# 1. Financial Performance ## A. Key Figures * **Revenue:** **₹313 Cr** Consolidated FY26 (+81.8%) · **121%** 4-Year CAGR * Solvency & Liquidity: **0.18x** Debt-to-Equity · **3.4x** Current Ratio · **₹111.53 Cr** Net Worth ## B. Revenue & CAGR * **Market-Leading Growth:** Sustained triple-digit revenue CAGR significantly outpaces industry averages, driven by a transition from a private startup to a national listed entity. * **Product Sweet Spot:** Robust momentum is anchored by high demand for low-speed vehicles priced between **₹50,000 and ₹75,000**, which benefit from regulatory exemptions (no license/registration required). * **Forward Guidance:** Management is targeting a growth rate of **75-80%** for the upcoming period, following a historical trend of doubling sales volumes annually. ## C. Profitability & Margins * **Resilient Bottom Line:** Maintained consistent profitability with zero annual EBITDA burn since inception; PAT has compounded at a triple-digit rate since FY23. * **Tax Efficiency:** Earnings benefit from a preferential **17% tax rate** (u/s 115BAB), with **five years** of eligibility remaining. * **Marketing Discipline:** Despite aggressive branding (including IPL advertising), management aims to protect an **11% margin** floor while pursuing 2x-3x annual expansion. ## D. Balance Sheet & Capital Allocation * **Strategic Advances:** The **₹42.6 Cr** in loans and advances is primarily deployed to secure supplier economies of scale and fund capital expenditure for new manufacturing facilities. * **Tax Receivables:** Balance sheet includes **₹19 Cr** in GST and Customs refunds, a result of the inverted tax structure inherent in the segment. * **Asset Expansion:** IPO proceeds were strategically funneled into plant and machinery for the **3-wheeler segment** to diversify the portfolio without cannibalizing 2-wheeler growth. --- # 2. Manufacturing & Capacity ## A. Key Figures * **Total Production Capacity:** **240,000 units** across four plants, up from 72,000 units in one year * **Facility Breakdown:** **120,000 units** Haryana · **60,000 units** Odisha · **60,000 units** Coimbatore ## B. Plant Infrastructure & Scaling * **Aggressive Capacity Expansion:** Total annual production scaled more than threefold within a single year, supported by the commissioning of the Coimbatore and Patan facilities. * **Strategic Regional Positioning:** The new Coimbatore plant serves as a hub for South India, designed to optimize dealer pricing and protect margins by significantly lowering logistics overheads. * **Category-Specific Infrastructure:** Dedicated production lines established in Patan to address the emerging electric three-wheeler segment. ## C. Vertical Integration & Indigenization * **In-house Fabrication:** Transitioning to a new three-wheeler facility that enables full internal fabrication, enhancing quality control and operational oversight. * **Supply Chain De-risking:** Strategy to achieve **100% indigenous production** for bulk components by next fiscal year, limiting import exposure to only specialized technical parts. * **Localization Roadmap:** Aggressive pursuit of domestic manufacturing to reach high-level "Make in India" status across the core vehicle portfolio by 2027. --- # 3. Product & Segment Performance ## A. Key Figures * **Average Selling Price (ASP):** **₹45,000 - ₹50,000** Projected range ## B. Two-Wheeler Portfolio * **Strategic Focus:** Operations centered on electric scooter and e-rickshaw assembly in Hisar; management has ruled out electric bikes due to **prohibitive production costs** and lack of scale. * **Product Durability:** Vehicles feature **IP67-rated** waterproof motors and controllers to maintain performance integrity during heavy monsoon conditions. ## C. Three-Wheeler Vertical * **Operational Segregation:** Established a dedicated plant and leadership team to scale the 3-wheeler segment without distracting from the core 2-wheeler business. * **Geographic Expansion:** Plans to move beyond North India into **Eastern and Southern regions**, anticipating simultaneous growth alongside the 2-wheeler market. * **Premiumization Trend:** Anticipated ASP appreciation driven by the transition into higher-end 3-wheeler segments. ## D. Component Subsidiary & R&D * **Supply Chain Integration:** Launched **Zelio Auto Components Limited** to mitigate third-party dependency and ensure consistent spare parts availability for the dealer network. * **Innovation Pipeline:** Upcoming product roadmap includes **two high-speed EV models** with R&D prioritized for battery upgrades and connected vehicle features. --- # 4. Sales & Distribution Mix ## A. Key Figures * **Dealer Network:** **400+** Current