Greaves Cotton Limited Q3 FY26 Earnings Call Summary

Summary

Greaves Cotton Limited - Q3 FY26 Earnings Call Summary Friday, February 06, 2026 4:00 PM

Event Participants

Executives 3 Akhila Balachandar (CFO), Parag Satpute (MD & Group CEO), Vikas Singh (MD, Greaves Electric Mobility Limited)

Analysts 6 Ankur Poddar, Dhruv Zobalia, Krisha Kansara, Nilesh Doshi, Saket Kapoor, Zakir Nasser

Financials & KPIs

Geographic & Segment Commentary

• Energy Solutions: Delivered 21% YoY growth in 9M FY26, with the spares and service (aftermarket) component growing 40% YoY. The company is pivoting to an integrated “four zones” structure (Sales, Service, Spares) and launched a nationwide retail AMC offering to capitalize on the 10-12% expected market CAGR.
• Mobility Solutions: Revenue grew 15% YoY in 9M FY26, supported by export partnerships like Ligier (Europe) and resilient diesel 3W demand (18-20% market share). The strategy focuses on a fuel-agnostic portfolio (CNG, Diesel, Electric) and scaling engineered components via Excel Controlinkage.
• Industrial Solutions: Recorded a muted 3% YoY growth in 9M FY26 due to soft global demand, though mission-critical applications remain resilient. Recent wins include a direct Defense supply order and an agreement with a European customer for FM/UL certified fire pump engines.
• Greaves Electric Mobility (GML): Achieved top 6 status in India’s e-2W market with a 21.5% market share in Bihar. The segment reached a cumulative 2.5 lakh sales milestone and is expanding its retail footprint into North and West India.

Company-Specific & Strategic Commentary

• GREAVES.NEXT Strategy: A multi-year transformation framework aiming for 16-20% organic CAGR by focusing on energy, mobility, and industrial solutions. Strategic shifts include exiting non-core retail segments to sharpen focus on high-margin engineering.
• International Expansion: Exports contributed 14% of 9M FY26 revenues; management has strengthened dedicated international teams to scale prioritized geographies in Europe, Middle East, and Africa.
• Technology & R&D Investment: Earmarked ₹500 - ₹700 crores for new technologies, including rare earth-free motors, fuel-agnostic engines, and advanced gensets, primarily front-loaded over the next two years.
• Greaves Technologies: Leveraging a pool of 400+ engineers to support internal R&D for “future-ready” products while growing external ER&D services for automotive OEMs.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

GML IPO & Cash Flow

• Question: When will GML achieve cash break-even and how will the IPO proceeds be used? (Dhruv Zobalia)
• Answer: The IPO includes a ₹1,000 crore primary raise for growth funding; specific breakeven timelines are restricted due to the DRHP status, but GCL intends to remain a large shareholder post-listing (Akhila Balachandar).

Excel Controlinkage Performance

• Question: Why has growth slowed in the Excel segment? (Krisha Kansara)
• Answer: Domestic OEM business is growing strongly at 17% (9M), but exports are hit by geopolitical issues in Russia. A new international team is now targeting the European market to offset this (Parag Satpute).

Genset Opportunity (Data Centers)

• Question: How is the company positioned for the data center/AI boom? (Zakir Nasser)
• Answer: Management views data centers as a highly attractive area, particularly following recent budget announcements; the “Energy Solutions” restructuring positions the company to aggressively target this high-growth segment (Parag Satpute).

Profitability and Segment Reporting

• Question: Will the company continue to share EBITDA by segment under the new structure? (Pratik Kothari)
• Answer: The company is currently reporting EBITDA at standalone and consolidated levels during the transition but will provide “leading indicators” in future quarters to track strategic progress (Parag Satpute).

Key Takeaway

Greaves Cotton delivered a resilient Q3 FY26, with consolidated revenues reaching ₹875 crores (+17% YoY) and standalone margins expanding 13 bps. The “GREAVES.NEXT” strategy is now in full execution, evidenced by a 21% growth in Energy Solutions and 15% in Mobility Solutions, despite muted 3% growth in the Industrial segment. The company is pivotally transitioning toward a fuel-agnostic and component-heavy engineering entity, supported by a ₹500-700 crore investment plan and a robust 18,000+ unit quarterly volume in the EV subsidiary. While geopolitical tensions have slowed Excel’s exports, strong domestic performance and the impending Greaves Electric Mobility IPO (valid till May 2026) remain the primary catalysts for unlocking shareholder value. Management maintains a confident outlook for 16-20% organic CAGR, underpinned by a net-cash balance sheet and expansion into high-margin international markets.