Greaves Cotton Ltd Q3 FY26 – ₹875 Cr Revenue, EV Dreams, Diesel Reality & a 35x Patience Test

1. At a Glance

Greaves Cotton is that uncle who ran diesel engines for decades, suddenly discovered EVs, bought a startup, added cables, and now tells everyone he’s “future-ready.” On paper, Q3 FY26 looks decent: ₹875 Cr quarterly revenue (+17% YoY) and ₹5.9 Cr PAT, which is… progress, not a party. The stock sits at ₹169, market cap ₹3,929 Cr, after politely destroying ~42% shareholder wealth in one year. ROCE is a sleepy ~5%, ROE barely wakes up at ~4%, while valuation clocks ~35x earnings (yes, we’ll recalc it properly, don’t worry).

Segment-wise, engines still pay the bills (~61% of FY24 revenue), EVs contribute ~23%, cables/levers quietly sneak in ~9%, and “Others” is the miscellaneous drawer at ~7%. Debt is modest (₹185 Cr), promoter holding steady (~55.8%), dividends still alive (~1.2% yield). Sounds balanced? Or confused? Hold that thought.

2. Introduction

Greaves Cotton is a case study in Indian corporate midlife crisis. Once the king of small diesel engines and 3W powertrains, it woke up one day to the EV revolution, FAME subsidies, ESG slides, and suddenly decided: “Hum bhi karenge.”

So now Greaves is:

• Still selling diesel engines
• Trying to be electric (Ampere, Eltra)
• Manufacturing cables and control levers
• Financing EVs
• Offering aftermarket services

Basically, a diversified thali… except the margins don’t know which cuisine they belong to.

Q3 FY26 tells us one thing clearly: the core engine business is stable, EV is struggling post-subsidy, and valuation is assuming a comeback montage that hasn’t started yet. The market wants Greaves to become Cummins + Ola + Bosch, but current financials scream “steady PSU energy.”

Is this a turnaround story? A slow compounder? Or a classic “theme stock hangover”? Let’s open the bonnet.

3. Business Model – WTF Do They Even Do?

1️⃣ Engines – Old School, Still Paying Rent

This is Greaves’