Greaves Cotton reported a 31% year-on-year increase in consolidated revenue to ₹974.12 crore for the quarter ended June 30, 2026, driven by robust demand in its engineering businesses and significant volume growth in electric mobility. However, consolidated profit after tax (PAT) declined sharply by 70% to ₹6.16 crore from ₹20.85 crore in the corresponding period of the previous year, reflecting margin compression from higher commodity costs and continued investment losses in its electric vehicle subsidiary. The Board of Directors approved the unaudited standalone and consolidated financial results on August 4, 2026, following review by the Audit Committee on August 3, 2026.

The filing, submitted pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, includes a limited review report from statutory auditors Price Waterhouse Chartered Accountants LLP. Parag Satpute, MD & Group CEO, attributed the performance to strong execution despite supply chain pressures. The company also incorporated Greaves International Trading FZE in Dubai to accelerate growth in the Middle East and Africa markets.

Financial Performance

Consolidated revenue from operations stood at ₹974.12 crore, up from ₹745.43 crore in Q1FY26. While top-line growth was strong, profitability faced headwinds. Consolidated EBITDA was ₹64.88 crore (margin 6.7%), slightly down from ₹65.53 crore (margin 8.7%) in the previous year’s corresponding quarter. Operating profit before tax fell 38% to ₹27.05 crore, compared to ₹43.54 crore in Q1FY26. Consolidated PAT dropped to ₹6.16 crore from ₹20.85 crore.

On a standalone basis, revenue rose 16% to ₹629.39 crore. Standalone EBITDA decreased to ₹67.00 crore (margin 10.6%), while operating PBT remained stable at ₹67.00 crore. Standalone PAT declined 12% to ₹49.84 crore from ₹56.64 crore. The Board proposed a final dividend of ₹2 per share on face value of ₹2 each, totaling ₹46.58 crore, subject to shareholder approval at the Annual General Meeting.

Business Segment Highlights

The Engines and Engineering Products segment generated ₹705.31 crore in revenue, up 16% year-on-year, with a segment result of ₹106.28 crore. Electric Mobility & Other Vehicles recorded ₹269.82 crore in revenue, a 97% surge from ₹136.71 crore, but incurred a segment loss of ₹45.77 crore compared to ₹40.51 crore in Q1FY26. Vehicle Finance revenue grew 81% to ₹14.07 crore, with a segment result of ₹4.37 crore.

The company reorganized its segments for this quarter, merging Cables & Control levers into Engines and Engineering Products and separately reporting Vehicle Finance, as per Ind AS 108 requirements. Comparative figures have been recasted accordingly. Greaves Electric Mobility Limited (GEML) volumes grew significantly, with VAHAN electric two-wheeler volumes up 101% year-on-year.

Strategic Investments and Corporate Actions

Greaves Cotton fully subscribed its entitlement of approximately ₹331 crore in GEML’s rights issue, maintaining its shareholding at 62.48%. Additionally, the company invested ₹50 crore in its wholly-owned subsidiary, Greaves Finance Limited, via subscription to equity shares offered on a rights basis. These investments underscore the group’s commitment to scaling its high-growth mobility and finance arms despite short-term profitability pressures.

Management Commentary and Outlook

During the earnings call held on August 5, 2026, management highlighted that core businesses grew 16% year-on-year, with like-to-like growth at 19% after adjusting for portfolio rationalization. Margins were under pressure by 2-2.5% due to higher commodity costs, particularly platinum, aluminum, and steel, and deliberate investments in technology and organizational capabilities. Management indicated that price increase lags versus inflation would catch up in Q2 and Q3, with operating leverage expected to improve margins. They projected Q2 margins to be marginally better than Q1, with H2 expected to be better than H1.

Vikas Singh, MD of GEML, noted that the company’s market share increased from 3.2% a year ago to 5.6% exiting June 2026. GEML delivered record volume growth of 101% year-on-year, outpacing the industry’s 75% growth. The company launched the Magnus Neo scooter and expanded its dealership network from 300 to 600 outlets. Singh stated that the recent capital infusion should provide sufficient runway for the next two years, with positive EBITDA levels expected within 4-6 quarters.

What the Numbers Show

The divergence between consolidated and standalone margins highlights the capital-intensive nature of the group's investments in subsidiaries like GEML. While standalone operations generated ₹67.00 crore in EBITDA on ₹629.39 crore revenue, consolidated EBITDA was ₹64.88 crore on ₹974.12 crore revenue. This suggests that while core engineering businesses remain profitable, the high-growth EV segment is currently reinvesting heavily or carrying higher operational costs as it scales volume, evidenced by the widening segment loss in Electric Mobility despite nearly doubling revenue. Management’s guidance on margin recovery in H2 hinges on successful cost pass-throughs and operational leverage, which will be critical for restoring profitability in the EV segment.

Greaves Electric Mobility Limited, a subsidiary of Greaves Cotton Limited , announced the launch of the upgraded Ampere Magnus G Max electric scooter on August 12, 2026. The new model is priced at ₹1,09,999 and introduces more than 30 Internet of Things (IoT) enabled features designed to enhance connectivity and rider convenience for everyday users in India. This upgrade positions the family scooter segment with advanced technology, aiming to make electric mobility a practical alternative to traditional petrol scooters by addressing common urban mobility challenges such as navigation, traffic management, and vehicle security.

The technological upgrade is powered by the new NxG.io software platform, which integrates with the Ampere Connect App to provide an intuitive user interface. Key features introduced include Cruise Control for long-distance comfort, Hill Hold Assist for navigating inclines in stop-and-go traffic, and Turn-by-Turn Navigation displayed on a new 5-inch PMVA digital cluster. Additional smart functionalities include Find My Scooter, Ping My Scooter, real-time charging status, live tracking, geo-fencing, theft and tow alerts, remote vehicle diagnostics, service booking, and battery health insights. Over-the-air (OTA) update capability ensures that the scooter’s connected experience can evolve continuously without requiring physical service visits.

Technical Specifications and Performance

The upgraded Magnus G Max retains its core performance specifications while adding aesthetic options, including a new Cinnamon Copper colour alongside premium dual-tone choices. The scooter is equipped with a 3 kWh Lithium Iron Phosphate (LFP) battery and a 2.4 kW peak BLDC Hub motor delivering 130 Nm of torque at the wheel.

Ownership Value and Market Position

Vikas Singh, Managing Director of Greaves Electric Mobility, stated that the upgrade brings meaningful intelligence to the family scooter segment, focusing on practicality and dependability for Bharat’s riders. The LFP battery technology is designed for a long life of 2,00,000 km, supported by a 5-year or 75,000 km warranty, which aims to reduce total cost of ownership compared to petrol alternatives. The scooter also features 12-inch steel wheels, telescopic front suspension, dual rear shock absorbers, and a ground clearance of 165 mm, engineered to handle diverse Indian road conditions. With these enhancements, Ampere seeks to strengthen its position as a leading provider of clean mobility solutions, leveraging its network of 400 dealer touchpoints across India.