Greaves Cotton reported a 30.7% year-on-year increase in consolidated revenue to ₹974.12 crore for the quarter ended June 30, 2026, driven by strong performance in its Engines and Engineering Products segment. However, consolidated net profit attributable to owners declined to ₹25.77 crore from ₹33.09 crore in the corresponding quarter of the previous year, reflecting margin pressures and higher finance costs. The Board of Directors approved the unaudited financial results on August 4, 2026, as reviewed by the Audit Committee and statutory auditors Price Waterhouse Chartered Accountants LLP.

Consolidated Financial Performance

The company’s total income stood at ₹985.06 crore, comprising ₹974.12 crore from operations and ₹10.94 crore in other income. Total expenses increased to ₹958.01 crore from ₹719.93 crore in Q1FY25, primarily due to higher cost of materials consumed (₹668.90 crore vs ₹448.33 crore) and employee benefits expense (₹102.52 crore vs ₹90.21 crore). Profit before tax was ₹27.05 crore, compared to ₹43.02 crore in the prior year period. After tax expense of ₹20.89 crore, the profit for the period was ₹6.16 crore.

*EBITDA calculated as Profit Before Tax + Finance Costs + Depreciation & Amortisation + Tax Expense.

Segment-Wise Results

The Engines and Engineering Products segment contributed ₹705.31 crore in revenue, up from ₹610.47 crore in Q1FY25, with a segment result of ₹106.28 crore. The Electric Mobility & Other Vehicles segment saw significant growth, with revenue rising to ₹269.82 crore from ₹136.71 crore, although it incurred a loss of ₹45.77 crore compared to ₹40.51 crore previously. Vehicle Finance revenue increased to ₹14.07 crore from ₹7.79 crore, generating a segment result of ₹4.37 crore.

The group reorganised its segments during the quarter, merging Cables & Control levers into Engines and Engineering Products and separately reporting vehicle finance business. Comparative figures have been recasted accordingly.

Key Developments

• Rights Issue Participation: The Board approved participation in the proposed rights issue of subsidiary Greaves Electric Mobility Limited (GEML), subscribing up to approximately ₹331 crore.
• Investment in Greaves Finance: An additional investment of ₹50 crore was made in wholly-owned subsidiary Greaves Finance Limited via equity subscription.
• New Subsidiary: Incorporated Greaves International Trading FZE in Dubai, United Arab Emirates.
• Dividend Proposal: Proposed final dividend of ₹2 per share (total payout ₹46.58 crore), subject to shareholder approval at the Annual General Meeting.

What the Numbers Show

While top-line growth remains robust, particularly in electric mobility, profitability is under pressure due to rising input costs and finance expenses. The widening loss in the Electric Mobility segment despite doubled revenue suggests ongoing scaling challenges. Meanwhile, the core engines business continues to provide stable cash flows, offsetting some of the volatility in newer ventures.

Greaves Cotton Limited and Abdul Latif Jameel Green Mobility Solutions (ALJ) have fully subscribed to the ₹530 crore rights issue of its subsidiary, Greaves Electric Mobility Limited (GEML), in proportion to their existing shareholdings. The transaction, confirmed on August 03, 2026, ensures that Greaves Cotton retains its controlling stake of 62.48% while injecting significant capital into GEML's expansion plans for electric two-wheelers and three-wheelers.

The Board of Directors of GEML approved the allotment of equity shares on August 02, 2026. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The rights issue was exempt from related-party transaction regulations as it was offered to all existing shareholders at arm's length. No promoter or group company holds any interest in the transaction other than their existing shareholding.

Capital Allocation Strategy

The proceeds from the ₹530 crore infusion will be utilized to strengthen GEML's next phase of growth. Key areas of investment include the development of next-generation products, Battery Management Systems (BMS), powertrains, and new-age technology. The capital will also support the expansion of GEML's electric two-wheeler and three-wheeler portfolio and deepen its technology capabilities in a competitive market.

While GEML has decided not to avail itself of the SEBI extension for a proposed public offer, it remains committed to pursuing an initial public offering at an appropriate time, subject to market conditions and regulatory approvals.

Financial Context

GEML, incorporated on June 02, 2008, operates in the Automobiles - Electric Vehicles sector. As of March 31, 2026, the company reported a net worth of ₹117.75 crore. The subsidiary has demonstrated consistent turnover growth over the past three fiscal years:

What the Numbers Show

The full subscription by anchor shareholders signals strong confidence in GEML's execution capabilities and market position. With turnover rising from ₹433.84 crore in FY23-24 to ₹596.98 crore in FY25-26, the capital infusion addresses the funding needs for scaling operations without diluting control. Greaves Cotton's Chairman, Karan Thapar, noted that the investment reflects confidence in GEML's strategic direction and its role in advancing India's clean mobility transition. Vikas Singh, Managing Director of GEML, emphasized that the funds will accelerate innovation and strengthen the product pipeline as the EV market moves toward mass adoption.