Greaves Cotton share price: Stock jumps almost 11% despite 81% fall in Q2 profit: What's fuelling rally? Buy or sell?

New Delhi, Oct. 30 -- Greaves Cotton share price jumped nearly 11% on Friday, October 30, after the company reported its September-quarter results.

Greaves Cotton shares rose as investors looked beyond the sharp fall in reported profit and focused on the company's underlying business growth. The profit decline was largely driven by one-off expenses rather than a broad-based slowdown in operations.

Strong demand across its core businesses, higher revenue and improved operating earnings pointed to continued business momentum. The company's plans to expand overseas, invest in technology and develop higher-value products also helped drive future growth.

The stock gained as much as 10.6% to hit the day's high of Rs.207.50. However, the stock remained below its 52-week high of Rs.272, recorded in July 2026. Its 52-week low stood at Rs.120.05 in March 2026.

Greaves Cotton shares have declined 11% in one month and 12% in three months, although they have gained 23% in six months. Over the past year, the stock has fallen 12%.

Greaves Cotton reported an 81% year-on-year decline in net profit to Rs.5 crore for the quarter ended September 30, 2026, compared with Rs.26 crore in the corresponding period last year. The decline came amid exceptional expenses totalling Rs.32.75 crore during the quarter.

Revenue increased 44.2% year-on-year to Rs.1,176 crore from Rs.815.5 crore. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 41% to Rs.74 crore from Rs.52.3 crore. However, the EBITDA margin remained largely unchanged at 6.3%, compared with 6.4% in the year-ago quarter.

The exceptional expenses included Rs.12.66 crore related to the proposed initial public offering (IPO) of Greaves Electric Mobility Ltd, a material subsidiary of Greaves Cotton. The subsidiary decided not to proceed with the offering amid plans for a rights issue and related regulatory restrictions.

The company also recognised an impairment loss of Rs.20.09 crore on goodwill and the brand associated with Bestway Agencies Private Ltd after reassessing their recoverability.

Greaves Cotton said its core businesses recorded 24% year-on-year growth in Q2 FY27 and 20% growth in H1 FY27, reflecting continued momentum across Energy Solutions, Mobility Solutions and Industrial Solutions.

Parag Satpute, MD and Group CEO of Greaves Cotton, said, "Our diversified portfolio enabled us to deliver robust revenue growth while advancing key strategic initiatives across Energy Solutions, Mobility Solutions and Industrial Solutions."

As per the firm, the firm would continue advancing its GREAVES.NEXT strategy by strengthening its core businesses, expanding customer reach and accelerating product development across Energy Solutions, Mobility Solutions and Industrial Solutions.

The company plans to expand its international presence and invest in technology, exports, engineering capabilities and customer-centric innovation to develop higher-value solutions.

Going forward, Greaves Cotton will prioritise margin recovery, operational excellence and disciplined capital allocation. It aims to enhance product differentiation and value addition through greater engineering content, stronger innovation capabilities and expansion into higher-value applications.

The company will also focus on translating growth momentum into stronger earnings, improved return ratios and long-term shareholder value.

According to Jigar S Patel, Senior Manager - Technical Research, Anand Rathi Share and Stock Brokers Limited, Greaves Cotton has witnessed a sharp recovery in the latest session, gaining nearly 8.5% and closing at Rs.202.78.

"From a technical perspective, the stock is currently trading above its 50-day moving average ( Rs.200.99) and 200-day EMA ( Rs.196.38), indicating some improvement in the near-term trend. The daily RSI has recovered to 52.63 after recently approaching oversold territory, suggesting a revival in buying momentum.

However, the MACD remains in negative territory, indicating that the recovery still requires confirmation. Additionally, the Ichimoku cloud may act as an overhead resistance zone. The Rs.196-190 zone remains an important support area, while Rs.210-220 could pose resistance. We recommend a cautious approach and avoiding aggressive fresh buying until sustained strength emerges," he suggested.