Greaves Cotton Limited (NSE: GREAVESCOT) Q1 2026 Earnings Call dated Jul. 31, 2025
Corporate Participants:
Unidentified Speaker
Akhila Balachandar — Group Chief Financial Officer
Karan Thapar — Chairman
Vikas Singh — Managing Director
Parag Satpute — Managing Director, Group Chief Executive Officer and Director
Analysts:
Unidentified Participant
Raman Kerti — Analyst
Krisha Kansara — Analyst
Shubham Jain — Analyst
Jyoti Singh — Analyst
Sonal Minhas — Analyst
Dharmesh Sharma — Analyst
Harmanpreet Singh — Analyst
Presentation:
operator
Foreign Good evening everyone and thank you for joining us on Greaves Curtain Q1FY26 earnings conference call. We have with us today Mr. Karan Thapar, Chairman of the Board Members Greed Squad Unlimited, Mr. Parag Saputti as Managing Director and Group CEO Ms. Akhila Balachandra, CFO GCL. Mr. Vikas Singh, Managing Director, GEML. We would like to begin the call with brief opening remarks from the management following which we will have the forum open for an interactive question and answer session. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference call, please signal an operator by pressing star then zero on a TouchTran phone. Before we start, I would like to point out that some statements made in today’s call may be forward looking in nature and a disclaimer to this effect has been included in the result presentation shared with you earlier. Further, as you are aware, Greaves Electric Mobility Ltd. Has filed a draft led hearing prospectus with the capital markets regulator SEBI to raise fund to an ipo. All discussion in this call with regards to this entity may varied in conjunction with and be limited to said drhp.
I would now hand the contents over to Ms. Akhila Balachandra. Thank you. And over to you Ma’. Am.
Akhila Balachandar — Group Chief Financial Officer
Good evening everyone. It’s a pleasure to have you all with us today. We will walk you through our financial performance, strategic priorities and key developments for the quarter. Before we dwell into the details of our performance, I’d like to take a moment to welcome Mr. Karan Thapar, our chairman. I now invite our chairman Mr. Thapar to take over.
Karan Thapar — Chairman
Thank you. Akhila. I presume I’m audible?
Akhila Balachandar — Group Chief Financial Officer
Yes sir.
Karan Thapar — Chairman
Before we commence discussion on our financial and operating performance, I’d like to introduce and extend a very warm welcome to Vikas Singh who joins us as the new Managing Director of Greaves Electric Mobility limited. Vikas will lead the company’s next phase of growth with the current management team reporting to him. With over three decades of leadership across diverse consumer driven sectors, Vikas brings a wealth of experience in driving large scale transformation, digital innovation and business growth in complex and regulated environments. He has held key leadership positions and roles in both Indian and multinational organizations and has consistently delivered results with resilience and agility.
His appointment reaffirms Greaves commitment to doing the best for Geml as well as its strong belief in the electric mobility space. Under Vikas leadership, I am confident that Geml and its subsidiaries will get back on the fast growth track once again. Over to you vikas.
Vikas Singh — Managing Director
Thank you Mr. Thapar for the warm welcome. I am honored to take on this role at such an exciting time for Greens Electric Mobility. I look forward to working with the team to build on the strong foundation you helped create and to drive our vision of accessible and sustainable mobility for all. Thank you again. Over to you Parag.
Parag Satpute — Managing Director, Group Chief Executive Officer and Director
Thank you Vikas. So I am going to start off to give you a business update on Reed Scott Ltd. So good evening to all of you ladies and gentlemen. I will cover the key developments and performance of our core businesses which includes Greaves Engineering, Greaves Retail and Excel for this just ended first quarter of FY26. During this quarter we saw a solid momentum across our core businesses. Each of these businesses play a very important role in advancing our mission which is to provide sustainable, efficient and inclusive engineering and energy solutions across India. We are very happy with the performance of our largest business Greaves Engineering which has delivered another quarter of strong growth.
This has been driven by very healthy domestic as well as strong international sales. In Q1 FY26 exports made up 14% of our revenue. This was on the back of very strong demand for our Euro 5 auto engines and our CPCB4 gensets. We believe this underscores our reputation for reliability and for quality. The automotive segment saw a solid 46% year on year growth largely driven by this international business. Also very encouraging is the growing traction for our engines in the non auto applications like firefighting, marine construction and agriculture. The non auto Segments grew by 19% year on year and within that the gensets saw very strong 30% growth.
Within the gensets area we have held our market share at 4%. We remain sharply focused on delivering customer first solutions. Moving on to Greaves Retail, this business delivered a 5% year on year growth. Within this the non auto aftermarket segment saw a good growth of 40% while the auto segment remained flat mainly due to subdued demand in the markets. Within the non auto segments we see a healthy momentum. The railway business is of particular interest and it is progressing well gaining strong traction. We have also started to get deeper into the electric three wheeler ecosystem in the L3 space and we have now onboarded more than 10e rickshaw manufacturers for our products.
