Greaves Cotton Q1: consolidated PAT plunges 70% YoY to ₹6 Cr despite 31% revenue growth

Greaves Cotton's consolidated revenue grew 30.7% YoY to ₹974.12 Cr in Q1 FY27 (₹745.43 Cr a year ago), though it slipped 2.6% QoQ from ₹1,000.26 Cr, driven by a 97.4% YoY jump in the Electric Mobility & Other Vehicles segment to ₹269.82 Cr. But the group's "profit for the period" collapsed 70.5% YoY to ₹6.16 Cr from ₹20.85 Cr — far steeper than any revenue move — because ₹19.61 Cr of the period's losses were absorbed by non-controlling interests in the EV subsidiary (Greaves Electric Mobility, GEML); profit attributable to Greaves Cotton's own shareholders was a healthier ₹25.77 Cr, down a more moderate 22.1% YoY from ₹33.09 Cr. No street estimates specific to this quarter were found, so the print's standing versus consensus is unknown.

The margin story explains the gap between revenue growth and profit decline. Consolidated EBITDA (PBT before exceptional items plus finance costs and depreciation) came in at roughly 5.9% of revenue versus about 10.1% a year ago and 8.1% last quarter. Finance costs more than doubled YoY to ₹12.01 Cr from ₹4.87 Cr as the Vehicle Finance NBFC book scaled to ₹429.78 Cr in segment assets from ₹131.99 Cr, and unallocable other expenses widened to ₹25.82 Cr from ₹17.12 Cr. At the segment level, the core Engines & Engineering Products business held margin discipline at 15.07% (₹106.28 Cr on ₹705.31 Cr revenue) — inside management's 13-15% EBITDA guidance band even as it compressed from 17.33% a year ago — putting the core business broadly on-track against the 16-18% organic growth and 13-15% margin targets laid out on the May 6, 2026 call. The Electric Mobility & Other Vehicles segment, for which management gave no formal guidance (citing prior IPO restrictions), saw its loss widen to ₹45.77 Cr from ₹40.51 Cr despite near-doubling revenue, remaining the swing factor in group profitability. No management press release was available in the context to cross-check this framing against the company's own words.

The stock went into the print at ₹205.27, down 8.4% over the past month of trading.

The quarter also brought corporate-action news that reframes the EV funding picture: GEML shelved its IPO plan on Jul 31, 2026, and instead completed a ₹530 Cr rights issue on Aug 3, 2026, of which Greaves Cotton subscribed its full ₹331 Cr entitlement (board-approved Jul 9, 2026), on top of a further ₹50 Cr invested into subsidiary Greaves Finance during the quarter. Ampere, GEML's EV brand, also struck a financing partnership with Muthoot Capital (Jul 28, 2026) that aligns with the Vehicle Finance segment's growth. Standalone (holding-company-only, excluding the EV subsidiary) PAT was ₹49.84 Cr, down from ₹56.64 Cr a year ago but far above the ₹6.16 Cr consolidated figure — a reminder that standalone and consolidated numbers tell very different stories this quarter, with the entire divergence attributable to EV-segment losses. No exceptional items were recognised this quarter on either basis (the year-ago quarter had an immaterial ₹0.52 Cr consolidated exceptional charge), so the YoY profit swing reflects genuine operating and financing cost pressure rather than a base effect.