Greaves Cotton recommended a ₹2 per share dividend. The company reported a 18.9% revenue increase to ₹2,365 crore for FY26, with PAT growing 7.5% to ₹200 crore. This reflects progress in its 'Greaves.Next' strategy.
Greaves Cotton Announces ₹2 Dividend Amidst Strategic Growth and Financial Upswing
Greaves Cotton has recommended a dividend of ₹2 per equity share (100%). For the fiscal year 2025-26, the company reported standalone revenue from operations at ₹2,365 crore, an 18.9% increase from ₹1,988 crore in the previous year. Profit after tax (PAT) stood at ₹200 crore, a 7.5% rise from ₹186 crore in FY25. Earnings per share (EPS) grew to ₹8.59 from ₹8.00.
Reader Takeaway: Strong revenue growth and strategic investments signal recovery, but EV subsidy risks loom.
What just happened
Greaves Cotton's board has recommended a dividend of ₹2 per share. The company's financial performance for FY26 shows significant year-on-year growth in revenue and profit. EBITDA also saw a healthy increase of 23.1% to ₹320 crore, with EBITDA margins improving by 100 basis points to 14%.
Why this matters
These results highlight the progress of Greaves Cotton's 'Greaves.Next' 5-year strategy, aimed at transforming the company into a fuel-agnostic engineering enterprise. The recommended dividend signals confidence in future performance and a return of value to shareholders. Increased revenue and improved margins indicate enhanced operational efficiency and market traction.
The backstory
Greaves Cotton has been undergoing a strategic pivot. This includes investments in its subsidiaries and expanding its product portfolio beyond traditional engines. The company is focusing on electric mobility (Greaves Electric Mobility - GEML) and financial services (Greaves Finance - GFL).
What changes now
The company has acquired an additional 10% stake in Excel Controlinkage, increasing its ownership to 80%. An investment of approximately ₹22 crore has also been approved for Greaves Finance Limited. GEML reported a 49% YoY growth in electric two-wheelers, capturing a 4.3% market share in FY26. Greaves Finance achieved profitability and ₹500 crore AUM. The Energy Solutions business grew 20% YoY.
Risks to watch
Global macroeconomic factors, such as the US-Iran war, are impacting energy markets and increasing input costs, with Brent crude prices noted above $120/barrel. A significant concern for the EV segment is the potential discontinuation of central government subsidies like FAME II / PM E-Drive beyond July 2026, which could affect competitiveness in the sub-₹1 lakh electric scooter market.
Peer comparison
While specific peer data isn't in the filing, Greaves Cotton's performance in the electric two-wheeler segment can be compared to players like Ather Energy, Ola Electric, and TVS Motor. Its growth in this segment suggests it's gaining ground, though market share remains relatively small. Its diversification into finance and energy solutions also sets it apart from solely engine-focused manufacturers.
Context metrics (time-bound)
- FY26 Revenue: ₹2,365 crore (vs. ₹1,988 crore in FY25)
- FY26 PAT: ₹200 crore (vs. ₹186 crore in FY25)
- GEML Electric Two-Wheeler Growth: 49% YoY
- Greaves Finance AUM: ₹500 crore
What to track next
Investors will be keen to monitor the impact of subsidy changes on Greaves Electric Mobility's sales and the company's ability to sustain margin improvements in the face of rising input costs. Progress on recurring, service-led revenue streams and further integration of its acquired businesses will also be key.