01 — At a Glance
The 165-Year-Old Engine Company That Still Doesn’t Know What It Wants to Be
- 52-Week High / Low₹245 / ₹132
- Q3 FY26 Revenue₹875 Cr
- FY25 Full Year Revenue₹2,918 Cr
- Q3 FY26 PAT₹5.92 Cr
- Annualised EPS (Q3×4)₹4.40
- Book Value₹59.1
- Price to Book2.28x
- Dividend Yield1.45%
- Debt / Equity0.13x
- FY25 EPS (Full Year)₹4.67
Reality Check: Greaves Cotton posted ₹875 Cr revenue in Q3 FY26 (+17% YoY), ₹5.92 Cr PAT (+26.4% YoY). Nine-month revenue hit ₹2,436 Cr with 16% YoY growth. But here’s the kicker: ROCE is 5.13% (industry median: 26%), the e-mobility subsidiary (GEML) lost ₹200+ Cr in FY25, and the entire company trades at P/E 29.1x. Your guess is as good as mine on valuation logic.
02 — Introduction
A Company in Three Acts. None of Them Great.
Greaves Cotton Limited was founded in 1859. Yes, 1859. That’s 165 years of manufacturing engines—from railway locomotives to the three-wheeler rickshaws that terrorize Indian roads. The company should be boring, profitable, and predictable. But like your uncle who buys a Harley after retirement, Greaves has spent the last five years reinventing itself. Poorly.
In FY24, the company was 61% engines, 23% electric scooters, 9% cables. Today? It’s still roughly the same, but each vertical is fighting for attention and capital like siblings over inheritance. Management calls this “GREAVES.NEXT”—a transformation into a “trusted, innovative, and future-ready engineering solutions company.” Translation: we don’t know what we’re doing, but we’re doing it aggressively across multiple categories.
The numbers are confusing. Revenue grows 16–17% YoY. Profit was negative ₹6 Cr in FY25 (consolidated) but bounced back this quarter. ROCE is 5.13%—lower than your fixed deposit. Yet the stock has lost 40% in one year, rating agencies just downgraded it, and the e-mobility bet (GEML) has burned ₹200 Cr+ cumulatively. But Q3 FY26 shows momentum: standalone margins expanding, core engine business strong, exports picking up. It’s like watching a company argue with itself in real-time.
From the Feb 2026 concall, management is explicit: Energy +21% YoY, Mobility +15% YoY, Industrial +3% YoY. Exports at 14% of revenues. A ₹500–700 Cr capex plan over the next two years. The strategy is clearer than before. The execution is still messy. Let’s dig into the actual numbers and see if there’s a case buried under the chaos.
Concall Highlight: “First full quarter of execution” under GREAVES.NEXT. Management admits Q2 was a strategic reset—portfolio pruning, org redesign. Translation: last quarter was painful; this one should feel better. Spoiler: margins did improve 13 bps standalone.
03 — Business Model: The Tripod That Won’t Stand
Three Businesses. One Stock. Zero Clarity.
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