# 1. Financial Performance ## A. Key Figures * **Consolidated Revenue:** **₹875 Cr** Q3 FY26 (+17%) · **₹2,436 Cr** 9M FY26 (+16%) * **Standalone Revenue (9M FY26):** **₹1,667 Cr** (+33%) · **EBITDA:** **₹232 Cr** · **PBT:** **₹226 Cr** * Standalone Revenue (Q3 FY26): +14% YoY · EBITDA: ₹78 Cr (+18%) · Margin Expansion: +13 bps ## B. Revenue Growth * **Broad-Based Momentum:** Strong double-digit revenue growth across all segments, supported by resilient domestic demand and disciplined execution in core and investee businesses. * **Sustained Scaling:** 9-month top-line growth reflects consistent performance trajectory and operating leverage across the portfolio. ## C. Margin Expansion * **Profitability Enhancement:** EBITDA growth outpaced revenue in standalone business, driving margin expansion despite one-time exceptional items of **₹74 Cr**. * **Operational Leverage:** Margin improvement underscores cost discipline and operating efficiency gains in Q3. ## D. Cash Flow Strength * **Self-Funded Growth:** CAPEX to be fully funded internally, backed by **~₹250 Cr cash on hand** and sustained operating cash flow generation. ## E. Balance Sheet Position * **Net Cash Positive:** Consolidated balance sheet remains debt-light with strong liquidity, providing financial flexibility. * **Disclosure Policy:** Future reporting will include standalone and consolidated EBITDA, but not segment-level or subsidiary-level real-time EBITDA; audited subsidiary results released annually. --- # 2. Business Segment Performance ## A. Key Figures * **Energy Solutions Revenue:** **21% YoY growth** (9M) · **Spares & Service:** **+40% YoY** * **Mobility Solutions Revenue:** **15% YoY growth** (9M) * **Industrial Solutions Revenue:** **3% YoY growth** (9M) * **Greaves Electric Mobility:** **>18,000 units** VAHAN volume (Q3) · **40% QoQ volume growth** * **L5 Three-Wheeler:** **33% QoQ volume growth** · **Diesel L5 sales +18% YoY** * **Greaves Finance AUM:** **₹441 Cr** (Dec-25) * **Excel Domestic Business:** **17% YoY growth** (9M) ## B. Energy Solutions * **Sustained Core Growth:** Energy Solutions delivered strong double-digit top-line expansion, led by robust domestic demand and a successful reorganization into integrated regional zones. * **Aftermarket Acceleration:** Spares and service surged with **40% YoY growth**, validating the customer-centric model and enhanced service offerings including a new nationwide retail AMC. * **Strategic Positioning:** Company is well-placed to capture growth in data centers, a high-potential segment further de-risked by supportive government budgeting. * **Operational Excellence:** Aurangabad plant’s 50-year legacy and recognition by Stanley Black & Decker underscore durable manufacturing quality and global supply chain credibility. ## C. Mobility Solutions * **Diversified Powertrain Progress:** Mobility revenues rose steadily, driven by value-chain expansion into integrated assemblies and OEM partnerships, despite slower-than-expected transition to CNG and EV in three-wheelers. * **Electric Mobility Momentum:** Greaves EV achieved **40% QoQ volume growth** and surpassed **18,000 units** in Q3, reflecting strong product-market fit and network rollout, with a clear path to profitability ahead of IPO. * **Balanced Three-Wheeler Performance:** L5 three-wheeler segment posted record quarterly volumes with **33% QoQ growth**, supported by sustained diesel demand (18–20% share) and early electric motor supply into L3, with L5 expansion underway. * **IPO Pathway Confirmed:** Greaves Electric Mobility has filed its DRHP (Dec 23, 2024) for a proposed IPO, subject to market and regulatory conditions. ## D. Industrial Solutions * **Resilient Niche Demand:** Industrial Solutions showed modest but stable growth, reflecting consistent demand for mission-critical engines despite global macro headwinds. * **Domestic Outperformance:** Excel’s India business—over two-thirds of total revenue—grew **17% YoY**, fueled by strength in MHCV and industrial sectors, including tailwinds from GST 