Greaves Cotton

Greaves Cotton reported a robust Q3 FY25, with consolidated revenues reaching Rs. 751 crore. The standalone Greaves Cotton business grew by 13% to Rs. 502 crore. Both Engineering and Retail segments demonstrated strong year-on-year growth of 14% and 13% respectively, while Greaves Electric Mobility contributed Rs. 184 crore. The company's strategic pivot towards diversification is yielding results, with EBITDA margins for GCL plus Excel at a healthy 15% plus, and standalone profitability for Q3 at Rs. 67 crore, and Rs. 176 crore for 9M FY25.

The Engineering business delivered double-digit revenue growth in Q3 FY25, driven by a significant over 30% increase in revenues from non-automotive applications. This reflects a successful diversification away from a near 100% reliance on automotive diesel engines a few years ago. The company expanded its Genset dealer network, increasing market share from less than 3% to nearly 4%, and exports now constitute around 10% of revenues. The Shendra plant also received AS9100D certification for aerospace components, indicating advanced manufacturing capabilities.

Greaves Retail achieved Rs. 159 crore in revenue for Q3, marking a 13% year-on-year growth. The segment maintains its position among the top two players in the three-wheeler parts aftermarket and is making significant strides in electric three-wheeler aftermarket parts. The company has built a strong ecosystem with 250 distributors, over 10,000 retailers, and 25,000 mechanics, and its Greaves Care Services franchising operations now include 225+ outlets, increasingly enabled for electric two- and three-wheelers.

Greaves Electric Mobility (GEML) filed a draft red herring prospectus (DRHP) with SEBI on December 23, 2024, for a proposed IPO to fund technology development, capacity expansion, and inorganic growth. In Q3 FY25, GEML achieved a 3.4% market share in the E-two-wheeler segment, reclaiming the fifth position in December 2024, and increased its L5 diesel segment market share to 3.7% from 1.2% in FY24. New products like the 'Magnus Neo' and 'Ampere Nexus' were launched, with the latter capable of charging in 3.3 hours.

The company maintains a strong financial position with near-zero debt and robust cash reserves of Rs. 503 crore, positioning it well for future growth. Management reiterated its ambitious target of achieving Rs. 15,000 crore in revenue by 2030, supported by a 9M FY22-9M FY25 CAGR of 18%. For the current fiscal year, Greaves Cotton and Excel plan to spend approximately Rs. 100 crore on capex, focusing on de-bottlenecking and strategic initiatives. The company also confirmed its path to 100% ownership of Excel Controlinkage as per existing agreements.

Greaves Cotton is actively pursuing a fuel-agnostic strategy, expanding its product portfolio to include multi-fuel solutions and electric powertrains. The company showcased a hydrogen engine concept at the Bharat Mobility Expo, demonstrating its engineering know-how for future fuel platforms. Diversification into light construction equipment (mini excavators, scissor lifts) with electrification possibilities, and leveraging Excel's capabilities for HCV and construction equipment aftermarket parts, are key growth areas. The genset business is also expected to report strong numbers from Q1 FY26.