And our efforts in connecting mechanics is also growing strong with participation from over 21,000 mechanics who have scanned more than 170 million reward points through our unique mechanic loyalty program. To further strengthen this connect throughout the value chain, we have started to pilot also a retailer loyalty program that was on Greaves Retail. Now moving on to Xcel, Xcel continues to focus on increasing business with OEMs which is their core customer group. This has resulted in new wins for both the mechanical and electronic control systems in automotive and construction industry. With the technological advancement in motion control systems.
Xcel has also launched a hydraulic marine steering system for outboard boats and has received global orders from Europe and the Middle East. Further leveraging its in house development capabilities, Xcel has won orders in the rubber business with OEMs in the agriculture and the construction equipment industry. Overall, aside from these operational initiatives across the businesses, we also continue our efforts to broad base our presence in more markets globally. We are also driving operational excellence across the businesses through digitized inventory, through integrating our supply chains and training our partners and dealers to become more customer focused. On the ESG front, we have made good progress on waste reduction and expanded our upskilling initiatives within the mechanic communities.
That was on the business Update I’m also aware many of you are keen to understand our roadmap to our financial year 30 vision. Let me tell you that we are in the midst of finalizing our strategy and recalibrating our approach where it is necessary. I would request your patience. Our plan is to share with you more color on our growth plans over our next call post the H1FY26 results. To conclude, let me reconfirm our core businesses remain solid and growing profitably and are very well aligned with Greave’s broader transformation journey. While we continue to invest in future ready areas like electric mobility, our core is strong and building on the trust and scale of a wide distribution network.
This gives us the stability and resources to drive sustainable growth across the group. With this I’d like to hand over to Akhila to take us through the financial performance over to you.
Akhila Balachandar — Group Chief Financial Officer
Thank you Parag and once again good evening to everyone. I’m happy to share that we’ve commenced financial year FY26 on a very positive note with strong operational and financial performance, delivering steady performance across all our key segments of business. This reflects the successful execution of our transformation strategy, diversification of our portfolio and a disciplined approach to financial management. It also validates our continued focus on sustainable growth, operational excellence and capital efficiency. For Q1FY26 we reported a consolidated revenue of 745 crores with standalone revenues growing 22% year on year to 541 crore. Standalone EBITDA came in at 76 crore, making a 51% increase year on year and EBITDA margins expanded by 270 basis points driven by improved product mix, operating leverage and disciplined cost management.
Our engineering businesses recorded revenue of 385 crores in Q1 supported by a continued demand from infrastructure, institutional and industrial customers. Despite raw material cost fluctuations, we maintain margin stability through operational efficiencies and smart procurement. The business continues to focus on reliability delivery and technology led process optimization. XL Control Linkage Our strategic acquisition delivered another quarter of growth with revenues of Rupees sixty crores. Both the core and acquired businesses contributed meaningfully to our consolidated top line. Greaves retail business grew to 155 crore in Q1 backed by expansion into tier 2 and tier 3 markets and improved store level economics.
Customer experience initiatives, analytics led merchandising and integration of the supply chain have driven stronger conversions and better customer lifetime value. We are seeing increased traction from both B2C and B2B customers validating our efforts to build a resilient spares network. Greece Electric Mobility continues to scale with Q1 revenues of 137 crores. This business has turned. We are continuing to invest in new platforms, Digital First Experience and Ecosystem partnership to strengthen our leadership in the EV space. Our captive NBFs are. EB Finance arm Greaves Finance which focuses on EV financing has grown its AUM to 300 plus crore including co lending reflecting a year on year scale up.
We have achieved this by an underpinned by strong portfolio quality, prudent risk controls and tech enabled origination and underwriting. We are focused on deepening our partnerships with OEM and dealers to broaden financial access especially for EV customers in underserved markets. We continue to operate with a strong balance sheet. Our consolidated cash reserves stand at 400 crore plus net of debt and with a tight control on working capital, our return on capital employed continues to be healthy reflecting our disciplined approach to capital deployment. Looking ahead, we remain cautiously optimistic. While we are mindful of external macro and regulatory headwinds, our diversified portfolio and customer centric approach position us well to navigate the environment and capture emerging opportunities.
With this I invite.
Unidentified Speaker
Hello ma’, am. Ladies and gentlemen. Thank you for joining us today. I hope you can all hear me. We are audible. Just quick sound check at our end.
operator
Yes sir, we can hear you.
