Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Greaves Cotton Limited (NSE: GREAVESCOT) Q4 2026 Earnings Call dated May. 06, 2026
Corporate Participants:
Parag Satpute — Managing Director, Group Chief Executive Officer and Director
Vikas Singh — Managing Director
Analysts:
Nilesh Doshi — Analyst
Saket Kapoor — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4 and FY26 earnings conference call for Greaves Cotton Limited. From the management of the company we have Mr. Parag Satpute, MD and Group CEO Greaves Cotton Limited. Mr. Vikas Singh MD Greaves Electrical Mobility Limited and Mr. Manish Podar, CFO Greaves Cotton Limited. 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 this conference, please signal an operator by pressing Star then zero on your touchtone phone.
Please note that this conference is being recorded. I now hand the conference over to Mr. Palag Satupay,
Parag Satpute — Managing Director, Group Chief Executive Officer and Director
MD and Group CEO Greaves Cotton Limited. Thank you. And over to you, sir.
Operator
Thank you, Darwin. Good evening everyone and thank you for joining us today on this earnings call. Before I start the formal proceedings for the call, I would like to welcome our new group. He’s joining our leadership team and he brings over 25 years of experience across financial leadership, strategy and corporate governance. As we enter this next phase of our growth, Manish’s deep financial expertise and strategic perspective will be invaluable. Welcome Manish.
Parag Satpute — Managing Director, Group Chief Executive Officer and Director
Thank you.
Operator
I will start today by giving you an overview of our performance and the execution on the strategy for Greaves Cotton Limited. I will then hand over to Mr. Vikas Singh who will talk about the Greaves Electric business. This will be followed by Manish as the group CFO giving you a financial update and then we will open the floor for questions. So let me get started. I am pleased to share that Greaves Cotton delivered another quarter of steady and all round performance in Q4FY26. At a consolidated level.
She recorded a year on year 22% revenue growth along with improved profitability. This was driven by disciplined execution, strong demand across key segments and continued momentum in our strategic priorities. I’m also pleased to share that we recorded the highest annual revenue on a consolidated as well as standalone basis in the last 10 year period. Greece Next. Our strategy to build a trusted, innovative and future ready engineering company is progressing well. Our focus this quarter has been on consistent execution and translating this strategy into measurable outcomes.
Through this we have strengthened our core business and enhanced the operational capabilities. Laying a strong foundation for future sustainable and Profitable Growth As I have outlined earlier to this group, our strategy is anchored around three areas Energy Solutions, Mobility Solutions and Industrial Solutions. Let me walk you through the performance of each of these. I’ll start with Energy Solutions. The focus here is on strengthening our genset platforms and also expanding our aftermarket and service network so that we can deliver reliable and efficient energy solutions.
The overall outlook for India’s genset market remains strong. This is supported by infrastructure growth, industrial expansion and an increasing demand for reliable power. In this context, during Q4 our Energy Solutions business continued its growth trajectory, registering 18% growth. The Aftermarket business grew by 23% reflecting the success of the integrated service laid approach we had put in place just a few months ago. We also secured our single largest institutional order worth 35 crore. This covers end to end delivery including supply, installation, commissioning and long term maintenance.
This clearly demonstrates demonstrates our integrated solutions capabilities for the full year. FY26 the energy solutions business delivered a 20% year on year growth with the aftermarket segment outpacing at 35%. Additionally, I’m happy to report the recent launch of a new product, a 650kva genset which is based on an engine developed fully in house by our R and D team. With this we have further strengthened our portfolio and are able to address a wider range of customer requirements. Now moving on to our mobility solutions, this segment includes automotive engines, aftermarket retail engineered components and associate services.
Our strategy here is to build a diversified and a fuel agnostic portfolio through the strong OEM partnerships. We will continue to invest in advanced powertrain technologies while expanding our aftermarket footprint and scaling the Xcel control linkages products. Here too, the auto industry had a good FY26. It registered a 9% annual growth. This growth was supported by structural tailwinds such as GST 2.0 along with a stable monetary condition. While EV adoption is accelerating, we still see multi fuel technologies will coexist for an extended period.
Against this backdrop, our automotive business delivered a 48% year on year growth in quarter four. This was driven by strong domestic demand for three wheeler diesel engines and the continued momentum we have in exports of the Euro 5 engines. In the aftermarket business, we sharpened our portfolio focus. The core business remained resilient. We accelerated the retailer engagement onboarding approximately 350 retailers with a clear roadmap to scale this to 3,000 by FY27. At the same time, we exited non core and low return segments such as two wheeler parts, construction equipment and some select battery and digital platform businesses.
This was a deliberate step as part of our greaves.net strategy aimed at improving business quality and margins by focusing on areas where we have a very clear right to win. We remain positive on this business given its asset light nature and strong margin profile. In our engineered component business which is Excel, we have expanded our product range into the small commercial vehicle segment and also started adding new geographies and customers. This improves diversification and the growth visibility for the business.
In addition, within Mobility Solutions we are also advancing ePowertrain initiatives. I am pleased to share that we have successfully supplied the first pilot batch of of our rare earth three motors to one of our three wheeler L5OEM customers and are in advanced discussions for securing a firm order for supply within the year. Overall, Mobility Solutions delivered a 16% year on year growth for FY26. Finally, coming to Industrial Solutions, this segment includes special purpose engines for applications such as firefighting and marine.
