Greaves Cotton Limited (NSE: GREAVESCOT) Q3 2025 Earnings Call dated Jan. 24, 2025
Corporate Participants:
Nagesh A. Basavanhalli — Non Executive Vice Chairman
Akhila Balachandar — Chief Financial Officer
Arup Basu — Managing Director
Narasimha Jayakumar — CEO of Greaves Retail
K Vijaya Kumar — Executive Director and CEO of GEM
Analysts:
Zakir Nasir — Analyst
Krisha Kansara — Analyst
Tushar Bohra — Analyst
Abhishek Salunke — Analyst
Jyoti Singh — Analyst
Shruti Shukla — Analyst
Amit Kumar — Analyst
Atul — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Greaves Cotton Limited Q3 and Nine Months FY ’25 Earnings Call. We have with us today Mr Nakesh Baswan, Non-Executive Vice-Chairman, Greefs Cotton Limited; Ms Akila Balachandar, CFO, Greefs Cotton Limited; Dr Arub Basu, Managing Director of Reese Cotton Limited; Mr K. Vijay Kumar, ED and CEO, Reese Electric Mobility Limited; Mr Nara Jayakumar, CEO, Retail; Mr Chandra Shekhar Thiagarajan, CFO, Rees Electric Mobility Limited; and Mr Atendra Basu, Group Counsel Group General Counsel and Company Secretary.
We will 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. 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 results presentation shared with you earlier. Further, as you are aware, Greece Electric Mobility Limited has filed a draft red herring prospectus with the Capital Markets Regulator, SEBI to raise funds through an IPO. All discussions in this call with regard to this entity may be read in conjunction with and be limited to the SED DRHP, which will be updated periodically to reflect current developments.
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. Please note that this conference is being recorded.
I now hand the conference over to Mr Nakesh Basonali. Thank you, and over to you, sir.
Nagesh A. Basavanhalli — Non Executive Vice Chairman
Thank you. Welcome everyone to our 3rd-quarter call. On behalf of the management, let me welcome each one of you. Let me just give you a quick overview of where Briefs Cotton is today. As some of you are aware, prior to ’16, we were pioneers in the diesel engine segment for auto applications. Post-16, we went on a journey of getting closer to the consumer, offering fuel agnostic solutions and democratizing sustainable mobility. Those were our three pillars.
As part of that, we repurposed the organization. We redefined the businesses and work towards sustainable and forward-looking multiple revenue streams. In summary, from a single cylinder, single customer, single industry company, we are now moving towards a fuel agnostic multi-product, multi-business company playing in the sustainable mobility ecosystem with a much bigger focus on revenue competencies and areas and different businesses. We have the five distinct businesses and I’ll ask our CFO and our three CEOs to comment on their respective businesses.
With that, let me hand it over to the CFO, Ms Akilab Al Chander, who will give you details on the financial performance. Thank you.
Akhila Balachandar — Chief Financial Officer
Thank you, Nakesh, and good morning, everyone. I’m delighted to share that we’ve delivered strong financial performance, validating our strategic initiatives and positioning us for sustained growth. For the quarter, we achieved consolidated revenues of INR751 crores with Grease Cotton posting standalone growth of 13% at INR502 crores. XL reported revenues of INR69 crores and Greez Electric Mobility reported revenues of INR184 crores. Our both engineering and retail businesses continue their upward trajectory with Q3 revenue growing year-on-year by 14% and 13% respectively.
The Electric Mobility division also gained traction, delivering INR184 crores in Q3, supported by new product launches. Notably, 64% of our business now comes from B2C segments, reflecting our strategic pivot towards customer-centric growth and market alignment. Our EBITDA margins continue the journey of sustainable improvements, demonstrating operational efficiency and cost management. GCL plus Excel, we have delivered margins at a healthy 15 plus 15 percentage plus. The diversification strategy is contributing to the resilience in revenues, ensuring that we are not overly reliant on a single segment.
Our continued focus on margin improvement is yielding excellent results, both in terms of EBITDA growth and margin expansion. New strategic investments across the Group are being effectively utilized for new product development, building brand-building initiatives, expanding adjacencies in high-growth areas. Our profitability in Q3 stood at INR67 crores at a standalone level and for Nine-Month FY ’25 at INR176 crore. Our strategic portfolio evolution, growing non-auto contributions and disciplined capital management have strengthened our resilience. With near-zero debt and strong cash reserves of INR503 crores, we are well-positioned for future growth. Looking ahead, we remain committed to sustaining this momentum, driving innovation and creating long-term value for all stakeholders.
With this, I hand over I — to Dr Arup Basu to share his remarks on the engineering business. Over to you.
