Greaves Cotton FY26: Growth in core businesses, steadier margins, and a clearer playbook

Greaves Cotton closed FY26 with a sharper business structure and improving financial momentum across both its core B2B operations and its EV ecosystem investments. For Q4 FY26, consolidated income from operations rose to ₹1,000 crore, up 22 percent year on year and 14 percent quarter on quarter. Consolidated EBITDA increased to ₹68 crore, up 49 percent year on year, with EBITDA margin at 6.8 percent versus 5.6 percent a year ago. For the full year, consolidated revenue reached ₹3,437 crore, up 18 percent, while EBITDA expanded to ₹239 crore, up 76 percent, taking the full-year consolidated margin to 7.0 percent from 4.7 percent in FY25.

Beneath these consolidated numbers, the company’s FY26 narrative is largely about two things. First, it has reorganised itself around three core solution areas Energy, Mobility, and Industrial under the Greaves.Next strategy. Second, it has delivered double-digit revenue growth across businesses, driven by execution, operational efficiencies, and supportive demand, while also pushing international business from 9 percent to 13 percent of overall revenue.

At the core business level, Q4 revenue came in at ₹781 crore, up from ₹660 crore in Q4 FY25. Full-year core revenue was ₹2,665 crore, up 16 percent from ₹2,301 crore. Full-year core EBITDA improved to ₹383 crore, with margin expanding to 14.4 percent from 12.8 percent, suggesting that operating leverage and mix are beginning to work in the company’s favour even as quarterly margin in Q4 moderated.

Core businesses: growth broad-based, with Energy and Mobility leading

Greaves now frames its B2B portfolio around Energy Solutions, Mobility Solutions, and Industrial Solutions. The segmentation reads like a strategic reset, but the financials show that growth is coming from multiple places rather than a single cyclical upswing.

Energy Solutions, which includes gensets and after-sales and service, posted Q4 FY26 revenue of ₹237 crore, up 17 percent year on year and 39 percent sequentially. For FY26, the segment delivered ₹742 crore of revenue, up 20 percent. Management commentary points to a continuing shift from a product company to a solutions company, and that change is visible in the aftermarket trajectory. Spares and service grew 35 percent in FY26, outpacing the overall segment, and the company highlighted higher traction in aftermarket business after integrating sales and service. Energy accounted for 28 percent of FY26 revenue, and the segment also aims to build presence in markets in the Indian subcontinent and the Middle East.

Mobility Solutions is the largest of the core segments, anchored in automotive engines, e-powertrain, aftermarket retail, engineered components through Excel, and ER&D services through Greaves Technologies. Q4 FY26 revenue was ₹446 crore, up 20 percent year on year and 11 percent sequentially. FY26 revenue reached ₹1,584 crore, up 16 percent. Within this, the auto engines business saw strong growth across domestic and export markets, with Q4 year-on-year growth of 48 percent. The company also noted that non-3W diesel engines represented 63 percent of FY26 OE business, which matters because it signals diversification within a legacy engine franchise. Engineered components, a newer growth vector through Excel Controlinkage, saw early export wins and diversification into new geographies with new customers, and also entered the SCV segment.

Industrial Solutions, which spans large engines for fire pumps and marine and smaller engines for agriculture, marine, and construction, grew more steadily but remained positive. Q4 FY26 revenue was ₹98 crore, up 15 percent year on year and 25 percent sequentially. FY26 revenue was ₹339 crore, up 6 percent. Management highlighted new agriculture OEM additions and the start of executing a defence business order for direct supply to armed forces. That last point is small in the context of revenue today, but it adds a distinct demand driver that is less correlated with the standard industrial cycle.

A key nuance for investors is margin shape. Core business Q4 EBITDA margin was 13.3 percent, down from 16.3 percent in Q4 FY25, even though revenues were higher. But for the full year, margin expanded to 14.4 percent from 12.8 percent. This combination often indicates that the company experienced quarter-specific cost pressures or mix changes in Q4, while still delivering structural improvement across the year.

FY26 financial snapshot: consolidated and core view

Greaves.Next: strategy framed around execution and capital efficiency

The Greaves.Next strategy positions the company as a future-ready engineering solutions provider, built around expanding into new horizons, adding new muscle to the core, and accelerating existing segments. The messaging is consistent with the portfolio reality: a legacy engineering base with increasing adjacency bets, and two investee companies that extend the group into EV manufacturing and EV financing.