We continue to scale our presence by leveraging our core strengths in engineering, design and manufacturing across diverse applications. While the macro environment here remains mixed, demand for critical application continued to be resilient. This segment delivered a revenue growth of 15% year on year. For the quarter. We have also commenced execution of the defense order secured in the previous previous quarter and onboarded new OEM customers in the agriculture segment. So this was the performance of the three business segments that we are focusing on under Greaves Next.
From a strategic standpoint though, through our multi year transformation strategy, we are aiming to position Greaves Cotton as a trusted, innovative and future ready engineering company. Within this, one of the key priorities is expanding our international business. During this year, we strengthened and realigned our international teams. We deepened our Euro 5 engine exports through partnerships such as Leisure and expanded our presence across Europe, the Middle east and other markets. As a result of all of these activities, international revenues increased from approximately 9% in FY25 to 13% of the total in FY26.
During the second half of FY26, we also made significant progress in strengthening our leadership team, ensuring that we have the right talent in place to drive this next stage of growth. We have continued to invest in capability development, especially in our operations. Some of the key initiatives I’d like to mention we invested in a dual conveyor setup for our single cylinder engines which will lead to capacity increase to meet the growing demand. We also deployed a robotic vision based AI inspection system to enhance quality control, traceability and efficiency.
At our plant in Chakrapati Sambhaji Nagar, we commissioned a conveyorized cable assembly line in Excel facilities in Nagpur with all of these activities. We are also encouraged by continued customer recognition, received a letter of appreciation from a global firefighting equipment manufacturer during this quarter. So to conclude, quarter four of this year was a quarter of strong execution and meaningful progress across our strategic priorities. As you can see we delivered healthy growth, we strengthened our portfolio and expanded our global footprint and we will continue to build future ready capabilities.
We remain confident in achieving growth over the medium term which we are doing through building on our core strengths, expanding into newer segments and through disciplined capital allocation. With this I will now hand over to Vikas to talk about the Greece Electric business. Over to you Vikas.
Vikas Singh — Managing Director
Thank you. Very good evening everyone. Thank you for joining us today at Greens Electric Mobility we are logging in our strongest quarter yet in quarter four and over the course of time we have built a focused and differentiated position in India’s EV sector spanning both the two wheeler and the three wheeler segment through our brands Ampere Le and Reed three wheelers. I’m pleased to share that full year 26 has been a period of good progress for us. As for Vahan, we have delivered a volume growth of 51% year on year.
In full year 26 our market share has expanded from 3.6% in full year 25 to 4.4% in year 26 reflecting sustained market capture. We also achieved approximately 12% market share across four competitive states of Tamil Nadu, Orissa, Bihar and West Bengal which collectively contribute to approximately 23% of the overall E2 Wheeler market volumes in Q4. 26. We also increased our market share in the Eastern region to approximately 8% in full year 26 up from 5.7% in full year 25. On the product front, full year 26 saw a successful portfolio ramp up.
Magnus brand was launched in Quarter 326 and and received the Electric Scooter of the Year 2026 award. Continuing ampere streak of four consecutive industry recognitions across the Primus, Sub Brand, Nexus, Magnus grand and the latest being Magnus G Max voted as the Family Scooter of the Year affirming the strength and consistency of our product innovation pipeline. Together we believe that these achievements reflect our conviction and in building products that are truly built for Bharat. They can handle different terrain and weather conditions and are well geared to address the Indian consumers requirements.
We launched the Magnus g max in quarter four 26 that enabled us in gaining traction and also announced the introduction of Magnus sixth Generation, an upcoming addition to our portfolio designed with a clear aim to take on the ICE Scooter segment. We have Also been continuously building the Ampere brand. Ampere Nexus set an Asia Book of Records by conquering the 70 steep hairpin bends of Kohli Hills in Tamil Nadu and our campaign on this account trended on X for a period in time validating Ampere’s growing brand salience.
Our financials reflect our progress. Full year 26 revenue stood at rupees 786 crores up 19% year on year. Showcasing that volume growth is translating into strong expansion. Our network expansion drove both scale and productivity. Active dealer count grew by 13% and showroom revamps combined resulted in a 30% improvement in per dealer productivity in full year 26. Complementing this we achieved high after safe experience service levels with the net sentiment score on Social at 93%, one of the highest amongst the EV company competition.
Turning to our L5 3 Wheeler business, L5 volumes grew 17% year on year in full year 26 and also once again a strong quarter 426 performance recording a 31% year on year growth. L5E 3 Wheeler and 3 Wheeler volumes growing by approximately 14% and 17% respectively exited the year with 2,300 plus units in quarter 426 our financing tie ups continue to get stronger, the latest being Hinduja Leyland Finance which further strengthens customer access in the L5 three wheeler segment providing a boost with a maximum of 95% on road LTV funding which further strengthens affordability in the segment which is a very important enabler for our next phase of growth.
We remain committed to deepening our market presence, expanding our product and building an electric mobility company that aims to deliver value for all our stakeholders. With this I hand over to Manish. Thank you.
Operator
Thank you Vikas. Good evening all. As we move forward with the implementation of our strategic priorities, this quarter reflects continued progress that we made. I am pleased to report the financial performance for Q4 and the full year of financial year 26. During the quarter our consolidated revenues stood at 1000 crores with an EBITDA of 68 crores and PBT before exceptional items at 44 crores. The consolidated revenues as Bharat mentioned increased by 22% year on year while EBITDA increased at 49% during the same period.
