Greaves Cotton

Greaves Cotton delivered a robust Q3 FY26, with consolidated revenues growing 17% year-on-year to ₹875 crores. For the first nine months of FY26, consolidated revenue reached ₹2,436 crores, up 16% YoY. Standalone performance also saw significant improvement, with Q3 revenue at ₹575 crores (up 14% YoY) and EBITDA at ₹78 crores (up 18% YoY), leading to a 13 basis points margin expansion. The 9-month standalone PBT grew 33% YoY to ₹226 crores, accompanied by a 150 basis points margin expansion, driven by strong demand and cost optimization.

The company's 'GREAVES.NEXT' strategy, focused on building a trusted, innovative engineering solutions company, is firmly in execution. This quarter saw a focus on strengthening core businesses across three priority areas: energy solutions, mobility solutions, and industrial solutions. Energy solutions grew 21% YoY in 9M FY26, with aftermarket and service growing 40%. Mobility solutions grew 15% YoY, while industrial solutions saw a more muted 3% YoY growth. Exports contributed 14% of revenues in 9M FY26, reflecting consistent global traction.

Greaves Electric Mobility (GML) continued its strong momentum in Q3 FY26. VAHAN volumes for electric two-wheelers grew 40% quarter-on-quarter to over 18,000 units, improving market share from 4.1% in Q2 to 5% in Q3 FY26. The company has now crossed 2.5 lakh cumulative sales. In the three-wheeler segment, L5 VAHAN volumes grew 33% QoQ, and diesel L5 three-wheeler sales increased 18% YoY, demonstrating balanced growth across powertrains. The focus remains on disciplined and profitable growth, with expansion in North and West India.

Greaves Cotton plans to earmark ₹500-700 crores over the coming years for new technologies, product development, and capacity expansion, specifically for its core businesses (energy, mobility, industrial solutions). These investments will be front-loaded in the first two years. The company maintains a strong balance sheet with approximately ₹250 crores of cash on books and expects to fund these CAPEX plans internally through operating cash generation. Greaves Electric Mobility's IPO aims to raise approximately ₹1,000 crores via a primary issue to fund its growth aspirations.

The outlook for India's genset market remains robust, with an expected demand growth of 10-12% CAGR over the next 5 years. The auto industry is projected to grow 6-8% in 2026. While the 3-wheeler segment is seeing a shift to CNG and EVs, diesel is expected to retain an 18-20% market share in the medium term. Greaves is actively pursuing inorganic growth opportunities (M&A and JVs) synergistic with its three core business areas to further diversify its portfolio and accelerate growth beyond the 16-20% organic CAGR target.

Excel Controlinkage experienced slower overall growth due to softer exports, particularly impacted by geopolitical factors affecting a large customer in Russia. However, the domestic OEM business within Excel Controlinkage showed strong growth, increasing by 17% year-on-year for the first 9 months of FY26. The company is actively working to open new export markets, especially in Europe, to mitigate geopolitical risks and capitalize on improved trade conditions between Europe and India.