Zelio E-Mobility LtdQ3 FY25Automobiles

Zelio E-Mobility Ltd

Q3 FY25 Earnings Call Analysis

Management growth scorecard

Revenue

Category 1

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

3 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 1

→FY26 revenue expected between INR 260 to 280 crores, with H1 at INR 134.78 crores (80% YoY growth).
→FY26 sales volume target for 2-wheelers: over 60,000 units.
→FY27 sales volume target for 2-wheelers: approximately 1 lakh units; for 3-wheelers: around 3,000 units.
→FY27 revenue projection: approximately INR 400 to 450 crores.
→Long-term goal to double revenue annually, targeting 20%-25% market share in slow-speed EV 2-wheeler segment.
→Expansion with new plants in Odisha and Patan to increase capacity and improve logistics, reducing costs and enhancing margins.
→Focus on expanding dealer network, R&D, and product line to sustain growth.
→Expect rural and Tier 1 city demand to grow significantly, supporting volume increases.
→Margins expected to be sustainable at 7%-8% EBITDA for 3-wheelers and stable for 2-wheelers despite volume growth.

Margin guidance

Category 3

→FY26 revenue expected between INR 260-280 crores, with EBITDA and PAT margins hoped to remain constant.
→FY27 revenue guidance is approximately INR 400-450 crores, aiming to maintain stable margins.
→Target sales volume for 2-wheelers in FY27 is 100,000 units; 3-wheelers target is around 3,000 units with potential upside as operations scale.
→EBITDA margins for 2-wheelers currently at 13%, expected to remain stable; 3-wheeler margins to improve to 7-8% post own manufacturing plant operation starting April 2026.
→Expansion plans include setting up the Odisha plant (operational from February) and Patan plant (April 2026) to increase capacity and reduce logistics cost, enhancing margin sustainability.
→Long-term growth expects doubling business annually, with an aim to capture a 5-6% market share in the slow-speed EV segment by FY28.
→Focus on R&D, improved localization (targeting 80% Indianization), and scaling operations to drive disciplined, profitable growth.

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Fundraise plans

→The company raised funds through its IPO, which has enabled capex investments, especially for the 3-wheeler plant.
→For the 2-wheeler assembling plant in Odisha, the capex requirement is low, mainly for assembling rather than heavy manufacturing.
→Regarding future fundraising, the company is currently working on expansion plans but has not disclosed specific details on new debt or equity fundraising.
→When asked about how long expansion plans can run without fundraising, management replied they are working on it and will provide updates soon.
→Overall, no explicit mention of imminent or planned new fundraising through debt or equity was provided during the call.

Order book

Yes

The transcript does not explicitly mention the current or expected order book or pending orders for Zelio E-Mobility Limited. However, related insights include: - H1 FY '26 sales: Approximately 30,000 units of 2-wheelers and 400 units of 3-wheelers delivered. - FY '26 target: Over 60,000 units of 2-wheelers and 1,000 units of 3-wheelers planned. - FY '27 target: Around 100,000 units of 2-wheelers and 3,000 units of 3-wheelers targeted. - Revenue guidance: INR 260-280 crores for FY '26, with INR 400-450 crores expected in FY '27. - Expansion of dealer network and setting up Odisha plant expected to boost deliveries and sales volumes. - Capacity expansion ongoing to meet growing demand. No specific data on order book or pending orders was disclosed during the investor call.

Capex plans

Yes

→Current capex includes less than INR 3 crores investment in the Odisha plant focused on 2-wheeler assembly.
→A new 3-wheeler manufacturing plant in Patan (Hisar) is under construction and expected to be operational by April 2026, with capacity increasing from 2,000 units to 24,000 units annually.
→Future capex will be planned for geographic expansion and setting up additional manufacturing facilities as needed.
→The company raised funds through IPO to support the Patan plant and future capex requirements.
→Capex for the Odisha 2-wheeler plant is primarily for assembly, requiring lower investment, supported by government subsidies.
→Strategic focus on improving margins via in-house fabrication to reduce costs and increase market reach in 3-wheelers.
→Planning continual capacity expansion aligned with demand growth and R&D initiatives for product development.

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