- Greaves Cotton's Q2 net profit fell 81.5% YoY to Rs 4.82 crore due to Rs 32.75 crore exceptional charges
- Consolidated revenue grew 44.3% YoY to Rs 1,175.91 crore in Q2 FY27 despite profit decline
- Exceptional loss included Rs 12.66 crore IPO expenses and Rs 20.09 crore impairment charges
Greaves Cotton Ltd. reported an 81.5% year-on-year decline in consolidated net profit attributable to owners for the September quarter, as exceptional charges of Rs 32.75 crore dragged down its bottom line, despite strong revenue growth.
The company's consolidated net profit attributable to owners stood at Rs 4.82 crore in the second quarter of FY27, compared with Rs 26.01 crore in the corresponding quarter last year. The exceptional loss was primarily linked to impairment charges and expenses associated with the decision to shelve the proposed initial public offering of its electric mobility subsidiary.
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Greaves Cotton's consolidated revenue from operations rose 44.3% year-on-year to Rs 1,175.91 crore in Q2 FY27, from Rs 815.46 crore a year earlier. Total income increased to Rs 1,187.08 crore from Rs 825.89 crore.
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However, the revenue growth did not translate into a stronger bottom line. Consolidated profit before exceptional items and tax fell to Rs 16.84 crore from Rs 30.53 crore in the year-ago quarter.
After accounting for exceptional items, the company reported a consolidated loss before tax of Rs 15.91 crore, against a profit before tax of Rs 26.95 crore in the corresponding quarter last year. The group reported a net loss of Rs 29.81 crore for the quarter, compared with a net profit of Rs 6.32 crore a year earlier, largely reflecting losses attributable to minority shareholders.
According to the company's financial results, Greaves Cotton's material subsidiary, Greaves Electric Mobility Ltd. (GEML), decided not to proceed with its proposed IPO and did not avail itself of a one-time extension of the Securities and Exchange Board of India's observations, citing a proposed rights issue and related regulatory restrictions.
The group recognised Rs 12.66 crore in IPO-related expenses as an exceptional item. It also recorded impairment losses of Rs 17.6 crore on goodwill and Rs 2.49 crore on the brand associated with Bestway Agencies Pvt. Ltd., following a reassessment of recoverability based on revised business plans and the operating outlook.
Together, these charges accounted for the Rs 32.75 crore exceptional loss during the quarter.
Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) rose 43.1% year-on-year to around Rs 73 crore from Rs 51 crore. However, the EBITDA margin edged down to 6.20% from 6.25% a year earlier, indicating that profitability remained broadly under pressure despite higher sales.
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For the first half of FY27, consolidated revenue from operations increased to Rs 2,150.03 crore from Rs 1,560.89 crore in the corresponding period last year. The group reported a net loss of Rs 23.65 crore for the six months ended September 30, compared with a net profit of Rs 27.17 crore a year earlier.
Greaves Cotton's board approved the unaudited standalone and consolidated financial results on October 29, 2026. The results were reviewed by the company's audit committee and received a limited review from Price Waterhouse Chartered Accountants LLP.
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