Greaves Cotton Q2 Profit Falls 81% Despite 44% Growth

reported a mixed performance in Q2 FY27, with consolidated revenue from operations rising 44.3% year-on-year to ₹1,175.91 crore, compared with ₹815.46 crore in Q2 FY26. However, net profit attributable to owners plunged 81.5% to ₹4.82 crore from ₹26.01 crore, highlighting the gap between strong sales growth and bottom-line performance. Consolidated EBITDA increased 43.1% to approximately ₹73 crore, while the EBITDA margin remained almost flat at 6.2% against 6.25% a year earlier. The reported profit was affected by ₹32.75 crore in exceptional charges, including expenses linked to the decision not to proceed with the proposed IPO of Greaves Electric Mobility and impairment of goodwill and brand value. Separately, higher material costs also weighed on profitability. The electric mobility business remained an important growth driver. Greaves Electric Mobility reported revenue of approximately ₹410 crore, up 106% year-on-year, while its EBITDA loss narrowed to around ₹24 crore from ₹42 crore. Meanwhile, the company's core businesses generated ₹768 crore in quarterly revenue, an increase of 24%. From a research perspective, revenue growth and improving EV economics are encouraging, but margin pressure remains a key concern. Investors should monitor commodity prices, the recovery of core-business margins, EV profitability and the impact of exceptional charges on reported earnings. The distinction between recurring operating performance and one-off expenses is particularly important when evaluating this quarter. Learning Takeaway: Strong revenue growth does not automatically translate into higher net profit. Investors should examine EBITDA margins, exceptional items, segment-level performance and cash-flow trends to understand the quality of earnings. Disclosure: This post is for educational purposes only and does not constitute investment advice. Any holdings or conflicts of interest should be disclosed separately.