Arup Basu — Managing Director
Thank you, Akila. Good morning, ladies and gentlemen. I will speak about the engineering business, which comprises Griefs Engines and Excel. I am pleased to report that in Q3 FY ’25, on a year-on-year basis, Grieves Engineering delivered a double-digit growth in revenue. In today’s commentary, I would like to add some more color in terms of internal factors that have resulted in this profitable growth. The results reflect our progress on…
Operator
Sir, you are not audible, sir. Ladies and gentlemen, please stay connected while we reconnect the line please. Ladies and gentlemen, we have the management line reconnected. You can go sir.
Arup Basu — Managing Director
Thank you and apologies for the disturbance and the connection. Let me just restart a little bit in terms of Griefs Engineering delivering a double-digit growth in revenue in Q3 FY ’25 on a year-on-year basis. And in today’s commentary, I would like to add some more color in terms of internal factors that have resulted in this profitable growth. The results reflect our progress on diversification of revenues and profits across automotive and non-automotive applications. As I have consistently communicated, we are working diligently on expanding internal capabilities and competencies to diversify both our products and services and their respective application areas. As a result, currently, less than a third of our revenue is generated from automotive diesel engines from a nearly 100% share a few years ago. In Q3 FY ’25, on a year-on-year basis, revenues from non-automotive applications registered an over 30% increase in revenues. On Gensets, we have significantly expanded our dealer network across India and continue to receive positive response to our CPCB4+ compliant product-line.
Our market-share has inched up from less than 3% to nearly 4% in this quarter. In keeping with our stated fuel agnostic strategy, we continue to expand our product portfolio of tailored multi-fuel solutions for specific segments and applications to meet the diverse energy needs of our customers. We are also working towards increasing the share of exports in our revenue mix. Exports constituted around 10% of revenues in Q3 FY ’25. We have established collaboration with alliance partners across EU, USA, key economies in Africa and the Middle-East with team members based in UAE and USA.
While Q3 FY ’25 revenue in Excel Control linkage was 7% lower year-on-year, quarter-on-quarter it was 15% higher. Xcel is accelerating steps to expand capacity, develop new products and diversify across geography and customer vectors. New products typically constitute about 20% of XL’s product portfolio. Looking ahead, we are well-positioned for sustained growth at Grieves Engines manufacturing plant at Shendra,, a new assembly line for motor controllers has been installed for manufacturing e-powertrains for mobility and other applications. In addition, the plant received AS9100 decertification required for machining components for the aerospace industry. Finally, we continue to make-good progress on our sustainability roadmap to meet and exceed our sustainability-related ambition.
For the next commentary, I now hand over to my colleague, Narsima Jaykumar. Over to you, Narsima.
Narasimha Jayakumar — CEO of Greaves Retail
Yeah, thank you, Dr Aruv. Good morning, ladies and gentlemen. I’m Nassima Jaykumar, CEO of Retail. I’ll be giving you a little bit of color commentary on our performance in Q3. Green Retail delivered INR159 crores of revenue in Q3. This represents a 13% Y-on-Y growth. We continue to be amongst the top two players for the three-wheeler parts segment and we are making significant strides in electric three-wheeler aftermarket parts and the powertrain business as we capture greater market-share and strategically expanding — expand our presence in this area.
We are seeing an overall demand recovery for our diesel, CNG and EV parts of — with the retreat of monsoon and the pickup of last mile economic activity driven by quick commerce. We are rapidly upskilling our mechanics on the new product range for electric vehicles with now a — ranging network of 250 distributors, more than 10,000 retailers and 25,000 mechanics, we are — we have built a strong ecosystem that offers seamless experience for our customers. Our multi-brand parts, particularly CNG and two-wheeler are growing well. Exports is growing strongly.
We’ve opened several new markets, including Philippines and East-Africa. Green Care services franchising operations continues to be the leader in multi-brand servicing for three-wheelers. And increasingly this network is getting enabled for servicing electric three-wheelers and electric two-wheelers, we have now 225 plus franchised outlets at the end-of-quarter three. Leveraging XL’s manufacturing capabilities, we have also expanded into construction equipment and head CV parts which are — which are growing strongly given the overall infrastructure push and construction activities all over India.
Looking ahead, we plan to grow our contribution from the EV component business, the head CV business and the small commercial vehicle part line. This is in-line with our fuel agnostics strategy to diversify away from three-wheeler diesel spares. We are leveraging digital significantly across the business, which will result in better operational efficiencies and improved customer experience.
I would now like to hand over to my colleague, Mr K. Vijay Kumar, the CEO of Eltric Mobility.