What stands out is that the strategy is backed by numeric targets and a capex envelope. The company outlined an organic growth engine of 16 to 20 percent CAGR, EBITDA margins of 13 to 15 percent, and a prudent investment plan of ₹500 to ₹700 crore. While these targets are forward-looking and subject to the standard caveats, they set a clear internal scorecard. They also suggest management intends to use capital selectively, prioritising portfolio mix optimisation and capital efficiency.

The macro framing also matters. The presentation points to tighter emission and fuel regulation, including BS VII, rising EV adoption in quick commerce and public transport, and increasing need for reliable power solutions as industrialisation and housing projects expand. For Greaves, these drivers link directly to its three core verticals. Power reliability supports Energy Solutions. Regulatory and mobility shifts support a broader powertrain and component opportunity set in Mobility Solutions, including alternative fuels such as hydrogen engines referenced in the market context slide. And infrastructure, agriculture, defence execution, and safety applications support Industrial Solutions.

The international business thread is another important piece. Management stated that international business contributed 13 percent of overall revenue in FY26 and remains a core growth engine across Greaves Cotton and Excel, supported by diversified global markets and marquee OEM relationships, including Ligier. For investors, the significance is not just additional volume but also potential mix benefits if exports and global OEM programmes carry higher or more stable margins.

Investee companies: EV manufacturing and EV finance build an ecosystem

Greaves also presents itself as having a complete EV ecosystem through Greaves Electric Mobility and Greaves Finance. These are not counted within the core businesses but are central to the consolidated story.

Greaves Electric Mobility reported FY26 revenue of ₹786 crore, up 19 percent year on year. In electric two-wheelers, it delivered 51 percent year-on-year volume growth in FY26, and market share increased from 3.6 percent in FY25 to 4.4 percent in FY26, based on VAHAN data as of 1 May 2026 and excluding Telangana. The company also highlighted approximately 12 percent market share across Tamil Nadu, Odisha, Bihar, and West Bengal, and increased market share in the East to approximately 8 percent in FY26 from approximately 5.7 percent in FY25.

Beyond volumes, the execution details point to brand and network work. Dealer count increased 13 percent, showroom revamps contributed to a 30 percent improvement in per-dealer productivity in FY26, and net sentiment on social media was stated at 93 percent. The company also referenced an Asia Book of Records achievement for Ampere Nexus and noted that the campaign trended on X.

In three-wheelers, Greaves Electric Mobility reported that L5 VAHAN volumes grew 17 percent year on year in FY26, with Q4 momentum of 31 percent year-on-year growth, and it exited the year with 2,300 plus units in Q4 FY26. It also highlighted a financing tie-up with Hinduja Leyland Finance providing 95 percent LTV funding, aimed at strengthening customer access.

Greaves Finance adds the second leg of the ecosystem. It reported total managed AUM of ₹521 crore, rising from ₹441 crore in December 2025. It also expanded OEM partnerships, signing up with Simple, Suzuki, and Ultraviolette, and being live with 11 OEMs. It has moved into cross-sell through insurance and RSA, with integration completed with InsuranceDekho and traction with Acko. For an EV-focused lender, the story is about customer lifetime value and the ability to deepen relationships beyond the initial loan.

What investors should take away from FY26

FY26 reads as a year where Greaves tightened the narrative around what it wants to be, then backed it with a visible improvement in consolidated profitability. Consolidated revenue grew 18 percent, while consolidated EBITDA rose 76 percent, implying a stronger cost and mix profile than in FY25. At the core business level, revenue grew 16 percent and full-year margin improved to 14.4 percent, suggesting that the core is not only growing but also operating more efficiently across the year.

The near-term questions are likely to revolve around two items. First, whether the core businesses can sustain the improved full-year profitability while navigating quarter-to-quarter margin volatility. Second, how quickly the investee ecosystem can translate scale and distribution productivity into consistent profit contribution to consolidated results.

Still, the direction is clear. Greaves is choosing to compete as an engineering solutions company with three focused verticals, a stronger aftermarket engine in Energy, a broadened Mobility stack that includes components and services, and an Industrial franchise that is adding new OEMs and executing defence orders. With international business now at 13 percent of revenue and a defined investment and margin ambition under Greaves.Next, the company ends FY26 with sharper strategic clarity and a more measurable operating plan.