Unidentified Speaker
Lovely. Thank you. Let me begin with a quick look at the Electric Two Wheeler Industry Audit. Approximately 300,000 units in quarter one full year 26 reflecting a 34% year on year growth. While slightly down in terms of 2% quarter on quarter, the industry is steady and maintaining high concentration in the top five States Maharashtra, Karnataka, Tamil Nadu, Uttar Pradesh and Madhya Pradesh contributing to over 56% of the volumes. At Greece Electric Mobility, our E2W business, electric two wheeler business continues to strengthen its position. I’m happy to state we have an 84% year on year retail sales growth.
Our flagship product, Magnus Neo. Excuse me a second. Yeah. Our flagship product, the Magnus Neo remains a preferred choice in the mid speed segment backed by comfort, practicality and strong after sales support. The refreshed Rio which brings in the entry Segment saw a 30% quarter on quarter growth, reaffirming relevance in rural and emerging markets. Market share last time, last year Same time was 3.4% and this year it stands at 4.2% with leadership in Bihar at 15.3% and Tamil Nadu at 13.9%. I’m happy to state. We offer an inclusive portfolio spanning products in the price range from Rupees 50,000 to almost about 1.5 lakhs. And this covers the slow speed, the mid speed and the high speed segments thereby catering to a wide range of customers.
With this I move to the three wheeler segment. The L5 category clocked approximately 167,000 units in quarter one which which is a 12% year on year growth. EV penetration in this category has surged upwards to 31% up from 17% same time last year driven by better availability and to a certain extent pricing. Apologies for this everyone. There seems to be some issue in connectivity at our end. Reconfirming again that you can hear me.
operator
Yes sir, we can hear you.
Unidentified Speaker
All right. So I’m repeating again the last few lines. We offer an inclusive portfolio spanning a portfolio from approximately rupees fifty thousand to about rupees 1.5 lakhs across the slow speed, mid speed and high speed segments, thereby catering to a wide range of customers. With this I move to the three wheeler segment. The L5 category clocked 167,000 units which is a 12% year on year growth. Happy to state that. The EV penetration in L5 has surged to 31% up from 17% last year. Driven by better availability and to a certain extent pricing. The L3 market also grew 11% year on year led by UP, Bihar, Assam and Delhi.
Overall, our three wheeler business is steadily gaining ground. Our OBD2B compliant L5 diesel variant is gaining traction with a 4% market share. We’ve expanded into CNG options thereby creating a fuel agnostic portfolio which meets varied commercial users. Notably, June saw much better retail sales driven by a refreshed portfolio, better dealer alignment and focused market interventions. We are also proud to share that our newly launched Eltra City Xtra, which is the EV3 wheeler in the L5 space, achieved a national record traveling 300 plus kilometers on a single charge from Bangalore to Ranipet. This feat reinforces our engineering excellence and our endurance credentials.
We are also investing in long term customer satisfaction. We have expanded our service network to 400 plus touch points, we have ensured a 98% plus service part availability and we are driving digital transformation via Salesforce, aiming to elevate customer service and engagement. On the operation side, we made meaningful progress with margin improvement through cost optimization, improved channel efficiency and tighter execution discipline while we continue to monitor industry headwinds including the rare earth metal availability. Our proactive supply chain planning and localized sourcing gives us confidence in ensuring product availability and very importantly, festive preparedness. Finally, we are backed by two very strong and committed investors, Reeves Cotton and the ALJ Group who believe in our vision and our long term potential.
We are truly grateful for their continued support. With that, we’d like to open the floor for any questions you may have. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press Star and one on the dashtime telephone. If you wish to remove yourself from question Q you may press star and 2. Participants are requested to use handsets while asking a question. Kindly note participants are requested to limit their questions to two questions per participant. Do you have a follow up question? We request you to rejoin the queue. Ladies and gentlemen will wait for a moment while the question queue assembles. The first question is from the line of Raman KV from Sequence Investments.
Please go ahead.
Raman Kerti
Hello sir. Hello sir, can you hear me?
operator
Yes, loud and clear.
Raman Kerti
Yeah. Sir, my first question is with respect to the Indian segment. So there has been a margin good margin expansion, yoy as well as quarter on quarter as well as a 30% sales growth. So I just want to understand what led for the what led for this margin expansion and is this margin sustainable?
Parag Satpute
So let me take that. So if I just make sure I understood your question. You said in the engines business you were happy with the YOY and quarter on quarter margin expansion and what was the reason for it. So within the engine business, like I mentioned in my opening remarks, the auto segment has done well for us this year and especially if you look within the auto segment, we have started a good export business for our Euro 5 + engines and that obviously has helped us improve our margins.
Raman Kerti
And sir, the second part of the question was Whether this margin is sustainable.
Akhila Balachandar
Let me take that. If you go back our results over the last eight to 12 quarters, we have been consistently improving our margins and we are working towards maintaining it in the range of 13 to 15 percentage. That has been our constant endeavor and that is what we will keep aiming to keep on working towards.