For the financial year 26 the consolidated revenues full year was 3437 crores reflecting an 18% growth year on year driven by broad based growth across businesses and consistent execution across segments. Our profitability matrices improved significantly during this period with EBITDA at 239 crores and PBT before exceptional items at 154 crores growing at 76% and 118% year on year respectively. Likewise, Q4FY26 standalone revenue stood at 698 crores with EBITDA at 87 crores and PBT before exceptional Items also standing at 87 crores.
Standalone revenue grew 22% year on year while EBITDA increased 4% year on year. As an update during this quarter, the management identified a potential impairment for the value of certain tangible and intangible assets under development. This relates to our investment in an E powertrain technology which has not scaled up or realized for our expectations due to the underlying changes in the project execution and customer demand. Resultantly, we have on a conservative basis made a provision of almost 16 crores during the quarter for FY26 our standalone revenue stood at 2,365 crores with an EBITDA of 320 crores with PVT before exceptional items at 312 crores reflecting a 23% year on year growth with EBITDA supported by 40 basis point margin expansion supported a strong demand and cost optimization initiatives coming to gfl.
The GREEKS Finance Limited the total asset managed asset under management for the financing business stood at 521 stores as in March 26. Our balance sheet continues to remain strong with healthy cash balance. Our planned investments are completely aligned with our strategic priorities focusing on R and D and technological upgrades, capacity expansion and digital tools. To summarize, FY26 has been a year of consistent growth, margin expansion and strengthening our financial position as we laid down the foundation of our next phase of growth under Greece Mix.
During the quarter we observed a rise in input cost being highlighted by our peers too owing to the commodity price increase. While this has created some near term pressures on the margins, our focus remains on disciplined cost management and maintaining profitability. We remain committed to driving operational efficiency, maintaining working capital discipline and ensuring prudent capital allocation. With that I hand over to prag. Thank you Manish. So let me give you a brief concluding remark before we open up for the questions.
Our forward path remains consistent. We are focused on execution discipline, profitable growth and strong cash generation. Our priorities are also unchanged, scaling international business, building future ready capabilities and ensuring disciplined return led capital allocation. We remain confident in sustaining our growth momentum. At the same time, as Manish mentioned, we are watching the evolving macroeconomic environment and will act with agility to mitigate any potential headwinds. The performance for the year reinforces our confidence that and our execution capability as we continue to advance Greece Next, we will remain anchored to our core metrics and maintain transparent and consistent communication.
Greens Cotton today stands on a strong foundation with a diversified portfolio, a robust operating engine and a clear strategic roadmap for the future. We thank our investors for the continued trust and support and we look forward to building on this momentum in the coming quarters. With that, we can now open the floor for questions.
Parag Satpute — Managing Director, Group Chief Executive Officer and Director
Thank you very much. We will now begin the question and
Questions and Answers:
Operator
Answer session. Anyone who wishes to ask a question may press STAR and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Milesh Doshi from Prospero Tree. Please go ahead.
Nilesh Doshi
Hello. Am I audible, sir? Oh, thank you. Thanks. Thanks for the opportunity and good set of numbers. So my first question is regarding the presentation on the page number 15, you mentioned that the EBITDA margin is around 13 to 15%. So are you saying, are you indicating the EBITDA margin at the console level or the state standalone level? Because we are already earning the ebitda margin of 13.5% at the standalone level. So is it the standalone level or console level, Sir?
Operator
Yeah, Hi Nilesh, this is Manish here. So these are primarily for the core businesses that we are handling because that’s where so investing business of course have a different trajectory of growth and profitability path to profitability. These are the existing core businesses that we have which includes standalone and one more couple of more smaller entities, Excel and Greece Technology.
Nilesh Doshi
So Greece Electric Mobility is not a part of the core business.
Operator
Greaves Electric Mobility and Greece Finance limited are part of our investee businesses there. Obviously they are completely into different zone from a profitability, but after profitability and from a growth perspective they are in a different league altogether. The Greece Next primarily aspires on the core businesses. So therefore if you refer to slide number, Slide number the slide immediately after the EBITDA margin. So we have the three sections of Energy Mobility and Industrial Solutions which is forming part of the core businesses.
And then you have the Greece Electric Mobility and Grease Finances which is part of the industry businesses. So we’re talking about the left section which is the core businesses.
Nilesh Doshi
Okay. Okay, thanks. Thanks. So we would like to generate around 13 to 15% from the core business and these are our investment activity. Can we consider the. Suppose we even we consider the investment activity Grease Electric Mobility then how long the Greece will financial support to that mobility business because that business is incurring the losses and I would like to know from the sustainability point of view I know that the main EV manufacturing are still incurring the losses and Greaves is comparatively the small pair compared to the other listed or non listed player.
So what is the own fund still with the breeze Electric Mobility to sustain that business?
Operator
Sure. So Nivesh, I’ll start up and then let Vikas on how does he see the progressing on the Greece Electric Mobility FY26 has shown significant improvement if you see the standalone for Diesel Electric and the console for dieselectric as well from a minus 30% to a minus 40% EBITDA. So that’s a strong growth. And as Vikas mentioned there’s a strong upside on the volumes as well. So there’s a clear path to profitability thereon. Of course on the short term basis the investments have paid off from a long term perspective.