0. * **Predictable Earnings Base:** Segment has maintained a stable quarterly revenue run-rate near **₹80 Cr**, serving as a reliable contributor within the diversified portfolio. --- # 3. Strategic Initiatives & Execution ## A. Key Figures * **Energy Solutions Growth:** **21% YoY** (9M) ## B. GREAVES.NEXT Progress * **Strategic Execution Underway:** First full quarter of 'GREAVES.NEXT' implementation shows traction, with core businesses delivering **steady and healthy performance** amid portfolio rationalization and operating framework development. * **Three-Pronged Growth Engine:** Strategy combines **accelerating the core**, organic capability building, and active pursuit of **M&A and JVs** to complement strong organic CAGR. * **Mobility IPO Advancing:** Greaves Electric Mobility’s DRHP has received final observations (valid until May 2026), with IPO proceeding as **Plan A** for fundraising. ## C. Organizational Restructuring * **M&A Machine Activated:** Dedicated team evaluating **synergistic opportunities** in adjacent sectors; integration of recent acquisition **Excel Controlinkage** focused on replicating quality standards. * **Talent & Incentive Alignment:** ESOP scheme in place for key personnel, supporting retention and execution of long-term strategic goals. ## D. Capability Development * **"Build for Bharat" Gaining Traction:** Product localization strategy validated by strong regional performance and customer acceptance. * **Technology as Differentiator:** Strategic focus on **LFP battery chemistry** reinforces safety and durability leadership amid price-sensitive competition. * **ER&D Scale-Up:** Greaves Technologies now fully integrated, leveraging **400+ engineers** and recent talent hires to expand high-value engineering services for automotive clients. --- # 4. Investment & Capacity ## A. Key Figures * **IPO Proceeds (Primary Issue):** **₹1,000 Cr** for Greaves Electric Mobility * CAPEX Plan: ₹500–700 Cr for Greaves Cotton core business under 'GREAVES.NEXT' ## B. CAPEX Plan * **Dual-Track Investment Strategy:** Capital allocation split between Greaves Electric Mobility (IPO-funded) and core Greaves Cotton business, targeting distinct growth vectors. * **Front-Loaded Deployment:** Majority of spending concentrated in first two years, with outlays tapering as initiatives reach commercialization. * **Funding Self-Sustained for Core Business:** Core CAPEX fully covered by internal accruals and **~₹250 Cr cash balance**, signaling strong balance sheet resilience. ## C. R&D Focus * **Technology-Led Growth:** Strategic R&D focus on **fuel agnostic engines**, **advanced gensets**, and **rare earth-free motors** to drive differentiation and global scalability. * **Integrated Capability Build:** Investments in digital tools and manufacturing upgrades aligned with product and geographic expansion goals. --- # 5. Market Expansion & Exports ## A. Key Figures * **India Genset Market CAGR:** **10%–12%** (next 5 years) * **Automotive Industry Growth:** **6%–8%** (2026E) * Cumulative Sales: 2.5 lakh units * **Regional Market Share:** **21.5% in Bihar** · **13% in TN, Bihar, Odisha, WB** (combined ~21% of national market) * **Export Revenue Contribution:** **14%** of total (9M) * E-Two-Wheeler Market Share: **4.1% (Q2)** → **5% (Q3’26)**, now **6th largest player** * **Genset Segment Growth:** **8%–10%** annual (internal/external estimates) ## B. Domestic Penetration * **Structural Growth Leveraged:** Expansion aligned with robust long-term genset and auto market tailwinds, driven by infrastructure, urbanization, and power reliability gaps. * **Strong Regional Momentum:** Bihar emerges as a key growth engine, while consolidated leadership in four high-potential states underscores effective regional strategy. * **Product-Led Traction:** Launch of Magnus Grand achieved strong retail uptake and dealer confidence, particularly in Delhi, signaling successful market entry. * **Segment Strength:** Leadership in medium-range gensets and resilient demand in infrastructure and residential applications