# 1. Financial Performance ## A. Key Figures * **Revenue:** **₹134.78 Cr** H1 FY26 (+80% YoY) * EBITDA: ₹15.36 Cr H1 FY26 (+71% YoY) * **PAT:** **₹11.8 Cr** H1 FY26 (+70% YoY) ## B. Revenue Growth * **Strong Top-Line Acceleration:** Revenue surged on robust demand and potential expansion into new product categories, with H1 FY26 sales reaching **~₹130 Cr**—a significant jump from prior-year levels. * **Volume Validation:** E-Mobility unit sales of **531 vehicles in 2025** support commercial traction, with pricing held at **₹45,000 per unit**. ## C. EBITDA & PAT * **Healthy Margin Resilience:** 2-wheeler segment maintains a **13% EBITDA margin**, underpinned by efficient operations and growing urban adoption. * **Margin Improvement Pathway:** 3-wheeler margins currently depressed due to outsourced manufacturing, but poised for recovery upon commencement of **in-house production**. ## D. ROE & ROCE * **Capital Efficiency:** Solid returns achieved despite early-stage scale, with **zero subsidies**, **minimal marketing spend**, and **no post-IPO equity dilution**, highlighting capital discipline. --- # 2. Volume & Sales Trends ## A. Key Figures * **2-Wheeler Sales:** **11.4 lakh** high-speed EVs FY25 · **8.2 lakh** slow-speed EVs FY25 * **2-Wheeler Sales:** **37,000 units** FY25 · **30,000 units** H1 FY27 * **3-Wheeler Sales:** **400 units** H1 FY26 (**1,000 unit** full-year target) * **Cumulative Sales:** **Over 70,000 vehicles** sold to date * **Market Share:** **4–5%** current · **2–3%** prior year · targeting **>5–6%** next year ## B. 2-Wheeler Sales * **Strong Volume Growth:** High-speed and slow-speed 2-wheeler segments both show robust momentum, with slow-speed nearly half the size of high-speed and growing in parallel. * **Accelerating Demand:** H1 FY27 sales of 30,000 units already match prior full-year volumes, indicating a sharp uptick in adoption and scaling. ## C. 3-Wheeler Sales * **Livelihood-Driven Adoption:** 3-wheeler demand primarily fueled by unemployed individuals upgrading from 2-wheelers to electric rickshaws for income generation. * **Strategic Network Buildout:** Focus remains on establishing dealer and sales networks ahead of volume ramp, with Zelio E-Mobility data fully aligned with official 3-wheeler industry reporting. ## D. Market Share * **Outperformance vs. Industry:** Zelio’s **84% 3-year CAGR** far exceeds the sector’s ~30% growth, driven by rural dominance, Bharat-centric design, and compelling dealer economics. * **Ambitious Share Target:** Despite a fragmented market, management targets **20–25% share** long-term, supported by new model launches, **geographic expansion into Odisha and Tier 1 cities**, and R&D-led product refinement. * **Data-Backed Market Entry:** Expansion strategy relies on ground-up market surveys by fresh sales teams to assess competition and potential before structured rollout across cities and states. --- # 3. Manufacturing & Capacity ## A. Key Figures * **2-Wheeler Capacity:** **72,000 units/year** current · **120,000 units/year** post-expansion (Feb) * **3-Wheeler Capacity:** **2,000 units/year** current · **24,000 units/year** post-expansion (Apr) * **New Facility Output:** **50,000 units/year** (Odisha 2W) · **24,000 units/year** (Patan 3W) * **Capex:** **<₹3 Cr** for Odisha plant (assembly-focused, low-cost setup) ## B. Plant Utilization * **Full Utilization:** Current Hisar facility operating at **full capacity** for 2-wheelers, underpinning urgency for expansion. * **Vertical Integration Shift:** Transitioning from third-party manufacturing to **in-house production of major components**, enhancing control and margin potential. * **Near-Term Priority:** Focus remains on **completing new facilities swiftly**, prioritizing 2-wheeler scale-up before aggressive 3-wheeler volume push. ## C. New Facilities * **Strategic Geographic Expansion:** Odisha plant (Bhubaneswar) selected after **6–7 month logistics and market analysis**, set to boost **East & South India** reach and cut delivery lead times. * **Low-Capex, High-Impact Model:** Odisha facility is a **minimal-investment assembly hub** with potential subsidies, enabling fast deployment and **immediate revenue generation**. * **Dual-Phase Ramp-Up:** **Odisha plant operational by February** (2W only); **Patan 3W plant and integrated Odisha fabrication/paint shop by April 2026**, enabling full in-house 3-wheeler production. ## D. Production Capacity * **Scalable Infrastructure:** Hisar plant designed with **modular assembly line**, allowing seamless expansion from 72,000 to 120,000 units annually. * **Mass-Market Ambition:** Target to reach **200,000 units combined annual capacity** across 2W and 3W segments, signaling aggressive scale intent. * **Cautious Volume Outlook:** Despite high capacity additions, management remains **conservative on near-term volume targets** due to ramp-up timelines and quality assurance. --- # 4. Product & Segment Mix ## A. Key Figures * **2-Wheeler ASP:** **₹40,000–45,000** * **3-Wheeler ASP:** **₹110,000** * **Battery Replacement Cost (2-Wheeler):** **₹10,000** (lead-acid, ~2-year lifespan) ## B. High vs Low Speed * **Strategic Focus on Bharat:** Company is squarely positioned in the **slow speed EV segment**, targeting mass-market, non-premium customers including students, women, and service workers in semi-urban and rural India. * **Structural Growth Advantage:** Slow speed EVs dominate in **Bharat regions** due to no license/registration requirements, low cost, and alignment with daily mobility needs—representing a large, underreported growth engine. * **Market Parallelism:** Both high-speed and slow-speed EV segments are expanding simultaneously, with management asserting that **one of every two future EVs** could be a slow-speed vehicle. * **3-Wheeler Differentiation:** Focused on **L3 category e-rickshaws** with speeds ≤35 km/h, carving a niche distinct from legacy players like Bajaj and Mahindra. ## C. 2-Wheeler & 3-Wheeler ASP * **Affordable Pricing Strategy:** 2-wheeler ASP deliberately set between **₹40,000–45,000** to appeal to middle-class households across urban and rural markets, enhancing adoption. * **Battery & Service Model:** Lead-acid battery replacement at ~**₹10,000** after 2 years; **six mandatory services every two months**, with first two free, reinforcing customer retention and service network utilization. * **3-Wheeler Tech Shift:** Full transition to **lithium-ion batteries** with 3-year warranty, driven by cost declines—improving product reliability and competitiveness despite shorter lifespan vs. legacy lead-acid. --- # 5. Supply Chain & Localization ## A. Key Figures * **Localization Rate:** **30%** current level · Target of **80%** in upcoming years * **Import Dependency:** **70%** of raw materials currently imported * **Dealer Network:** **300+** dealers served nationwide * **Field Service Engineers:** **7–8** deployed to support dealer service quality ## B. Indianization Progress * **Strategic Localization Push:** Ambitious move from low base to **80% Indianization** targets key components like plastics, painting, and electrical systems—excluding battery cells—to build supply resilience. * **Subsidiary Drives Integration:** Zelio Auto Components enhances **group profitability** and **spare parts availability** in an asset-light model, laying groundwork for vertical integration and deeper localization. * **Vertical Integration Underway:** Shift from outsourced 3-wheeler fabrication toward in-house production at new Patan plant to improve **cost control and margins**. ## C. Import Dependency * **Supply Chain De-Risking:** Active shift from **high import reliance** to indigenous sourcing, supported by planned Odisha plant that will cut logistics costs and boost regional sales scalability. ## D. Spare Parts Network * **Service Infrastructure Scalability:** Dealer-based service model with **company-trained staff** and **dedicated