Raman Kerti
Thank you. Okay, ma’. Am. And my second and last question is with respect to the volumes. Can you give me the volume figure for Indians with respect to auto and non auto segment as well as electric mobility?
Akhila Balachandar
So we’ve not given a disclosure on the volumes in this quarter but they are significantly higher than the quarter one of last year and on electric mobility. I will ask Vikas to respond to the question.
Vikas Singh
Thank you, Akhila. I did cover this in my opening remarks in quarter one. We maintained an 84% year on year retail sales growth which is a very healthy delivery. And we are making all efforts to ensure that we maintain this rate of growth in the quarters ahead. Thank you.
Raman Kerti
The 84% growth is with respect to the volumes, right?
Vikas Singh
Retail volumes. Yes. This is not the invoice volumes, the retail volumes.
Raman Kerti
Okay, sir. Thank you.
operator
Thank you. The next question is from the line of Krishna Pansara from Molecule Ventures. Please go ahead.
Krisha Kansara
Hello. Thank you for giving me this opportunity and congratulations on a very good set of results. I have two, three set of questions. First, being on the engineering side. So as we are aware that the Greaves engines division has grown by 30% in this quarter which is a very impressive growth. And you have mentioned in your presentation that this was led by predominantly by two things. One being the gensets division and the other is the auto engine. So could you help us understand that exactly which end user industry contributed to let’s say auto engine division and.
And which sectors drove the genset division? Growth like the growth has been very good. But if you can just pinpoint on the end users which drove the growth.
Parag Satpute
Indeed, I will be happy to answer that question. Like you rightly picked out, the two industries where we have seen our growth in the auto engine. As you know, we are a very strong player in the three wheeler market. So obviously we are seeing good traction there. And along with that we have also seen our export business grow within the genset business. We have seen our distribution expansion across the country. And to name specific sectors in the residential and the infra construction sectors have given us good growth in this quarter.
Krisha Kansara
But will it not be possible for you to give a volume picture on the auto engine segment?
Parag Satpute
I think Akhila already mentioned the volume growth that we are ready to disclose. So we don’t have any more information on that.
Krisha Kansara
Okay. Okay, sure. My second question is on our business. So while I’m aware that, you know, we have filed the DRHP and you might not be able to disclose some very sensitive information, but I would request the management to throw some light on the timeline of the ipo. I wanted to understand, is there demand in the market for us to successfully launch this ipo? Because as investors of Greaves Cotton, it is also very crucial for us that market start seeing and valuing both our businesses separately and more so now, because I feel that our engineering business seems to have begun a good growth trajectory given what numbers we have clogged in Q1, which are very much comparable to Q4.
So that has grown very well. So if you can throw some light on the timeline of the IPO and some details.
Unidentified Speaker
Thank you for your question regarding the IPO or gml. As you are aware, the company has filed its DLC with SEBI and SEBI has issued its final observations. This marks a key milestone in the regulatory process for us. While the IPO process is underway, we remain focused on delivering strong business performance. The actual IPO launch, however, will be subject to prevailing market conditions, internal preparedness and other strategic considerations. We would like to reiterate that we remain committed to creating long term value for everyone and will keep the markets informed in compliance with all regulatory requirements.
I hope that addresses your question. Thank you.
Krisha Kansara
Okay, sure. Just one related question to this, sir. In yesterday. We just have one related question to the previous question I asked and then I’ll join back with you.
operator
Okay, go ahead.
Krisha Kansara
Yeah. In yesterday’s agm, the chairman, sir, mentioned that, you know, Abdul Jameel wants to reduce the stake down to 20%, which is currently 36%. So I wanted to understand our perspective as well on the ipo. So how are we looking at our investment in the EV business? I’m aware that we will still be the promoters of the EV company, but what is your take on the ownership aspect post the fresh issue and the ofs. Thank you.
Akhila Balachandar
So, thanks for that question.
Karan Thapar
Let me take that question. Common factor in both. But I think the. I. I don’t understand the implications of the question. I’m afraid the DRHP was very clear on both Greaves Cotton’s position regarding its shareholding as well as alj. And I may. I think I said in my speech that ALJ did not want to be a promoter, post a public listing. So not being a promoter, they are forced to dilute to a Certain level, which is what is represented in the drhp. I don’t know if that answers your question.
Krisha Kansara
Yeah, thank you. I’ll join back with you.
operator
Thank you. The next question is from the line of Shivam Jain from NV Alpha Fund. Please go ahead.
Shubham Jain
Hi. Thank you for the opportunity and I hope I’m audible. I had a couple of questions regarding the engine business. Following up on the previous participants question. I think this is the first time where our exports contribution has gone up to 14% as a percentage of the engineering sort of engines business. Just wanted to understand, you know, what’s working for us in the exports business. And is this now like an inflection point for us to start growing? Because over the last few years you’ve gone from a 50 to 70 crore run rate to almost 200 crore run rate in exports in the last couple of years.