K Vijaya Kumar — Executive Director and CEO of GEM
Thanks. Good morning, ladies and gentlemen. Thank you for joining us today on our earnings call. I will talk about the performance and the exciting developments at Greaves Electric Mobility, post which we can commence the Q&A session.
Electric vehicles have gained significant traction as an industry and emerged as a promising solution for reducing emissions. As part of our strategy, Electric Mobility, well-known for the brand has filed a DRHP with SEBI on December 23, 2004 for a proposed IPO. We proposed to utilize the proceeds for investments in technology development, enhancing capabilities at our technology center, development of in-house battery assembly, funding expansion of manufacturing capacities of our subsidiaries, increasing the stake in one of the subsidiaries, increasing digitization and deployment of information technology infrastructure, funding in organic growth opportunities and general corporate purposes.
Regarding our business performance, in the E two-wheeler segments, we have achieved a market-share of 3.4% in-quarter three FY ’25, allowing us to reclaim the fifth position in the ranking for the month of December ’24. This notable growth can be attributed to several factors, one of them being our improved product and price competitiveness, which has helped us increase our market shares and specifically in states like Tamil Nadu and Bihar, where we are currently at 10% plus market-share as per the Wahant data. We have also diligently enhancing our distribution network to connect with broader consumers base. In the 3rd-quarter, we added 24 new dealerships for MPR, 16 for our LE brand and 17 for our Greeves three-wheeler brand. This facilitates greater accessibility of our products nationwide, enabling customers to more readily experience the offerings of Electric Mobility.
Our achievements extend beyond these statistics. They reflect our commitment to providing innovative products. A prime illustration of this is our Ampere Nexus, which can be charged only in 3.3 hours. This feature aims to enhance the experience for customers who prioritize convenience and prefer to minimize their time connected to a charging station. And as you are aware, we are also addressing one of the primary concern for EV, which is the range anxiety. Ampere Nexus, notably the Kashmir to Kanya Kumari campaign, which the MPI Nexus traveled over 10,000 kilometers and established four national records exemplifies the remarkable range and dependability of our electric vehicles.
I’m also happy to announce that we have also recently launched an enhanced variant of Magnus EX named as Magnus Neo at an attractive price of 79, we undertook another record journey on our new Magnus and achieved the record of the longest journey by a city-speed family electric scooter riding 2,300 plus kilometers from Bangalore to Auto Export Delhi. We recognize that for customers wholeheartedly adopt EV, it is essential for them to have confidence in their ability to reach their destination without concern. In the sector, we are dedicated to enhancing our footprint through our network and product enhancement.
Our Greeves Ultra City currently boasts the national record for the longest distant traveled on a single charge and impressive 225 kilometers. This achievement underscores our dedication to advancing the possibilities within the EV domain. Additionally, we continue to grow our presence in alternate fuels for three-wheeler. We have successfully increased our market-share in the L5 diesel segment from 1.2% in FY ’24 to 3.7% in Q3 FY ’25, driven by the growing demand from the Southern market, propelling us to fourth ranking as per the for the L5 diesel segment. Our commitments to innovation remains at the forefront. During the Auto Expo, we unveiled a range of advanced E two-wheelers and three-wheelers, including products designed for both B2B and B2C use cases. This includes a multifunctional two-wheeler and three-wheeler designed specifically for last mile delivery as well as higher-power — powered variants of our premium Nexus line as well as the new Magnus new. We also showcased our vision of the Ampere Electric motorcycle, which received widespread coverage.
That concludes my opening remarks. I would now request the moderator to commence the Q&A session.
Questions and Answers:
Operator
Thank you, gentlemen. Ladies and gentlemen, thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press R&2. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question is from the line of Zakri Nasir, who is an investor. Please go-ahead.
Zakir Nasir
Sir, good morning and congratulations to the management on a very healthy set of numbers. Sir, I’m very happy to note that the Board has again reiterated its target of INR15,000 crores for 2030, sir. As what I roughly calculated, that would require a high-20s or even a 30% growth rate from here. Sir, broadly, how do you expect to go-forward on this path whether on organic or a combination of organic and inorganic? That is my question number-one, sir. Should I ask the second question or after this, sir?
Let me let me ask you the next question also, sir. In the current Expo, I see some very interesting products launched by Greece Electric Mobility, notably the construction equipment. So would you throw some light on this, the size of the market and also if possible, then path forward for XL? Thank you, sir.
Narasimha Jayakumar
Yeah, I can take the — your second question first. This is Nassema from Greens Retail. Overall, this is part of our fuel agnostic diversification strategy into some of the newer areas. So we have looked at — as you know, the entire construction equipment space is growing very rapidly. I mean, we’re talking about CAGR growth in excess of 7% to 8% year-on-year on the back of increased urbanization and infrastructure investments. So we have also looked at selected lines which have electrification possibilities on the light construction equipment space like mini excavators, scissor lifts, boom lifts. So this is part of our showcasing that we have done at the recent and the recent exhibition. So, yeah.
