💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 16% YoY to INR 815 Cr in Q2 FY26. Standalone revenue grew 18% YoY to INR 552 Cr. Engineering business grew 31% YoY to INR 406 Cr. Automotive business grew 48% YoY. Genset business grew 24% YoY. Electric Mobility revenue was INR 199 Cr for Q2 FY26 and INR 336 Cr for H1 FY26. Excel Controlinkage reported INR 57 Cr in Q2 and INR 117 Cr in H1 FY26.

Geographic Revenue Split

Domestic revenue is driven by expansion in Tier 2 and Tier 3 markets through Greaves Retail. International revenue is supported by strong export demand, specifically Euro V+ engines for European automotive OEM partnerships like Ligier. Specific percentage split by region is not disclosed in available documents.

Profitability Margins

Standalone EBITDA margin improved by 160 bps to 14.2% in Q2 FY26. H1 FY26 standalone EBITDA margin expanded by 210 bps to 13.9%. Combined GCL and Excel EBITDA margin stood at a robust 15% plus. Electric Mobility reported an EBIT loss of INR 50 Cr in Q2 FY26, while other segments reported over INR 100 Cr EBIT.

EBITDA Margin

Standalone EBITDA was INR 78 Cr in Q2 FY26, up 32% YoY, resulting in a 14.2% margin. H1 FY26 standalone EBITDA was INR 152 Cr. The margin expansion is driven by ongoing cost optimization initiatives and a favorable product mix in the engineering and automotive segments.

Capital Expenditure

The company is undertaking capex in the Excel Controlinkage segment to address capacity needs. Specific historical and planned INR Cr values for total group capex are not disclosed in available documents.

Credit Rating & Borrowing

The company is net debt positive. Standalone debt is NIL. Consolidated total debt stood at INR 142 Cr as of Sept-25, primarily long-term. Specific credit ratings and interest rate percentages are not disclosed in available documents.

⚙️ Operational Drivers

Raw Materials

Not disclosed in available documents. The company mentions ongoing cost optimization and operational efficiencies as key drivers for margin improvement.

Capacity Expansion

The company is expanding capacity in the Excel Controlinkage segment to cater to order books. It is also developing contract manufacturing capabilities to serve OEMs. Specific MT/unit capacity figures are not disclosed.

Raw Material Costs

Not disclosed in available documents. Management highlights that cost discipline and working capital efficiency are yielding results in margin enhancement.

Manufacturing Efficiency

Operational efficiencies are driving cash improvement. Standalone net cash stood at INR 187 Cr and consolidated net cash at INR 257 Cr as of Sept-25.

Logistics & Distribution

Greaves Retail is expanding its omnichannel model across Tier 2 and 3 markets to improve customer reach and distribution efficiency.

📈 Strategic Growth

Expected Growth Rate

16-20%

Growth Strategy

The GREAVES.NEXT strategy focuses on three dimensions: 1) Accelerating the core engineering and retail businesses; 2) Building new muscle through contract manufacturing and industrial solutions; 3) Expanding into new horizons via strategic M&A and global partnerships. The company aims for a balanced portfolio led by energy solutions by FY30.

Products & Services

Euro V+ engines, 3-wheeler auto engines, gensets, non-automotive engines, electric 2-wheelers (E2W), engine spare parts through retail, and vehicle financing through Greaves Finance.

Brand Portfolio

Greaves, Greaves Cotton, Greaves Retail, Greaves Electric Mobility, Greaves Finance, Excel Controlinkage.

New Products/Services

New product launches in the Electric Mobility division and Euro V+ engines for European microcars are key contributors. The company is also expanding into adjacent industrial solution categories.

Market Expansion

Expansion into Tier 2 and 3 markets in India via Greaves Retail and increasing global footprint through exports and partnerships in Europe.

Market Share & Ranking

E2W (Electric 2-Wheeler) market share climbed to 4.2% in H1 FY26 from 3.2% YoY.

Strategic Alliances

Partnership with Ligier (European Microcar Company) for engine supply. Acquisition of an additional 10% stake in Excel Controlinkage, bringing total shareholding to 80%.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable mobility and fuel-agnostic technologies. Greaves is positioning itself as a future-ready engineering company, transitioning from a single-product player to a diversified multi-business entity.

Competitive Landscape

In the EV segment, the company competes with Ola, Bajaj, and Ather. In the engine segment, it maintains a strong position through OEM partnerships.

Competitive Moat

Durable advantages include a robust aftersales network, deep market reach in Tier 2/3 cities, and a strong engineering DNA. These are sustainable due to the high entry barriers in establishing a nationwide service and retail network.

Macro Economic Sensitivity

The business is sensitive to general macro-economic and governmental regulatory trends, particularly in the automotive and EV sectors.

Consumer Behavior

Increasing consumer demand for electric mobility and sustainable energy solutions is driving the growth of the E-Mobility and Energy Solutions divisions.

Geopolitical Risks

Trade barriers or regulatory changes in European markets could impact the export of Euro V+ engines.

⚖️ Regulatory & Governance

Industry Regulations

Operations are affected by emission norms (e.g., Euro V+ standards) and EV regulations. The company has filed a DRHP for an IPO of its electric mobility subsidiary, subject to regulatory approvals.

Environmental Compliance

The company has undertaken tree plantation initiatives for carbon sequestration and is focusing on sustainable technologies to meet environmental standards.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the path to profitability for the EV division, which currently reports losses (INR 50 Cr EBIT loss in Q2). Success depends on the upcoming IPO and market share gains against well-funded competitors.

Geographic Concentration Risk

Significant revenue is concentrated in the Indian market, with growing exposure to the European microcar market.

Third Party Dependencies

Dependency on European OEM partners like Ligier for automotive engine exports.

Technology Obsolescence Risk

Risk of internal combustion engines (ICE) becoming obsolete is being mitigated by the transition to electric mobility and fuel-agnostic engineering solutions.

Credit & Counterparty Risk

Greaves Finance manages an AUM of INR 380 Cr, involving credit risk from co-lending and vehicle financing.