So just wanted to understand a little more, you know, what sectors or like what units are doing well for us.
Parag Satpute
Thank you for your question. So within the exports, especially for this quarter, we have seen two areas which have done well for us. And I mentioned those already in my opening statement. One is the automotive sector where our Euro 5 plus engines which were under development with a partner have now been commercialized. So that’s why we saw some good invoicing number this quarter. And secondly also our CPCB 4/plus genset which we have been exporting, saw some good numbers in this quarter.
Shubham Jain
So just a follow up on this. Is there a because of the euro sort of transmission change of emission norms, you know, the transition from say €4 to €5 or 6. Right. Is that why we’re seeing like a surge or you know, this is more structural in terms of us gaining market share in exports. You know, how should one look at it from an export perspective?
Parag Satpute
Most of the auto businesses that we are in, as I’m sure you’re aware, partnerships that we have with our customers, we work together to develop the technology to make sure our engines fit their vehicles. So obviously these are strategic businesses that we start.
Shubham Jain
Right, understood. So this. Please, sorry, sorry. Please go ahead.
Parag Satpute
No, my, my point was that you mentioned the upgrade of the emission norms and in this case Greaves was proactive and we were able to work with our customers to develop Euro 5 Plus engines, which is where we are success.
Shubham Jain
So is it fair to assume that given this transition, we’ll be able to gain more market share in the next generation of norms and this starts to become the base for us to grow from going forward?
Parag Satpute
What I can say on this is we will continue to make the efforts to work closely with our customers as we have done in the recent past.
Shubham Jain
Understood, thank you. My second question was on the genset piece of the business. In the last couple of years, we’ve seen our market share go up from 2.7% to 4% and we seem to be growing in this space. Even though the industry doesn’t grow at the same pace. What’s helping us gain this market share and grow at this base? And how big can this business become for us? Is it more distribution led? Is our product more differentiated? What’s helping us gain this market share? If you could help us understand that a little bit every day.
Sure.
Parag Satpute
I can comment on what has helped us achieve the market share that you have seen. So it’s not any one thing. We have been working on multiple fronts. First and foremost, we have been working to ensure our product quality is upgraded and continues to develop. Secondly, we have also worked hard to improve our customer service. As you know, this is a product which depends on after sales service. So we have concerted efforts to improve our response to our customers. And thirdly, we have also broadened our distribution network and coverage. So all these three things have been very important to help us steadily improve our market share in this segment.
Shubham Jain
If you could help us understand, you know, how big, given our current distribution this business can be for us.
Parag Satpute
It. Remains a focus for us as it has in the last few quarters. So we will continue to put this emphasis that you have seen so far.
Shubham Jain
Sure, I will get back in the queue because I have more questions. Thank you.
Parag Satpute
Thank you very much.
operator
Thank you. The next question is from the line of Jyoti Singh from Earnings Capital Markets. Please go ahead.
Jyoti Singh
Thank you for the opportunity and congratulation on the good execution side. So basically sir, I wanted to understand on the inventory side how much we are maintaining currently and follow up on the earlier response on the increasing market share, the product quality and increasing distribution. So just wanted highlight more deeper like how many dealership we have increased for the EV side. And on the another question on the EV side that how the market share is evolving in the key state like Tamil Nadu and Bihar area and also on the west and North India. Then I will ask a few questions.
Unidentified Speaker
Yeah, thank you for the question. I would just like to state that the team is completely focused on building fundamentals both in terms of network expansion and also in terms of product portfolio and our general efficiencies as a business. The results are coming in well. We would continue to build on them in line In a manner which is productive and impactful without spreading ourselves too thin. As regards market share, I did mention this in my opening comments. We’ve had an improvement in market share in time last year. This across most of our markets and our attempts will remain to build this success of ours in the quarters ahead.
I hope this addresses your questions. Thank you.
Jyoti Singh
Yes, yes, thank you sir. And also, can you quantify the contribution from export and the EBITDA differential versus domestic business? And last question on the lot of restructuring and change on the management side. So just wanted your comment.
Parag Satpute
On this. Export. I presume you’re talking about our engineering business.
Akhila Balachandar
Yes, sir.
Parag Satpute
Could you please repeat your question on export, please?
Jyoti Singh
So, just wanted to understand on the EBITDA differential and versus the domestic business.
Parag Satpute
So obviously we have seen our export business grow and it has helped our margins. The actual difference in EBITDA is not an information that we would like to discuss in this forum.
Jyoti Singh
Okay, thank you.
operator
Thank you. The next question is from the line of Sonal Mihas from President Capital. Please go ahead.
Sonal Minhas
Hi sir, this is Sonal Minhas. I hope I’m audible.
operator
Yes sir, you’re audible.