Zakir Nasir
And what about the first question, sir, about the growth and a small for Mr, what is what is the cash balance on the balance sheet now and how do you see this going-forward after the issue and stuff like that? Thank you.
Akhila Balachandar
Sure. Thanks, Mr Zaki and sure. Thanks for this question. And let me take your last question first. As on the end of December quarter, the cash on our books at a consolidated level is around INR500 plus crores, adjusted marginally above INR500 crores. In the question that you asked as to how do we believe that we will achieve this ambitious target that we have set-out for ourselves. So let me take a step-back and also run you through our transformation journey, which has been going on for quite some time now.
We have now moved from a single-product diesel engine company to a multi multi-stream, multi-product company. And I think what we’ve done this time is to share the impact of this, I also put out the current revenue mix starting from 2016 and the journey till-date. And you will see that this has been a really diversified revenue pool that we are now building out. YTD or December of financial year ’25, our revenues are a shade above INR2,000 crores and this really reflects the mix of the diversified revenue. We’ve also put out in our presentation that if you see from FY ’22 to ’25, the CAGR of growth because in-between we were hit by COVID and it took a couple of years to come back.
So nine months ’22 to nine months ’25, that is the last few years, we have had a healthy CAGR of 18%. And this kind of helps us believe that we will be good to achieve the ambitious target that the Board has set-out for us as management, right? Will it include organic, inorganic? Surely as you know that we have invested in adjacencies which are very, very core to us and we have done investment in Excel in March in May ’23. As and when we get some really interesting investment opportunities, we will definitely have a look at it.
I hope this answers your question. Thank you,.
Zakir Nasir
Thank you and best wishes to you and the entire Board for the journey ahead. Thanks a lot.
Operator
Thank you. The next question. The next question comes from the line of Krishna Kansara with Molecule Ventures. Please go-ahead.
Krisha Kansara
Yeah, am I audible?
Operator
Yes. Yes, ma’am, please go-ahead.
Krisha Kansara
Yeah. So sir, my question is on the engine side first. So our auto engine division is now shifting from, let’s say, diesel engines to CNG or petrol or more of new agnostic engines. So what is our strategy of increasing our presence or market-share in, let’s say, a market like CNG engines where Bajaj Auto dominates the market, what is our strategy to stand against our competition because our market-share currently is very minusical. So I just wanted to get an idea of our plans in-place with respect to this.
Narasimha Jayakumar
So perhaps I can quickly respond to that. As you rightly said, we are fuel agnostic and we make the prime movers for the OEMs who then compete in the market. So in terms of our whole fuel agnostic approach, all the work that’s going on in terms of engines or powertrains are to mirror the individual — the fuel mix that’s being viewed for the future. At the end-of-the day, how the OEMs battle with each other is really their part of their domain expertise, et-cetera. But we see a growing three-wheeler market at that level and we see this fuel mixtures playing out based on a lot of factors such as availability, total cost of ownership, sustainability and so on. And as long as our portfolio has everything that the industry needs, that’s our way of risk mitigation as well as preparing for a growing future. Thank you.
Krisha Kansara
Okay. And so sir, first of all, congratulations on launching three new types of engines in the recent Bharat Mobility exports. So I have two questions with regards to this. One is how different are this newly-launched engines as compared to, let’s say, our current product offerings in terms of, let’s say, technology or value proposition? And also, do we plan to cater to the existing clientele through this newly-launched products or are we planning to target some newer industries with respect to this? Also, are these engines ready to go in the market right now or is there some time for them to be commercially viable.
K Vijaya Kumar
Yeah. Thank you. So I can take this question. So in the Bharat Mobility, we have exhibition, we have launched three section of products. One is, as I mentioned in my commentary before, this is Magnus Neo, which we have launched and it is ready for production and sales with immediate effect. The second one is on the Nexus, we have launched two variant. One is on the executive variant where a younger generation gets much better power and pickup. And then there is another variant which we are calling a tourist mob on which they can go-around for longer drives. So both of these products, so Magnus Neo is immediately available and Nexus will also be available around the corner. Then there are couple of concepts which we have presented there. One is on the motorcycles where we intend to study the market and study the potential and work on it. And on the three-wheeler, we have presented a new concept, which we believe can create a large market potential in a country like India, especially in the BC-class cities for B2B purposes, which we have demonstrated. These are under study and it will be developed as per our NPD plan going-forward.