So therefore we may have to continue for some more time at least on a short term basis. But would let Vikas respond on the profitability in the future aspects.
Vikas Singh
Sure Manish, thanks for that and hello Nimishji, I’ll just call out a few numbers for you to give you a sense of where we are heading and also a sense of comfort. I unfortunately may not be able to get into too much detail given the disclosure obligations that DRHP filed with SEBI puts on us. First and foremost we have market share growth. Market share growth means we’re fundamentally getting stronger. We’ve gone from 3.6% to 4.4%. Secondly, we’ve had our highest ever top line growth. We’ve had our highest ever reduction in losses.
Our loss per unit has progressively fallen by almost half from last year to this year. I again am not in a position to share details with you. We have a very strong increase in footprint as I mentioned in my update on GML. Besides the 4.4% growth that we talked last year, we have an almost 12% growth across the four states of Tamil Nadu, Orissa and Bihar and we also have 8% market share in the region of East. Our products are progressively meeting with recognition and we voted the best electric scooter progressively.
So there again this is something which is an achievement to be proud of and reflective of market uptake. So broadly speaking, if you were to look at just these few statistics that I’ve shared with you, we are very confident that we are on the right track and we hope that we should not have to be looking at funds infusion from GCL in the near future. Hope that addresses your questions. Thank you.
Nilesh Doshi
Thank you sir, if you weren’t. My last question is regarding the employment cost. Sir. At the console level we are spending around 45 to 46 crore rupees on the employment and at the consul level it is 90 to 94 crore rupees. It means the subsidiary. At the subsidiary level we are increasing the as much as the standalone level 45 to 48 crore rupees. Is it not on a higher side because the business which is the Excel and Greens electric mobility they are spending 46 to 48 crore rupees on the employment cost.
Is it justifiable compared to the revenues and the.
Operator
So Nilesh, maybe I step in and maybe let Vikas to the. So I think inherently there is a different level of maturity curve of the two businesses. I think that’s not a fair comparison. You know GCL is of course you know regular cash generator and therefore the employment are you know in line with whatever is the need. Gemm, decreased electric mobility and grease Finance logically are in a much, you know at a primitive stage with regard to from an evolutions perspective. So they have to invest ahead of the business.
So therefore to compare a mature business versus you know, immature business is a bit of a stretch. Vikas, maybe you want to.
Vikas Singh
Yeah sure. Manish, thanks again. And hopefully we’re not at a primitive stage. The ratio of manpower to top line was 15% last year down to 10% this year. I think a single digit ratio of manpower to top lines to be so regardless of the challenges that are there with the sector and the growth for a high growth business the single digit ratio of manpower cost to top line is again a good place to be. So I don’t think that should be an area of concern for any of us. Again I hope that answers your query.
Thank you.
Nilesh Doshi
Thank you. Thank you. Thank you. That’s all from my side. If there is any question I will come into the group.
Parag Satpute
Thank you.
Operator
Thank you. Ladies and gentlemen, if you wish to ask questions you may please press Star and one. Our next question comes from the line of Zaki Abbas Nasser from Nasser Investments. Please go ahead.
Parag Satpute
Congratulations on phenomenal quarter I would say. I think your adjusted EBITDA has crossed 100 crores for the first time. Two questions from my side. One is on the core business. So do you see this growth trajectory going forward? I mean could we consider the Q4 as a new base for the next year in terms of core business. And please throw some light on XL control linkage and when, when would Greece get 100% holding in that as you all had planned. My second question, do you want to ask me or could you answer that question?
Operator
Hi Naser Ji, good to hear from you again. This is Parag. Let me answer your first question and then you can ask the second one. So yeah, we are also very happy with the progress in the core businesses during. When our plans fall into reality. It makes all of us happy and confident. As you know, during the last couple of quarters as part of Greece.net strategy I’ve said that our growth ambition in the midterm is between 16 to 18%. So we continue to hold that. So that was the answer to your first question.
Xcel also made good progress during this year. Like I again mentioned during my opening remarks, we entered into a new segment and with the realignment of our international team and the investments we are making, we are starting to also open up opportunities for international business. And your final point there was about the holding? Yes, you’re right. We have a predetermined path. The last 20% of the ownership of Excel is planned to be done during Q200% of the company.
Parag Satpute
And my second question would relate to your mobility business. Sir, we have done decent numbers according to Wahan data, I think six, seven thousand. I would like to ask at what number would the mobility business break even? Sir, and we had mentioned that about the dhrp. I I think in May that expires. So we have we got an extension or how does that work? Because I think it’s been a year and it automatically expires.
Vikas Singh
Yeah, the DRHP has been all DRHPs which were expired expiring till 30th of September, you know, have been given an extension by SEBI till 30th of September. So our DRHP which is expiring on 6th or 7th of May, therefore gets extended till 30th of September. This is keeping in mind the volatile geopolitical situation. This allows us more time therefore to get into a favorable market scenario and then the investment committee and the IPO committee to take an appropriate call on timing for the IPO as regards the breakeven level for gml.
Unfortunately, given the constraints of the drhp, I will not be in a position to make any forward forecasts for you. All I can tell you is the 50% rate of growth, market share, growth products which are being recognized, network footprint expansion, pockets of market leadership or close to market leadership. We should be in a strong position to get to profitability in the near future. Thank you.
