Greaves Cotton Ltd (NSE:GREAVESCOT)
₹ 208.81 +5.27 (+2.59%) Market Cap: 48.60 Bil Enterprise Value: 44.93 Bil PE Ratio: 81.46 PB Ratio: 3.37 GF Score: 68/100

Q4 2025 Greaves Cotton Ltd Earnings Call Transcript

Apr 30, 2025 / 08:30AM GMT
Release Date Price: ₹199.57 (+5.40%)

Key Points

Positve
  • Greaves Cotton Ltd (BOM:501455) reported a strong financial performance in Q4 FY25, with consolidated revenues of INR823 crores and a 19% year-on-year increase in standalone revenue.
  • The company's profitability improved, with standalone EBITDA at INR84 crores and a margin of 14.7%, while the combined EBITDA for Greaves Cotton and Excel reached INR107 crores with a margin of 16.4%.
  • Greaves Electric Mobility Limited (GEML) showed resilience with a 15% quarter-on-quarter increase in VAHAN registrations, boosting its electric 2-wheeler market share from 3.4% to 4.3%.
  • The integration of Excel Controlinkage has strengthened Greaves Cotton's capabilities in motion control systems, contributing significantly to revenue and margin growth.
  • The company maintains a strong financial position with a near-zero debt balance sheet and cash reserves of INR379 crores, supporting its capital-efficient growth strategy.
Negative
  • The electric 2-wheeler industry saw an 8% decline from Q3 FY25 to Q4 FY25, which could pose challenges for future growth in this segment.
  • Despite strong revenue growth, the EV business faces profitability challenges, with uncertainties around subsidy impacts and the timeline for achieving EBITDA break-even.
  • The retail business experienced slower growth in H1 due to external factors like heavy rains and elections, impacting overall performance.
  • The company's market share in the electric mobility segment is uneven, with higher shares in certain states like Tamil Nadu and Bihar, but lower penetration in other regions.
  • Greaves Cotton Ltd (BOM:501455) is still in the early stages of developing its hydrogen technology and aerospace and defense initiatives, which may take time to yield substantial results.
Operator

Ladies and gentlemen, good day, and welcome to the Greaves Cotton's Q4 and FY25 earnings conference call. We have with us today Mr. Karan Thapar, Chairman of the Board, Greaves Cotton Limited; Ms. Akhila Balachandar, CFO, Greaves Cotton Limited; Mr. Parag Satpute, Managing Director and Group CEO, Greaves Cotton Limited; Mr. Narsimha Jayakumar, CEO, Greaves Retail; Mr. K. Vijaya Kumar, ED and CEO, Greaves Electric Mobility Limited; and [Mr. Alvind Divanayagam], Deputy CFO, GEML. We would like to begin the call with brief opening remarks from the management, following which we will have the forum open for an interactive question-and-answer session.

Before we start, I would like to point out that some statements made in today's call may be forward-looking in nature, and a disclaimer to this effect has been included in the results presentation shared with you earlier. Further, as you are aware, Greaves Electric Mobility Limited has filed a Draft Red Herring Prospectus with the capital markets regulator, SEBI, to raise funds through an IPO. All discussions in this call with regard to this entity may be

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