Krisha Kansara
Sure, sir, thank you for your answer. But my question was more of the newly-launched products in our engineering side of business. So the biofuel engine or let’s say the hydrogen powered engine or the Euro-5 + diesel engine. These are the three products that we launched in the expo my question was regarding those products.
Narasimha Jayakumar
Right. So perhaps I would maybe just give you a quick response. The hydrogen engine was a concept engine. The others are further developed in terms of availability. The hydrogen engine can also be made. There are some customization that we do by specific OEM. So that will depend on-demand. The Euro-5 plus compliant engine is actually up and running because the norms were applicable from 1st January of 2025. So they are like probably the world’s first single cylinder Euro-5 plus compliant engines for that category. Thank you.
Krisha Kansara
That’s great. Sir, quickly, a few questions on Excel Control linkage. So in your opening remarks, you mentioned that we are expanding our capacity in XL segment. So can you throw some more light on that statement?
Narasimha Jayakumar
Expanding capacity, I thought is quite an easy-to-understand statement. We are seeing us opportunities for growth and we are expanding capacity so that whatever is the demand from our customer-base, we are able to fulfill it satisfactorily. So we are just preparing ahead of time so that as and when the demands grow and they are not always uniform, we are ready to meet the requirements of the customers. Thank you.
Krisha Kansara
Right, right. So my next question is more on the non-auto business. So can you just throw some light on each of our sub-segments in non-auto in terms of how they are performing or let’s say, scale or market leadership? Also, what is the existing breakup of, let’s say, auto and non-auto and how do we plan to move forward with the ratio, let’s say, two to three years down the line, how do you see auto versus non-auto in our engineering side of business? And also, which segment will majorly drive this shift is my question.
Narasimha Jayakumar
We see all segments growing. I think our key approach was we were over dependent on one specific application and the work that has been done over the last few years is to create a portfolio of prime mover applications across multiple segments. We see gensets growing. We see auto demand also growing. We see non-auto applications also growing. An economy of our size and globally that’s growing at the kind of GDP rates that we have, pretty much all the engineering applications that we serve are going to grow at what rates may change from one to the other. And we have therefore a fully diversified portfolio to meet all this demand. And that’s the way we view it. Thank you.
Operator
Thank you. MS. Kansara, may we request that you return to the question queue for follow-up questions as there are several participants waiting for their turn. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to one or two per participant. Should you have a follow-up question, we would request you to rejoin the queue.
The next question is from the line of Tushar Bora with Emkay Ventures. Please go-ahead.
Tushar Bohra
Yeah. Thanks for the opportunity and congratulations to the management for putting a healthy set of numbers. Sir, first of all, I would just like to understand there was a reference made to aerospace segment or industry in the opening remarks. If you can just expand upon that a little bit qualitatively or some more inputs that can be given.
Narasimha Jayakumar
Yes, sure. Maybe I’ll just elaborate on that. We do a lot of machining and engineering fundamentally and one of the areas which require a long-lead time to prepare ourselves is the area of aerospace, which is growing in India quite a bit. So from a precision manufacturing and a precision engineering capability, this is one of the Wave 3 horizon opportunities that we see and we thought it’s better to prepare for it early-on. And one of the first steps in that is to qualify your plant for these kind of products because there is a very long-lead time to qualify yourselves because it’s a very structured and high-quality barriers and high-entry barrier industry. So we are — we see this as a wave three potential opportunity and the work — early-stage work towards that has started. Thank you.
Tushar Bohra
Sir, are we also looking at any other adjacencies from a precision engineering standpoint, maybe railways, defense, I think we are supplying few products in marine, but not on the engineering side, but any other adjacies like Aerospace that you are working on, if you were to share a bit more?
Narasimha Jayakumar
Sure. So in a way, Excel, the acquisition of Excel was strategic because that opens up the whole adjacency from an engine ecosystem perspective around the controls, the five or six controls that are used to control any vehicle, whether off-highway or on-highway, et-cetera. And that represents one adjacency that itself is growing in terms of the technologies, et-cetera available. So you have a core and then you start building the adjacencies like this. So that’s one. The applications of powertrain is the second one. The electric powertrain capability building is another. Innovate, the application is moving from one-type of time over, first level was fuel-agnostic IC engines and the next level now is electric powertrain as well. So all of these you will find are kind of expanding the canvas in which we play and adding to our diversification approach? Thank you.
Tushar Bohra
But in terms of industries, did — do we also have a potential plays in maybe say railways, defense, marine, other industrial, are we looking at anything which we — over the next few quarters?
