Greaves Cotton

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%.

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 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.

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 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.

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.

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.