This article first appeared on GuruFocus .
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Consolidated Revenue:815 crore in Q2, a 60% year-on-year increase; 1,561 crore for H1, reflecting a 16% year-on-year growth.
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Standalone Revenue:552 crore in Q2, an 18% year-on-year growth.
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EBITDA:78% growth in Q2; 152 crore for H1, with a 32% year-on-year increase.
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PBT:75 crore in Q2, reflecting a 44% year-on-year growth for H1.
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EBITDA Margin Improvement:160 basis points in Q2; 210 basis points expansion in H1.
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Engineering Business Revenue Growth:31% year-on-year growth in Q2; 30% growth in H1.
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Automotive Business Growth:48% year-on-year increase, driven by demand for EUR5+ engines.
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Gen Z Business Growth:24% year-on-year growth.
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Retail Revenue:146 crore, with expansion in tier two and three markets.
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Excel Control Linkage Revenue:57 crore in Q2; 117 crore in H1, with double-digit EBITDA margins.
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Electric Mobility Revenue:199 crore in Q2; 336 crore in H1.
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ROC:Remains healthy at 30% plus.
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Net Cash Position:Company remains net cash positive.
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Release Date: November 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Greaves Cotton Ltd ( BOM:501455 ) reported a 60% year-on-year increase in consolidated revenues for the second quarter, reflecting strong growth across its business segments.
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The company remains net cash positive and continues to invest in capacity expansion, modernization, and new product development, ensuring readiness for future growth.
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The electric two-wheeler segment saw a 54% year-on-year increase in volumes, with significant market share gains in key regions such as Tamil Nadu, Bihar, and Orissa.
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Greaves Cotton Ltd's Gen Z business witnessed a 24% growth, driven by reliable products and a widening customer reach.
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The company is investing in advanced technologies, such as multi-fuel gensets and rare earth-free motors, to enhance sustainability and cost efficiency.
Negative Points
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The export business for Excel Control Linkage has faced challenges due to heavy dependence on a single geography, leading to a reduction in export contribution from 35-40% to under 20%.
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The retail segment has not shown substantial growth in recent quarters, with a decline in the volume of the auto aftermarket spares and service business.
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The electric mobility division reported a loss of 50 crores in the quarter, impacting the overall profitability of the company.
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The company faces challenges in the electric vehicle market, with a current market share of 4%, making it difficult to compete with larger players like Ola and Bajaj.
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There is a concern about the increase in long-term debt, which rose from 60 crores to 142 crores, primarily due to additional loans taken for the EV finance side.
Q & A Highlights
Q: What is the reason behind the slowdown and margin compression in Excel Control Linkage? A: Parag Satpute, Group CEO, explained that the core business with heavy commercial vehicle OEMs in India is strong and growing. The slowdown and margin compression are due to a heavy dependence on one export geography, which slowed down, impacting overall exports and margins. Efforts are underway to diversify the export business, but it will take a few quarters for new global business to materialize.
Q: What is driving the growth in the genset segment, and what is the volume and price growth breakdown? A: Parag Satpute stated that the main growth in the genset business comes from the domestic market, driven by an expanded distribution network and a focus on segments where their products fit well. The growth is not solely from exports. The company is also improving aftermarket activities and service, which drives revenue and builds customer confidence.
Q: Can you provide more clarity on the partnership with Chara Technologies and the expected revenue and margins? A: Parag Satpute mentioned that the partnership with Chara Technologies is progressing well, with advanced trials underway. They expect to commercialize the product soon, which will help diversify into a new, exciting space. The company aims to maintain stable EBITDA levels while growing the top line by 16-20% CAGR.
Q: What is the path to profitability for the electric mobility business, and how does it compare to listed peers? A: Vikas Singh, Managing Director of Greaves Electric Mobility, explained that the electric mobility industry requires significant initial investments, similar to the telecom industry 20 years ago. There are initiatives underway to ensure a clear path to profitability, but specific details cannot be shared due to DRHP constraints.
Q: What is the management's plan for the electric vehicle division, given the current market share and competition? A: Vikas Singh emphasized that clean mobility solutions are the future, and the company is committed to the EV business. Despite a small national market share, they have significant shares in key states like Tamil Nadu, Bihar, and Orissa. There are no plans to shut down the business, and they are confident in the future of their EV portfolio.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