Parag Satpute
Fantastic. Because. But the path is there to separate the two, right sir? Because if we see our competition, I mean to name others, although losses being there, it’s doing the capitalization is going up. Also our core business competitor Kiloskar Oil is almost touching all time high. So we are caught somewhere in between. Sir, this needs to be addressed as soon as possible. Thank you sir and best wishes for the year.
Operator
Absolutely. Thank you. Thank you. The next question is from the line of Anubhav Mukherjee from Prussian Capital. Please go ahead.
Parag Satpute
Hello. My audible,
Operator
You are audible so you may proceed.
Parag Satpute
Thanks for the opportunity for the standalone business, both sequentially and year on year there has been a drop in gross margins. So is this because of the inflation and the middle institution. Can you throw some light on that?
Operator
Yeah, absolutely. So Primarily it’s the Q4 numbers which you have seen, you know the RMC being on the higher side. These are the Q3 and which is actually reflecting into FY26 versus 25 if there’s a marginal drop. As you know there has been commodity cycle coming in since March and that is impacting the profitability. I think that is where this path although I would also like to mention here that while on the commodity front we have seen some pressures specifically in aluminium, copper and platinum.
However there is a pass through mechanism which we have already activated in Q1. So therefore we do see some price, some recovery on account of price. Fortunately the volumes have been supporting us. So therefore that operating leverage should also continue to help us. And see there have been some cost consciousness led decisions which are being taken up. So which is going to say which is going to impact positively on this side. I think that should make up for the in the coming quarter and all that.
But of course we stay cautious on how the commodity cycle evolves.
Parag Satpute
Got that? And for the genetic business or energy solutions, the 20% growth that you business can you throw some light on like is this like are we going faster than the Indian genetic industry? Are we gaining market share and some qualitative color on what’s driving that?
Operator
Sure, sure, I can give you an answer to that. So you know, in the Greece.net strategy we have clearly identified energy solutions as a focus area for us. And then since that time we have been taking very deliberate actions to increase our business here. And some of those are starting to yield results. I’ll give you one example. We integrated our sales and service team and we increased the presence on the ground of Our service technicians. We also launched a retail annual maintenance contract program which we didn’t have before.
So we have seen during the last few months our service business has been growing faster than the overall business. So that is one driver of growth. The other thing we also did is we realized that we have a strong right to win in the medium horsepower nodes implications to do with residential and commercial. We had strong market shares in certain parts of the country while other parts of the country were under leveraged. So we also increased our sales and distributor presence in those areas which has resulted in increase in business.
I would say overall we are keeping pace with the industry growth and we expect to maintain that and further accelerate our own growth. Some of the new products which we launched this quarter, the 650kva that will start to deliver also new business for us in the coming months.
Parag Satpute
And sir, as a follow up question, do you have plans to enter into even higher?
Operator
Indeed, that is part of our strategy and that’s why we are focusing on the energy solutions. We are in discussions and we are also working internally. So whenever there is something meaningful to share, I will come to this team, to this group as well.
Parag Satpute
In the presentation it mentioned that share of non three wheeler diesel engines is 63%, that is of the auto engine.
Operator
Yeah, yeah. So within the mobility, the auto engine business.
Parag Satpute
Okay, so can you give some more details on like which are the auto segments and in exports we are catering to which is contributing to this? Okay,
Operator
I’m looking at the slide. You’re referring to the mobility solutions. What we state there is we have the L5 three wheeler auto segment in India where we are a dominant player in the diesel variety. The overall industry is broken into 40% electric, 40% CNG and 20% diesel. Within that diesel segment we have a 63% market share and that actually has increased during this year. So that was on the domestic side. On the export side, this is a new business which we started during the year which is supplying the Euro 5 Plus compliant engines to a microcar application.
And there we have a strategic partnership with one of the largest microcar manufacturer in Europe called Ligier. And that business is scaled up during this year and is continuing to maintain that trajectory.
Parag Satpute
So one of the
Operator
Also just to add, I think the focus here is that the non 3 wheeler diesel engine is a significant portion of our mobility solution itself. So while the diesel engine growth trajectory may not be having that aggressive growth rates in future, there is enough portfolio for US which is 63% of our mobility solution itself, which can Grow beyond the diesel engine growth rates. I think that’s where we wanted to focus upon
Parag Satpute
That one also seems to be growing very fast. Sorry to interrupt but
Operator
We request you to please rejoin the queue if you have any further questions. Thank you. Our next question comes from the line of Khush Nahar from Electrum pms. Please go ahead. Khush Nahar, your mic has been unmuted. You may proceed with your question. There’s no response from the current participant. We will move to the next questioner in the queue. Our next question comes from the line of Rajesh Gupta from Krishna Motors. Please go ahead.
Parag Satpute
Yes sir. Very good number you have got in this quarter. Hello.
Operator
Thank you very much. Thank you. Thank you for your compliments.
Parag Satpute
I want to know that there is a non RTO market to exist in the. My question is from Vikas that there is a known RTO market is still existing in India in ev.
Nilesh Doshi
Yes,
Parag Satpute
Quarter parts and the demand offer EV
Saket Kapoor
Scooter that was a price too lower than our counterparts with the low speed and low low range scooters for the Tire 3 Tire 3 Cities. These are more. More popular than our scooters.
Parag Satpute
Yes.
