Greaves Cotton Limited — Q2 FY26 earnings call

Call held 12 Nov 2025

Management summary

Greaves Cotton reported a strong Q2 and H1 FY26, driven by broad-based growth across its core businesses and improved profitability. The company unveiled its new 'GREAVES.NEXT' strategy, focusing on Energy Solutions, Mobility, and Industrial Solutions, aiming for sustained organic growth. While the core business performed robustly, the Electric Mobility division continues to incur losses, impacting consolidated net worth, with management constrained by DRHP filings on specific forward-looking details for this segment.

Highlights

  • Consolidated revenues for Q2 FY26 stood at ₹815 crores, marking a 16% YoY increase.

  • Consolidated revenues for H1 FY26 reached ₹1,561 crores, also growing 16% YoY.

  • Standalone EBITDA for Q2 FY26 increased 32% YoY to ₹78 crores, with margins improving by 160 bps.

  • Standalone EBITDA for H1 FY26 grew 44% YoY to ₹152 crores, with margins expanding by 210 bps.

  • Engineering businesses reported a 31% YoY revenue growth in Q2 FY26 to ₹406 crores.

  • Electric Mobility division delivered ₹199 crores in revenue for Q2 FY26 and ₹336 crores for H1 FY26.

  • Greaves Finance AUM, including co-lending, grew to ₹380 crores.

  • Electric 2-wheeler VAHAN volumes grew 54% YoY in H1 FY26, and L5 3-wheeler VAHAN volumes grew 9% YoY.

Concerns

  • Greaves Electric Mobility (GEML) losses impacting consolidated net worth

Key financials

  1. Consolidated Revenue ₹815 Cr +16%YoY
  2. Consolidated H1 Revenue ₹1,561 Cr +16%YoY
  3. Standalone Revenue ₹552 Cr +18%YoY
  4. Standalone EBITDA ₹78 Cr +32%YoY
  5. Standalone EBITDA Margin 14.1%
  6. ROCE 30%

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

  • Engineering Businesses
    ₹406 Cr Revenue31% YoY Growth Q230% YoY Growth H1
  • Greaves Retail
    ₹146 Cr Revenue
  • Excel Controlinkage
    ₹57 Cr Revenue Q2₹117 Cr Revenue H110% EBITDA Margins
  • Electric Mobility
    ₹199 Cr Revenue Q2₹336 Cr Revenue H1₹50 Cr Loss Q2
  • Greaves Finance
    ₹380 Cr AUM (including co-lending)

Guidance & targets

Revenue

  • Revenue CAGR (Organic Core Businesses) Revenue · next 4 to 5 years · High confidence 16%-20%
    We expect these 2 dimensions to deliver a sustained revenue growth of around 16% to 20% CAGR over the next 4 to 5 years.

    — Parag Satpute, Managing Director & Group CEO, GCL

  • Total Revenue Revenue · FY30 · Medium confidence ₹15,000 crores
    We had shared that our vision for FY30 was to have the number that you said, Rs. 15,000 crore.

    — Parag Satpute, Managing Director & Group CEO, GCL

  • Aftermarket Segment Growth Revenue · next few years · Medium confidence 8%-9%
    We expect it to be just under double digits. It will not be beyond 8% - 9%.

    — Parag Satpute, Managing Director & Group CEO, GCL

Profitability

  • EBITDA Levels Profitability · High confidence maintain current healthy level
    we are also seeing a very stable portfolio mix development, which allows us to maintain our EBITDA levels at where we are today, which is a quite healthy level.

    — Parag Satpute, Managing Director & Group CEO, GCL

  • Margins Profitability · High confidence remain broadly in the same level
    our margins will remain broadly in the same level. The healthy levels that we have seen in the last few quarters.

    — Parag Satpute, Managing Director & Group CEO, GCL

Risks & concerns

  • Greaves Electric Mobility (GEML) losses impacting consolidated net worth

    high

    Consolidated net worth reduced by approximately ₹100 crores quarter-on-quarter, primarily due to absorption of losses from the EV division.

    Analyst acknowledged

  • Slowdown in Excel's export business due to concentrated geographical dependence

    medium

    Export contribution reduced from 35-40% to under 20%, impacting margins, with efforts underway to diversify.

    Management acknowledged

  • Slowdown in the aftermarket segment due to decline in 3-wheeler vehicle parc post-COVID

    medium

    The parc of 3-wheeler vehicles declined sharply post-COVID, leading to softness in diesel 3-wheeler spares, though it is now stabilizing.

    Management acknowledged

  • Regulatory constraints (DRHP) limiting transparency on EV business financials and future plans

    medium

    Management repeatedly cited DRHP filing as a reason for not sharing specific forward-looking statements or detailed financial projections for the EV business.

    Management acknowledged

Areas of evasion (3)

  • Greaves Electric Mobility IPO timeline and specific details
  • Greaves Electric Mobility path to profitability and specific financial forecasts
  • Individual sales numbers for Ampere Nexus and Magnus Grand

Q&A highlights

1 direct, 1 evasive
Excel Controlinkage's margin compression and export slowdown Direct
Where we have seen headwinds is with our export business. We had a very heavy dependence on one particular geography in the past years and when that geography slowed down, it has had an overall impact on the export. And that also explains the margin erosion slightly because the export business was at a higher margin.

