Greaves Cotton Ltd is beginning to reap the benefits of a decade-long diversification drive, sharply reducing its reliance on diesel engines for three-wheelers as it transforms into a broader engineering and industrial solutions company.
The company’s dependence on three-wheeler engines has fallen from around 80% of its business a decade ago to just over a quarter now, chief executive officer Parag Satpute said, as businesses spanning gensets, mechanical cables, electric motors and engine exports have gained scale.
The Karan Thapar group-backed company is now looking for acquisitions and joint ventures to expand into sectors including defence, aerospace, auto components and energy solutions.
The broader mix of businesses gives multiple growth engines.
“We believe this portfolio can grow organically between 16% and 18% (in revenue) over the next few years,” Satpute told Mint.
Greaves Cotton reported consolidated revenue of ₹3,437 crore in FY26, up 18% from the previous year. Ebitda rose 76% to ₹240 crore, while consolidated profit attributable to the owners of the company nearly doubled to ₹107 crore.
Beyond engines
Greaves has reorganized its core operations under its Greaves. Next strategy into three business verticals—mobility solutions, energy solutions and industrial solutions—marking a shift away from its earlier structure, which broadly split the business into automotive and non-automotive operations.
“Earlier we had a business split of just auto versus non-auto, with auto at 80%,” said Satpute, who took the top job in April last year.
Besides its core engineering businesses, Greaves also owns Greaves Finance, an electric vehicle financing subsidiary, and Greaves Electric Mobility, the maker of electric two- and three-wheelers, which is preparing for a public market listing.
Mobility solutions, now the company’s largest business, contributes about two-thirds of revenue. Alongside its legacy diesel three-wheeler engine business, the segment includes compressed natural gas () engines and motors for three-wheelers, mechanical cables made through Excel Controlinkage, acquired in 2023, and diesel engine exports to French company Ligier, which manufactures small cars.
Energy solutions, which contributes about a quarter of revenue, is also evolving beyond diesel generator sets. The company aims to provide consulting services for large industrial projects before eventually designing hybrid power systems for industrial applications.
“We are not just a genset producer anymore—we have committed to becoming a full energy solutions provider. Look at Cummins’ share price, look at Kirloskar’s—that is the space we are competing in,” Satpute said.
Industrial solutions, the smallest of the three businesses at roughly a tenth of revenue, focuses on engines for agricultural, marine and industrial applications.
Lessons from disruption
The strategy is also intended to make Greaves less vulnerable to industry downturns and regulatory shocks.
That vulnerability became evident in 2020, when India skipped Bharat Stage V emission norms and moved directly to Bharat Stage VI standards. Demand for three-wheelers fell sharply as higher costs hit the market, while a significant portion of demand shifted to electric powertrains, hurting Greaves’ core business.
With a broader portfolio across products, services and industries, Satpute said the company expects to be better positioned to withstand future regulatory changes and demand cycles.
“GCL has a significant presence in non-automotive sectors (such) as agriculture, construction, marine industries, gardening, micro-irrigation, railways and defence,” analysts at Share India noted on Friday. “We believe non-automotive segments would continue to remain strong and will reduce seasonality impact for the company in the medium-term.”
EV drag remains
While Greaves’ core businesses have stabilized, its IPO-bound electric mobility business continues to weigh on profitability.
The Ampere brand, once among India’s leading electric scooter makers, has slipped to the sixth position in the market.
“Although GCL’s Ebitda margins improved to ~7% in FY26, it continues to be much lower than the historical 14-15% as the continued losses in the e-mobility business have dragged down the overall profitability of the company,” Share India analysts noted. “Margins improvement was largely driven by enhanced performance in the Ampere business where Ebitda margins expanded from -30% in FY25 to -20% in FY26.”
Greaves Cotton shares closed 2.14% lower on the BSE on Friday at ₹226.25 apiece, giving the company a market capitalization of ₹5,270 crore. The stock has gained about 17% since the beginning of 2026.