count · **550+** Target by FY27 (+100–150 units) ## B. Dealer Network Expansion * **Aggressive Scaling Strategy:** Management is executing a significant network expansion targeting a **37% increase** in touchpoints, with a strategic focus on South India and the Northeast. * **Retail Consolidation:** The company is transitioning to a fully exclusive dealership model by year-end to strengthen brand control and retail standards. ## C. Geographic Reach & Financing * **Tier 1 & 2 Market Penetration:** Distribution growth is supported by a robust financing ecosystem, leveraging tie-ups with **Bajaj, Kotak, and Trusera Finance**. * **Credit Accessibility:** Financing partnerships are specifically calibrated to support product ticket sizes ranging from **INR 50,000 to INR 75,000**, facilitating conversion in price-sensitive regions. --- # 5. Marketing & Strategic Initiatives ## A. Key Figures * **Segment Growth:** **20% to 25%** per annum ## B. Brand Visibility * **High-Profile Marketing Pivot:** Strategy prioritizes brand equity over rapid dealership scaling, anchored by an **IPL 2026 partnership** with Punjab Kings and aggressive Meta ad spend. * **Incremental Investment:** Management committed an additional **INR 1 crore to INR 2 crores** for marketing this year to bridge the consumer awareness gap. * **Capital Markets Milestone:** Enhanced corporate profile following the **BSE SME platform listing** in October 2025. ## C. Market Share & Customer Segment Focus * **Strategic Positioning:** Focus remains on the underserved low-speed segment, which represents nearly half of the total EV 2W market. * **Profitable Growth Mandate:** Management is prioritizing sustainable margins over "vanity volume," targeting specific demographics including students, gig workers, and the elderly. * **Portfolio Expansion:** Long-term roadmap includes transitioning into a leading player across both low-speed and high-speed scooter categories. ## D. Service Infrastructure * **Operational Reliability:** Field presence expanded from **four to over 10 service engineers** to reduce turnaround time. * **Quality Assurance:** Strengthened Pre-Delivery Inspection (PDI) teams to ensure product reliability and support the "Har Ghar Zelio" growth motto. --- # 6. Risks & External Factors ## A. Supply Chain & Regulatory Environment * **Inventory Buffering Strategy:** Management is maintaining **bulk inventories of technical components** sourced from overseas to mitigate risks associated with shipping line volatility and global supply chain disruptions. * **Regulatory Arbitrage:** The business model currently leverages policies allowing low-speed electric vehicles to operate **without registration or licenses**, though no direct government subsidies are received. * **Segment Expansion Constraints:** Entry into the high-performance bike segment is contingent on **subsidies or price reductions** in Lithium-ion/LFP batteries to achieve cost-competitiveness against internal combustion engines. ## B. Exchange & Market Dynamics * **Liquidity Concerns:** Management intends to protest to **SEBI and BSE** regarding the stock’s (Symbol: Zelio) repeated placement in **periodic call auctions**, citing negative impacts on investor interests. * **Demand Resilience:** Sales volumes in rural and Tier 2/3 markets are viewed as resilient to **monsoon fluctuations**; agricultural income shifts may delay purchases by **one month** but do not alter long-term growth trajectories. --- # 7. Guidance & Outlook ## A. Key Figures * **Sales Volume Target:** **>125,000 units** FY27 Projection · **>70,000 units** Prior Year Actuals * **Market Growth Rate:** **20% to 25%** Broader Indian EV Market Forecast ## B. Sales Volume Targets * **Aggressive Scaling Strategy:** Management expects robust double-digit volume growth driven by geographical expansion, enhanced production capacity, and optimized logistics costs. * **Three-Wheeler Diversification:** Target set for **>2,000 units** in FY27, underpinned by the operationalization of the new **Patan plant**. ## C. Market Transition Forecasts * **Low-Speed Segment Dominance:** Low-speed EVs are identified as the industry "backbone," with sales volumes expected to remain **2x higher** than high-speed variants due to middle-class affordability. * **Competitive Landscape:** High-speed segment remains concentrated among major players including **TVS (28-29% share)**, **Bajaj (23-24%)**, and **Ather (18-20%)**. ## D. Reporting Frequency Updates * **Governance Evolution:** Following the **October 2025 listing**, the company will move from mandated half-yearly reporting to a quarterly cycle once internal documentation processes are formalized.