Greaves Cotton’s 5.78% margin trails 48 Industrials peers
Consolidated net profit was Rs 6.16 cr as a 77.23% tax rate and Rs 10.94 cr of other income shaped the quarter.
Filed 04 Aug 2026, 13:52 IST · Greaves Cotton Ltd (GREAVESCOT)
Key takeaways
- Greaves Cotton reported consolidated Q1FY27 net profit of Rs 6.16 cr, with a 77.23% tax rate limiting earnings conversion.
- Operating margin was 5.78%, leaving the company 8.72 percentage points below the 14.5% median for 48 reported Industrials peers.
- GEML’s electric two-wheeler volumes grew 101% year-on-year, while its market share reached 5.6% in June 2026.
Price around the results
Low operating conversion kept Q1FY27 profit modest
Greaves Cotton’s consolidated revenue of Rs 974.12 cr translated into operating profit of Rs 56.33 cr and net profit of Rs 6.16 cr. Interest of Rs 12.01 cr and depreciation of Rs 28.21 cr further reduced profit before tax to Rs 27.05 cr. Basic EPS was Rs 1.11.
Tax and non-operating income mattered to reported earnings
The 5.78% operating margin left limited room after operating costs, interest and depreciation. Other income of Rs 10.94 cr was a sizeable component alongside profit before tax of Rs 27.05 cr, so reported earnings were not driven solely by operations. The 77.23% tax rate further compressed net profit.
Margin sits near the bottom of the Industrials peer set
Greaves Cotton’s operating margin was 8.72 percentage points below the 14.5% median among 48 Industrials companies that had reported the same quarter. It ranked fourth from the bottom of that comparison, placing the quarter among the weaker operating-margin outcomes in the peer group.
Electric two-wheelers and international expansion were the focus
Management said GEML’s electric two-wheeler volumes grew 101% year-on-year in Q1FY27, while its market share rose from 4.3% in FY26 to 5.6% in June 2026; it also reported more than 19% share in Bihar. The company said it had incorporated a wholly owned Dubai subsidiary to accelerate growth in the Middle East and Africa, and planned to increase its international business share. Management also said the business expanded financing partnerships and launched the Magnus Neo, while Greaves.Next appointed a CTO for research and new product development.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹974 cr |
| Other income | ₹11 cr |
| Expenses | ₹918 cr |
| Operating profit | ₹56 cr |
| Operating margin (%) | 5.78% |
| Interest | ₹12 cr |
| Depreciation | ₹28 cr |
| Profit before tax | ₹27 cr |
| Tax | ₹21 cr |
| Net profit | ₹6 cr |
| EPS (₹) | ₹1.11 |
Operating margin of 5.78% compares with a Industrials sector median of 14.50% across 48 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The Retail business completed portfolio pruning and remained on track to grow in line with strategy.
- GEML’s electric two-wheeler volumes grew 101% year-on-year in Q1 FY27.
Guidance & outlook
- The company plans to expand beyond India by increasing its international business share.
Expansion
- The company incorporated a wholly owned subsidiary in Dubai to accelerate growth in the Middle East and Africa.
- GEML expanded its financing ecosystem through partnerships with AU Small Finance Bank, V-Pay Finance and Kosh Finance.
- GEML is pursuing aggressive network expansion in markets with high E3W industry volumes.
New orders
- The Engineered Components business secured new OEM orders from CAT in the UK and TAFE.
New products
- GEML launched the all-new Magnus Neo with a new look and design targeting better rider ergonomics.
New initiatives
- The company appointed a CTO to lead R&D and new product development under Greaves.Next.
- Greaves commissioned a Robotic Gantry Cell at GCL’s CSN manufacturing facility.
Competition
- GEML’s electric two-wheeler market share increased from 4.3% in FY26 to 5.6% in June 2026.
- GEML holds more than 19% market share in Bihar.
Problems & risks
- The Mobility Solutions business reported operational resilience despite supply constraints.
What to watch
- Whether consolidated operating margin moves up from 5.78%.
- Whether the 77.23% tax rate moderates and improves net-profit conversion.
- Whether GEML sustains electric two-wheeler market share above 5.6%.