Greaves Cotton reported a consolidated revenue of INR1,176 crore for the second quarter of FY27, marking a significant 44% increase year-on-year. For the first half of the fiscal year, consolidated revenue stood at INR2,150 crore, a 38% growth. The company’s core businesses demonstrated strong momentum, growing 24% in Q2 and 20% in H1, signaling a positive operational trend despite facing profitability pressures from rising input costs.
Greaves Cotton Announces Strong Q2 and H1 FY27 Financial Performance
Greaves Cotton Limited has announced robust financial results for the second quarter and the first half of Fiscal Year 2027. The company reported a consolidated revenue of INR1,176 crore for Q2 FY27, representing a substantial year-on-year growth of 44%. This strong performance follows a healthy first half, where consolidated revenue reached INR2,150 crore, showing a 38% increase compared to the corresponding period last year.
Core Business Momentum
A key highlight of the results is the sustained momentum in Greaves Cotton’s core businesses. These segments collectively demonstrated strong growth, with a 24% year-on-year increase in Q2 FY27 and a 20% growth during the first half. This acceleration from Q1 reinforces the underlying strength and market traction of the company’s primary operations.
Strategic Progress and Profitability Outlook
The company attributes its performance to the ongoing execution of its GREAVES.NEXT strategy, focusing on new product development, engineering capabilities, international expansion, and strengthening business platforms. While the growth momentum remains strong, Greaves Cotton acknowledges that profitability faced pressure due to rising input costs. Corrective actions are being implemented, and improving profitability is stated as a key management priority for the second half of the fiscal year.
Segment-wise Performance Highlights
Energy Solutions saw a significant growth of 36% year-on-year in Q2, driven by strong demand across various applications. The medium-to-high horsepower genset portfolio also showed healthy traction. Mobility Solutions, leveraging OEM relationships and engineering capabilities, experienced strong growth, with the Automotive Engines business growing by 37% year-on-year. Engineered Components (Excel Controlinkage) delivered a 30% year-on-year growth, supported by new orders and customer wins, with Greaves Cotton completing the acquisition of the remaining 20% stake.
Industrial Solutions reported a broadly flat revenue year-on-year, but a like-for-like growth of 9% after accounting for portfolio rationalization. New product launches and focus on differentiated applications are key strategies in this segment.
Electric Mobility Segment Performance
The electric mobility business, particularly Greaves Electric Mobility (GEML), reported a strong quarter with its electric two-wheeler and L5 three-wheeler segments achieving record volumes. E-two-wheeler businesses recorded over 37,000 units with 114% year-on-year growth in Q2, while the L5 three-wheeler business saw nearly 2,800 units with 61% growth. The company is focusing on expanding its network in key regions and has seen significant improvements in its unit economics, with EBITDA losses per unit in the two-wheeler segment reducing by 70%.
Financial Review and Outlook
On the financial front, EBITDA also showed robust growth of 43% year-on-year for the quarter. The company improved its consolidated EBITDA margin from 5.8% in Q1 to 6.2% in Q2. Price increases have been implemented to counter commodity pressures, with full benefits expected by Q4 FY27. Greaves Cotton has made significant capital allocations, including an investment in GEML’s rights issue and the acquisition of Excel Controlinkage, positioning itself for future growth.
Source: BSE