Sonal Minhas
So my first question was with regard to I think what the previous participant was alluding to. There have been frequent changes in the leadership. As an investor shareholder who’s been there for a while in the company wanted to understand going forward, are there more leadership changes that we expect or. The team is certainly just wanted kind of a subjective guidance around this.
Parag Satpute
So let me take this question and then I’m going to also. Yeah, so I have joined this company three months ago and this is my second call. What I can confirm to you. I find the business very exciting and I’ve had a very good interaction with our customers and our teams who you can see have executed a very strong quarter. So I think this is a good start and I’d like to leave it at that for the moment.
Unidentified Speaker
Yeah, I’ll just add on to what Parag said. Every organization would like a stable leadership team and is no exception to that. However, there are times when for reasons beyond your control, you do have an element of churn. I think what’s important is for the organization to staff with profiles who are strong, bring in diverse experience and are able to build the team for the next phase of the journey. And we’d like to believe that the organization as a group per se is well positioned in that direction and there should be no concerns for our investors going forward.
Thank you.
Sonal Minhas
Understand that. So my second question was more clarificatory question in your deck on slide 12 I see the e mobility business has grown by 7% y o y in sales and there is this and when I move to slide number the first slide on the electric mobility where it says that retail sales increased by 84% year on year. So should we assume that the volume sales for electric mobility combined is also around 78%.
Unidentified Speaker
Well let me clarify that again and I did mention that to one of the previous questions which came in the past that the number that we mentioned on 84% growth is retail sales. However, the invoice volume which is the Wahan number is what you’re referring to and that number is correct. Which basically means that the extent of pipelining which was there in the, in the market has been reduced significantly. This is part of to try and build a more efficient business not only for our investors and ourselves but very importantly for our dealer and network partners and our vendors.
We would be further optimizing our business as we go along and move into a more demand driven model which will ensure much better margins also as we move forward. Thank you.
Sonal Minhas
So the retail sale needs.
operator
The writers request you to rejoin the queue.
Sonal Minhas
This is the clarificatory question for that previous question, ma’. Am.
Krisha Kansara
Okay, go ahead.
Sonal Minhas
Yeah, I’m just inquiring the retail sales. Is precedes the Wahan sales numbers by two or three months, is that correct?
Unidentified Speaker
It’s not a question of preceding Wahan sales number. There is a, there is a registration number and there is a retail placement. There is a lag between the two and it is not always difficult to give you an exact number on that account but by and large it catches up at a point in time.
Sonal Minhas
Got it. Thank you sir. I’ll fall back at the queue.
operator
Thank you. Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants in the conference, please limit your question to two questions per participant. Do you have a follow up question? We request you to rejoin the queue. The next question from the line of Khusha from BNK securities, please go ahead.
Sonal Minhas
Yeah, thank you sir for the opportunity and congratulations. A good set of numbers. I just had a couple of questions. On the financial side we see that on a console basis the margins have jumped to 7.6% and that’s mainly driven by the RM basket. So could you just throw some light on that like what’s driving this significant drop?
Akhila Balachandar
Sorry, can you repeat the question please?
Sonal Minhas
So on a console level I’m seeing that the margins have increased to 7.6%. And that’s also driven by the RM basket dropping by around 250bps year on year. So what, what has driven this drop in the RM basket? If you could just clarify.
Akhila Balachandar
So this is on the console or on the standalone?
Sonal Minhas
On the console and on the standalone also I see some around 230. That’s drop.
Akhila Balachandar
So if you see we have, and I go back again the last seven eight quarters, we have been consistently improving our RM cost and it has been consistently coming down and our EBITDA and that has been flowing into our EBITDA margins. Understand it has been very visible and we are currently EBITDA in the range of 13 to 15%. Right. This has been a consistent effort going on in the electric mobility division. Go through our results this quarter at a pat level. We are actually profitable at a consolidated level with a pat of approximately 20 crores.
So this has been an overall drive as Vikas mentioned, improving their own performance, improving their supply chain, improving their cost mix and same thing being done in the GCL standalone side. I think all this has translated into a consolidated, very strong performance.
Sonal Minhas
Thanks for the clarification. With regards to this, you all have done some partnership with CHARA Technologies, right? So has that also contributed to the significant improvement in cost?
Parag Satpute
So the Charter Technologies announcement which we announced a few weeks ago, it’s a very important technological partnership for us. But the technology and the work we are doing with them still is at a development and incubation stage. So for this quarter we have not seen the commercial impact of that partnership.
Sonal Minhas
Understood. All right. And this one last question on the export front or the one which contributed around 14% for this quarter, to which geographies will you all mainly be exposed to? I think, I believe in the presentation it’s US Africa and Middle East. So what would be the number if you could give something our exports and.
Raman Kerti
That’S one of the strong points, a good spread across multiple geographies. Our focus areas continue Middle East, Europe and also North America. So we have no over dependence on any one area.
