Advanced economies achieved 1.9% growth, with the United States reaching 2.1% through technology investments and policy backing. Emerging markets outperformed with 4.4% overall growth led by India’s strong 7.3% expansion and China’s steady 5.0% rise.
ECONOMIC OVERVIEW Global Economy
The world economy demonstrated resilience throughout 2025, effectively navigating evolving trade regulations and divergent regional performances. Substantial investments in technology mitigated the effects of emerging tariffs and shifting government policies, while global inflation moderated to a manageable 4.1%, with numerous countries achieving outcomes below initial market expectations.
The ongoing Russia-Ukraine war continues to disrupt global energy markets and supply chains, creating uncertainty for commodity prices and trade flows. Escalating Middle East conflicts further strain oil supplies and heighten inflationary pressures across economies. These developments challenge manufacturing sectors worldwide while testing international diplomatic responses.
Household consumption expanded steadily across global markets in 2025, propelled by heightened technology expenditures and wage growth in key economies. Consumers in the United States and emerging Asian nations increased spending on goods and services amid improving financial conditions, which helped cushion pressures from tariff implementations. Global job markets were resilient in 2025 despite trade disruptions and policy uncertainty. Technology and services sectors added jobs steadily while manufacturing growth slowed. Reliable employment levels supported rising household incomes and broader economic strength.
The services sector provided crucial support to global growth in 2025, expanding steadily even as trade in physical goods faced volatility. Finance technology services and tourism delivered solid performance, offsetting manufacturing weakness, particularly in Europe and Asia. This steady services expansion played a key role in keeping overall economic activity on track.
World GDP expanded by 3.4% in 2025, showing varied speeds across regions. Advanced economies achieved 1.9% growth, with the United States reaching 2.1% through technology investments and policy backing. The euro area recorded 1.4% while Japan managed 1.1%. Emerging markets outperformed with 4.4% overall growth led by Indias strong 7.3% expansion and Chinas steady 5.0% rise.
World trade volumes accelerated to 4.1% growth in 2025, surpassing the previous years 3.6% expansion. A US-China trade truce substantially reduced tariffs and lifted restrictions on electronics components and critical minerals, alleviating prior tensions that had constrained global supply chains.
The United States further eased select agricultural tariffs, restoring average rates to levels prevailing before recent escalations. These developments facilitated smoother cross-border commerce, particularly benefiting technology and commodity-dependent sectors across major economies.
Policy uncertainty moderated from late 2025 peaks yet remained elevated relative to 2024 baselines. Financial markets remained supportive despite occasional swings, with high-growth technology shares outperforming broader indices. Strong technology exports from Asia kept global trade flows steady.
Central banks managed inflation through calibrated adjustments, including interest rate reductions in the United States and the United Kingdom. These prudent measures preserved financial stability amid persistent trade frictions and evolving geopolitical developments.
(Source: World Economic Outlook (IMF))
Outlook
The global economy advances towards steady expansion projected at 3.6% for 2026, moderating slightly to 3.2% in 2027. Technology-driven productivity gains, particularly from artificial intelligence integration across industry and healthcare sectors, propel this trajectory while counterbalancing persistent trade tensions and evolving political dynamics.
Advanced economies anticipate 1.8% growth in 2026. The United States leads with 2.4% expansion, bolstered by tax incentives under the One Big Beautiful Bill Act and market recovery following the brief 2025 federal shutdown, creating favourable conditions for private investment and consumer spending. The euro area maintains steady 1.3% growth as a reliable global stabiliser, while Japan adjusts to 0.7% following recent policy recalibrations. Emerging markets sustain strong momentum with 3.9% growth. China targets 4.5% expansion in 2026, supported by domestic stimulus measures and strengthened US trade relations.
Global headline inflation eases progressively to 3.8% in 2026 and further to 3.4% in 2027. Advanced economies approach targets more gradually, particularly in the United States, prompting central banks to implement measured policy adjustments, including gradual rate cuts in the US and UK, steady rates in the euro area, and modest hikes in Japan. World trade growth tempers to 2.6% in 2026 amid tariff recalibrations, though technology exports continue providing a critical uplift.
(Source: World Economic Outlook (IMF))
War Impacts
Closure of the US-Iran war disrupted a significant share of global oil and LNG supplies, pushing Brent crude prices above ~$120 per barrel and increasing natural gas costs, echoing the shocks of the 1970s. Oil production across Gulf states declined sharply, halting exports and triggering force majeure declarations by major energy producers.
Commodity volatility increased, with aluminium prices rising sharply after disruptions in Gulf production facilities, raising concerns for automotive, aerospace, electronics, construction, and food packaging costs. Further fertiliser disruptions through the Strait of Hormuz also heightened food-security risks. At the same time, inflation expectations remained elevated, with the euro area facing renewed price pressures and central banks maintaining a cautious stance, thereby increasing the risk of a more prolonged period of slower growth in energy-intensive economies.
World trade and growth suffered, with the IMF/World Bank downgrading 2026 GDP outlooks amid supply shortages, stock market declines, bond sell-offs, and currency instability; central banks delayed easing, exacerbating manufacturing challenges worldwide. Manufacturing sectors faced acute headwinds from energy costs and supply chain disruptions, testing diplomatic and economic resilience.
Indian Economy
The Indian economy exhibited robust performance throughout 2025-26, navigating global trade uncertainties and market volatility with commendable stability. Second Advance Estimates (SAE) project real GDP growth at 7.6% alongside Gross Value-Added expansion of 7.7%, underscoring the resilience of a domestic demand-led growth paradigm.
FRE = First Revised Estimate; P = Projections
India achieved a significant milestone by surpassing Japan to become the worlds fourth-largest economy, with a current GDP reaching $4.18 trillion. The nation remains on a trajectory to attain third-largest status by 2030, targeting $7.3 trillion, affirming its position as the fastest-growing major economy underpinned by resilient domestic demand and progressive structural reforms.
Strong agricultural output boosted rural incomes, providing essential stability to household spending patterns across the countryside. Concurrently, urban consumption gained momentum from consistent employment generation and moderated inflation pressures, reinforcing the structural strength of Indias consumption engine amid external headwinds.
Government spending on infrastructure like roads, railways, and defence will pick up again and keep going strong, helping industries grow. Private companies will also start investing more in manufacturing, real estate, and factory expansions. Manufacturing will keep growing steadily, though not as fast as before, showing reliable demand from businesses. Data centres and digital investments will become major new growth areas. Urban growth and new infrastructure projects will continue boosting construction and related industries. The power sector looks solid with nearly 475 GW capacity and almost no shortages (under 1%), so demand will shift to backup and standby power systems that ensure reliability.
Private consumption continues driving growth, supported by declining inflation and rising real incomes that enhance household purchasing power. Public capital expenditure of 12.2 lakh crore, as allocated in the Union Budget 2026-27, catalyses infrastructure development while stimulating manufacturing, construction, and energy sectors. Intiatives supporting the Governments vision of Viksit Bharat 2047 further promote self-reliance and capacity enhancement amid global pressures.
Average headline Consumer Price Index (CPI) inflation recorded a historic low of 1.7% during the first nine months of FY 2025-26, supporting domestic purchasing power through sustained price stability. The Reserve Bank of India (RBI) projects full-year inflation at 2.0%, anchored by prudent government spending and steady bank credit expansion. The banking sector demonstrates resilience through robust capital buffers and minimal non-performing assets, complemented by foreign exchange reserves exceeding $700 billion that fortify Indias capacity to navigate global volatility.
(Source: PIB, AngelOne, PIB 2)
Outlook
The outlook for the Indian economy remains positive and stable, with real GDP growth projected between 6.8% and 7.2% for FY 2026-27. This trajectory underscores Indias capacity to sustain dynamic momentum amid prevailing global uncertainties.
Sustained government infrastructure expenditure, alongside steadily rising private sector investments, will anchor this expansion, complemented by a strengthening manufacturing foundation. The services sector anticipates continued consistent performance, reinforcing structural economic resilience.
Reinforced by macroeconomic stability and consistent policy frameworks, India stands well-positioned to navigate external challenges. This approach ensures inclusive and sustainable long-term economic progress across diverse societal segments.
(Source: PIB)
War Impact
The 2026 US-Iran war has created significant challenges for the Indian economy, primarily through disruptions in global energy supplies. India imports around 85% of its crude oil requirements, and the closure of the Strait of Hormuz has led to sharp increases in Brent crude prices.
Higher energy costs have pushed retail inflation projections for FY27, with the Reserve Bank of India facing difficulties in maintaining its target range. The rupee has depreciated due to increased demand for foreign exchange to cover elevated import costs. Food prices have also risen because of shortages in natural gas supplies that affect fertiliser production and agricultural inputs across the country.
Manufacturing industries such as automotive, chemicals and ceramics now face higher input costs from disrupted supplies of raw materials and other commodities.
The outlook for the Indian economy remains positive and stable, with real GDP growth projected between 6.8% and 7.2% for FY 2026-27. This trajectory underscores India’s capacity to sustain dynamic momentum amid prevailing global uncertainties.
INDUSTRY OVERVIEW Energy Solutions Industry
In 2025, the Indian energy solutions landscape was shaped by a rapidly expanding power system infrastructure, accelerating renewable integration, and a growing ecosystem of storage, grid modernisation, and efficiency-oriented measures. Together, these developments supported a more reliable, affordable, and cleaner electricity supply.
The US-Iran war has put clear pressure on Indias energy sector by keeping global crude prices elevated and tightening supplies through the Gulf, forcing the country to pay more for the oil it imports while also adjusting domestic policies to cushion the blow. Higher benchmark prices, which have risen by around 50% since the conflict began and are holding above $100-120/barrel, have increased the cost of crude for Indian refiners and raised the risk of slower GDP growth and higher inflation, given Indias heavy dependence on imported oil. In response, the government has moved to soften the impact on consumers and critical industries by cutting excise duties on petrol and diesel, deploying emergency fuel stockpiles, and using targeted windfall taxes on certain fuel exports so that sufficient supply remains available for the domestic market, helping maintain some stability in fuel availability even as the external energy environment remains volatile.
India met a record peak power demand of 242.49 GW in FY 2025-26, underscoring the sectors ability to balance rising consumption with adequate generation and transmission capacity.
