Greaves Cotton reported a strong 44% year-on-year revenue growth to INR 1,176 crore for Q2 FY27. The company's electric mobility arm, GEML, saw revenue surge 106% with losses narrowing significantly. Despite input cost pressures impacting margins, management expects H2 performance to improve as pricing adjustments take effect.
Greaves Cotton Q2 Revenue Rises 44% To INR 1,176 Crore
Q2 Consolidated Revenue: INR 1,176 Crore; GEML Revenue Growth: 106% YoY.
Reader Takeaway: Strong top-line growth driven by EV segment; margins under pressure from commodity inflation and price pass-through lags.
What just happened
Greaves Cotton reported a robust performance for the second quarter of FY27, with consolidated revenue reaching INR 1,176 crore, representing a 44% increase compared to the same period last year. The first half of the fiscal year saw consolidated revenue climb 38% to INR 2,150 crore. The results were highlighted by the strong performance of Greaves Electric Mobility (GEML) and the completion of the Excel Controlinkage acquisition.
Why this matters
Investors are closely watching the company’s transition toward electric mobility. GEML's revenue grew 106% YoY to INR 410 crore, with e-two-wheeler volumes crossing 37,000 units. The company has successfully narrowed its EV-related losses from INR 42 crore to INR 25 crore. This segment's progress, alongside a 36% growth in energy solutions, shows clear momentum in the company's 'GREAVES.NEXT' strategic shift.
The backstory
Greaves Cotton has been executing a portfolio rationalization strategy, which included exiting the farm equipment business. This process is now complete. The firm recently concluded a rights issue of INR 530 crore, which management stated provides sufficient liquidity for operations and capital expenditure for the next 12 to 18 months. There is currently no active plan for an IPO for the electric mobility unit.
Risks to watch
Profitability remains a core concern due to persistent inflationary pressure on essential inputs like aluminum, iron, copper, and precious group metals (PGM). While the consolidated EBITDA margin improved sequentially to 6.2%, it remains impacted by a lag in passing on costs to B2B and OEM customers. Management expects the full effect of recent price increases to materialize by Q4 FY27.
What to track next
The company is focusing on in-house technology development, specifically a rare-earth element-free motor slated for deployment in the second half of the fiscal year. Investors should monitor the EBITDA margin trajectory, as the company aims for a long-term target of 13-15% and expects H2 margins to surpass those seen in H1.