Saket Kapoor
Are we are continuing to enter in this segment also we are having 400 more showroom and if the low cost scooter will be came and our margin will existingly increase in further.
Vikas Singh
So thank you for your question. It’s a very good question and I’ll try and answer it as best as I can given the DRHP limitations. The low speed scooter segment is a very big segment. It’s a high priority segment. We already have a presence in this segment. We have a successful brand called Rio which is being sold across the country and we are seeing steady growth in volumes. On top of that we also see a sharp demand from B2B in the low speed segments. So we would be not. We would be. We are looking at this segment very closely and it would be a critical growth driver for us going forward.
So I hope that answers your question
Nilesh Doshi
Because these are getting at 30,000 per scooter. This is for a big range of customer you can get.
Vikas Singh
Yes, I can just tell you that that segment is being looked at and we are already present and it’s a critical part of our strategy. So we are aware of. Yes, thank you.
Operator
Thank you. The next question comes from the line of Khush Nahar from Electrum pms. Please go ahead.
Parag Satpute
Yeah. Thank you for the opportunity sir. Kiddos, give us more financial details in terms of Excel linkage performance the full year Maybe the revenue, EBITDA and tax results.
Operator
Kush. Hi, this is Manish here. I think specifically you’ll get the individual P and L financials being uploaded on the website pretty soon. But however, if you see that this is one of the most profitable businesses that we have in exchange control linkages with great profitability and we have a, what we can say is in future as well,
Parag Satpute
They have a very strong growth trajectory
Operator
And
Parag Satpute
Consistent profitability improvement.
Operator
So to add one aspect, within Xcel, we have a domestic business and an export business. So the domestic business has remained strong. It grew in double digits this year as well. The export business, like I also shared with the group in the last call, faced some headwinds due to geopolitical situation due to the war in Ukraine and we have seen a reduction in the growth there. I mentioned in my opening remarks that we have now got a reconstituted and reinvested international team and we see a lot of opportunity to grow the XL business in Europe and we are actively pursuing that path.
Parag Satpute
And as Parag mentioned earlier, the balance 20% will also be acquired in Q2 and therefore the non controlling interest will also go
Operator
Away and the entire 100% of profits will flow into the consolidated financials going forward.
Parag Satpute
All right, sir. Secondly, could you give us a breakup in terms of percentage revenue you are getting from the aftermarket business on a company level or a segment level?
Operator
I’m sorry, I’ll not have the details individually. If I have some
Nilesh Doshi
Time, I’ll just come back to you on that.
Parag Satpute
Okay. All right, those are my questions. Thank you.
Operator
Thank you. The next question comes from the line of Nirma with unique pms. Please go ahead.
Parag Satpute
Yeah, so my question is on the retail and the industrial part of the business. Sorry to interrupt,
Operator
Sir, but your line is not very clear.
Parag Satpute
Hello. Hello.
Operator
Please go ahead, sir.
Parag Satpute
Yeah, so my question is on the retail and the industrial part. So both of these businesses are, you know, growing in single digits and in line with the strategy of growing the Overall business by 16, 18%. Do you think that these businesses can also pick up the growth? And what is our strategy or how do we see these businesses evolving?
Operator
Okay, happy to answer that question. So in our strategy we clearly stated that the retail business is a very resilient and strong cash generator for us. But we don’t see that growing very fast. So we have aimed to grow at 6 to 8% in the retail business. On the other hand, the industrial business is a number of niche applications where we have a strong position. So there you already saw during the quarter we delivered a 15% year on year growth and as we accelerate our product development in that space, we expect it to contribute to the overall growth of 16 to 18% that we have outlined for the core businesses.
Parag Satpute
Okay, and since my second question is on the CapEx piece, so we’ve outlined 500 to 700 crores of CapEx, do you have any further details on where will we spend this amount? What products or what segments are we looking at?
Operator
So I’ll repeat what I also said at the last meeting. So after the revamp of the strategy and launch of Greece, Next we earmarked 500 to 700 crore of capex. This capex will be focused in three major areas. The first one is product development. We are getting into new application segments and we are also for international businesses where our product will be upgraded. So that is one category of investment we will do. The second one is in capability enhancement, largely in our operations. And once again, as I said during my opening remarks, we have already started operationalizing that during the last quarter we invested in increased capacity and automation and AI based quality check system in Chhatrapuri, Sambhaji Nagar and we also invested in automation in Excel which creates a very solid foundation for growth.
So that’s the second area. And the third area where we are going to put the CapEx is helping us to expand into international markets. And there again we have clearly identified the geographies where we want to grow. Middle East, Europe. At that time we had also said that as the geopolitical situation develops in North America, that could also be an attractive market. So we have been working and operationalizing some of those plans during this quarter. So our plan remains consistent and we will deploy the CapEx in these three areas.
Parag Satpute
Sorry to interrupt. We request you to please rejoin the queue. If you have any further questions, please. Sure. Thank you.
Operator
To his earlier question, I think the retail is broadly 30% of the mobility solution business. That should answer the question. Aftermarket. Aftermarket. Thank you. Ladies and gentlemen, we request that you please restrict yourselves to one question per participant. If you have any further questions, you may rejoin the queue. Our next question comes from the line of Kushar Bora with MK Ventures. Please go ahead. Kushar Bora, your line has been unmuted. You may proceed with your question. As we’re not receiving a response from the current participant, we will move to the next question in the queue.