Per capita electricity consumption in India rose to 1,460 kWh in 2024-25, up 52.6% from 957 kWh in 2013-14, reflecting broader economic and demographic drivers. Rural power availability improved from 12.5 hours per day in 2014 to 22.6 hours, while urban areas now enjoy up to 23.4 hours of supply, compared with 22.1 hours in 2014, highlighting the improvement in reliability and reach. RDSS-linked schemes have also enabled on-grid electrification of PVTG, tribal, and other priority-group households, with 6,521 crore sanctioned to energise about 13.65 lakh households and related public-use locations.
(Source: PIB)
Indian Genset Market
The Indian generator market serves as a critical backup and prime power solution across industrial, commercial, and residential segments, especially in regions where grid reliability does not fully match rising power demand intensity.
The Indian diesel generator market reached $1.66 billion in FY25 and grew to $1.83 billion in FY26, with the market expected to expand at a CAGR of 7.18% over the next five years.This reflects sustained demand for reliable on site power generation, even as the national grid deficit narrows. This growth is underpinned by continued reliance on gensets in Tier II and Tier III cities, industrial segment, data centre and telecom, infrastructure, and construction-sector activity that runs ahead of formal grid-connection timelines.
The Indian generator market serves as a critical backup and prime power solution across industrial, commercial, and residential segments, especially in regions where grid reliability does not fully match rising power demand intensity.
The Union Ministry for Road Transport and Highways, has reiterated the government’s ambitious goal of making India the world’s number one automobile manufacturing nation by 2030, supported by expanding exports, job creation, and large-scale infrastructure and sustainability initiatives.
By end user, the industrial segment holds a 49.02% share, covering process industries, warehouses, and fabrication units that cannot tolerate unscheduled downtime. The commercial segment (hotels, retail chains, diagnostic labs, and other services) is upgrading to CPCB IV+ compliant models with 24/7 service contracts, reinforcing the position of organised OEMs.
Demand is being driven by persistent power outage frequency in Tier II and Tier III cities, where surveys show households still facing 2-4 hour daily outages despite the national deficit falling to very low levels. The ongoing expansion in infrastructure and real estate development, including road, metro, airport, and industrial corridor projects, is creating multi-year requirements for rented 375-750 kVA generators at early-stage construction sites. The proliferation of telecom towers in rural and semi-urban India also supports demand, as diesel still accounts for a sizeable share of tower site energy costs, particularly where grid extension is uneconomical.
On the other side, adoption of rooftop solar plus battery energy storage systems, and diesel supply related seasonality are moderating growth, though they are not yet displacing diesel as the primary solution for multi hour autonomy and prime power niches.
(Source: Frost and Sullivan, Mordor Intelligence)
Indian Automobile/Mobility Industry
The Indian automobile industry has reached a decisive stage in its development, with India now recognised as the worlds third-largest automobile market, having overtaken Japan in recent years. The sectors valuation reflected rapid growth driven by strong domestic demand, government incentives, and a strategic shift toward electric vehicles (EVs). The Union Ministry for Road Transport and Highways, has reiterated the governments ambitious goal of making India the worlds number one automobile manufacturing nation by 2030, supported by expanding exports, job creation, and large-scale infrastructure and sustainability initiatives.
This aspirational target rests on strong fundamentals, including rising income levels and urbanisation that sustain domestic demand, growing export volumes to global markets, and rapid technological transformation in design, connectivity, and electrification. The sector is also being reshaped by green mobility policies and production-linked incentive schemes, which are accelerating the adoption of EVs and hybrid technologies across passenger vehicles, two-wheelers, and commercial fleets. As a result, India is evolving from a cost competitive manufacturing base into a broader global mobility hub, with domestic manufacturers and global OEMs increasingly treating the country as a design, export, and innovation support centre.
Key Milestones:
• India is the worlds third-largest auto market
• Largest manufacturer of three-wheelers
• Second-largest manufacturer of two-wheelers
• Third-largest manufacturer of passenger vehicles globally
(Source: Ambedkar Chamber of Commerce and Industry)
The Indian automobile industry is steadily adapting to the electrification trend, with the 3-wheeler (L5) segment witnessing significant transformation. Over the past five years, electric vehicle adoption in this segment has grown from negligible levels to approximately 35% market share. This transition has largely been driven by a shift from CNG to electric powertrains, particularly in the 3-wheeler passenger vehicle segment. Consequently, the CNG segment has seen a notable decline, with its share reducing from approximately 63% to around 35%.
The diesel segment has remained relatively stable, maintaining a market share of 20-22% between 2022 and 2025. Diesel is expected to continue playing a critical role in the 3-wheeler ecosystem, especially in the cargo vehicle segment, where it remains well-suited for last-mile mobility requirements.
Meanwhile, the diesel segment has remained relatively stable, maintaining a market share of 20-22% between 2022 and 2025. Diesel is expected to continue playing a critical role in the 3-wheeler ecosystem, especially in the cargo vehicle segment, where it remains well-suited for last-mile mobility requirements.
The Indian automobile market is valued at $137.06 billion in 2025 and is expected to grow to $147.58 billion in 2026, with forecasts indicating a rise to $213.74 billion by 2031, at a CAGR of 7.69% during 2026-2031. This growth is underpinned by large scale vehicle production, with the industry manufacturing around 28.43 million vehicles in FY24, highlighting the sectors position as one of the largest in the global automotive landscape.
Indian Automobile Industry
(Market Size in USD Billion)
By ownership, personal vehicles commanded 75.94% of the Indian automobile market size in 2025, reflecting the dominance of privately-owned cars and two-wheelers, while commercial fleets are projected to grow at a CAGR of 9.16% to 2031, driven by expanding logistics, e commerce, and inter city transport networks.
The sectors growth is being driven by population-led consumption demand, rising household incomes, policy-backed electrification, and a robust domestic manufacturing base that also supports export-oriented production. Strengthening infrastructure, digital payment adoption, and financing product innovation are further improving affordability and access to automobiles, especially in Tier II and Tier III markets. Looking ahead, the industry is expected to deepen its electrification, connectivity, and emission-control capabilities, reinforcing Indias position as a leading automotive production and consumption hub in Asia.
(Source: Mordor Intelligence)
Electric Vehicle
The Indian EV market was valued at $3.98 billion in 2024 and is projected to grow from $5.28 billion in 2025 to $17.88 billion by 2032, with a CAGR of 19.0% during 2025-2032, according to the Fortune Business Insights report. This growth reflects a structural shift away from purely internal combustion engine-based mobility, with electrification now spreading across two-wheelers, three-wheelers, passenger vehicles, and commercial fleets.
Growth is being driven by rising fossil fuel prices, which improve the operating cost advantage of EVs over internal combustion engine vehicles, particularly in high-utilisation segments such as commercial fleets and daily commuters. Policy-linked incentives such as the FAME India scheme, production-linked incentive (PLI) programmes for batteries, and state-level subsidies initially supported both demand-side affordability and domestic supply chain development, including battery pack and component manufacturing. However, with the Government gradually withdrawing some of these incentives, the EV sector is increasingly moving towards a level playing field, where competitiveness will be driven more by product strength, cost efficiency, and market demand.
2-Wheeler & 3-Wheeler
The electric two-wheeler industry sustained steady 21% year-on-year growth, reaching nearly 1.4 million units in FY 2025-26 even after PM E-Drive subsidies tapered off. EV penetration accelerated rapidly to around 8% by the second quarter before experiencing a brief slowdown following GST 2.0 implementation, which cut GST rates on ICE two-wheelers from 28% to 18%, temporarily improving affordability of conventional petrol bikes compared to electric models.
Nevertheless, EV adoption rebounded strongly onto a growth path, propelled by electric vehicles compelling total cost of ownership advantages over ICE counterparts alongside enhanced product experiences delivered through fresh launches spanning multiple segments.
The L5 three-wheeler sector recorded a solid 17% year-on- year volume growth in FY 2025-26, reaching nearly 8,00,000 units for the for the financial year. Electric vehicle share jumped to ~33% for the full year from 23% in FY 2024-25, showing clear progress toward electrification.
Government support through PM E-Drive for L5 E3W continued until December 2025, when funding ran out ahead of schedule due to strong demand. Even without subsidies, L5 EV three-wheelers maintain consistent sales backed by new model launches and better financing terms. GST 2.0 brought down rates on conventional three-wheelers from 28% to 18%, making them more affordable, while electric adoption kept building momentum across the segment. Passenger three-wheelers emerged as the standout performer, with EV penetration jumping from 20.8% in 2024 to 31.8% in 2025, peaking at nearly 39% of all passenger 3Ws sold in December 2025.
The L3 E3W (e-rickshaw) sector posted 5% year-on-year growth in FY 2025-26. This highly fragmented and localised industry saw the top 10 OEMs market share drop further to under 30% of total volumes, while the number of players swelled with several new manufacturers entering the segment during the year. At the same time, the government signalled plans for stricter safety regulations aimed at raising product quality standards and enhancing customer safety. Additionally, the Govt. has extended the PM e-Drive subsidy benefit for L3 E3W (e-rickshaw segment) till 31st March 2028.
High-speed electric two-wheelers continue dominating volumes with 13,45,244 units sold, capturing the largest market share.
(Source: Fortune Business Insights, EV Reporter)
Industrial Machinery Industry
The Industrial Machinery market is a foundational segment of global manufacturing and infrastructure, encompassing a broad range of equipment used in production, processing, and material handling operations across sectors such as automotive, aerospace, electronics, construction, and heavy industries.
The global Industrial Machinery market was valued at $0.81 trillion in 2025. The market is expected to reach $0.87 trillion in 2026 and is projected to grow to $1.31 trillion by 2031, expanding at a CAGR of 8.34% during the forecast period, as per the Mordor Intelligence report. This growth reflects sustained capital expenditure cycles, rising industrial automation adoption, and the need to upgrade ageing equipment in both developed and emerging market manufacturing bases.
Industrial Machinery Market
(Market Size in USD Billion)
By product type, the market includes machine tools, industrial motors, industrial pumps, compressors, material handling equipment, and process oriented machinery used in fabrication, assembly, and logistics. Demand is concentrated in industrial manufacturing and construction, where machinery plays a direct role in productivity, throughout, and quality control. Within manufacturing, segments such as automotive, industrial equipment, and consumer goods producers are prioritising high precision, digitally connected platforms capable of flexible batch production and reduced downtime.
