Greaves Cotton Q2: Revenue Soars, Profit Hit by Costs

Greaves Cotton reported strong revenue growth in Q2 FY27 (ended 30 September 2026), but profits plunged due to heavy exceptional costs and losses in its electric mobility arm. Standalone profit was ₹41.31 crore, while consolidated results showed a net loss of ₹29.81 crore. 📊 Key Financial Highlights – Q2 FY27 Standalone Revenue: ₹682.18 crore (+23.7% YoY) Standalone PAT: ₹41.31 crore (-21.4% YoY) Consolidated Revenue: ₹1,176 crore (+44% YoY) Consolidated Net Loss: ₹29.81 crore (vs profit last year) EBITDA: ₹73–74 crore (+41–43% YoY) EBITDA Margin: ~6.3% (flat YoY) ⚙️ Drivers of Performance Revenue Growth: Core businesses (Energy, Mobility, Industrial Solutions) grew 24% YoY. Greaves Electric Mobility Ltd (GEML): revenue doubled to ₹410 crore (+106% YoY) with strong EV sales. Exceptional Costs: ₹12.66 crore linked to cancelled IPO of GEML. ₹20.09 crore impairment on Bestway Agencies brand goodwill. Total one-off items: ₹32.75 crore, dragging consolidated earnings. Segment Losses: Electric mobility division posted ₹48.67 crore loss despite revenue surge. Finance subsidiary raised ₹185 crore NCDs at 10.5% coupon, adding debt pressure. 📈 Market Reaction Stock Price (30 Oct 2026): NSE: ₹204.88 (▼ 9.68%) BSE: ₹201.95 (▼ 7.68%) Trend: Strong downtrend; technicals show bearish momentum. 52-week range: ₹120.05 – ₹272.00. 🔮 Strategic Outlook ***** Strategy: Focus on diversification across energy, mobility, and industrial solutions. EV Push: New launches – Ampere Nexus EX+, Magnus G-Max; expanded dealer network to 600+. Industrial Expansion: New 750 HP firefighting engine and 470 cc diesel engine for 3W applications. ⚠️ Risks & Watchpoints Electric Mobility Losses: GEML still burning cash; breakeven remains uncertain. Debt Load: High-interest borrowings could strain margins. Execution Risk: Success depends on scaling EV operations and stabilizing profitability.