Greaves Cotton: Navigating a Transformative Journey with GREAVES.NEXT

Greaves Cotton Limited has unveiled a compelling narrative of transformation and resilience in its Q2 and H1 FY26 earnings. The company, traditionally known for its engineering prowess, is strategically pivoting towards a diversified, future-ready portfolio, aptly encapsulated in its new GREAVES.NEXT strategy. The latest financial results underscore this shift, with consolidated revenues for Q2 FY26 climbing 16% year-on-year to ₹815 crore, and H1 FY26 revenues reaching ₹1,561 crore, also marking a 16% growth. This performance, driven by broad-based growth across businesses and consistent execution, has significantly improved the company's profitability metrics, reflecting a disciplined approach to capital management and operational excellence.

The core Engineering businesses, including Excel Controlinkage, continued their robust momentum, registering a 31% year-on-year growth in Q2 FY26, with revenues of ₹406 crore. The Automotive segment, in particular, saw a 48% year-on-year increase, fueled by strong export demand for Euro V+ engines and partnerships with European microcar OEMs like Ligier. The Genset business also contributed significantly with a 24% growth. Greaves Retail reported revenues of ₹146 crore, expanding its omnichannel model and strengthening customer engagement, despite some short-term softness in diesel 3-wheeler spares. The company's strategic focus on institutional sales, particularly to railways, saw strong year-on-year growth.

Strategic Diversification and the GREAVES.NEXT Vision

The company's strategic diversification is evident in its H1 FY26 revenue mix, which shows Engines contributing 51%, E-Mobility 22%, Retail 19%, Excel 7%, and Other 1%. This balanced portfolio is a testament to Greaves Cotton's deliberate reshaping over the past few years, moving from a single-product-led entity to a multi-product, multi-business company. The GREAVES.NEXT strategy is built on three enduring cornerstones: reliable products, sustainable technologies, and customer-centric innovation. This vision aims to make Greaves Cotton a trusted future-ready engineering company with a larger, more balanced portfolio, led by energy solutions, and a broader global footprint.

Key initiatives under GREAVES.NEXT include accelerating the core businesses, building new capabilities through product innovation and market expansion, and expanding into new horizons via strategic M&A and partnerships. The company anticipates a sustained revenue growth of 16%-20% CAGR for its core businesses over the next 4-5 years, with an ambitious target of ₹15,000 crore revenue by FY30. This growth will be anchored in disciplined capital allocation, continuous investment in innovation, and a strong customer orientation.

Electric Mobility and Financial Prudence

Greaves Electric Mobility delivered strong results, with revenues of ₹199 crore in Q2 and ₹336 crore in H1. The electric two-wheeler (E2W) segment saw VAHAN volumes increase by 54% year-on-year in H1 FY26, with market share climbing to 4.2% from 3.2%. This growth was propelled by product enhancements, network expansion, and the successful transition of the entire E2W portfolio to LFP batteries, enhancing safety and thermal stability. New product launches, such as the Ampere Magnus Grand and Ampere Nexus, have been pivotal in driving market acceptance.

Greaves Finance, through its evfin platform, also demonstrated significant growth, managing an AUM of approximately ₹380 crore (including co-lending) as of September 30th, a 2.4x year-on-year increase. With 100% EV-focused lending, the portfolio quality remains robust. The company's financial position remains strong, being net cash positive, with healthy ROCE exceeding 30%. This financial prudence allows for continued investment in growth businesses while maintaining a strong balance sheet and delivering shareholder value.

Outlook and Future Readiness

Greaves Cotton's Q2 and H1 FY26 performance reflects a company in dynamic transition, successfully leveraging its engineering legacy to diversify into future-ready segments. The GREAVES.NEXT strategy provides a clear roadmap for sustained, profitable growth, emphasizing innovation, operational excellence, and customer-centric solutions. While challenges such as the EV business's current losses and export market concentration exist, management's focus on cost optimization, market expansion, and strategic partnerships positions the company confidently for the next phase of growth. The commitment to ESG initiatives further strengthens its long-term sustainability. Greaves Cotton is not just evolving its portfolio; it is reshaping how it thinks, operates, and creates value for its customers.