Greaves Cotton Q1 FY27 Results (NSE: GREAVESCOT)
Signal: Margin pressure
The read
Revenue growth of 30.7% is impressive but entirely driven by the EV subsidiary, which is loss-making and consuming disproportionate capital; on a standalone basis the core business grew 16.4% with healthy margins; the consolidated PAT of ₹6.16 Cr is a 70% YoY collapse, masking ₹19.61 Cr in minority-interest losses from the EV subsidiary — the investment thesis hinges on when electric mobility turns EBITDA-positive.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹974.12 Cr | 30.7% | -2.6% |
| EBIT | ₹39.06 Cr | -19.3% | |
| Net profit | ₹6.16 Cr | -70.5% | |
| EPS | ₹1.11 | -21.8% | |
| EBIT margin | 4.0% |
P&L walk
Revenue grew 30.7% YoY to ₹974.12 Cr but EBITDA fell 10.3% to ₹67.27 Cr (margin -314bps) as input costs surged and the Electric Mobility segment bled ₹45.77 Cr operating loss; PAT was hit by a 22% YoY decline to ₹6.16 Cr, with Other Income at 40.4% of PBT masking underlying weakness.
Segments
Electric Mobility revenue doubled to ₹269.82 Cr (+97.4% YoY) but segment loss widened to ₹45.77 Cr (vs ₹40.51 Cr a year ago) — the fastest-growing segment is still deeply loss-making, dragging group OPM; Vehicle Finance turned positive at ₹4.37 Cr segment profit vs ₹0.25 Cr a year ago; Engines & Engineering remains the profit anchor at ₹106.28 Cr segment profit.
Key positives
- Electric Mobility segment revenue nearly doubled YoY to ₹269.82 Cr (+97.4%), showing strong EV adoption momentum.
- Vehicle Finance segment turned profitable at ₹4.37 Cr segment profit vs ₹0.25 Cr a year ago — a new growth lever.
- Standalone EBITDA margin at 13.0% remains solid, demonstrating core business resilience despite input cost pressure.
Key concerns
- Consolidated PAT collapsed 70.5% YoY to ₹6.16 Cr — worst quarterly profit since Q2FY25's ₹14.33 Cr loss.
- Electric Mobility segment loss of ₹45.77 Cr is the largest in 5 quarters — the faster it grows, the more it drains group profitability.
- Other Income at 40.4% of PBT shows operating weakness; without it, group PBT would be negligible.
- Finance costs surged 146.6% YoY to ₹12.01 Cr, reflecting EV subsidiary debt.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.