Greaves Cotton Limited — Q3 FY26 earnings call

Call held 6 Feb 2026

Management summary

Greaves Cotton delivered a strong and steady performance in Q3 FY26, with consolidated revenues growing 17% YoY and margins expanding across core and investee businesses. The 'GREAVES.NEXT' strategy, focusing on energy, mobility, and industrial solutions, showed early success, particularly in energy solutions and electric mobility. The company remains confident in its organic growth targets and is making strategic investments while maintaining a strong balance sheet.

Highlights

  • Consolidated revenues for Q3 FY26 stood at ₹875 crores, increasing 17% year-on-year.

  • 9-month FY26 consolidated revenue reached ₹2,436 crores, reflecting a 16% year-on-year growth.

  • Standalone EBITDA for Q3 FY26 was ₹78 crores, an 18% year-on-year increase, with a 13 basis points margin improvement.

  • 9-month FY26 standalone PBT grew 33% year-on-year to ₹226 crores, with a 150 basis points margin expansion.

  • Greaves Electric Mobility (GML) VAHAN volumes for 2-wheelers grew 40% quarter-on-quarter to over 18,000 units.

  • GML's 2-wheeler market share improved from 4.1% in Q2 to 5% in Q3 FY26.

  • Energy solutions segment delivered 21% year-on-year growth in the first 9 months of FY26, with aftermarket and service growing 40%.

  • Greaves Finance's managed AUM crossed ₹441 crores as of December 2025.

Key financials

2 periods

Headline

  • Consolidated Revenue
    ₹875 Cr
    YoY +17%
  • Standalone Revenue
    ₹575 Cr
    YoY +14%
  • Standalone EBITDA
    ₹78 Cr
    YoY +18%
  • Standalone EBITDA Margin
    —
  • Standalone PBT
    ₹74 Cr

9M

  • Consolidated Revenue
    ₹2,436 Cr
    YoY +16%

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

  • Energy Solutions (9M FY26)
    21% Revenue Growth40% Aftermarket & Service Growth
  • Mobility Solutions (9M FY26)
    15% Revenue Growth
  • Industrial Solutions (9M FY26)
    3% Revenue Growth
  • Greaves Electric Mobility (Q3 FY26)
    18,000 units 2W VAHAN Volumes40% 2W Volume Growth5% 2W Market Share33% L5 3W VAHAN Volumes Growth18% Diesel L5 3W Sales Growth
  • Greaves Finance (Dec 2025)
    ₹441 Cr Managed AUM

Guidance & targets

Revenue Growth

  • Organic Growth Revenue Growth · CAGR · High confidence 16-20%
    Looking ahead, we remain confident in achieving our targeted growth of 16% to 20% CAGR in organic growth, and this will be driven by accelerating our core strengths, building new capabilities, and selectively expanding into adjacency.

    — Parag Satpute, MD & Group CEO

Capex

  • New Technologies, Product Development, Capacity Expansion Capex · Over the coming years · Medium confidence 500-700 crores
    Over the coming years, we have earmarked 500 to 700 crores towards new technologies, product development, and capacity expansion.

    — Parag Satpute, MD & Group CEO

  • Core Business Capex Capex · Next few years · High confidence 500-700 crores
    These 500 to 700 crores that we talk about is for the core business of Greaves Cotton, which in these three segments we talk about in energy solutions, mobility solutions and industrial solutions.

    — Parag Satpute, MD & Group CEO

Greaves Electric Mobility IPO

  • Primary Issue Amount Greaves Electric Mobility IPO · High confidence 1,000 crores
    And if you have read through the documents, we will be raising approximately a primary of 1,000 crores, which will be utilized for funding the growth aspirations of Greaves Electric Mobility.

    — Akhila Balachandar, CFO

Market Outlook - Genset

  • India's Genset Market Demand Growth Market Outlook - Genset · Next 5 years · Medium confidence 10-12% CAGR
    So, the outlook for India's genset market remains robust and we expect a demand growth of 10% to 12% CAGR in the next 5 years.

    — Parag Satpute, MD & Group CEO

Market Outlook - Auto Industry

  • Auto Industry Growth Market Outlook - Auto Industry · 2026 · Medium confidence 6-8%
    Here, from a market perspective, the auto industry is expected to grow 6% to 8% in 2026 and it is supported strongly by GST 2.0 and the easing monetary conditions.

    — Parag Satpute, MD & Group CEO

Market Outlook - Diesel 3W

  • Diesel Market Share (3-wheeler segment) Market Outlook - Diesel 3W · Medium term · Medium confidence 18-20%
    And we see that diesel will still hold an 18% to 20% market share and it has continued to do so in the first 9 months of this year. So, this remains a meaningful opportunity for us in the medium term.

    — Parag Satpute, MD & Group CEO

Risks & concerns

  • Geopolitical factors impacting exports

    medium

    Exports for Excel Controlinkage were impacted by geopolitical factors, especially demand from a large customer in Russia, but domestic business remains strong.

    Management acknowledged

  • Gradual decline in diesel engine market share

    medium

    While EV adoption accelerates, diesel will still hold 18-20% market share in 3-wheelers in the medium term, with a gradual decline expected over 5-7 years.

    Management acknowledged

Areas of evasion (4)

  • Greaves Electric Mobility's cash breakeven timeline
  • Exact ESOP costs for Greaves Cotton
  • Detailed subsidiary-wise revenue and EBITDA
  • Greaves Electric Mobility's post-IPO equity structure

Q&A highlights

1 direct, 1 evasive
Greaves Electric Mobility (GEM) cash breakeven and IPO funding Partial
But given the stage where we are on the road to IPO, I would not be able to comment any further on that. Over a period of time, definitely all your questions will get answered.

Analyst sought clarity on GEM's path to profitability and funding, but management deferred specific details due to the ongoing IPO process, indicating a lack of immediate transparency on a key subsidiary's financial health.

Asked by Dhruv Zobalia

Greaves Electric Mobility (GEM) post-IPO structure and valuation Evasive
The intention is it will definitely remain a large shareholder. But all those are outcomes which only post-IPO one can really give a definitive answer. So, I will hold myself to them.

Analyst inquired about the future relationship and valuation of GEM post-IPO, but management avoided a direct answer, stating it's premature, which leaves investors uncertain about the long-term structure and value realization.

Asked by Zakir Nasser

Scope and funding of the 500-700 crores CAPEX plan Direct
These 500 to 700 crores that we talk about is for the core business of Greaves Cotton, which in these three segments we talk about in energy solutions, mobility solutions and industrial solutions. ... This is from internal. ... We are comfortable that we will be able to fund this internally.

Analyst sought clarification on whether the significant CAPEX was for the core business or the loss-making EV subsidiary, and how it would be funded. Management provided a clear answer, confirming it's for the core business and will be funded internally, which is crucial for understanding capital allocation.

Asked by Nilesh Doshi

3 min read 6 chapters

Detailed narrative

Strong Q3 FY26 Performance and Margin Expansion

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.

GREAVES.NEXT Strategy Execution and Core Business Growth

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's Sustained Momentum

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.

Capital Allocation and Investment Plans

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.

Market Outlook and Diversification Efforts

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 Performance and Geopolitical Headwinds

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.

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