Greaves Cotton Limited, a leading engineering company, delivered a strong financial performance for the quarter ended March 2025 (Q4 FY25), reflecting sharp improvement across all operational and financial parameters. The company reported a consolidated net profit of ₹24 crore, registering a more than ninefold increase compared to ₹2.6 crore in the same quarter last year, driven by revenue growth, better margins, and overall improved efficiency.

Significant Jump in Revenue and Profitability

The company recorded consolidated revenue of ₹822.8 crore during Q4 FY25, which is a 22.3% increase from ₹672.5 crore in Q4 FY24. This uptick was attributed to strong demand across its automotive, non-automotive, and clean mobility businesses.

Alongside revenue growth, the company achieved a 92.8% year-on-year increase in EBITDA, reaching ₹45.7 crore from ₹23.7 crore in the corresponding period last year. This reflects Greaves Cotton’s efforts in cost optimisation, product mix improvement, and operational discipline.

EBITDA Margin Sees Significant Upside

An important indicator of operational performance, the EBITDA margin, rose significantly to 5.6% in Q4 FY25, compared to 3.5% in Q4 FY24. This margin expansion underlines the company’s improved operating leverage, better cost control measures, and focused execution across verticals.

The company’s improved profitability has been a result of strategic investments in clean mobility, electric vehicles, and strong demand recovery in its legacy engines and genset businesses.

Dividend Announcement Enhances Shareholder Value

In a move to reward shareholders, the Board of Directors of Greaves Cotton recommended a final dividend of ₹2 per equity share (100%) on the face value of ₹2 each for the financial year ended March 2025. The proposal is subject to shareholder approval at the upcoming Annual General Meeting (AGM).

This dividend decision reflects management confidence in the company’s long-term growth and sustained cash flow generation.

Stock Price Reaction Post Earnings

Following the impressive results announcement, Greaves Cotton’s stock witnessed a sharp rally on the BSE. The stock climbed 10.5% intraday, hitting a high of ₹209.35, compared to the previous close of ₹189.40. By 1:32 PM, the stock was trading at ₹203.80, up ₹14.40 or 7.60%, signalling positive investor sentiment and strong market response to the company’s quarterly performance.

Strong Performance Across Segments

Greaves Cotton has been undergoing a transformational shift over the past few years. The company, which has traditionally been known for diesel engines and gensets, is now investing heavily in clean mobility and EV technology through its subsidiary Greaves Electric Mobility. The revenue growth in this quarter also reflects the scaling up of its electric two-wheeler and three-wheeler businesses.

Apart from clean mobility, the company’s engineering and non-automotive divisions have shown robust demand recovery post-pandemic and contributed significantly to the bottom line.

Outlook for FY26

Greaves Cotton remains optimistic about future growth, bolstered by:

• Increased infrastructure spending in India

• Rising demand for clean and affordable mobility solutions

• Expanding footprint in both domestic and export markets

• Strong order book and continued investment in technology and innovation

With its diversified product portfolio, strategic focus on green mobility, and consistent efforts in cost rationalisation, the company is well-positioned to sustain growth in the coming quarters.

Conclusion

The Q4 FY25 results of Greaves Cotton serve as a turnaround signal for the company, showing clear signs of recovery and operational momentum. With a multifold increase in profits, margin expansion, and a healthy dividend announcement, the company has delivered across the board.

The strong investor response in the form of a surge in share price further validates the market’s confidence in Greaves Cotton’s long-term prospects. As the company continues to pivot towards sustainable and future-ready businesses, it is expected to remain in focus for both institutional and retail investors.

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