1. Opening Hook
So, Greaves Cotton wants to go from making diesel engines to crafting “future-ready engineering ecosystems.” Bold. Especially when most people still think of them as the kings of 3-wheeler engines that sounded like lawnmowers. Now with a plan namedGREAVES.NEXT, they’re talking sustainability, energy solutions, and… sensors? Somewhere, James Dyson just smiled.
And oh, their EV arm filed a DRHP with SEBI. Translation: they want public money to electrify your commuteandtheir balance sheet. Stick around — the numbers get real, and the sarcasm earns interest later.
2. At a Glance
- Revenue up 16%– Management calls it “broad-based growth.” Economists call it “finally catching up.”
- EBITDA up 32%– Efficiency, or Excel sheet aerobics? You decide.
- Standalone PBT up 44%– CFO officially declared the calculator her spirit animal.
- Margins up 210 bps– Someone found the cost-cutting memo this time.
- ROCE above 30%– That’s not Return on Capital Employed; that’s Return on Cautious Expansion.
- Net worth dipped ₹100 crore– EV losses said “Hello darkness, my old friend.”
3. Management’s Key Commentary
Parag Satpute (MD & CEO):“Our diversified portfolio gives us resilience in a dynamic environment.”(Translation: Diesel’s still paying rent while we dream of electric sunsets.)😏
Vikas Singh (MD, Greaves Electric):“VAHAN volumes grew 54% YoY. Market share up from 3.2% to 4.2%.”(Cool. But Ola sneezes and eats 10% market share before breakfast.)
Akhila Balachandar (CFO):“We remain net cash positive with ROCE above 30%.”(That’s CFO-speak for: ‘We’re solvent, stop asking about the EV losses!’)
Parag again:“Introducing GREAVES.NEXT — our future-ready transformation strategy.”(Cue inspirational music, corporate jargon, and mild investor confusion.)
Vikas Singh:“We’re the first OEM to fully transition to LFP battery technology.”(Because nothing says innovation like finally catching up to China.)
Akhila:“We’ve taken debt to grow our finance arm; it’s all well-managed.”(Ah yes, debt — that necessary evil masquerading as ‘leverage’.)
Parag:“We aim for 16–20% CAGR organically
by FY30.”(Translation: Please don’t hold us to that in FY28.)
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Growth | Comment |
|---|---|---|---|
| Consolidated Revenue | ₹815 Cr | +16% | Solid, not spicy. |
| Standalone Revenue | ₹552 Cr | +18% | Engines kept it alive. |
| EBITDA | ₹78 Cr | +32% | Grease working well. |
| PBT | ₹75 Cr | +44% | Cost magic, not miracle. |
| Excel Controlinkage Revenue | ₹57 Cr | +— | Margins cooling. |
| EV Revenue | ₹199 Cr | +50% | Growth on paper, losses on books. |
| ROCE | 30%+ | — | CFO flexes this number every slide. |
Exports form double-digit revenue; domestic demand is steady. Diesel still pays the bills, EVs still pay the penalties.
5. Analyst Questions
Q:“Excel margins fell — why?”A:“Exports slowed. One geography tanked, we’re diversifying.”(Geography unnamed, probably Europe catching a cold.)
Q:“Retail sales flat?”A:“Aftermarket lag, diesel parc recovering.”(Translation: mechanics aren’t that busy yet.)
Q:“EV losses — will you shut that unit?”A:“Absolutely not.”(Translation: we’ll keep losing till it turns profitable or poetic.)
Q:“FY30 ₹15,000 Cr target realistic?”A:“Yes, via 16–20% CAGR + M&A + optimism.”(Investor eyes the math suspiciously.)
6.
