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    Greaves Cotton

    GREAVESCOTGood
    Capital Goods·30 Apr 2025
    Management Summary

    Greaves Cotton reported strong financial and operational performance in Q4 and FY25, driven by diversification and strategic acquisitions. Consolidated revenues for Q4 FY25 reached ₹823 crores, with full-year revenues at ₹2,918 crores. Profitability improved, with combined EBITDA margins at 16.4% for Q4 and 15% for FY25. The company is focused on sustainable growth, operational excellence, and capital efficiency, supported by a healthy balance sheet with ₹379 crores in standalone cash reserves.

    Highlights

    8
    • Q4 FY25 Consolidated Revenues: ₹823 crores

    • FY25 Consolidated Revenues: ₹2,918 crores

    • Q4 FY25 Combined EBITDA (GCL + Excel): ₹107 crores, margin 16.4%

    • FY25 Combined EBITDA (GCL + Excel): ₹338 crores, margin 15%

    • Greaves Cotton Standalone Revenue Q4 FY25: ₹573 crores, up 19% YoY

    • Greaves Cotton Standalone Revenue FY25: ₹1,988 crores, up 12% YoY

    • Electric Mobility division FY25 revenues: ₹659 crores

    • Electric two-wheeler market share Q4 FY25: 4.3%, up from 3.4% QoQ

    What Changed2

    vs Q1 FY26

    Guidance items5 → 7 (+2)Risks discussed5 → 3 (-2)

    Key financials

    Single quarter

    16 metrics
    1. 01Consolidated Revenue₹823 Cr
    2. 02Consolidated Revenue₹2,918 Cr
    3. 03GCL Standalone Revenue₹573 Cr+19%YoY
    4. 04GCL Standalone Revenue₹1,988 Cr+12%YoY
    5. 05Excel Controlinkage Revenue₹75 Cr+15%YoY

    Segment breakdown

    Engineering Division
    14.0% Revenue Growth4% Genset Market Share
    Retail Division
    7.0% Revenue Growth
    Electric Mobility Division
    7.4% Revenue Growth10% e2-wheeler Volume Growth61% L5 Segment Volume Growth3.7% L5 Diesel Segment Market Share4.3% e2-wheeler Market Share3.4% e2-wheeler Market Share QoQ
    List

    Guidance & targets

    7
    CategoryTargetPriority
    Revenue
    Group Topline
    ₹15,000 crores
    High
    Capex
    Excel Controlinkage Capex
    ₹100 crores
    High
    Capex
    Internal Growth Capex
    ₹100 crores
    High
    Capacity
    Excel Controlinkage Turnover
    3x current turnover
    High
    Subsidy
    EV 2-wheeler Subsidy
    ₹2,500 per kWh, capped at ₹5,000 per vehicle
    High
    Subsidy
    EV L5 3-wheeler Subsidy
    ₹5,000 per kWh, capped at ₹25,000 per vehicle
    High
    Subsidy
    EV Subsidy Scenario
    Non-subsidy environment
    Medium

    Risks & concerns

    6
    RiskSeverity

    Regulatory approvals for Greaves Electric Mobility IPO (DRHP)

    The proposed IPO is subject to receipt of regulatory approvals from SEBI, market conditions, and other commercial considerations.Management acknowledged

    medium

    External uncertainties

    Management remains optimistic about the future while acknowledging external uncertainties.Management acknowledged

    low

    EV subsidy framework changes / non-subsidy scenario

    Management is looking forward to a non-subsidy scenario next year, implying potential impact on EV business if products cannot compete on value proposition alone.Both acknowledged

    medium

    Areas of Evasion(3)

    • EV business profitability and EBITDA breakeven
    • specific burn rate for EV business
    • post-IPO shareholding structure

    Q&A highlights

    3

    “Going forward on the profitability part, as you are aware, we are waiting regulatory clearances from SEBI on our DRHP. So, I think I would constrain myself from giving any forward-looking statements as we have already mentioned it in our DRHP in detail.”

    Management explicitly declined to comment on EV profitability and EBITDA breakeven due to DRHP filing, which is a key area of interest for investors.

    asked by Tushar Bohra

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Q4 and FY25 Performance

    Greaves Cotton delivered robust financial results for Q4 and the full year FY25. Consolidated revenues for Q4 FY25 stood at ₹823 crores, with full-year revenues reaching ₹2,918 crores. The combined EBITDA for Greaves Cotton and Excel Controlinkage was ₹107 crores in Q4, achieving a margin of 16.4%, and ₹338 crores for FY25 with a 15% margin, reflecting improved cost structure and operating leverage. The standalone business also showed strong growth, with revenues up 19% YoY in Q4 to ₹573 crores and 12% YoY for FY25 to ₹1,988 crores.

    02

    Diversified Growth Across Verticals

    The company's transformation strategy and portfolio diversification continue to drive growth. The Engineering and Retail divisions grew annually by 14% and 7% respectively in FY25. Greaves Engineering saw dominant growth from non-automotive applications, particularly gensets, where market share improved to around 4%. Excel Controlinkage, a strategic acquisition, contributed ₹75 crores to Q4 revenues (up 15% YoY) and ₹268 crores to full-year revenues, demonstrating strong performance.

    03

    Electric Mobility Division's Progress

    The Electric Mobility division posted revenues of ₹659 crores for FY25, with e2-wheeler volumes growing 10% YoY and L5 segment volumes up 61% YoY. The division's electric two-wheeler market share increased from 3.4% in Q3 FY25 to 4.3% in Q4 FY25, driven by new model launches like Magnus Neo. Management noted strong market share in specific states, such as 15% in Tamil Nadu, and is actively working to expand market share in other regions.

    04

    Strategic Investments and Capital Efficiency

    Greaves Cotton maintains a strong financial position with ₹379 crores in standalone cash reserves and a near-zero debt balance sheet. The company reported a healthy 19% Return on Capital Employed for FY25. Management plans to outlay approximately ₹100 crores in capex for internal growth in the coming year, in addition to ongoing de-bottlenecking initiatives at Excel Controlinkage, where a ₹100 crore capex plan over 3-4 years aims for a 3x turnover.

    05

    Long-Term Vision and Future Outlook

    The Board has set an ambitious vision to achieve ₹15,000 crores in group topline by 2030 through a blend of organic growth and strategic acquisitions. While management is constrained from discussing EV profitability due to DRHP filing, they anticipate a non-subsidy scenario for EVs next year, focusing on product value proposition. Initiatives in hydrogen powertrain, aerospace, and defence are in early stages, with Excel already contributing to these areas, indicating future diversification.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.