Revealed a specific reason for margin pressure in Excel and the company's strategy to diversify exports, indicating a shift from a concentrated geography.

Asked by Krisha Kansara

Greaves Electric Mobility IPO update and path to profitability Evasive
As you are aware, we have filed our DRHP, and we are in active conversations. The DRHP does prohibit us in terms of making any forward-looking statements. However, we are in active conversations to try and get the IPO underway fairly soon. I'm afraid that's the best I can share at this point in time.

Highlighted the ongoing uncertainty and lack of specific timelines for the GEML IPO, and management's inability to provide concrete details on its path to profitability due to regulatory constraints.

Asked by Sonal Minhas

Viability of the EV division given Q2 losses and competition Partial
clean mobility solutions is the future. This is very clearly a high-growth industry. And our presence over here, while it may seem small on a national basis and while there has been a reasonable growth in market share v/s last year, I would like to just repeat that we have a very high market share in states like Tamil Nadu... Therefore, there is absolutely no plan to shut down the EV business for any reason whatsoever.

Addressed concerns about the EV division's losses and competitive landscape, reaffirming commitment to the business despite financial challenges, but without specific plans for achieving profitability.

Asked by Arham Gandhi

3 min read 7 chapters

Detailed narrative

Q2 & H1 FY26 Financial Performance Overview

Greaves Cotton reported a robust financial performance for Q2 and H1 FY26. Consolidated revenues for Q2 stood at ₹815 crores, a 16% year-on-year increase, with H1 revenues reaching ₹1,561 crores, also up 16% YoY. Standalone EBITDA for Q2 increased 32% YoY to ₹78 crores, demonstrating a 160 bps margin improvement, while H1 standalone EBITDA grew 44% YoY to ₹152 crores with a 210 bps margin expansion. The company remains net cash positive with a healthy ROCE exceeding 30%.

Introduction of GREAVES.NEXT Strategic Vision

The company unveiled its new strategy, 'GREAVES.NEXT,' aimed at building a trusted future-ready engineering company. This strategy is built on three enduring cornerstones: reliable products, sustainable technologies, and customer-centric innovation. The core businesses will focus on three key areas: Energy Solutions, Mobility, and Industrial Solutions. Management expects this strategy to drive a sustained revenue growth of 16%-20% CAGR for the core businesses over the next 4-5 years, contributing to a FY30 revenue target of ₹15,000 crores.

Greaves Electric Mobility (GEML) Performance

Greaves Electric Mobility reported Q2 revenue of ₹199 crores and H1 revenue of ₹336 crores. The electric 2-wheeler VAHAN volumes grew by 54% YoY in H1 FY26, and L5 3-wheeler VAHAN volumes increased by 9% YoY. The company's market share improved from 3.2% last year to 4.2% this year, with strong regional presence in Tamil Nadu (12%), Bihar (14%), and Orissa (6%). However, the EV business reported a loss of ₹50 crores in Q2, contributing to a reduction in consolidated net worth.

Core Engineering & Genset Business Strength

The Engineering businesses continued their strong momentum, registering a 31% YoY revenue growth in Q2 to ₹406 crores, and 30% growth in H1. The Automotive Engine segment saw a 48% YoY increase in demand, particularly for Euro V+ engines and small commercial vehicles. The genset business grew 24% YoY, supported by expanded distribution and focus on specific customer segments. Investments in multi-fuel gensets and rare-earth-free motors are ongoing, with a partnership with Chara Technologies developing well for L5 applications.

Excel Controlinkage & Export Diversification

Excel Controlinkage reported revenues of ₹57 crores in Q2 and ₹117 crores in H1, maintaining double-digit EBITDA margins. While the domestic business grew well, the export business faced headwinds, with its contribution reducing from 35-40% to just under 20% due to dependence on a concentrated geography. The company is actively working to diversify its export markets and has completed key capex projects for manufacturing and testing electronic components for the marine segment and enhancing rubber components capability.

Financial Position and Capital Allocation

Greaves Cotton remains net cash positive and maintains a robust financial position. The company continues to invest in capacity expansion, modernization, and new product development, focusing on fuel-agnostic products, EV powertrain components, and hybrid systems. Greaves Finance's AUM, including co-lending, grew to ₹380 crores. The company's capital allocation priorities remain consistent: investing in growth businesses, maintaining a strong balance sheet, and delivering shareholder value.

Aftermarket and Retail Segment Performance

Greaves Retail reported a revenue of ₹146 crores, expanding its omnichannel model across Tier 2 and 3 markets. The diesel 3-wheeler spares segment experienced short-term softness due to a decline in the 3-wheeler vehicle parc post-COVID, though it is now stabilizing. The company expects aftermarket business growth to be in the range of 8%-9% in the coming years, driven by the increasing parc of new engine sales. Institutional sales, particularly to railways, grew strongly year-on-year.

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