Greaves Cotton Q2 results look like two different quarters stitched together. Sales grew fast, with consolidated revenue up 44.2% year-on-year to ₹1,176 crore from ₹815.5 crore. But net profit fell 81% to ₹5 crore from ₹26 crore, after ₹32.75 crore of exceptional charges, CNBC-TV18 reported on Thursday, October 29.
That ₹5 crore is the profit attributable to Greaves Cotton’s own shareholders. The full consolidated line is worse, and we’ll get to why the two differ.
In this article
Greaves Cotton Q2 results: what the numbers say
- Revenue from operations: ₹1,175.91 crore, against ₹815.46 crore in Q2 FY26.
- EBITDA: ₹74 crore, up 41% from ₹52.3 crore.
- EBITDA margin: 6.3%, roughly flat against 6.4% a year ago.
- Profit attributable to owners: ₹4.82 crore, down 81.47% from ₹26.01 crore.
- Consolidated net result: a loss of ₹29.81 crore, against a profit of ₹6.32 crore a year earlier.
The exact figures above come from Autocar Professional’s reading of the filed results, and they line up with the rounded numbers CNBC-TV18 carried.
Where the ₹32.75 crore went
Two items make up the one-off hit, according to CNBC-TV18. About ₹12.66 crore is expenses tied to the proposed IPO of Greaves Electric Mobility Ltd (GEML), the material subsidiary that sells Ampere electric scooters. GEML has decided not to go ahead with that offering for now, citing a planned rights issue and the regulatory restrictions that come with it. The other ₹20.09 crore is an impairment of goodwill and brand value linked to Bestway Agencies Pvt Ltd, written down after the company reassessed how much of it could be recovered.
The rights issue has already happened. In an August 3, 2026 exchange filing, Greaves Cotton said GEML’s ₹530 crore rights issue was fully subscribed by existing shareholders in proportion to their holdings, including Greaves Cotton and Abdul Latif Jameel Green Mobility Solutions. The same release said GEML still intends to list “at an appropriate time”, subject to market conditions and approvals.
Why the loss and the profit don’t match
A consolidated loss of ₹29.81 crore and an owners’ profit of ₹4.82 crore can both be true. Consolidated accounts include 100% of every subsidiary, and the share belonging to outside investors in those subsidiaries (non-controlling interests) is then split off. By simple subtraction, that outside share carried a loss of about ₹34.6 crore this quarter. GEML, which counts Abdul Latif Jameel among its shareholders, is the obvious example of such a subsidiary.
Costs also ran ahead of sales. Cost of materials consumed rose to ₹832.71 crore from ₹521.47 crore, which works out to roughly 70.8% of revenue against 63.9% a year ago, and depreciation and amortisation nearly doubled to ₹53.22 crore from ₹26.95 crore, per Autocar Professional.
The core business and the stock
The company said its core businesses, spanning energy, mobility and industrial solutions, grew 24% year-on-year in Q2 FY27 and 20% in the first half. On a standalone basis, profit fell 21.45% to ₹41.31 crore even as standalone revenue rose 23.66% to ₹682.18 crore. The company said margin recovery, operational excellence and disciplined capital allocation are its priorities from here.
Shares were trading at ₹184.32 on October 29, up 1.77%, according to CNBC-TV18.
What it means
Strip out the one-offs and this is a fast-growing group with thin margins. Revenue growth isn’t the question. The question is whether the 6.3% EBITDA margin can climb now that the EV unit is funded and the IPO costs are behind it. We’d watch the materials bill and the non-controlling interest line next quarter. For a primer on reading a results table, see our guide on how to analyse quarterly results of a company, and for another EV maker leaning on a rights issue, read our story on Ola Electric’s rights issue.
Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before making any investment decision.
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