The firefighting industry continued to witness healthy demand in the post-COVID period, supported by increasing requirements from warehouses, data centres, commercial buildings, and the oil & gas sector. Marine applications experienced gradual recovery amid earlier fuel price pressures and irregular fishing patterns, with favourable government policies and stabilising fuel costs expected to support industry momentum. The construction segment, comprising concrete, road construction and light construction applications, continued to benefit from ongoing infrastructure investments and project execution. In parallel, defence procurement has accelerated amid evolving geopolitical dynamics, creating opportunities across both established and emerging application areas.
India’s NBFC sector remains a vital component of the financial services landscape, filling credit gaps left by traditional banking in retail, MSME, microfinance, and housing segments.
Industry follows these norms and satisfy nearly all domestic and international emission and performance standards, including CPCB-IV+, Trem-3A, BS-VI, and Euro V+ certifications. This comprehensive regulatory alignment strategically positions the Company to maintain leadership across both domestic and global markets.
(Source: Mordor Intelligence)
Engineering Research and Development (ER&D)
The Indian Engineering Research and Development (ER&D) Services market is a core pillar of the countrys digital product and manufacturing ecosystem, supplying software, embedded, and mechanical engineering intelligence that underpins automotive, semiconductor, industrial, telecom, and services led platforms. The sector is anchored to Indias large engineering base, cost efficiency, and its role as a global delivery hub for product geometry, electronics, and control software development.
The Indian ER&D Services market stood at $133.71 billion in 2025 and is projected to grow to $147.27 billion in 2026 at a CAGR of 10.14%, reaching $238.63 billion by 2031. This growth is driven by the global shift toward digital engineering outsourcing, rising software content in products, and India-centric waves of domestic R&D in automotive, defence, and semiconductor-linked programs, which together deepen the longevity and value intensity of ER&D contracts.
By industry vertical, Automotive held the largest share with 28.10% of the India ER&D Services market in 2025, underpinned by large-scale ADAS calibration, e-powertrain, and connectivity platform development programmes for global and domestic platforms. However, Semiconductor and Electronics is the fastest-growing segment, projected to grow at 12.85% CAGR to 2031 and to add about $27 billion in incremental value, driven by domestic chip design incentive schemes, PLI-linked Fab cluster policy, and multi-billion-dollar expansion announcements from players such as NXP. Industrial, transportation, construction, and heavy-machinery (ITCHM), services-led verticals such as BFSI and Healthcare, and Hi-tech-led verticals (software and internet, telecom, and IoT-providers) collectively round out the demand base, as cross sector adoption of AI, IoT, and cybersecurity mandated design increases the need for specialised ER&D support.
Indian NBFC Sector
Indias NBFC sector remains a vital component of the financial services landscape, filling credit gaps left by traditional banking in retail, MSME, microfinance, and housing segments. As of early FY 2025-26, total AUM exceeds 50 lakh crore, supporting economic activity across urban and rural markets through diverse lending models. The sector continues to benefit from strong consumption trends, infrastructure spending, and digital adoption.
NBFCs posted 17% credit expansion through H1 FY26, surpassing banking sector growth of 12%. Overall, AUM growth for FY 2025-26 settles at 12-18%, reaching around 60 trillion by March 2026. Microfinance NBFCs expect 10-15% recovery after last years slowdown. Secured lending areas like gold loans and vehicle finance lead with consistent double-digit gains.
(Source: Dalal Street Investment Journal, Enrichmoney)
The RBIs implementation of the Scale-Based Regulation (SBR) for NBFCs is expected to improve governance, transparency, and risk management across the non-bank lending space, making the sector more stable. Digital platforms, such as the Account Aggregator (AA) framework, are also set to transform lending by enabling consent-based, secure data sharing. This will allow financial institutions to perform more holistic and real-time credit risk assessments, particularly improving financing access for MSMEs.
Digital NBFCs are well-positioned for exponential growth. The personal loan portfolio of these entities is expected to cross 3.6 lakh crore ($40.71 billion) by FY30, representing a CAGR of 26% to 28% from FY 2024-25 to FY 2029-30.
This will be accompanied by a continued trend towards 100% digital loan approval and disbursement.
(Source: Proteantech, Asian Banking and Finance, Business World, Business Standard 2)
Financing emerges as the decisive enabler of E2W mass adoption, yet remains significantly underpenetrated despite approximately two-thirds of buyers relying on credit. Electric vehicle loan costs exceed those for equivalent ICE loans due to limited asset-performance history, underdeveloped residual value benchmarks, and a nascent secondary market, fostering caution among mainstream banks. This dynamic creates substantial opportunities for specialist EV financiers equipped with proprietary underwriting data, deep OEM relationships, and advanced digital origination capabilities. The B2B and fleet segments present particularly attractive adjacencies, featuring higher ticket sizes and more predictable repayment profiles. As residual value frameworks mature, strengthened by OEM warranties and expanding pre-owned EV activity, higher loan-to-value lending and more competitive pricing will naturally follow. The Indian E2W financing market is projected to expand at a compound annual growth rate of approximately 53% through 2030, positioning non-banking financial companies (NBFCs) with established platform depth and OEM partnerships to capture substantial market share.
COMPANY OVERVIEW
Greaves Cotton Limited (referred to as ‘Greaves or ‘GCL‘ or ‘the Company), is a trusted engineering company with a 165+ year legacy since 1859 and is headquartered in Mumbai, India. Over time, the Company has transformed from a pioneer in single-cylinder diesel engines into a diversified multi-business engineering platform with deep capabilities across engineering, aftermarket retail, finance, technologies, and electric mobility. Greaves delivers precision solutions for automotive, agriculture, marine, construction and railway sectors, manufacturing diesel, gasoline, petrol engines, pump sets, gensets, farm equipment and industrial engines.
Greaves continues to drive growth across its core and emerging business segments, supported by a steady focus on strengthening its operating base and expanding its market presence. Building on its core businesses, the Companys strategic roadmap, Greaves.Next, is centred around Energy Solutions, Mobility Solutions, and Industrial Solutions. Greaves.Next reflects the Companys commitment to strengthening core engineering capabilities, building new capabilities, expanding into adjacent markets, and scaling across geographies through sustained growth, organic & inorganic opportunities, and future-readiness. The Companys investee businesses, including Greaves Electric Mobility Limited (GEML) and Greaves Finance Limited (GFL), extend its presence into consumer-facing segments. These businesses are being scaled to address emerging opportunities in electric mobility and financial services. Manufacturing facilities located in Chhatrapati Sambhajinagar, Talegaon and other sites maintain world-class standards with Zero Liquid Discharge ISO certifications and advanced technologies like robotic spray painting, sensor-based systems and solar rooftops generating 5 million units annually.
Greaves serves diverse customer segments through reliable products, sustainable technologies, and customer-centric solutions. With its engineering legacy, diversified businesses, and growing portfolio of solutions, the Company is positioning itself as a future-ready engineering company that can support energy, mobility, and industrial applications with innovation and operational discipline.
GCL integrates sustainability across the Environment, Social, and Governance pillars, implementing energy-efficient BLDC fans, R32 AC systems, water recycling, green belts, and Zero Liquid Discharge at all plants. The Company has earned Great Place to Work certification for four years in a row. CSR flagship SWATI program empowers underprivileged young women through employment-linked residential diploma courses in the manufacturing sector at Symbiosis Indore and SASTRA Thanjavur campuses, enrolling 168 students since FY 2024-25. Safety awards from the National Safety Council highlight Zero Lost Time Injury and excellence in accident-free operations.
Business Segments
Core Businesses
Overview
Greaves Energy Solutions pursues sustainable growth through a strategic evolution in its business model focussed on serving customers throughout the gensets complete lifecycle, well beyond the initial equipment purchase. The company prioritises building enduring partnerships by expanding into high-margin recurring revenues through spares distribution, comprehensive service support and Annual Maintenance Contracts (AMCs). This lifetime value approach ensures continuous, reliable performance for customers while creating stable, predictable income streams that complement traditional genset sales and strengthen overall business resilience.
The Company now emphasises integrated power solutions rather than isolated genset products, combining hardware with energy management services, IoT monitoring and lithium-ion battery backups to deliver complete reliability packages. Demand patterns have evolved from addressing basic power deficits to prioritising uptime and operational continuity, especially for mission-critical applications like hospitals, malls and industrial facilities.
Aftermarket services and AMCs have become key differentiators, enabling Greaves to retain customers and capture higher margins through proactive maintenance, extended warranties and performance guarantees. Data centres represent a significant growth opportunity with potential demand exceeding 150 billion, driven by Indias digital infrastructure expansion and hyperscale computing needs.
Outlook
Energy Solutions is expected to benefit from sustained structural demand across key sectors, with the industry outlook remaining positive following the transition period. The high horsepower (HHP) segment anticipates approximately 18% CAGR driven primarily by rapid data centre expansion meeting Indias digital infrastructure needs, while the overall market is expected to grow at a CAGR of 7.18% over the next five years.
Growth momentum will come from multiple sources, including data centre capacity additions targeting 3-6 GW by FY 2029-30 alongside rising industrial capex in railways, defence and construction sectors. Healthcare infrastructure, water projects, real estate development and government initiatives provide additional tailwinds supporting sustained demand for reliable power solutions.
Greaves plans to capture incremental market opportunities and serve diverse customer needs arising from infrastructure expansion in emerging cities beyond just metros.
Distribution and service revenues will drive margin expansion while reducing business cyclicality through recurring income streams from spares, AMCs, and maintenance contracts.
The industry continues evolving from standalone genset supply toward a comprehensive power solutions and lifecycle services ecosystem. Greaves positions itself to capitalise on this transformation, leveraging its integrated offerings, nationwide network and manufacturing excellence to deliver sustained value in the changing energy landscape.
Auto Engines Overview
Greaves reinforced its leadership as a fuel-agnostic powertrain provider in FY 2025-26, achieving exceptional year-on-year revenue growth in the Auto Business.
