Zelio E-Mobility Ltd Q1 FY27 Earnings Analysis

- FY27 sales volume target: More than 125,000 units (up from 70,000 in FY26). - Three-wheeler sales in FY26 were 800 units; targeted to exceed 2,000 units in FY27 with new Patan plant operational. - Dealer network planned to expand from 400+ to over 550 dealers in FY27, with 100-150 new dealers added. - Revenue growth has been strong, with FY26 consolidated revenue at INR 313 crores (81.8% growth YoY). - Expectation to achieve more than 20-30% market share in the low-speed EV segment within 2-3 years. - Capacity expansion ongoing (Haryana: 120,000, Odisha: 60,000, new Coimbatore plant adds 60,000 annually). - Revenue CAGR since inception has been approximately 121%. - Company focuses on increasing sales via geographic expansion and adding new models catering to different customer segments.

- Zelio aims to maintain and grow profitability alongside expansion, focusing on stable margins despite increased marketing spend. - The company achieved INR28.39 crores PAT in FY26, with a net margin of 9.1%, and EBITDA margin of 12.2%, which they expect to keep stable. - Profit After Tax (PAT) CAGR has been approximately 124% since FY23, indicating strong profit growth historically. - Expansion from 72,000 to 240,000 units capacity in one year supports revenue and profit growth. - No intention to reduce margins for branding; marketing expenses are managed to avoid impacting EBITDA or PAT CAGR. - FY27 volume guidance is over 125,000 units, with expected revenue and profit growth in line with unit sales. - Stable tax rate of 17% expected for next 5 years, supporting predictable net earnings. - Overall, Zelio anticipates continued robust profit and EPS growth with operational leverage as scale increases.

- Zelio commissioned the Coimbatore plant in July 2026, targeting South India as a fully dedicated revenue corridor. - The Patan plant was commissioned to scale the electric three-wheeler business, a new product category. - Investment focus includes R&D, range enhancement, battery upgrades, and connected vehicle features. - The company plans to expand dealer network to 550+ dealers across 25+ states with focused activation in South India and Northeast. - Funds raised in last year's IPO were majorly allocated for plant and machinery specific to the three-wheeler segment. - Future plans include bigger plants beyond Coimbatore, contingent on achieving sales projections. - The company is moving towards indigenous production, aiming for 70%-80% "Make in India" vehicles by 2027, with fabrication in-house after three-wheeler plant starts.

- No explicit mention of current or future fundraising through debt or equity in the provided transcript. - The company highlights a strong balance sheet with a low debt-to-equity ratio of 0.18x as of FY26. - The company emphasizes disciplined capital allocation and substantial firepower to fund expansion without stretching the balance sheet. - IPO proceeds have been utilized for expansion, including new plants for two-wheelers and three-wheelers. - No mention of plans for raising fresh debt or equity in the near future. - Focus seems to be on organic growth funded by existing resources and operational cash flow.

The transcript does not provide specific details on the current or expected order book or pending orders for Zelio E-Mobility Limited. However, key relevant points indicate: - In FY26, the company sold over 70,000 units with plans to increase sales to more than 125,000 units in FY27. - Expansion with new plants in Odisha (60,000 units capacity) and Coimbatore (60,000 units capacity) to support growth. - Dealer network expanding from 400+ to over 550 dealers in FY27. - The management expects strong market growth (20%-25% YoY) and aims for more than 20%-30% market share in EV two-wheelers within 2 to 3 years. - Three-wheeler segment currently limited (800 units in FY26), but targeted to surpass 2,000 units in FY27 with a separate plant and team. No quantified order book or pending order figures were disclosed in the call.