Karan Thapar
Understood. All right, thank you. That’s it from.
operator
Thank you. The next question is from the line of Sivan Mittal from mfc. Please go ahead.
Unidentified Participant
Hello. Hello sir. Thank you for the opportunity. I have mainly two questions lined up. The first being for our engine business. I was wanting to understand as a genset sales occupy a sizable portion of the non automotive business. So as for the last quarter we followed up with 65 to 35 compared to the auto to the non auto in the non Auto business. Does the genset business occupy upwards of 50% of the business or less than 50% if you would give some color.
Akhila Balachandar
So the non auto business primarily consists of gensets. It also includes other industrial engines, firefighting comsets, marine engines. But predominantly, you’re right, it is comprising of the gensets.
Unidentified Participant
Okay, and now my second question being for the Excel business of control levers, like in the past four quarters that EBITDA margin has been dropping down from 35 to 26%. Is it because we are scaling up very rapidly in that hence that upwards of 30% EBITDA margin is not sustainable? Or can we expect in the coming quarters of 12 years for the EBITDA margin to catch up in the control system business?
Akhila Balachandar
So essentially you’re right. If I go back to Q1 FY24, we had a performance of 36.6% EBITDA margin and this quarter we are at 26%. What I would like to say there is that we are diversifying that business and strengthening a lot of our internal processes. We are investing some money into the business and therefore this is currently catch up stage I would say. And going forward, maybe in the next three to four quarters we should see traction of those work that we are currently doing.
Unidentified Participant
Okay, so just to this, we should see an upward tragedy right post. Three, four.
Akhila Balachandar
Yes. Both in terms of revenue and in terms of the margins.
Unidentified Participant
Okay, okay. Okay. Thank you ma’. Am.
operator
Thank you. The next question is from the line of Dharvi Sharma from Mudita Growth Partners. Please go ahead. Ma’, am, your voice is not audible.
Dharmesh Sharma
Hello, can you hear me?
operator
Oh yeah, go ahead.
Dharmesh Sharma
Yeah, so congratulations on a good set of numbers. My first question is on the retail segment. So sir, could you help us understand the factors that might be restraining our growth here? What has the market response been to our multi bank and additionally any new initiatives that we are launching to achieve the previously communicated target of this segment being 5X.
Parag Satpute
So I mentioned in my opening remarks that within the retail segment, the largest piece being our auto aftermarket, continues to see some headwind. As we all know the main sector that we service with that, which is the diesel wheelers, the park of diesel three wheelers continues to remain flat or decline. So as a consequence of that there are some headwinds. And that of course has played out in the numbers. I’m glad to see that despite that, we have seen a 5% overall increase in the retail business. What I pointed out is that we have few quarters ago started putting in efforts on Diversifying that business and we are starting to see the early results of that.
And during this quarter we have seen the non auto sales and aftermarket business and this is in the sector of of course the aftermarket of our gensets as well as I pointed out the railway sector where we have seen good traction and we will continue with these efforts to try and diversify the impact of the reducing diesel power.
Dharmesh Sharma
Thank you sir. So my next question is that the management mentioned about their plan to leverage its existing machining capabilities and we also understand that one of your Shimira plants had received certification to supply aerospace components. If you could throw some light on what specific aerospace components we are targeting and what are the progress been in that segment since the certification.
Parag Satpute
I believe you’re referring to one of the comments we made in the past earnings calls and yes we have identified in the past the aerospace and defense segments as focus areas and we are building our internal capabilities and the Chandra plant certification was an important step in that. Also our expert business Unit, the Tier 2 supplier into the aerospace segment. So these are still early days. At this current moment we are focusing on building the capabilities and the quality levels and the technology that is needed to be successful in those segments. So there is no significant commercial development to report at this point.
Dharmesh Sharma
Okay sir. So lastly could you throw some light on the status of the 100 crore capex that we were doing in Excel?
Parag Satpute
So we continue to watch our growth across business sectors very closely and strategy and policy to scale up our capacity and our investments in capacity in a modular way and we are well prepared. We keep a close watch also on the Excel situation and as and when we see the need for adding capacity we have the plans ready and we have the resources available. Like Akhila said we have a strong balance sheet. So the management remains committed to continue to increase our capacity in a modular fashion.
operator
Thank you. The next question is from the line of Harman Prit Singh, an individual investor. Please go ahead.
Harmanpreet Singh
Hello. Hello.
operator
Yes go with the question please.
Harmanpreet Singh
Actually I want to know the status of diesel engines like we are moving to electric and cng. So what is current share of diesel engine and how we look at that?
Parag Satpute
Thank you for your question. As we have said in the last few quarters we have a fuel agnostic strategy which means that we will continue to with our customers for the diesel engine because it’s still a large portion of our live day to day as well. But we have also over the last few years worked to develop different prime movers. So we have a full program of CNG engines. We have also invested in electric powertrain and as we have been speaking, we have a division which does electric scooters and electric three wheelers. So as a company we feel that we have taken the right strategy, being fuel agnostic and being able to support our customers through their transition journey.