Aligned with our strategic priorities, Greaves expanded product applications from 3W to Microcar applications and strengthened its transition from domestic to global markets.
The Company strengthened its international footprint in the microcar segment through its partnership with Ligier, supplying Euro V+ compliant engines for European microcar applications. This export strategy gained structural momentum with advanced compact diesel engines designed for light quadricycles. The 499cc Euro V+ engine meets stringent European emission norms, delivering optimal fuel efficiency and low NVH characteristics, making it well-suited for urban mobility solutions. It also reflects Greaves engineering precision, manufacturing capabilities, and validation excellence.
Domestically, Greaves maintains leadership in the diesel three-wheeler (3W) segment, improving its market share to ~60%. This growth is supported by new product launches, reliable engine performance, extensive OEM partnerships, and deep last-mile mobility expertise.
(Source: Vahaan sewa)
Regulatory compliance remains a cornerstone, with full OBD-IIB certification across the diesel & CNG powertrain lineup achieved as of April 1, 2025, following ARAI validation, ensuring seamless customer vehicle launches. Greaves also showcased forward-looking clean energy innovations, including hydrogen engine concepts and lightweight bi-fuel CNG engines, positioning the business for evolving mobility demands.
Outlook
The outlook for the automotive engine segment remains positive with projected industry growth of 6-8% in 2026, supported by improving monetary conditions and infrastructure development.
Greaves has allocated significant capital expenditure over the next 5-6 years for new technology development to enhance capabilities and meet upcoming regulatory requirements. The Company targets growth through organic expansion, contract manufacturing and deeper international market penetration.
Export contribution will grow through focus on the European microcar segment and three-wheeler markets in the Middle East and North Africa. While CNG and electric vehicles lead urban volumes, Greaves multi-fuel strategy ensures competitiveness in cargo and rural sectors where diesel demand remains steady.
Aftermarket Retail Overview
Greaves remains a leading aftermarket player in Indias three-wheeler ecosystem, with a strong presence across passenger and cargo segments. The business operates on an model, enabling efficient capital deployment and healthy returns. During FY 2025-26, the business strengthened its core, expanded into strategic adjacencies, and exited certain non-core businesses under Greaves.Next strategy.
Network Expansion & Market Strengthening
Greaves expanded its distribution footprint in underpenetrated and competitive regions and strengthened engagement with distributors, retailers, and mechanics through structured & scalable engagement. The Company improved product availability, competitive pricing, and service responsiveness while focussing on capability building across the channel ecosystem, which includes 200+ distributors, 20,000+ mechanics and 7,000+ retailers spread across the country.
Portfolio Strength
Greaves continued its leadership in the 3-wheeler aftermarket, with a calibrated growth outlook. Portfolio has been strengthened to improve range in multi-brand spares & lubricants and engineered components for CV & Construction Equipment segments. Portfolio expansion into strategic adjacencies aligned with the shift toward greener fuels, with the launch of EV Components.
Customer-Centric Efforts for Improved Connectivity & Response
Greaves strengthened secondary market engagement through a phygital ecosystem, enabling deeper connectivity, faster response, and improved customer lifetime value. Continuously improving reach through strengthening of the distribution network and increasing the engagement with mechanic and retailers as detailed above.
Customer-centric efforts for improved connectivity and response, feature digital reach out through mobile apps and real-time information. The Mechanic Loyalty Program Engagement engages with mechanics to promote fitment of genuine parts and avoid duplicate parts, with the platform sharing information about products and services and enabling improvement in their skills and business.
The Retailer Engagement Program aims to improve shelf space for Greaves parts and just-in-time availability of the range to end customers, promoting fitment of Greaves parts and ensuring reach of trusted and high-quality parts availability across territories.
Greaves Care Service provides high-quality parts and service on the road to vehicle owners with a network of authorised workshops across the country. Business continues to expand the Greaves Care network to improve the reach of high-quality service response across states.
These initiatives collectively drive the availability of high- quality responses through well-trained service technicians, vehicle on-road service support, and promote the consumption of genuine parts. Continuous training programs for mechanics and channel partners further enhance skills and improve vehicle uptime. Overall, the business continues to evolve into a technology-enabled, customer-centric solutions provider.
Outlook
Significant economic expansion and infrastructure investments will continue supporting demand for last-mile transportation solutions across urban and rural markets. Excel Control Linkages engineered components have been successfully integrated into Greavess retail aftermarket portfolio. These high-quality motion control solutions have been instrumental in establishing the brands presence in the Commercial Vehicle and Construction Equipment segments.
Key trends include growth in e-commerce and quick-commerce, policy-led shifts influencing fuel preferences, increasing EV adoption alongside continued demand for Diesel / CNG / Petrol parts and expansion of Tier 3 & Tier 4 markets.
During FY 2025-26, the business strengthened its core, expanded into strategic adjacencies, and exited certain non-core businesses under Greaves.Next strategy.
Regulatory compliance remains a cornerstone, with full OBD-IIB certification across the diesel & CNG powertrain lineup achieved as of April 1, 2025, following ARAI validation, ensuring seamless customer vehicle launches.
Greavess retail fuel-agnostic strategy positions it well to deliver high-quality parts & services for all types of customer requirements covering 3W fossil fuel / EV vehicles & engineered components for CVs & Construction Equipment segments.
Key focus areas encompass enhancing range and reach with network expansion to hinterlands of consumption, strengthening supply chain efficiencies, leveraging digital and analytics capabilities, and driving profitable growth.
E-Powertrain
Overview
In alignment with Greaves refreshed strategic direction, the E-Powertrain business has been consolidated as part of the Mobility Solutions business group. This positioning reflects its central role in enabling the Companys transition towards clean fuel-agnostic and software-centric mobility solutions. The integration strengthens Greaves capabilities in delivering innovative powertrain technologies that support sustainable transportation across diverse applications.
The business focusses on supplying localised, application-ready electric propulsion systems for OEMs in Indias fast-growing Electric 3W space, complemented by select offerings for the Electric 2W segment. The 3W divisions product suite comprises powertrain systems featuring rare-earth-free magnets, high-efficiency traction motors and comprehensive, safety-integrated Motor Controller Units (MCUs) leveraging a technology partnership with
Chara Technologies owning the design along with gearboxes for commercial passenger and cargo applications.
These systems are assembled at Greaves advanced manufacturing ecosystem, including the Shendra facility, which supports e-powertrain assembly and has played a strategic role in the Companys EV-readiness. The powertrain development approach prioritises reliability, localisation, ease of integration for OEMs, and lifecycle value, drawing upon Greaves engineering credentials and capabilities built through collaboration and global partnerships for technologically advanced electric drive systems.
The Sales & Marketing function has strengthened customer engagement across emerging and established OEMs by providing integrated technical support, durability validation frameworks, and tailored application engineering. This has positioned Greaves as a preferred partner in the transition from mechanical to electric platforms, particularly within commercial 3W fleets. Supported by continued localisation, an expanding customer base, and growing market acceptance, the E-Powertrain division reflects rising OEM adoption and volume ramp-up across passenger and cargo applications.
Outlook
Indias accelerating shift to clean last-mile mobility strengthens the foundation for E-Powertrain entering FY 2026-27, as fleet operators prioritise operational efficiency and cities advance electrification plans. Demand for reliable electric propulsion systems will stay strong, supported by maturing domestic EV component localisation and supply chains that boost OEM confidence in integrated solutions.
Greaves will deepen OEM platform support through advanced engineering services, enhanced product durability, and comprehensive system optimisation, cementing its status as a dependable propulsion partner. While the Electric 2W segment continues evolving, the Company maintains strategic focus on the higher-utilisation commercial 3W market, where powertrain performance and lifecycle economics serve as critical differentiators.
Consistent with broader corporate goals, E-Powertrain commits to technological leadership, scalable platform innovation, and customer-focussed development, ensuring enduring competitiveness amid intensifying EV market rivalry.
Subsidiaries Engineered Components (Excel Controlinkage Pvt. Ltd.)
Overview
Excel Controlinkage stands as a prominent player delivering customised solutions that precisely control vehicle motion across diverse applications. Established in 1994, the Company has steadily expanded its operations and product portfolio, offering push-pull cables, mechanical and electronic gear-shift levers, rubber accessories, mechanical conduits, and electronic sensors.
These solutions serve critical needs across automotive, marine, agriculture, railway and construction industries, meeting the specialised requirements of each sector through tailor-made engineering. Excel Controlinkage has earned prestigious certifications, including IATF, ISO and CE, demonstrating an unparalleled commitment to quality international standards and operational excellence.
The Company maintains a diverse customer base, reflecting strong global acceptance. Renowned for consistency, high quality and reliability, Excel Controlinkage has established market leadership in its core segments through dependable performance and innovative motion control expertise.
Outlook
Excel Controlinkage maintains proven market leadership across core product segments, backed by deep insights into evolving industry dynamics. Primary markets, including automotive and construction, will sustain growth throughout the coming year, creating stable demand for its specialised motion control solutions. The Company focusses on tapping new segments such as E2W and SCVs through dedicated new products while shifting toward providing more assemblies instead of standalone products. Excel is also developing new products such as hydraulic motion control systems, specifically for the marine segment.
The Companys strong brand reputation, loyal customer relationships, culture of continuous innovation, diversified portfolio, and dedication to quality and operational agility equip it to address challenges while capitalising on new opportunities. Excel Controlinkage aims to strengthen its foothold in established markets while actively pursuing expansion into emerging sectors. The Company is working on new technology products to enter high growth areas of electronics. This strategic initiative complements its expansion into segments like E2W SCVs and marine applications through specialised hydraulic motion control systems while reinforcing market leadership with innovative motion control solutions across automotive construction and emerging sectors.
Technologies (Greaves Technologies Ltd.) Overview
Greaves Technologies Limited (GTL), a wholly-owned subsidiary of Greaves Cotton Limited (GCL), serves as a vital engineering partner for OEMs, delivering specialised ER&D and digital solutions across the complete product development lifecycle. With proven expertise in transforming concepts into market-ready innovations, GTL supports clients from initial design through to production scale-up, enabling faster time-to-market and cost efficiencies.
