Greaves Cotton surges as Q2 revenue jumps 44% YoY

Greaves Cotton surged 8.55% to Rs 202.77 after the company reported a 44.2% year-on-year increase in consolidated revenue from operations to Rs 1,175.91 crore in Q2 FY27.

Strong growth across its core businesses and improving performance in its electric mobility business supported the quarterly performance.

Revenue increased 20.72% sequentially from Rs 974.12 crore in Q1 FY27. Adjusted net profit stood at Rs 17.53 crore, down 34.44% year on year from Rs 26.74 crore. It declined 31.98% quarter on quarter from Rs 25.77 crore.

EBITDA increased 43% year on year to Rs 73 crore from Rs 51 crore. However, EBITDA margin moderated to 6.2% from 6.3% a year earlier.

Business profit before tax, excluding exceptional and one-off items, rose 44% year on year to Rs 44 crore from Rs 31 crore. Business PBT margin remained at 3.8%.

Reported profit before tax stood at a loss of Rs 15.91 crore, compared with a profit of Rs 26.95 crore in Q2 FY26. The company reported exceptional and one-off items of Rs 60 crore during the quarter.

Total expenditure increased 46.2% year on year to Rs 1,155.77 crore from Rs 790.53 crore. Raw material consumed rose 59.69% to Rs 832.71 crore, while employee expenses increased 4.42% to Rs 105.17 crore. Interest costs rose 199.59% to Rs 14.47 crore, and depreciation increased 97.48% to Rs 53.22 crore.

Managing director and group CEO Parag Satpute said the company delivered strong growth across its core businesses, supported by its diversified portfolio and progress under the GREAVES.NEXT strategy. He highlighted investments in technology, engineering capabilities, product development and international expansion.

The Energy Solutions business recorded 36% year-on-year revenue growth in Q2 FY27, supported by demand in the domestic diesel genset market. Its MHP genset portfolio grew 35% in H1 FY27, while the aftermarket business expanded 15%.

Mobility Solutions reported 23% year-on-year growth during the quarter. Engineered Components revenue increased 30%, supported by domestic and export demand. The business secured new export orders, including from Tata Motors Indonesia, and launched the G470 diesel engine.

Greaves Electric Mobility recorded strong growth across its electric two-wheeler and three-wheeler businesses. Ampere electric two-wheeler VAHAN registrations increased 114% year on year in Q2 FY27, while L5 electric three-wheeler registrations rose 74%. Its consolidated revenue more than doubled to Rs 410 crore from Rs 199 crore, representing 106% growth. EBITDA losses halved year on year. The business also expanded its dealer network by 31% to over 600 touchpoints.

Greaves Finance's assets under management increased 65% year on year to Rs 630 crore. The company launched an L5 electric three-wheeler leasing product and raised Rs 110 crore in debt to support its expansion.

Satpute said the company would prioritise margin recovery, operational excellence and disciplined capital allocation in the coming quarters. It also plans to strengthen its international presence and focus on higher-value customer solutions to improve earnings and returns.

Greaves Cotton is a diversified engineering company operating across Energy Solutions, Mobility Solutions and Industrial Solutions. It focuses on precision engineering, technology development and sustainable customer solutions. The company manufactures single-cylinder diesel engines and has businesses in electric two- and three-wheelers through Greaves Electric Mobility and EV financing through Greaves Finance. Its strategy centres on strengthening existing businesses, developing new capabilities and expanding into new markets.

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