Our next question is from the line of Dev Barucha with Sanghvi family office. Please go ahead.
Unidentified Participant
Yeah, thank you so much. For your opportunity, sir. So firstly congratulations on good start of Monday. First question is related to the defense order which you said in large context. What type of.
Operator
Sorry, I. I did not fully follow your question. Let me just repeat what I heard and you can confirm you were asking about the defense order that we received in the last quarter. You wanted some more details on that. Did I hear you? Okay, good. So it is an engine which we are using to repower
Parag Satpute
Army trucks.
Operator
Thank you. The next question is from the line of Saket Kapoor with Kapoor company. Please go ahead.
Parag Satpute
Yes sir. I just put forward my questions and then you. Firstly, I think to be. We have given a growth roadmap of our growth for five years of some. Some X number in top line. So taking that into consideration and the current. Current business setup. What kind of growth in the key vertical engines or verticals of our engine, the core business are we looking for the current financial year. And what is the current update on the IPO of our electric mobility? I guess if you have replied it joined late in this year.
Operator
Okay, I’ll answer the first question and then Vikas will repeat the answer on the IPO. So we have said that we would go 16 to 18% organic growth year on year in our core businesses. So we maintain that because on profitability.
Parag Satpute
Sir, anything you can comment. How will the profits be aligned in that?
Operator
Once again we have said that we will maintain 13 to 15% EBITDA margins as we scale the business.
Vikas Singh
Yeah, thanks. And to your question on the ipo you would be aware that the DRHP timelines have been extended to 30th of September by SEBI given the highly volatile geopolitical situation. So we are watching the situation closely and the IPO committee will take a decision closer to time once we feel we are likely to get appropriate evaluation for the company.
Parag Satpute
Okay. Can I add one more question in the Capex part. Sir, you mentioned about 200 to 300 crore capex direction there. I think so. We have done only 30 crore. 36 crore precisely in the purchase of property, plant and equipment. So when you mentioned this 200 crore number. What. What should we read into it?
Operator
I don’t think we mentioned 200 crores. Okay. Correct. During the strategies in the next four to five years we are going to invest 500 to 700 crores.
Parag Satpute
And how will that split between the years? We have done barely 30, 35 this year.
Operator
Right. So as you can imagine we did a full strategy reset just a few months ago. Like 2/4 ago. In that we looked at where we want to invest our capex and we have started working with those business cases during this quarter. What we did was capability enhancement, capacity enhancement in our operations and already started working with the new product development. So you will see that as we go ahead.
Parag Satpute
So for this year, any number you can share sir what we should look forward in terms of capex
Operator
We will stick to our 500 to 700 crore overall aim for the next five years. And
Parag Satpute
I think what is important beyond
Operator
Immediate capex, what is important is that we leverage the existing capabilities with regard to having additional working hours or increased shifts and all that. So once I think that is an easier part rather than getting into the investment mode early on that’s something that we need to then we of course we get into the capex. The total number remains static.
Parag Satpute
Thank you. Our next question comes from the line of Tushar Bora with MK
Operator
Ventures. Please go ahead.
Saket Kapoor
Yeah, thank you for the opportunity and congratulations to management for a steady set of numbers. My first question is on the engineering business. If you can highlight qualitatively some of the new initiatives that we are taking a bit more detail especially on, you know maybe contract manufacturing possibilities where we are using our engineering capabilities to diversify away from the three wheeler automotive segment.
Operator
Hi Tushar, good to hear from you and thank you for your question. Thank you also for your compliments on the results. So yeah like you know we are actively looking at partnerships with key customers. Our first step has been with the OEMs that we already work with such as P Azure to improve our share of wallet with them. Other than that we have got a dedicated team which is seeking partnerships for contract manufacturing to leverage the strong engineering and manufacturing capabilities which you witnessed during our family trip to the plant.
So as and when there is meaningful progress we will share with this group.
Saket Kapoor
Great. Sir, the second question is on the EV side I believe we started recently advertising on television for the MPF brand and also given that because of the high oil prices there’s been some momentum around evolution as a space in the last maybe couple of months. If you can highlight any tailwinds that you’re seeing since the television ads went online sometime in February, March, any positive momentum, maybe any acceleration in market share gain or overall any traction in the EV side that is seeing because of the geopolitical issues.
Vikas Singh
Usaji hi, good evening, good to hear from you and thank you for your question. Yes, we broke media for the first time in the month of March and the response has been really very strong. Volumes have touched new highs in quarter four and on top of that, March has been the strongest month ever. On the brand side followership on Meta, we have the second most highest followed brand on Meta. We have had two media campaigns which are tracked number one on Twitter X for almost five days. The social comment sentiments that are coming in on the product are highly positive.
We have a 94% positive social sentiment coming in from the customers. Dealer productivity numbers have gone up significantly. We have a 30% improvement in dealer productivity across towns and markets. We have seen share growth and we are extremely confident about the path ahead. So for now I would just tell you that the media has been media plan has been extremely successful. We would look at repeating the media investment once again reasonably soon.
Saket Kapoor
And the market share gains continue into this current quarter. Sir, you continue to see traction.
Vikas Singh
Yes, market share continues to grow. The charge.
Saket Kapoor
Okay, great. Thank you so much. I’ll join back in June.