The Company excels in comprehensive engineering services that span product design, advanced Computer-Aided Engineering (CAE) analysis, automation solutions, new product development, and strategic supplier development. These capabilities help OEMs navigate complex technical challenges while maintaining high standards of quality and performance.
GTLs flexible engagement models, including dedicated staffing arrangements, body-shopping, and turnkey projects, ensure tailored support that aligns precisely with client needs and project timelines. This customer-centric approach positions GTL as a trusted extension of OEM engineering teams, driving innovation across diverse industries from mobility to industrial applications.
Outlook
During FY 2025-26, GTL management focussed on key operational improvements to achieve a 4X EBITDA growth for the Company, marking a significant step toward sustainable profitability. Operating in a growth phase, though not yet a scaled global ER&D player, GTL deepened engagement with existing customers to expand project scope, targeting both external clients and internal group companies.
The Company anticipates adding new customers from the Auto, Industrials, and Aerospace domains currently in the pipeline, while addressing competitive pricing pressures, skilled resource constraints, and cost challenges through targeted capability building. This positions GTL to compete effectively in technically demanding automotive design segments.
Indias Auto sector, particularly Commercial Vehicles, has entered a fresh bull market expected to drive increased R&D spending over the next two years. GTL plans to leverage combined GCL+GTL capabilities for a strong go-to-market strategy serving both domestic and global markets. Transitioning from resource augmentation, GTL aims to partner with global OEMs as a strategic engineering arm supporting new vehicle programmes and cost optimisation initiatives.</p>
Overview
GCL, with over 165 years of legacy, maintains core strengths in fuel-agnostic engines spanning 1-700 HP that power diverse applications across construction, marine, agriculture, firefighting and defence segments. The Company leads the single-cylinder diesel engines market, particularly for automotive applications serving both domestic and international B2B and B2C customers. GCL offers customers flexible options through new product additions covering multiple fuel types, cooling systems and RPM ranges while meeting stringent emission norms, including CPCB IV+, Trem 3A BS VI and Euro V+.
Under the Greaves.Next strategy, Industrial Solutions consolidates existing strengths while building capabilities for future growth across these segments.
The segment achieved moderate growth following years of double-digit expansion, alongside consolidation through new OEM partnerships in firefighting, agriculture and defence for domestic and global markets. New customer additions, including OEMs and channel partners, though growth moderated due to volume declines from a major OEM, extended rainfall impacts and farmers yield price pressure.
GCL sustained its market share while expanding addressable markets through new products and penetration into emerging geographies. Strong demand persists for firefighting engines, particularly FMUL variants, alongside growth in inland waterways, defence institutional sales under Make in India and affordable housing initiatives. While large-engine fishing shows improvement, this segment still faces ongoing challenges from changing sea patterns, ecological issues and subsidy constraints.
Outlook
Greaves Industrial Solutions business anticipates a robust growth prospects, supported by a healthy order book and favourable agricultural season prospects. New OEM start-of- production milestones expected in Q1 and Q2 will drive revenue growth while maintaining positive sales momentum initiated in Q4 FY26.
Cash demand from the market should strengthen, particularly for light equipment and agricultural machinery engines, during season. However, anticipated elections across five major states may create a temporary slump in government subsidy-related order bookings, potentially impacting Q2 performance.
New product launches, including 750 HP engines, gasoline variants and enhanced marine engines, position the business for market expansion and revenue uplift. These developments align with the Greaves.Next strategy, enabling Greaves to capture growth across Industrial Solutions while navigating short-term electoral headwinds.
International Business Overview
Greaves strengthened its global operations during FY 2025-26 as challenges from the previous year in South-East Asia and Turkey largely eased. Local currencies and business environments remained stable across most markets, despite brief disruptions in Nepal, Tanzania and Madagascar that resolved within a couple of months.
Under the Greaves.Next initiative, the Company streamlined its International Business operations by consolidating multiple export teams into a unified structure focussed on strategic key geographies.
External factors, including oil prices and global economic conditions, stayed relatively steady, creating a supportive business climate throughout the financial year. Government procurement activities resumed across multiple countries, driving increased demand for power-generating sets and agricultural equipment, while the private sector gained confidence backed by political stability, infrastructure investments and welfare programmes.
The Company enhanced its international footprint through robust sales and service network development across key regions. Greaves actively showcased its world-class product portfolio at major exhibitions, including Middle East Energy (MEE) 2025, Intersec 2025, Buildcon Nepal and several local trade events, reinforcing its global market presence and customer engagement.
Outlook
Building on the strong foundation established in 2025, the outlook remains highly positive across GCL offerings in Energy Solutions, Mobility Solutions, and Industrial Solutions. Greaves stands well-positioned to deepen its market presence and expand into new geographies across the Middle East, Africa and Europe.
The Company anticipates robust business growth throughout 2026, propelled by accelerating infrastructure development, rising construction activity, and increasing agricultural mechanisation across emerging markets.
Risk & Concerns (Core Businesses)
Greaves Cotton Limited operates in a dynamic business environment and is exposed to various risks that may impact its operations, financial performance and growth trajectory. The key risks and concerns and corresponding mitigation measures are outlined below:
| Risk | Mitigation |
Regulatory and Policy Risks |
|
The Company’s businesses are subject to evolving regulatory requirements, including emission norms, fuel policies, EV incentive structures and product compliance standards. Any changes in government policies, particularly relating to diesel usage, alternate fuels or emission standards, may impact demand and cost structures. |
The Company continuously monitors regulatory developments and proactively aligns its product portfolio with evolving norms. The Companys R&D teams actively work on emission norms roadmaps to ensure readiness for upcoming regulatory changes. Investments in fuel-agnostic technologies and compliant product platforms enable timely adaptation. |
Technology Transition Risks |
|
The industry continues to transition towards cleaner fuels, electric mobility and emerging technologies. Increasing adoption of alternate fuels, battery storage, hybrid and gas-based solutions, and software-led systems may impact demand for conventional products. |
The Company is expanding its portfolio across electric mobility, alternate fuels, hybrid and gas-based solutions, including the addition of electric powertrain systems as part of its offerings. The Company continues to strengthen its R&D and technology capabilities to remain aligned with evolving market trends. |
Demand and Execution Risks |
|
Demand remains linked to macroeconomic conditions, customer capex cycles and infrastructure activity. Delays in industrial or infrastructure capex, regulatory-led transitions or demand normalisation in certain segments may impact volumes. |
The Company continues to diversify across end-use segments, applications and geographies, while strengthening customer engagement. The Company is adopting a customer lifetime value approach and has reorganised its internal teams to enhance responsiveness and mitigate demand variability. |
Competitive Intensity |
|
The Company operates in competitive markets across its businesses. Pricing pressure, low-cost offerings, margin expectations in contracts, and the need to strengthen differentiated value propositions may impact profitability and market position. |
Focus on product quality, service capabilities, brand strength and differentiated offerings, along with continuous cost optimisation and value engineering, supports competitiveness and customer retention. |
Supply Chain and Input Cost Risks |
|
The Company is exposed to commodity price volatility, energy and fuel cost fluctuations, and supply chain disruptions arising from geopolitical developments and trade barriers. Dependence on certain imported components may also pose risks until localisation improves. |
The Company is strengthening its supply chain through supplier diversification, localisation initiatives and strategic sourcing, while maintaining focus on cost control and operational efficiency. |
Global Macroeconomic Risks |
|
Geopolitical tensions, inflationary pressures, interest rate movements, currency fluctuations and global trade uncertainties may affect demand, export performance and supply chain stability. |
A diversified business portfolio across domestic and international markets, along with a balanced customer mix, helps mitigate the impact of macroeconomic volatility. |
Technology and Capability Risks |
|
Rapid advancements across electric powertrains, components and engineering technologies require continuous investments in R&D, talent and capabilities. |
The Company continues to invest in capability building, talent development and advanced engineering skills, including digital and emerging technology areas, to support long-term competitiveness. |
Compliance Risks |
|
Export-oriented businesses are subject to international standards and certification requirements. Any changes in regulations or non-compliance may impact market access and operations. |
The Company maintains robust compliance processes and adheres to applicable international standards and certifications to ensure continued market access. |
Risk Management
The Company has a structured risk management framework to identify, assess and mitigate risks, which is periodically reviewed to ensure alignment with the evolving business environment.
Excel Controlinkage Pvt. Ltd & Greaves Technologies Limited are Greaves Cotton Limited subsidiaries covered under mobility solutions section.
INVESTEE BUSINESSES Greaves Electric Mobility Ltd
Overview
Greaves Electric Mobility Limited (GEML), the electric mobility arm of GCL, stands among Indias pioneers in the E-Mobility space, designing and manufacturing electric vehicles for over 18 years. The Company has cultivated a robust customer base exceeding 4,00,000 across Electric 2-Wheeler (E2W) and 3-Wheeler (3W) segments, steadfastly fulfilling its mission to democratise smart, sustainable mobility solutions.
In the E2W segment, GEMLs flagship brand ‘Ampere offers one of the industrys widest ranges of electric scooters, holding several national and international records. GEML has established pockets of market leadership with ~12% market share in states which contribute to ~22% of overall industry volumes in E2W segment for H2 FY26. During the year, Ampere launched successful models, including Magnus Grand and Magnus G-Max, both warmly received by customers, while rolling out continuous technology and feature upgrades across the Nexus range with Nex.IO connectivity. GEML is also working on the next generation of products with the Magnus 6th Gen Electric scooter set to be launched in FY27, which is being positioned as an ‘ICE breaker. The 6th Gen electric scooter is being designed with a vision to deliver better performance while offering better ownership economics with the potential to challenge high-selling petrol scooters in the sub-Rs. 1 lakh price category.
GEML maintains a strong presence in the 3W segment through subsidiary entities MLR Auto Limited and Bestway Agencies Private Limited, addressing passenger and cargo needs in L5 3W (autos) and L3 3W (e-rickshaws) categories, respectively. During the financial year FY26, GEML increased the equity stake in MLR Auto from 51% to a total of 67.41%, reinforcing control and alignment with long-term growth objectives. Additionally, GEML had secured regulatory approvals for its proposed Initial Public Offering (IPO) in May 2025. Recently, SEBI issued a circular granting a one-time, six-month relaxation for IPO observation letters expiring between April 1, 2026, and September 30, 2026, extending their validity until September 30, 2026. GEML will continue to assess the market dynamics which are also influenced by geopolitical environment to decide the timing of the proposed IPO.