reinforce core business durability. ## C. International Business * **Export Value Chain Expansion:** OEM partnerships (e.g., Ligier) and direct defense orders validate product quality and open high-margin application avenues. * **Global Footprint Scaling:** Dedicated international team and targeted investments driving expansion into Europe, Nepal, and the Philippines amid improving trade dynamics. * **New Application Breakthroughs:** Supply of complete engine systems for European micro-cars marks strategic diversification beyond traditional genset reliance. * **Cross-Sector Tailwinds:** Data center and AI-driven power demand in India—highlighted by Cummins—presents indirect growth opportunity for Greaves’ power solutions. ## D. Dealer Network Growth * **Retail Infrastructure Strengthened:** Expanded dealer network and refreshed showrooms enhancing customer access and brand visibility across key regions. * **Financing Ecosystem Built:** Strategic partnerships with Alt Mobility, Sriram Finance, and Perpetuity Capital enabling B2B and retail adoption in e-mobility segments. --- # 6. Risks & Execution Challenges ## A. Geopolitical Exposures * **Export Headwinds:** Excel Controlinkage faces persistent geopolitical headwinds, including reduced demand from a major Russian customer and global tariff-related delays. * **Domestic Resilience:** Offset by encouraging growth in the domestic OEM business through deep collaboration with key partners. ## B. Subsidiary Integration * **Integration Timeline:** Full acquisition of Excel Controlinkage expected within the next few quarters, with segment-level EBITDA reporting maintained due to strategic importance. * **Growth Concerns:** No update provided on resolution of key client issues or recovery path to prior growth levels at Excel Controlinkage. * **Funding Use Ambiguity:** OFS proceeds included in IPO, though specific allocation toward subsidiary breakeven remains unspecified. ## C. ICE Market Transition * **Technology Coexistence:** Multiple fuel types—diesel, CNG, and electric—are expected to coexist for the foreseeable future despite rising EV adoption. * **Gradual ICE Decline:** Diesel engine segment to see phased decline, with market share projected to stabilize at **18% to 20%** over the next **5 to 7 years**. * **Regulatory Costs:** Labor Code-related provisions recognized in Q3 FY26, reflecting nationwide compliance impact. --- # 7. Guidance & Outlook ## A. Key Figures * **Organic Growth (9M):** **>16% YoY** (Energy +21%, Mobility +15%, Industrial +3%) * **IPO Proceeds (Primary Issue):** **₹1,000 Cr** to be infused into Greaves Electric Mobility ## B. Organic Growth Target * **Sustained Growth Trajectory:** Confident in achieving **16% to 18% organic CAGR**, underpinned by core business acceleration, new capabilities, and adjacency expansion under the 'GREAVES.NEXT' strategy. * **Growth Drivers:** Energy Solutions showing **strong double-digit momentum**, while Mobility and Industrial segments contribute moderately; external ER&D services expected to scale as new capabilities mature. * **Clarity on Inorganic Activity:** Any M&A will be additive to the **16% to 18% organic target**, which remains the central focus of the growth algorithm. ## C. Strategic Investment Plan * **Capital Allocation Discipline:** Strategy centered on execution, market share gains, international expansion, and high ROI project delivery, with emphasis on cash generation. ## D. Leading Indicators Disclosure * **IPO Catalyst:** Greaves Electric Mobility IPO imminent, featuring a **₹1,000 Cr primary issue**, enabling standalone funding and potential for **separate valuation of EV and parent businesses** at a premium. * **Transparency Roadmap:** Management to introduce **leading indicators** in future quarters to signal progress on strategic initiatives and improve investor visibility. * **Parent Profitability Inflection:** Financial drag from mobility franchise support to cease by **May**, allowing core operations to be assessed independently with improved earnings clarity.