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Earnings Call Transcript

Greaves Cotton Earnings Call Transcript: Key Takeaways

Greaves Cotton delivered strong revenue growth of 31% YoY, but margins faced severe contraction due to intentional investments and rising commodity costs. The core business is pivoting from internal combustion towards electric mobility and international expansion.

Guidance and delivery
Management target Revenue 18.0% Next few years
Highlights
Revenue growthStrong 31% YoY growth; EV segment revenue doubled reaching ₹270 Cr.
MarginsUnder pressure (2-2.5%) due to R&D investments and West Asia geopolitical costs.
Order bookLarge institutional order for gensets successfully executed during the quarter.
Demand visibilityStrong demand in 3-wheelers, gensets, and industrial firefighting applications.
Management confidenceConfident in long-term transition but acknowledged temporary near-term margin pressures.

Growth

Revenue grew 31% YoY to ₹975 Cr; Core business grew 16%, while EV segment doubled volumes.

Outlook

Management aims for 16-20% CAGR over next few years; EBITDA recovery expected in H2 FY27.

Risks

Significant margin pressure from input costs and aggressive SG&A spend; continued cash burn in electric mobility.

Last quarter's promises, checked

Delivered

  • Guided 16-18% core growth → delivered 22% (= BEAT)
  • Guided 100% Excel holding by Q2 → 20% acquisition planned for Q2 (= BEAT)
  • Guided 500-700Cr Capex over 5 years → 30-35Cr spent in FY26 (= BEAT)

Partly delivered

  • Guided international revenue expansion → increased from 9% to 13% (= PARTIAL)

Missed

  • Guided 13-15% EBITDA margin → delivered 6.8% consolidated (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: GREAVESCOT. Summary written with AI assistance from the document.

Read the document ↗

Greaves Cotton Ltd: key numbers

Share price
₹221.82
Market cap
₹5,167 Cr
Revenue (annual)
₹3,437 Cr
Net profit (annual)
₹107.1 Cr
P/E (TTM)
65.7×Sector 32.5×
Promoter holding
55.77%+0.00% QoQ
FII holding
1.92%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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