Ampere - (Two-Wheeler)
As per VAHAN, GEML is ranked among the top 6 E2W OEMs, achieved 49% year-on-year volume growth and expanded market share by nearly 1 percentage point from FY25 to FY26, mainly driven by an enhanced product portfolio, network expansion, and growth from e-commerce channels. These gains coincided with improved realisations and margins, affirming a sustainable trajectory. The Company also crossed the landmark of 2,50,000 cumulative E2W vehicle registrations on VAHAN, reflecting enduring customer trust in the Ampere brands quality and reliability.
GEMLs comprehensive portfolio spans slow-speed scooters to high-speed family models, with a firm foothold in the sub-1 lakh value segment. Strategic launches like Magnus Grand in Q2 FY26 and Magnus G-Max in Q4 FY26 fortified the beloved Magnus platform, driving festive volumes, while Nexus received ongoing upgrades via Nex.IO. The entire range now features the safest LFP battery chemistry, offering 2x cycle life and superior thermal stability, making GEML the first among Top 6 OEMs to complete this transition.
The Company has cultivated a robust customer base exceeding 4,00,000 across Electric 2-Wheeler (E2W) and 3-Wheeler (3W) segments, steadfastly fulfilling its mission to democratise smart, sustainable mobility solutions.
GEMLs innovation focus earned multiple accolades: Ampere Nexus won ‘Electric Scooter of the Year 2025 at Bike India Awards for redefining premium segment value, safety, and performance; Magnus Grand claimed the same title for 2026. True to its promise of products ‘Built to Outperform, Outlast and Outshine, GEML set 9 national and international records via India Book of Records and Asia Book of Records through expeditions proving durability, like Nexus conquering Shipki La Pass at 13,200+ feet near the India-China border and Kolli HillsRs. 70 hairpin bends.
Outlook
With rapid industry growth expected to continue, driven by strong TCO advantages further accentuated by rising fuel prices, GEML is well positioned to ride this electrification wave. GEML aims to further increase their share from this segment through strategic product interventions, increased network penetration in West and North regions and increased business from alternate channels like E-commerce and B2B segments, among others. GEML has also made significant inroads toward tapping into opportunities from international markets and plans to scale up volumes from export markets in the coming year.
SUBSIDIARIES MLR Auto Limited
MLR Auto Limited delivered impressive growth and deeper market penetration in FY 2025-26, particularly within the conventional fuel segment. Company volumes rose 17% year-on-year as per VAHAN, propelled mainly by strong performance in the diesel category, where MLR built a significant presence in southern markets, achieving over 10% diesel market share in Tamil Nadu.
Strategic focus now centres on expanding into Northern and Eastern regions, which account for more than three-fourths of electric vehicle industry volumes. Financing options strengthened during the year, providing customers with competitive purchase terms and broader accessibility.
The financial year highlighted product innovation with the launch of Greaves ELTRA City Xtra, an advanced iteration of the ELTRA City model. This vehicle earned a place in the India Book of Records by travelling 324 km from Bengaluru to Ranipet on a single charge, dramatically surpassing its own previous record of 225 km from Bengaluru to Mysuru set by ELTRA City in FY 2024-25.
Outlook
With the L5 3W industry expected to continue its strong growth journey after record volumes in FY26, MLR Auto Limited aims to further strengthen its share in the Diesel segment through continuous product improvements and strengthened financing partnerships, which will help offer competitive financing options to the customers. At the same time, the focus will be on scaling up the EV share of business, driven mainly by deepening the network penetration into North and East markets as well as through strategic product interventions.
Bestway Agencies Private Limited (BAPL)/ ELE (E-Rickshaw Brand)
GEMLs ELE e3W range delivers comprehensive e-rickshaw solutions addressing both passenger and cargo transportation requirements across diverse applications. The company is looking at strategic intervention to blend this portfolio to improve overall costs and unit economics.
Outlook
The market continues to become even more competitive with highly localised play. However, with the implementation of safety standards, there is expected to be market maturation and potential consolidation, which offers an opportunity for players like BAPL.
Greaves Finance Limited Overview
Greaves Finance Limited (GFL), operating under the brand ev.fin as a wholly-owned subsidiary of GCL, functions as an EV-focussed Non-Banking Financial Company (NBFC). Initially launched in 2019 as a captive financier for Electric 2-Wheelers (E2W), GFL has transformed into a brand-agnostic EV lending platform, powered by a fully digitised origination infrastructure that delivers loan approvals in under 2.5 minutes.
In FY 2025-26, ev.fin surpassed the landmark 500 crore Assets Under Management (AUM) (on owned and managed basis) milestone, reflecting disciplined growth, dynamic OEM partnerships, and geographic expansion to 74 cities across 14 states, covering approximately 55% of the E2W market by volume, while maintaining strong portfolio performance.
GFL deepened its OEM ecosystem during the year, consistently ranking ev.fin among the top three financiers at key E2W dealerships. After building on collaborations with Ather (FY24) and River Mobility (FY25) & other top E2W OEMs, GFL formalised a preferred financier arrangement with Suzuki EV in FY 2025-26. This partnership delivers competitive financing options, including low-interest loans and residual value-backed products, to Suzukis expanding customer base.
The flagship Smart.fin product, featuring residual value (RV) guarantees through strategic OEM tie-ups, was relaunched with Ather in FY 2024-25 and extended to Suzuki EV in FY 2025-26. By addressing resale value uncertainty, a key barrier to EV adoption, Smart.fin enables customers to upgrade seamlessly to newer models, establishing ev.fin as a market differentiator.
GFL enhanced customer protection via widespread adoption of the Loan Protect insurance product for unforeseen events, while expanding cross-sell opportunities through its IRDAI-licensed Corporate Agent partnership with Acko and new alliances in motor, health, and life insurance. The Company scaled B2B and fleet financing for electric two-wheelers in FY 2025-26, targeting fleet operators, rentals, and last-mile delivery platforms, a segment with predictable repayment profiles - though it will remain under 10% of total portfolio.
Advancing pre-owned EV financing from its FY 2024-25 pilot using repossessed vehicles, GFL bolsters the secondary market, improves collateral liquidity, and broadens access for value-conscious buyers. Supporting this growth, GFL onboarded seven lenders, including NBFCs, banks, and impact funds, tripling on-book AUM from FY25 while upholding healthy financial ratios and covenants.
Outlook
The Electric 2-Wheeler (E2W) segment will maintain robust growth momentum in FY 2026-27, propelled by falling battery costs, expanding charging networks, and rising buyer confidence, bolstered by 8-year battery warranties across major OEMs. GFL stands ready to harness this momentum through its battle-tested digital platform, solid OEM alliances, and distinctive financing offerings.
In FY 2026-27, GFL will pursue five strategic priorities: first, intensifying penetration in current markets while selectively entering underpenetrated Tier II and Tier III regions; second, scaling B2B and fleet financing to form a substantial portion of disbursements; third, rolling out evfin Secure+ at scale to establish ev.fin as a comprehensive EV ownership partner beyond mere transactional lending; fourth, venturing into adjacent green financing areas like Electric 3-Wheelers and solar; and fifth, expanding insurance distribution via its Corporate Agent framework across motor, health, and life categories.
Pre-owned EV financing will gain maturity as repossession flows create a reliable supply, with the secondary market gaining further traction from OEM-supported battery warranties. Having achieved 500 crore AUM (on owned and managed basis) alongside a scalable digital infrastructure, GFL enters FY 2026-27 with a firm operational footing and a defined path to solidify leadership as Indias premier EV-focussed NBFC.
Risk & Concern (Investee Business)
The discontinuation of central government subsidies beyond July-2026, combined with intensifying competition in the sub-1 lakh electric scooter segment driven by new product launches from internal combustion engine original equipment manufacturers eligible for Production Linked Incentives, alongside global supply chain dynamics impacting component availability, creates significant pricing pressures and market challenges for the Company.
Mitigation:
• Strategic cost management and pricing optimisation to counter subsidy elimination
• Product portfolio adaptation to compete against PLI-eligible ICE OEM launches
• Supply chain diversification initiatives to address global component availability constraints
• Focussed market positioning in sub-1 lakh electric scooter segment competition
In the financing domain critical to E2W mass adoption, the resale market for used E2Ws remains underdeveloped, complicating residual value assessments and collateral security despite nascent traction in pre-owned financing. Policy transitions, from FAME II to PM E-DRIVE, introduce demand volatility that may alter OEM pricing strategies, indirectly impacting loan-to-value profiles and borrower affordability. Unauthorised battery swaps in financed vehicles continue to undermine collateral integrity and resale value, requiring enhanced asset tracking, digital lock-in mechanisms, and OEM coordination. Service failures or quality issues at the OEM level directly fuel borrower dissatisfaction and elevate equated monthly instalment (EMI) delinquency risks. Concentration risk persists in the E2W segment, where any structural demand slowdown or technological disruption could disproportionately impair portfolio quality.
Mitigation:
Resale market is at nascent stages, but GFL has piloted the end-to-end resale process on its repossessed assets including vehicle and battery valuation, refurbishment and reselling.
GFL portfolio covers diverse mix of OEM and not concentrated on subsidy-depended OEMs. Additionally, subsidies over the years have reduced drastically but the demand has remained resilient.
Under B2C model, only assets with fixed battery architecture are onboarded, reduces the swap risk.
Service-related issues are tracked early against location & OEM/dealership level to control the delinquency. Exposure is controlled with OEMs having thin after-sales services or resulting in higher delinquencies due to performance.
Diversification planned to E3W segments & other assets to reduce E2W exposure overtime. Within E2W, portfolio is expanded across OEMs, geographies, retail (B2C)/gig (B2B) to control demand-related slowdown.
Strategic Outlook
The Companys Greaves.Next strategy transforms the Company into a diversified solutions-led enterprise spanning Energy, Mobility, and Industrial Solutions, building upon its deep engineering and manufacturing heritage, while realigning the portfolio toward high-growth domains like energy transition, customer life-time value, and technology-driven services.