Harmanpreet Singh
Sir, could you tell me what will be the prime mover of our company in the coming years? If we have to choose one?
Parag Satpute
That’s the point, I think we don’t believe that we have to choose one. We believe it’s advantageous to be fuel agnostic. And overall we believe that there will be multiple, fewer than multiple time forward in this industry.
Harmanpreet Singh
That’s good. Sir, last question.
operator
I’m sorry to interrupt.
Harmanpreet Singh
Okay, okay, okay. Okay. Thank you. Thank you.
operator
Yeah, thank you so much. The next question is from the Lavana Shubham Jean from NB Alpha Fund. Please go ahead.
Shubham Jain
Thank you for the follow up. I had a question on Excel, you know, while we looked at the numbers and it’s a fantastic acquisition, it’s been fairly steady till now and you mentioned about certain order wins. How should one look at this part of the business? You know, how are we looking at scaling it? You know, are we looking to add more products? You mentioned a sort of staring column product that we’ve added, but just wanted to understand a little more about this business and how we’re looking at growth over here.
Parag Satpute
Okay, thank you for your question and also for coming back. I appreciate your engagement with our business. Like I said in my opening statement, I know many of you are keen to understand the forward looking strategies and I would request for your patience just for a little while more. We are in the final stage of deciding our strategy and we will be able to come to you with these kind of details during our next call.
Shubham Jain
Understood. So I had another question on Greaves Retail also, you know, how should one look at growth? Is it more product enhancement? But I’m guessing if this also should wait for a quarter to understand. Okay, no, done. Thank you so much.
Parag Satpute
Thank you.
operator
Thank you. The next question is from the line of Krishna Kansara from Molecule Ventures. Please go ahead.
Krisha Kansara
Thank you for giving me another chance. My question is on Excel, somewhat similar to what previous participant also asked. So we have seen a slight slowdown in growth in Excel, control in gifts. So is it because our capacity utilization has now already reached above 80% and we will need new capacities to grow further? And if that is the case, when are we targeting to commission our new capacity in case of Excel? If you can just throw Some light on the capex part of it and another.
Karan Thapar
Yeah, so I can make a comment. And give you more, throw some more light on this quarter’s performance which has been the growth has not been as strong as we would have liked and there is actually a reason for that is one of our large customers in one of the export markets is recalibrating their inventory levels. So we have had a temporary hit of that in this quarter. As regards the capacity, I think I already answered one of your, one of the previous analysts that we watch the capacity utilization very closely at this point. It is not acting as a hindrance to our growth at all in Excel or in any other part of the business.
But we remain committed to growing and investing in the business in a modular fashion and in a financially prudent way.
Krisha Kansara
Right, sure. And so just one last question. We are seeing a long term bet of 60 crores in our consolidated balance sheet. So in which support have we taken this debt and what has been the reason for that?
Akhila Balachandar
So we have taken an external debt in Greece Electric Mobility. This is to partly fund their expansion plans till the ipo.
Krisha Kansara
Okay, thank you.
operator
Thank you. The next question is from the line of Amit Kohmar from Determined. Please go ahead.
Unidentified Participant
Yeah, thank you so much for the opportunity for determined investment. Just one question again on your Mobility Electric business at this point of time. You know, from a macro perspective when we sort of look at it, you know, just about one and a half million two wheelers sort of sold across India out of total 20 million, just about a 7, 8% penetration. I mean we were hoping that the kind of 50, 100% growth rates that we have seen in the past would sort of continue given the very low level of penetration. But growth has really sort of slowed down at an industry level itself.
It has slowed down just like teams basically. So any reason you would sort of attribute to is.
Parag Satpute
Well, we are as. An industry starts increasing in penetration, you would see a corresponding impact in growth rates. However, the compounded growth rate that the industry is bringing in is ranging from 20 to 25% which is a very healthy growth number. Actually in today’s context. We don’t see any reason for concern over here.
Unidentified Participant
So 20, 25% growth at the industry level is okay.
Unidentified Speaker
I think that’s what I said. Yes. Thank you.
Unidentified Participant
All right, done. Thank you. Thank you.
operator
Thank you ladies and gentlemen. As that was the last question for the day, I now hand the conference over to the management for closing comments. Over to you, sir.
Parag Satpute
Thank you very much. I appreciate all the I appreciate all of you for joining us today. We appreciate your trust and your ongoing confidence in our journey. We remain committed to delivering a strong performance and are excited about the opportunities ahead. On behalf of the management team, I’d like to thank everyone once again for the time and your continued engagement. Thank you.
operator
Thank you. On behalf of Great Scott and Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.