Greaves Cotton Ltd

Acquisition details

• Greaves completes acquisition of remaining 20% stake in Excel Controlinkage; Excel becomes a wholly owned subsidiary.
• Effective August 13, 2026; completion under the April 6, 2023 definitive agreement.
• Multi-tranche acquisition process initiated in 2023 has concluded.
• Total ownership now 100% in Excel Controlinkage.

Excel Controlinkage overview & strategic fit

• Excel is a motion control systems player serving CVs, construction, agriculture, and aftermarket.
• Operates an integrated manufacturing facility for heavy-duty push-pull cables and end fittings.
• Greaves Cotton will leverage Excel's capabilities across Energy, Mobility, and Industrial Solutions.
• Excel becomes a wholly owned subsidiary under Greaves.Next diversification strategy.

Target overview

• Excel Controlinkage Private Limited is an India-based motion-control systems maker.
• Products include heavy-duty push-pull cables, levers, linkages, and sensors.

Size and turnover

• Turnover: Rs 105 crore (FY2020); 120 crore (FY2021); 167 crore (FY2022).

Deal structure

• Initial acquisition is cash-based; 60% stake; enterprise value cap INR 3,850 million.
• Final tranche to complete by Aug 2026; total 100% ownership.
• Promoters receive one-time payment for non-compete, control premium, consultancy.
• Promoter/group has no interest; not a related-party transaction.
• Future tranches priced per pre-agreed valuation matrix.

Strategic rationale

• Diversify into new product categories and strengthen presence in commercial vehicles and mobility.
• Aligns with Greaves' strategy beyond core products.

Regulatory and timeline

• Regulatory approvals not applicable.
• Timeline: initial tranche; final completion by August 2026.

Target background

• Incorporated 20 April 1994; India-based motion-control components manufacturer.
• Presence in India; integrated manufacturing facility; serves OEMs and aftermarket.

Financial Performance

• Consolidated revenues grew 31% YoY for Q1 FY27.
• Core business grew 16% YoY; like-for-like growth 19% YoY.
• GEML revenue in Q1 FY27: INR 270 crores.
• Excel revenue near INR 70 crores; EBITDA margins above 25%.
• Right issue of INR 530 crores fully subscribed.
• Board invested INR 331 crores in GEML and INR 50 crores in Greaves Finance.
• Nil debt; AA- rating on standalone balance sheet.
• Standalone liquidity described as sufficient to fund capex and dividends.

Segment Performance

• Energy Solutions grew 21% YoY; medium horsepower genset grew 32%.
• Large institutional order in Energy Solutions; strengthens pipeline.
• Mobility Solutions grew 18% YoY; engine business up 36%.
• Retail aftermarket pruning completed; portfolio more focused.
• Industrial Solutions revenues largely flat; up 9% after rationalization.

International & Strategy

• International business accounted for approximately 13% of core revenue this quarter.
• Greaves International Trading FZE formed in Dubai as regional hub.
• Group CTO appointed to accelerate Greaves.Next tech agenda.
• Robotic gantry cell commissioned at CSN facility to boost productivity.

Capital Allocation & Balance Sheet

• GEML rights issue fully subscribed at INR 530 crores.
• Board invested INR 331 crores in GEML and INR 50 crores in Greaves Finance.
• Cash and liquidity described as sufficient on standalone basis.

Guidance & Outlook

• Margin improvement expected from Q2; full benefit in H2 FY27.
• Greaves.Next targets 16-20% CAGR; Q2 marginally better than Q1.
• FY27 full-year margins on track; H2 to compensate for H1.
• GEML expected to reach positive EBITDA in 4-6 quarters.
• Aim for double-digit GEML market share within 4-8 quarters.

Q&A Highlights

• Commodity input cost pressure mitigated by price increases and cost controls.
• GEML burn rate in single digits; funded for about two years.
• Motorcycle opportunity under review; scooter focus prioritized.
• Excel utilization main area 70-75%; debottlenecking lifting output 10-15%.
• 2W capacity about 480,000 units; ramp-up plans under execution.

Product upgrade details

• Ampere Magnus G Max upgraded with 30+ IoT-enabled features powered by NxG.io.
• Features include Cruise Control, Hill Hold Assist, Turn-by-Turn Navigation, Find My Scooter and Ping My Scooter.
• New Cinnamon Copper colour option launched; price remains INR 1,09,999.
• IoT features include real-time charging status, live tracking, geo-fencing, theft and tow alerts, OTA updates.
• 3 kWh LFP battery with 2.4 kW motor; IDC range 142 km, real-world 100+ km.
• 5-year/75,000 km battery warranty and 3-year/30,000 km vehicle warranty.
• Top speed 65 km/h; battery life up to 200,000 km.
• Price of INR 1,09,999 available across Ampere dealerships.

Meeting Details

• Date: 13 August 2026.
• Mode: Physical investor/analyst meeting.
• Interaction: Investor/Analyst conference organized by Emkay Global Financial Services Limited (Emkay Confluence2026).
• Venue: Mumbai.
• Meeting type: Group and One-on-One.

Participants

• Company participant: Group General Counsel and Company Secretary.

Purpose

• Purpose: Investor/Analyst interaction at Emkay Confluence2026.

Rights issue update

• GEML will not proceed with the rights issue.
• It does not intend to avail the one-time relaxation for SEBI Final Observations.
• SEBI Final Observations have lapsed; the offer will not open.
• Intimation dated 31 July 2026 from BRLMs to SEBI and exchanges is enclosed.

Meeting Details

• Date and time: Wednesday, 05 August 2026 at 11:00 AM.
• Type and mode: virtual group earnings call.
• Event/organiser: Q1 FY27 RESULTS CONFERENCE CALL hosted by Greaves Cotton.
• Key company participant: Group General Counsel & Company Secretary.
• Purpose: discuss quarterly results for quarter ended 30 June 2026.
• Availability: primary login (Diamonds Pass); no links provided.

Partnership overview

• Ampere and Muthoot Capital sign partnership to provide financing for Ampere EVs across India.
• Flexible repayment options to broaden access to electric mobility.
• Collaboration leverages GEML's portfolio and Muthoot's retail financing network.
• 500+ pan-India touchpoints to support dealer growth and customer service.

Outlook and disclosures

• Strategy aims to accelerate EV adoption beyond metros into Bharat.
• No revenue, profit, or milestone figures are disclosed in the release.
• No immediate financial guidance provided.