Narasimha Jayakumar
We’ve been — we work already with railways. So the ecosystems where we are already present are represents another way to expand because you have a customer, you have one set of products, you go with them and that expands. So the whole railways expansion fits in with our sort of expanded engineering capability. So that is one thing that will be fed. Similarly, in defense, as they expand their portfolio, we are a qualified company with them in terms of registration, et-cetera. So all of them are entities we worked with in the past, we continue to work with and represent natural extensions in terms of the portfolio that consists of them. Thank you.
Arup Basu
From a greed retail aftermarket perspective as well, we are looking at new areas like — I think my colleague touched on railways where we have already looked at energy management services and offering where we are working with some of our institutional customers, notably railways and telecom tower companies for basically assisting them in their transition away from diesel gensets to lithium-ion based battery packs and really providing energy as a service. So this is sort of as part of our own sort of diversification and new business strategy from a greens retail perspective. I hope that, but.
Tushar Bohra
Thanks, sir. My next question is on the hydrogen engine that we’ve developed as a concept. Are we looking at this as an independent engine or are we also looking at retrofitting possibilities to existing know engines where they can be sort of made compliant to run on hydrogen as well? Also, are we looking at this only from a three-wheeler perspective or because unlike diesel where obviously a lot of firms globally have been at the technology front, in hydrogen is still an evolving concept. We could be one of the few companies that have in the first wave of working on it. So are we looking at only three-wheelers or are we looking at this maybe for even four-wheelers, even commercial vehicles for that matter, what are the possible applications for the hydrogen engine?
Narasimha Jayakumar
So perhaps I can respond to that. The idea of showcasing a hydrogen engine at the expo was to demonstrate that we have the engineering know-how and know why on this fuel for an IC platform because this is also in consonance with our sustainability approach that we work. It covers our fuel-agnostic approach as well as our environmentally green approach. Now once an engine capability is there for a hydrogen-based engine. Sizing is less of an issue. We are working actually with a larger engine on the retrofitment because of the economics.
So at the end-of-the day, there’ll be many other factors, for example, availability of hydrogen, the total cost of ownership, et-cetera, which will determine which ones take-off or which ones take what time and what are the triggers which will allow a repurposing of the portfolio of fuels that are fuels of choice. The purpose of this was to show that we have the capability. We are working with a small engine as well as large engines and working on the hydrogen platform. And it will allow us to therefore probably be one of the early movers as this fuel plays out going-forward?
Operator
Thank you. MR. Tushar, may we request you to return to the question queue for follow-up questions as there are several participants waiting for their turn. Thank you, sir. The next question comes from the line of Abhishek Salunke with VEC Investments. Please go-ahead.
Abhishek Salunke
Yeah. Thanks for the opportunity. So my first question relates to Excel Linkage.
Operator
Sorry to interrupt, sir. I request you to use your answer, please.
Abhishek Salunke
Is it better now? Hello. Is it better?
Operator
Yes, sir. Please go-ahead.
Abhishek Salunke
So thanks for the opportunity. My first question relates to the excel control linkage. So what I want to understand is, what are the growth constraints we are facing since last two quarters in this business?
Narasimha Jayakumar
Apologies, could you repeat that? I could not understand.
Abhishek Salunke
Sure. So my question relates to Excel control linkage. What I want to understand is what was the growth constraints that we are facing since last two quarters because the revenue growth seems to be — in fact, it’s declining year-over-year. Is this a conscious decision or it’s because the industry is going down?
Narasimha Jayakumar
Right. So actually over the first couple of quarters, our Excel control linkage products goes largely to the OEM industry and a little portion goes to aftermarket. So the OEM industry in India, as you are aware in the first couple of quarters had been reasonably flat or a bit tepid, typically, particularly the commercial vehicles as well as the agri vehicles like tractors, etc. So those were some of the industries that were a kind of flattish and commercial vehicles industry had a small contraction. We see that being a temporary phenomenon because of election floods, et-cetera, all the reasons. But overall, we see it growing. So we don’t really see that sector going down.
The other piece is in exports. There was a little bit of a reduction in terms of the export volumes, that too, because there was some inventory destocking taking place in some of our customers’ supply chains. Over a period of time, we are rebuilding the export portfolio, like I mentioned in my talk that we are expanding our set of export customers. And also we see industry growing in India. So in the medium-term, you are seeing that change already happening between Q3, Q4, et-cetera. And overall, we are positive about the demand-side across all the sectors that we serve. Thank you.
Abhishek Salunke
Sure, sure. And it’s a commendable job considering that even in the weak demand scenario, you have managed to grow your EBITDA margins. And I mean, I think the enterprise value for Excel Control increased around INR620 crores and then we own 70% of the business. So when we look at future, for example, the inorganic opportunities, is this a guideline that we would look for EV-to-EBITDA of around 8 to 10 times and we will not — we would be conscious in not overpaying. And then the second part of this question relates to Excel control linkage only. What is the current capacity utilization levels at present? Yeah.