Operator
Thank you. The next question is from the line of Sonal from Prescient Capital. Please go ahead. Now. You are audible sir. You may proceed.
Parag Satpute
Sir, as you’ve given guidance for growth, EBITDA margins and Capex, is there also guidance for return on capital employed and some financial parameters on capital allocation? Because I think that is where the previous management and the leadership basically has invested and from a shareholder perspective the return on capital employed basically for the business has gone haywire. So is there a near term, two, three year plan on where the business would be back to in terms of return on capital employed?
And that’s the first question.
Operator
Perfect, thank you for the question. I think that’s an extremely important question to address. I think overall if you see the net worth at 1619 crores, a big portion of that is into the investor businesses. The Prerelected Mobility and RE Finance limited Obviously they have a different growth trajectory and we know that they will be some capital contributions should come up in some medium term, short term, medium term and all that. So that is something which we need to take out from our calculations a B there is another 500 plus crores of cash available at the group level which is basically the watches for the future growths and all that.
So that is something that we need to take these two pieces out primarily. Almost every memory collects me right something like 900 crores goes out of the calculations. So if you see on the core business there’s something like 700 crores of capital or employed being used which gives us a healthy returns to date, right? Maybe in another two to three years. All these two pieces on the investee businesses and the Cash will be appropriately deployed and then the numbers come in. But basically these are the from a long term strategic decisions to grow the businesses, to agree.net and to diversify.
Parag Satpute
Got it sir. So if I may ask because there has been a leadership overall over the last year, what are the broader parameters which are linked to your KPIs and the KPIs of the people who are at the CXO level? Are there links to capital return capital coming back? Are they linked to growth? If you could just broadly give me some guidelines that will help us understand this. Thank you.
Operator
Yeah, very interesting question. As you have observed we have really strengthen the leadership team within creeps and we have built a very strong and capable team with very varied experiences relevant to the areas we want to grow in. And the board and myself in selecting and onboarding these leaders we have very clearly linked their performance to of course growth but also very disciplined capital allocation. And of course in terms of the returns that they get, they are also linked to very very strongly to the business results.
It’s a combination of
Parag Satpute
Long term incentive plans are there
Operator
Which
Parag Satpute
Are in line with the Greece.net strategy
Operator
And
Parag Satpute
The capital market conditions as.
Operator
Thank you. Our next question comes from the line of Khush Nahar from Electrum pms. Before you go ahead let me ask participants to please restrict your questions to one per participant only.
Parag Satpute
Please
Operator
Go ahead. Kush.
Parag Satpute
Yeah, so in the presentation you mentioned that in the mobility segment non three wheeler is now around 63, 66%. So do we see this going to 100% like the three wheeler engine four years down the line or will be a very small portion say 5, 6%. So
Operator
Okay. No thank you for noticing that. And yeah the good thing is we have now started developing business beyond the three wheeler auto and that’s why we wanted to share that. Having said that, the three wheeler auto diesel engine business is also very healthy and profitable for us. We have very strong OEM connections. So yes, the market will. In a meaningful contribution and it’s a healthy market. We focus on maintaining that through our OEM partnerships. All our new business development efforts they are going to this non 3 wheeler diesel area and they’re already starting to position here to have a cash generating engine which is helping us fund the new growth activities across and helping us to diversify.
Parag Satpute
All right, so thank you.
Operator
Thank you. Our next question is from the line of Saket Kapoor from Kapoor company Please go ahead.
Saket Kapoor
Yes sir. Hope I’m audible.
Parag Satpute
Yes, yes
Saket Kapoor
Sir. For the electric mobility business. What? What are we outlining for the current financial year in terms of the top line and also in terms of reducing the cash losses for the
Parag Satpute
Sales. What is our roadmap for the current financial year?
Operator
Yes, sir. Yes, sir. Okay, because you want to take that.
Vikas Singh
Can you all hear me?
Operator
Yes, we can hear you. Yeah. So
Vikas Singh
I was just saying that unfortunately the DRHP prohibits us from making any forward looking forecast. So all I can tell you is that the past trajectory of growth, market share, top line, reduction in losses, brand products, should be a reflection of what the future looks like. I will really not be in a position to share any further details with you on this account. I hope you
Operator
Understand that. Thank
Vikas Singh
You.
Saket Kapoor
We understand the prospect, but as a shareholder, this has been the red ink on the PNL for a sustainable period. We understand that it is a growth engine for us also. So as investors today, we need to understand. If you could just give some understanding of when and how can we turn even net positive or even out just eroding the losses. What kind of timeline have we set in? Sir,
Operator
I get. Sorry to interrupt, but we’re, you know, held back by the statutory compliances and therefore kindly appreciate our limitations to answer this question.
Saket Kapoor
Correct? Correct. Fine, sir. Thank you.
Operator
Thank you. Ladies and gentlemen, due to time constraints, we will take that as a last question. I would now like to hand the conference over to Mr. Palad Satpude for closing comments. Over to you, sir.
Parag Satpute
Thank you. Thank you for all your questions and also for the positive
Operator
Reinforcement we received about our business results. We’d like to thank you for your continued engagement, trust and support. We remain focused on implementing our new strategy, Greece Next, and we look forward to building on the momentum in the coming quarters. Thank you very much.
Parag Satpute
Thank you. On behalf of Greaves Cotton Ltd. That concludes this conference. Thank you all for joining us. You may now disconnect your lines.