The next phase emphasises execution-driven expansion, strengthening core B2B operations and operational efficiencies alongside sustained investments in building capabilities in serving new products, new customers, and new markets. Enhanced integration across business verticals will enable comprehensive ecosystem offerings that seamlessly combine energy solutions and mobility platforms, creating superior value for customers.
Strategic priorities track structural market shifts. Energy Solutions will prioritise clean distributed power systems, addressing rising reliability needs. Mobility operations target scaled presence in electric last-mile applications complemented by export opportunities, robust powertrain development, and aftermarket service expansion. Company-wide efforts focus on boosting service revenue contributions, penetrating export markets and advancing product innovation through technology investments.
Capital deployment follows a measured approach, channelling resources into core business sustainability, high-return growth verticals and selective strategic initiatives. This framework balances expansion ambitions with financial discipline, ensuring capital efficiency while maintaining healthy balance sheet metrics and shareholder value creation.
Indias accelerating EV adoption, decentralised energy demand, and global appetite for competitive engineering solutions create powerful tailwinds for Greaves diversified portfolio. These dynamics align directly with the Companys strategic positioning across stable cash-generative operations and scalable growth platforms.
Greaves maintains rigorous portfolio evaluation centred on capital productivity and business performance as a cornerstone of Greaves.Next execution. This disciplined approach, combined with improving operational execution and clear strategic direction, positions Greaves to deliver sustained growth, profitability and long-term stakeholder value through its transformed business model.
The electric mobility business has built a strong foundation with a diversified and robust product portfolio, strong dealer footprint and aftersales support. Greaves Electric Mobility is poised to strengthen its market position through a multi-pronged strategy focussed on product, network, and channel expansion. The planned launch of the Magnus 6th Gen, positioned as a strong “ICE breaker” in the mass segment, underpins its push toward product diversification and wider consumer adoption. At the same time, the company is accelerating network penetration into under-served and weaker markets to unlock incremental demand, while also building alternate sales channels - including e-commerce platforms - to enhance accessibility and improve customer reach beyond traditional dealerships.
In parallel, Greaves Electric Mobility is deepening its B2B play by offering customised products and integrated mobility solutions tailored to fleet and institutional customers, strengthening its presence in high-utilisation segments. This is complemented by a sharper focus on brand-building initiatives to drive awareness, improve consideration, and support premiumisation over time. Together, these efforts position the company to scale sustainably, improve market share across segments, and build a more resilient and diversified revenue base.
Greaves Finance Limited (ev.fin) anchors the Groups financial services ambitions as Indias dedicated EV financier, having achieved 500 crore AUM on an owned and managed basis alongside a scalable digital infrastructure. Operating at the intersection of capital deployment and customer lifetime value, GFLs strategy spans retail E2W financing expansion, structured fleet and B2B solutions, adjacent green financing in Electric 3-Wheelers and solar, and an expanding insurance distribution framework - building a diversified, technology-enabled lending book that mirrors the Groups evolution toward a solutions-led enterprise.
For GFL, the next phase deepens both market reach and product breadth. GFL will intensify penetration in current geographies while selectively entering Tier-2 and Tier-3 markets, scale B2B and fleet financing, and roll out evfin Secure+ to establish ev.fin as a comprehensive EV ownership partner beyond transactional lending. A maturing pre-owned EV segment, supported by OEM-backed battery warranties, will further expand the addressable market. Underpinned by an IND A- (Stable) rating and established OEM alliances, GFL is positioned to deliver sustained portfolio growth and long-term stakeholder value.
SUSTAINABILITY DRIVES
Greaves recognises the growing importance of sustainability among all stakeholders and takes full responsibility for its environmental footprint. The Company remains committed to building a sustainable future by embedding sustainable innovation at the core of its business approach, reflecting its genuine dedication to environmental, social, and governance (ESG) principles. The ESG efforts are given in greater details in the Business Responsibility & Sustainability Report. By integrating these pillars, Greaves not only addresses current needs while safeguarding opportunities for future generations but also maintains a balanced focus on business growth and long-term shareholder value.
ENVIRONMENTAL, SOCIAL & GOVERNANCE Environmental
Greaves focusses on practical steps to reduce energy use, improve water management and lower emissions across its operations. The Company implements several targeted measures at its manufacturing sites.
Energy Conservation Measures
• Installed sensor-based lighting systems across common areas like corridors for automated illumination control. Lights switch on only when activity is detected, reducing energy consumption and preventing unnecessary usage
• Switched to Express feeder power supply, significantly cutting grid power failure occurrences and lowering generator operating hours
• Implemented energy-efficient BLDC fans in Unit-1 at Chhatrapati Sambhajinagar to reduce overall power consumption
• Installed RECD kits across all gensets in every plant to optimise fuel usage and minimise emissions
• Replaced older air-conditioning units using R22 refrigerant with environmentally friendly R32-based systems to enhance energy efficiency and lower environmental impact
Environmental Engagement
• Celebrated World Environment Day and Earth Day through employee engagement activities and plantation drives
• Continued development of green belts around factory premises
• Installed solar rooftop power plants of 10 KW each at Transit quarters I and II at Chhatrapati Sambhajinagar
Water Management
• Expanded use of treated and recycled Effluent Treatment Plant (ETP) and Sewage Treatment Plant (STP) water beyond gardening to washroom flushing and floor cleaning for efficient usage
• Upgraded water distribution system with electromagnetic flow meters to prevent wastage and optimise consumption
• Developed a kitchen garden within the plant premises
Renewable Energy and Sustainability
• Generated 5 million units of energy yearly through four solar rooftop installations ranging from 700kW to 1MW each at manufacturing plants in Chhatrapati Sambhajinagar and Talegaon
• Digitised Standard Operating Procedures (SOPs), checklists, and reports on the shop floor to promote paperless operations
• Collaborated with suppliers to recycle aluminium scrap briquettes, reducing carbon emissions and energy consumption in aluminium heating and extraction processesx
Efficiency and Waste Reduction
• Promotedrecyclablepalletsfortransportingfinished goods
• Adopted moulded pulp packaging for finished components, which is both biodegradable and recyclable
• Implemented robotic spray painting for industrial engines, reducing paint consumption by approximately 20%, minimising operator exposure to unsafe conditions, and lowering VOC emissions
• Executed product and process re-engineering projects on the shop floor to minimise waste and improve energy efficiency
• All manufacturing sites maintain Zero Liquid
Discharge mechanisms
Social
Greaves earned certification as a Great Place to Work for the fourth year in a row. This global recognition, known as the Gold Standard for workplace culture, strengthens Greaves position as an Employer of Choice. The Company stays dedicated to social and environmental responsibility while supporting inclusive community development.
Greaves maintains high standards for quality and safety through certifications, including ISO 9001:2015, IATF 16949, ISO 14001:2015, ISO 45001:2018, ISO 17025 and AS 9100D. The Company also runs tree plantation initiatives that expand green cover, capture carbon, improve air quality and boost biodiversity as part of social efforts.
The Company shows a strong commitment to employe safety with robust systems in place. This achieved Zerc Lost Time Injury Frequency Rate in FY 2025-26. The LEU I and LEU V Plant received the National Safety Counci Maharashtra Chapter Safety Award for 2024-2025 in twc categories: Longest Accident-Free Period and Lowes Average Accident Frequency Rate. The Industrial Engine: Unit earned a Certificate of Excellence for Meritorious Performance in Industrial Safety.
Governance
Greaves places strong emphasis on robust governance with the Board serving as the ultimate decision-making authority. The Board includes qualified professionals with diverse expertise, bringing essential skills for the Company effective functioning. Key areas of proficiency include globa economics, ESG, financial expertise, sales, marketing and commercial operations, mergers and acquisitions manufacturing, quality and supply chain management corporate governance, technology, and people management
Awards & Recognitions:
The Company received remarkable recognition at the 25th ICSI National Awards for Excellence in Corporate Governance, organised by the Institute of Compan Secretaries of India (ICSI) and held in New Delhi o 19th December 2025. The Company was awarded with th prestigious “Best Governed Company - Listed Segment Emerging Category” award, affirming its sustained emphasis on sound governance frameworks, transparency, and ethica business practices.
The Company received remarkable recognition at the 25th ICSI National Awards for Excellence in Corporate Governance, organised by the Institute of Company Secretaries of India (ICSI) and held in New Delhi on 19th December 2025.
Greaves Cotton Limited launched the SWATI Program in collaboration with Symbiosis University of Applied Sciences (SUAS) in Indore. The partnership offers two residential diploma courses for underprivileged girls.
In addition, Mr. Atindra Basu, Group General Counsel and Company Secretary, was awarded with the “Governance Professional of the Year” award. Additionally Mr. Atindra Basu was also awarded in-house counsel for FY 2025-26 by the India Business Law Journal.
Collectively, these recognitions reflect the organisations and its leaderships unwavering commitment to the highest standards of corporate governance and professional excellence.
Ethical Conduct Foundation
Greaves is firmly committed to ethical conduct and compliance, operating in accordance with applicable laws, regulations, and the highest standards of business ethics. The Companys Code of Conduct promotes transparency, integrity, and accountability throughout operations. It provides straightforward guidance for identifying and addressing the ethical concerns, along with mechanisms for reporting any misconduct.
Pancha Tatva Principles
The guiding Pancha Tatva principles shape Greaves approach, these include transparency, integrity, responsibility, passion for excellence, and respect. Through these, the Company upholds the highest standards of business ethics. Greaves records no instances of unfair trade practices, irresponsible advertising, or anti-competitive behaviour, reflecting its strong compliance record.
Independent Board Structure
Greaves strengthens its governance framework through a strong and independent Board, characterised by a clear separation between supervisory oversight and executive management. The Board serves as the central decision-making authority, ensuring strategic direction and accountability, while all members of the Audit, Nomination, and Remuneration Committees are non-executive, promoting unbiased and independent oversight. This structured approach underscores the Companys commitment to high standards of corporate governance, supported by an effective Board composition, well-defined roles, and dedicated committees that provide focussed supervision of critical areas.