Narasimha Jayakumar
So maybe I’ll just comment on the second one and the CFO is best placed to comment on your first query. We have — this is a assembly type business, so we don’t have a very clear-cut capacity calculations, but by and large, we do have capacity in terms of the setup that we have to be able to cater to a larger demand. So as of now, there isn’t really any bottlenecks. We are proactively expanding certain parts of certain upstream components, which feed into the end-product as well as have a market of their own such as rubber. So there will be piecemeal kind of expansions going on. But as of now, there really isn’t any constraint to fulfill any orders that we get. Over to you,.
Akhila Balachandar
Yeah, sure. So, just want to share that each inorganic opportunity will be different. And as and when we look at opportunities, we will evaluate them accordingly and come back when something is final. So I don’t think we have anything fixed or set. Definitely have our internal metrics in terms of ROI, ROCEs and so on. But we will definitely treat each opportunity as it comes. Thank you.
Operator
Thank you. MR. Abhishek, may we request that you return to the question queue for follow-up questions, please. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to one or two per participant. Should you have a follow-up question, we would request you to rejoin the queue.
The next question comes from the line of Joti Singh with Arihant Capital Markets Limited. Please go-ahead.
Jyoti Singh
Yeah. Thank you for the opportunity and congratulations in Grief’s team to doing such a well job for the griefs cotton. And my question is on the — firstly on the spare and services side, which is 75% of revenue. So how do you plan to sustain growth in this segment? And are there any new partnership or product category in the pipeline? And second, that we have vision of INR15,000 crore revenue by 2030. So could you give us a little bit in-depth on the key drivers and timeline for achieving this target?
K Vijaya Kumar
What was the first question? It was not clear. What services?
Jyoti Singh
It was spare and services, which is 75% of our revenue. How do you plan to sustain growth in this segment? And are there any new partnership or product category in the pipeline that you’re planning?
Narasimha Jayakumar
Yeah, I can take the first question. This is Nasima Jaykumar from Retail. As I was mentioning in my update that we’ve already sort of as part of our fuel agnostic strategy, diversified quite a bit away from our traditional diesel spares, three-wheeler spares. We have now, as I said, expanded into CNG category. We’ve gone into a very big way into electric three-wheeler space, particularly for. I think I touched on that. These are very large markets. If you look at the way the electric three-wheeler growth is happening in the country.
Also looking at adjacencies, leveraging our XL manufacturing capability into the SCV and construction equipment aftermarket spare parts. You know. So there are — these are sort of the growth trajectories on the automotive side. And on the non-automotive side, I’ve touched on, you know both for Excel as well as for in newer sectors like railways, energy management service, telecom and so on. So these are all large markets and we believe these have sufficient growth opportunities for us for Greens Retail.
Akhila Balachandar
So, I’ll take the second one. How do we plan to achieve this ambition target? MR. Zaki had raised this earlier on and I have fairly elaborated. So maybe we’ll move to the next question, if that’s okay.
Jyoti Singh
Okay, fine, fine, ma’am. So just another on the side that we recently increased its take on that. So are we planning further to acquire 100% or will be keeping in this level only?
Akhila Balachandar
So as far as Excel goes, there is a path to 100% and 100% ownership and this is as per the SPSHA signed with the promoters and we will be working along the same lines.
Jyoti Singh
Okay, thank you so much.
Operator
Thank you. The next question is from the line of Shuti with SUD Life. Please go-ahead.
Shruti Shukla
Yeah. Hi, part of my questions have been answered previously. Just one follow-up on one of the previously asked questions on capex in XL Control linkage or is it going to be greenfield or brownfield? Like how — what sort of cash outflow can we expect there? And are there any timelines that you’re currently working on? That’s all from my side.
Akhila Balachandar
Sure. Let me take that. We have a very fairly strong robust CapEx program both across Grease, cotton and Excel. The number of initiatives which we keep doing, which we call internally suspendence, but like Dr Arup mentioned earlier, any assembly line or manufacturing line, while there may not be an overall capacity constraint, there are also ongoing projects on debottlenecking, which ensure that we are able to run our capacity and our capex far more efficiently. So these are multiple projects, which we have evaluated and are currently in-place across all our organization. Then there are some larger initiatives, which we are undertaking to ensure that we are able to move along the provisions that we have set forward. Overall in this year between GCL and XL, we will have roughly INR100 crore approximately of capex being spent out.. That answers your question.
Shruti Shukla
Yes, thank you.
Akhila Balachandar
Thank you.
