Greaves Cotton's Q1 FY 2025-26 Quarterly Results

Result Summary

• Greaves Cotton Ltd reported a 11.3% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 16.3%.
• Its expenses for the quarter were up by 5.9% QoQ and 12.2% YoY.
• The net profit decreased 256.2% QoQ and decreased 13131.2% YoY.
• The earnings per share (EPS) of Greaves Cotton Ltd stood at 1.4 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Greaves Cotton Ltd is a prominent player in the engineering and manufacturing industry in India. The company is widely recognized for its diverse range of products and services, which encompass powertrain solutions, electric mobility, aftermarket services, and retail financing. With a robust presence in the automotive industry, Greaves Cotton has been at the forefront of innovation, particularly in the electric vehicle (EV) segment, aligning with the global shift towards sustainable transportation solutions. The company has also made significant strides in the development and distribution of fuel-agnostic powertrains, catering to the needs of both diesel and petrol engines. Greaves Cotton's commitment to sustainable development and technological advancement positions it as a key contributor to the evolving landscape of India's engineering sector. Recent developments may include strategic partnerships and expansions in the EV market, though specific details are not provided here.

Revenue

In Q1FY26, Greaves Cotton Ltd reported a total income of ₹763.47 crores, marking a significant increase from both the preceding quarter, Q4FY25, and the same quarter last year, Q1FY25. The total income increased by 11.3% on a quarter-over-quarter basis compared to ₹685.92 crores in Q4FY25. Year-over-year, the increase was 16.3% from ₹656.66 crores in Q1FY25. This growth in revenue underscores a positive trajectory in the company's income generation, reflecting potentially increased sales volume, improved product offerings, or enhanced market penetration. The rise in income is a crucial metric for understanding the company's ability to generate sales and sustain financial health over time.

Profitability

The profitability of Greaves Cotton Ltd has shown marked improvement in Q1FY26. The Profit Before Tax (PBT) was reported at ₹43.02 crores, a dramatic rise from ₹3.49 crores in Q4FY25, representing a quarter-over-quarter increase of 1132.7%. Year-over-year, the PBT increased significantly from ₹15.26 crores in Q1FY25, reflecting an increase of 181.9%. After accounting for taxes, the Profit After Tax (PAT) in Q1FY26 was ₹20.85 crores, contrasting with a loss of ₹13.35 crores in Q4FY25 and a marginal loss of ₹0.16 crores in Q1FY25. The Earnings Per Share (EPS) also rose to ₹1.40 in Q1FY26 from ₹0.10 in the previous quarter and ₹0.40 in the previous year, showcasing a 1300.0% QoQ and 250.0% YoY growth. These metrics highlight a robust turnaround in profitability over the past year and quarter.

Operating Metrics

The operating expenses of Greaves Cotton Ltd, as reflected in the Total Expenses, stood at ₹719.93 crores in Q1FY26. This represents an increase of 5.9% from the previous quarter's expenses of ₹680.01 crores and a 12.2% increase from the ₹641.40 crores reported in Q1FY25. The tax component for Q1FY26 was ₹22.17 crores, which increased by 31.7% from ₹16.84 crores in Q4FY25 and by 43.8% from ₹15.42 crores in Q1FY25. These operating metrics suggest an increase in the cost of operations, which might be attributed to various factors such as higher production costs, expansion activities, or increased investment in growth initiatives. Despite the rise in expenses, the significant improvement in profit metrics indicates effective cost management and operational efficiency.