

    — Vikas Singh, Managing Director, GEML

Capacity

  • Capacity Expansion (Excel) Capacity · ongoing · Medium confidence modular fashion
    So, we continue to watch our growth across business sectors very closely and strategy and policy to scale up our capacity and our investment in capacity in a modular way. And we are well prepared. We keep a close watch also on the Excel situation. And, as and when we see the need for that, we have the plans ready, and we have the resources available. Like Akhila said, we have a strong balance sheet. So, the management remains committed to continuing to increase our capacity in a modular fashion.

    — Parag Satpute, Managing Director & Group CEO, GCL

Other

  • Fuel Strategy Other · coming years · High confidence fuel agnostic
    That's the point. I think we don't believe that we have to choose one. We believe it's advantageous to be fuel agnostic. And overall, we believe that there will be multiple pure and multiple prime movers going forward in this industry.

    — Parag Satpute, Managing Director & Group CEO, GCL

Risks & concerns

  • External macro and regulatory headwinds

    medium

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

    Management acknowledged

  • Raw material cost fluctuations

    medium

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

    Management acknowledged

  • Industry headwinds, including rare earth metal availability

    medium

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

    Management acknowledged

  • Subdued demand in auto aftermarket segment

    medium

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

    Management acknowledged

  • Temporary slowdown in Excel due to customer inventory recalibration

    medium

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

    Management acknowledged

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

2 direct
Engine segment margin sustainability and growth drivers Direct
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

Greaves Electric Mobility IPO timeline and promoter stake dilution Partial
While the IPO process is underway, we remain focused on delivering strong business performance. The actual IPO launch, however, will be subject to prevailing market conditions, internal preparedness, and other strategic considerations. We would like to reiterate that we remain committed to creating long-term value for everyone and will keep the markets informed in compliance with all regulatory requirements.

The IPO of GEML is a significant event for Greaves Cotton investors, and while management confirmed the DRHP filing, they remained vague on the actual launch timeline and specific details of promoter stake changes.

Asked by Krisha Kansara

Discrepancy between E-mobility retail sales growth and reported sales growth Direct
However, the invoiced volume, which is the Vahan number is what you are referring to and that number is correct, which basically means that the extent of pipelining which was there in the market has been reduced significantly. This is part of the strategy to try and build a more efficient business not only for our investors and ourselves but very importantly for our dealer and network partners and our vendors.

Clarifies a potential misunderstanding of growth figures, explaining that lower invoiced volumes despite high retail growth are due to a strategic reduction in inventory pipelining for efficiency.

Asked by Sonal Minhas

2 min read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

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