Greaves Cotton shares crashed over 14% on Tuesday, marking the biggest single-day fall since March 17, 2020, when the stock had declined 17%. As per Business Standard, the stock was trading 14.05% lower at ₹199 as of 02:51 PM, with year-to-date gains trimmed to just 3%. The sharp decline reflects investor concerns over the company's weaker-than-expected performance across key financial parameters, with the stock falling 16.2% over the past week compared to a 2.14% rise in the Nifty total market cap.
Greaves Cotton reported a 22.12% decline in consolidated net profit to ₹25.8 crore in the quarter ended June 2026, compared to ₹33.1 crore in the corresponding quarter of the previous year. According to Business Standard, the company's EBITDA stood at ₹56 crore and operating profit before tax was ₹27 crore during Q1FY27. This profit decline occurred despite the company achieving strong revenue growth during the same period, with consolidated revenue rising 31% to ₹974.1 crore in Q1 FY2026, as compared to ₹745.43 crore in the corresponding quarter of the previous financial year.
The company demonstrated robust top-line growth with consolidated revenue rising 31% to ₹974.1 crore in Q1 FY2026, as compared to ₹745.43 crore in the corresponding quarter of the previous financial year. As reported by Business Standard, Mobility Solutions business delivered 18% year-on-year revenue growth, while automotive engines recorded growth of 36% Y-o-Y. The Engineered Components business grew 14% Y-o-Y, and Energy Solutions continued its growth momentum with 21% revenue growth supported by healthy demand across infrastructure, manufacturing and industrial applications. However, barring revenue, the company's earnings declined across all key parameters in the quarter under review.
Operating profit margin (OPM) declined to 5.8% in the June 2026 quarter from 7.6% in the same quarter of the previous year. According to Business Standard, PBDT (Profit Before Depreciation and Tax) fell 21% to ₹55.26 crore from ₹70.10 crore year-on-year. Additionally, PBT (Profit Before Tax) decreased 38% to ₹27.05 crore compared to ₹43.54 crore in the corresponding quarter of the previous year. The margin compression reflects challenges from commodity price and supply chain pressures that the company faced during the quarter, with the company's operational efficiency coming under significant strain.
The company expanded its international footprint by incorporating Greaves International Trading FZE in Dubai, UAE, establishing a regional hub for the Middle East and Africa. As reported by Business Standard, Group CEO and MD Parag Satpute emphasized the company's strategic initiatives, stating they "expanded our international footprint with the establishment of a subsidiary in Dubai, UAE, enhanced our manufacturing capabilities through advanced automation, and continued to grow across our domestic and international businesses despite commodity price and supply chain pressures." Satpute noted that demand across segments remains encouraging and the company remains focused on executing their strategy to drive organic growth and capitalize on emerging opportunities.
Automotive engines delivered robust 36% year-on-year growth, while Energy Solutions recorded 21% revenue growth supported by healthy demand in infrastructure and industrial applications. According to Business Standard, Greaves Finance saw Assets Under Management cross ₹560 crore, up from ₹521 crore in March 2026, with the company subscribing to ₹50 crore in Greaves Finance's rights issue to support its next phase of growth. The company also fully subscribed to GEML's ₹331 crore rights issue, maintaining its shareholding at 62.48%.