Board Expertise Diversity
Greaves Board comprises a diverse and well-balanced combination of skills, experience, and perspectives, enabling strong governance and effective strategic oversight. The Board skill set demonstrates depth across critical domains, including global economic insight, mergers and acquisitions, sales, marketing and commercial, broad business leadership, manufacturing, quality and supply chain management, technology, corporate governance, financial expertise, ESG expertise, people management, and brand and customer relationship management. Collectively, these competencies position the Board to provide robust guidance, support informed decision-making, and steer the organisation toward sustainable long-term growth.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Greaves works to improve lives and support communities through its CSR initiatives. The Company focusses on skill building and employability enhancement to create positive social change. Greaves empowers underprivileged youth with technical skills so they can find jobs, support their families and contribute to inclusive growth.
SWATI Program
The Company launched its flagship SWATI Program in FY 2024-25 to empower young women through skill training and employment opportunities. This initiative offers employment-linked diploma courses designed for girls from economically disadvantaged backgrounds.
Program Collaborations and Progress
Greaves Cotton Limited launched the SWATI Program in collaboration with Symbiosis University of Applied Sciences (SUAS) in Indore. The partnership offers two residential diploma courses for underprivileged girls. Diploma in Manufacturing Automation (DMA) serves 12th pass students (Science with Mathematics) over two years. Diploma in Advanced Manufacturing Excellence (DAME) targets 10th pass students over three years.
In FY 2024-25, the first batches started in August 2024 at the SUAS Indore campus. These included 74 students (18 in DMA and 56 in DAME). All students completed their first year without any dropouts. In FY 2025-26, second batches began in August 2025, enrolling 64 students total (33 in DMA and 31 in DAME).
The Company expanded the SWATI Program to South India in FY 2025-26 through an MoU with Shanmugha Arts Science Technology and Research Academy (SASTRA) in Thanjavur, Tamil Nadu. This partnership offers a two-year Diploma in Manufacturing for 12th pass (Science with Mathematics) students. The first batch started in March 2026, enrolling 30 students at the SASTRA Thanjavur campus.
Skill Development Goals
The SWATI Program builds technical skills and employability through industry-relevant education and hands-on training. Young women gain exposure to advanced manufacturing technologies in a residential learning environment. By providing access to quality education, Greaves promotes financial independence and self-reliance among women from marginalised communities. This effort supports the Companys commitment to social responsibility and inclusive growth.
HUMAN RESOURCE
Greaves views employees as the foundation of its success and works to create a supportive, inclusive and growth-focussed workplace. The Company invests in future-ready skills training to help the workforce adopt emerging technologies smoothly. Leadership builds an environment where people feel valued, respected and empowered to contribute. Exceptional performers earn recognition under Pancha Tatva values while high-potential staff receive targeted development to speed their progress. Greaves runs forward-looking training programs and maintains a Great Place to Work status, showing commitment to employee well-being.
The Company launched wellness initiatives with webinars on climate change effects on diet, mental health, brain health and diabetes prevention. Health checkup camps monitored well-being. International Yoga Day featured group sessions on breathing, stretching and feeling better. Greaves introduced menstrual leave for women and raised Group Term Life Insurance to three times CTC for better coverage.
Learning and Development
Greaves follows a structured learning and development framework, covering behavioural, functional, mandatory, and health and safety requirements. During the year, employees participated in a range of weekly and digital learning programmes, supported through classroom and LMS-based formats. Training initiatives covered areas such as electrical fundamentals, motors and controllers, advanced machining, Six Sigma, IATF tools, artificial intelligence for manufacturing, and generative AI. Employee feedback for these programmes remained strong, reflecting the effectiveness of the Companys capability-building efforts.
The Company also continued to strengthen internal engagement through SAMVAAD, its monthly dialogue forum, which promotes open communication and helps deepen employee connect. On the safety front, the Company received recognition for the performance of its Chhatrapati Sambhajinagar facilities, including awards for low accident frequency, extended accident-free periods, and excellence in industrial safety. In addition, the Utkarsh Team secured third place at the CII 38th State-Level Quality Circle Competition, highlighting the Companys continued focus on operational excellence and employee participation.
Engagement Events
Greaves Family Day 2026 brought employees, families and leadership together at Chhatrapati Sambhajinagar and Pune. Events featured lamp lighting, speeches, cultural performances, games and 10 Fun Awards celebrating unique contributions. POSH training covered employees, contract workers and trainees. National Safety Week included awareness campaigns, competitions and a blood donation drive, collecting 134 units.
As of 31st March 2026, Greaves sustained a diverse workforce of 1,034 individuals contributing across business verticals.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has robust internal control systems in place, commensurate with the size, complexity and industry in which it operates. The Companys adherence to the Committee of Sponsoring Organisations of the Treadway Commission (“COSO”) framework and assessment of internal financial controls in line with Indian regulatory guidelines further underscores its dedication to transparency and accountability. The Company ensures that the systems are periodically upgraded to keep pace with changing norms and ensure their effectiveness.
The Company has adopted policies and procedures that guide day-to-day activities across all major functions. These controls are designed to give reasonable assurance on:
• Accuracy and completeness of the financial records.
• Compliance with applicable laws and regulations.
• Effectiveness and efficiency of business operations.
• Prevention and detection of fraud and errors.
• Safeguarding of Company assets from unauthorised use or losses.
The companys Corporate Governance Policies and Code of Conduct provide a strong foundation for transparency, accountability, and ethical decision-making. By clearly defining roles, responsibilities, and authorities, these policies ensure effective governance and oversight. Wide communication of these policies across the organisation promotes a culture of compliance and integrity. This framework supports informed decision-making, protects stakeholders interests, and upholds the companys reputation.
Employees are benefited by a well-defined whistleblower policy that ensures and encourages reporting of any misconduct, unethical behaviour or any behaviour with the possibility of conflict of interest. Highest standards of integrity and transparency are adhered to and further encouraged by a self-monitoring mechanism.
Regular reviews by management and the Audit Committee, along with internal audits, help maintain a robust control environment. During FY 2025-26, key controls were adequately tested, and appropriate remedial measures were initiated, where deviation from standard practices was identified. The internal audit team regularly follows up on the implementation of corrective actions and improvements in business processes. The Company is also committed to ensuring that the operations are carried out within the purview of applicable laws and statutory requirements.
Internal Audit
The Company has an in-house internal audit team consisting of qualified professionals. This team prepares an annual audit plan based on risk assessment and regularly reviews financial, operational and compliance controls. The Company also engages reputed third-party firms to support and complement the in-house teams work. Audit findings are shared with the management, and corrective actions are taken as needed. The Audit Committee of the Board closely monitors the internal audit activities. It meets at least four times a year to review audit plans, key findings and the status of follow-up actions. The Internal Audit function plays an important role in giving the management and the Audit Committee an independent view of the internal control systems and effectiveness of the risk management processes and the status of compliance with operating systems, internal policies and regulatory requirements across the company and its subsidiaries.
During the year, internal controls were reviewed and tested, and no significant weaknesses were found in their design or operation.
INFORMATION TECHNOLOGY (IT)
Greaves views Information Technology as a vital growth enabler fully aligned with all business functions. Core processes run through an integrated ERP platform supported by a strong network of web-based applications. The IT framework prioritises security, stability and scalability to deliver efficient services to internal users, customers and vendors.
Governance and Service Reliability
The Company builds robust controls and governance into every system, ensuring uninterrupted IT services, including mobile platforms. System workflows follow the Company authorisation matrix, which improves productivity and speeds up turnaround times.
Key Digital Security and Governance Initiatives
• Enhanced operational efficiency through process digitisation, workflow automation, and manual error reduction
• Established a standardised governance model for IT and business application development acquisition, ensuring audit compliance
• Reviewed and improved IT policies, introducing frameworks to identify inefficiencies, eliminate redundancies and resolve operational bottlenecks
• Strengthened information security with network micro-segmentation and infrastructure restructuring to protect data movement
Greaves implemented several important digital and security initiatives during FY 2025-26:
Application Modernisation |
• Implementation of an Application Performance Monitoring (APM) solution to enable proactive risk management and minimise downtime of critical systems |
• Deployment of Single Sign-On (SSO) integrated with Multi-Factor Authentication (MFA) for improved access security and centralised password policy enforcement |
|
Automation and Integration |
• Enablement of secure, role-based access to product catalogues through QR code-based visualisation for field teams as part of the digital transformation initiative |
• Automation and integration of indirect tax (GST) processes with ERP to enhance compliance and efficiency |
|
• Enhancement of supply chain visibility through end-to-end monitoring of vendor performance aligned with product quality objectives |
|
Impact Metrics |
• Simplification of financial operations via automated accounts receivable clearing within the ERP system |
• Enablement of a pull-based supply, manufacturing, and distribution model under Project Utkarsh, supporting lean and responsive operations |
|
• Strengthening of inventory management through improved FIFO-based inventory ageing mechanisms within the ERP system |
|
Cloud Adoption |
• Integration of Machine Learning (ML) and Optical Character Recognition (OCR) to digitalise employee travel management and local conveyance reimbursement processes, supporting go-green initiatives with workflow-based approvals |
Ongoing Digital Transformation Initiatives |
• Implementation of an enterprise-wide unified digital platform to manage customer interactions, streamline pre-sale & post-sale processes, and generate actionable insights |
Future Roadmap |
• IoT devices integrated with the end-product, using an AI/ML-based predictive analysis solution to prevent breakdown & schedule for preventive maintenance |
• Expansion of AI and ML-driven capabilities across all business applications to enable intelligent decision-making |
|
• The Company is currently evaluating a suitable partner solution for implementing DPDPA compliance at the Group Level |
CAUTIONARY STATEMENT
This Management Discussion and Analysis (MD&A) contain forward-looking statements regarding future financial performance, market conditions, business strategies, growth prospects, and industry trends that reflect managements current expectations, estimates, and projections based on available information and assumptions. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to differ materially from those expressed or implied, including but not limited to economic slowdowns, regulatory changes, competitive pressures, technological disruptions, geopolitical events, and fluctuations in interest rates, consumer spending patterns, or capital market conditions.
Factors such as changes in government policies, market volatility, cybersecurity threats, and shifts in investor sentiment could also impact outcomes. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. The Company undertakes no obligation to publicly update or revise any forward-looking statements, as a result of new information, future events, or otherwise, except as required by applicable securities laws. Investors should carefully consider these risks alongside other information in this annual report when evaluating the Companys prospects.
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