Operator
Thank you. The next question comes from the line of Amit Kumar from Investment. Please go-ahead.
Amit Kumar
Yes, can you hear me?
Operator
Yes, sir. Please use your hand, sir. You can go-ahead with your question, sir.
Amit Kumar
Yeah, I’m on my mobile-only that should be okay. Hi, Timba. Thanks so much for the opportunity. I just had one question with respect to your two-wheeler electric business. And so I think in September, you know we got back onto the government subsidy program. And you were sort of anticipating you know then I mean, obviously it takes a little bit of time for things to — for that subsidiary to basically get into retail, anticipating a little bit better improvement in your month-on-month two-wheeler sales numbers.
So in fact, I mean, we have seen on a quarterly basis, we’ve seen a little bit of an improvement, but things are still sort of fairly subdued on that count. Is there any sort of constraint there in terms of ramping-up the two-wheeler sales given that you know, now that pricing differential versus competition would not be there, I presume. And how should we — I mean, I don’t — I’m not sort of looking for a forward guidance, but just in terms of a constraint, if you can sort of highlight anything on that count.
Arup Basu
Thanks for the question. Sorry, thank you so much for the question. So from an constraint point-of-view, I don’t think there is any specific constraint. So what has happened was October was a bumper month. And as you all know, post November end and December, the industry itself was close to 30% down. The industry in the month of December had gone down to 73,323 from 1,118,000 in the month of November. So that is the sort of steep fall it had taken. And plus — so that’s point number-one. Point number two was we were transitioning into the new Magnus NEO means we have a inventory in the dealerships and in the market. We want to transition to get ready for the launch, which we did on — in Auto Expo in the first week of January. These are the two things and we are — that’s behind us and you will see the traction what we foresee.
Amit Kumar
Sure. Understood. Thank you.
Operator
Thank you. The next question comes from the line of Atul from Sunidhi Securities. Please go-ahead.
Atul
Yeah. Thank you for the opportunity and congratulations on great set of numbers. My question is on generator side. Hello, am I audible?
Operator
Yes, sir, please go-ahead.
Atul
Yeah. So my question is on the generator side. Like how much — how is the performance has been for Q3 FY ’25 from this — this business and I understand that there has been a slowdown in the genset side, but just would like to know the status of this business for this quarter.
Nagesh A. Basavanhalli
Right. So, maybe I will respond to your question. There has been a significant change in the regulatory norms that happened in this financial year, which was the CPCB4. This is for the India geography. And a significant range of gensets had to be upgraded by all players towards that. And what has happened is overall, the genset demand is in a way linked to your underlying GDP growth because infrastructure, everything needs backup gensets as you’re aware. The sizes differ depending on the size of the project or depending on the application where it’s going to be used, but it goes from a fairly large-scale and range of products that are in-demand.
So overall in India, the demand is going to mirror the GDP growth and infrastructure growth, which are both seen to — the prognosis is positive on both counts into the future. The other part is we also have a building, as I said, an export business also in gensets and engines. An export business is quite large. There are certain geographies where one is focusing. And overall, if you take both combined, I think all the players in the industry have a headroom to grow. We particularly have a headroom to grow because we are relatively small as of now. And so we see a runway for significant growth for these reasons. Thanks.
Atul
Yeah, that’s helpful. My second question is on a like on overall business, like you know, now the EV segment is doing well like we reported for almost 40% volume growth in that segment. And we are anticipating genset business will also start reporting a good number starting Q1 FY ’26. So on a consolidated basis, on an overall basis, can you say that starting FY ’26 will be — performance will be much, much better than what we are seeing currently.
Akhila Balachandar
Yeah. Maybe I’ll take that. So if you see this quarter, we have done a consolidated revenue of INR751 crores and a standalone of INR502 crores and growth of 13%. We will continue on our journey of ensuring that we are growing on all cylinders. A lot of effort is on, which has led us to the consistent improvement in our margins over the last eight, 10 quarters. And again, that’s a journey we will continue being on. So I think this is something as a management team, we are all focused on and we are working towards. I hope that answers your question.
Operator
Thank you. Ladies and gentlemen, due to time constraints, that was the last question. I would now like to hand the conference over to the management for closing comments.
Nagesh A. Basavanhalli
Thank you. In the interest of time, I’ll keep it brief. Again, management has summarized how we are moving from a single cylinder diesel engine company to a diversified multi-business B2B plus B2C organization. I hope you had answers to most of your questions. Our teams are always available. Should we have more.
Thank you for your time and attention today. Have a wonderful day.
Operator
Thank you. Ladies and gentlemen, that concludes this conference. Thank you for joining us and you may now disconnect your lines.