field/corporate support teams** ensures consistent after-sales quality across urban and rural markets. * **Open Spare Parts Ecosystem:** Genuine parts available to **third-party service providers**, expanding service reach beyond owned network and improving customer retention. * **Efficient Battery Logistics:** Battery replacements executed **within two days** via optimized return logistics, enhancing uptime and customer satisfaction. * **Inventory Discipline:** Maintained **sufficient inventory buffers** to ensure stable supply and on-time delivery performance. --- # 6. Risks & Competition ## A. Market Fragmentation * **Differentiated Brand Positioning:** Zelio positions as the only organized player in the low-speed 2-wheeler segment, leveraging ISO certification and a trust-based brand strategy focused on **quality, durability, and A-class service**. * **Affordable Mobility Vision:** Aiming to become a household name in India by prioritizing customer experience over aggressive marketing spend. ## B. New Entrants * **Confident Competitive Stance:** Management expresses strong conviction in defending market position against potential entrants like Hero or Bajaj, citing **superior product quality, service network, and spare parts availability**. ## C. Demand Uncertainty * **High-Growth 3-Wheeler Opportunity:** Strategic focus on 3-wheelers despite current capacity constraints in 2-wheelers, with past delays attributed to capex and working capital constraints. * **Bullish Long-Term EV Outlook:** Industry projections cited indicate **25 to 5 crore** annual EV 2-wheeler sales by 2034–2035, driven by electrification tailwinds, though specific sizing for slow-speed segment remains unquantified. * **Cost Competitiveness Improving:** Despite limited presence in Odisha due to pricing, expected cost reductions from new plant to enhance demand traction. --- # 7. Guidance & Outlook ## A. Key Figures * **Revenue Forecast:** **₹260–280 Cr** FY'26 · **₹400–450 Cr** FY'27 · **₹800–1,000 Cr** FY'28–'29 * Sales Volume Target: >60,000 units FY'26 · 100,000 units FY'27 · 17.5 lakh units slow-speed EV market by FY'28 * **3-Wheeler Volume Target:** **1,000 units** FY'26 · **3,000 units** FY'27 * **3-Wheeler EBITDA Margin:** **7–8% or higher** (post-ramp-up) ## B. Revenue Forecast * **Dominant Facility Contribution:** Odisha plant set to drive majority of revenues, fueled by strong regional demand in East and South India. * **Aggressive Scaling Trajectory:** Revenue outlook reflects ambition to double scale annually, supported by new models, deeper penetration, and expanding dealer network. * **Urban Demand Momentum:** Growing adoption of slow-speed EVs in Tier 1 cities signals expanded market reach and future growth runway. ## C. Sales Volume Target * **Market Share Ambition:** Targeting 5–6% share in slow-speed EV segment by FY'28, aligned with projected 17 lakh-unit total market size. * **Production Ramp-Up:** Annual capacity targeting 1 lakh units by FY'27, underpinned by localization, R&D, and rising Bharat demand. * **H1 Delivery Confidence:** First-half performance on track to deliver half of full-year FY'26 volume target, indicating execution discipline. * **Odisha Demand Surge:** Regional sales expected to grow threefold, highlighting untapped potential and early-mover advantage. ## D. Margin Expectation * **Margin Stability Commitment:** Company prioritizes maintaining current EBITDA and PAT margins despite competitive intensity, leveraging operational efficiencies. * **Odisha Plant Leverage:** Improved plant efficiency expected to support margin resilience, enabling reinvestment in branding and innovation. * **Segment-Specific Guidance:** 2-wheeler margins to remain stable with slight variation; 3-wheeler margins targeted above 7%, signaling path to profitability. * **Sustainable Growth Model:** Strategic focus on financial discipline and market share capture without reliance on subsidies or inflated valuations.