Bengaluru-headquartered electric bus mobility startup Fresh Bus reported a significant top-line expansion for the fiscal year ended March 31, 2026 (FY26), with operating revenue jumping 2.4X (over 141%) to ₹63.5 crore, up from ₹26.3 crore in FY25.
The growth was accompanied by higher capital and operating expenditures as the company scaled its fleet and operational corridors. Total expenses surged 81.4% year-on-year to ₹107.2 crore (from ₹59.1 crore in FY25), widening the company’s net loss by 33% to ₹43.6 crore compared to ₹32.8 crore incurred in the preceding fiscal year.
Key Takeaways
- Top-Line Acceleration: Operating revenue climbed to ₹63.5 crore in FY26, more than doubling from ₹26.3 crore in FY25.
- Bottom-Line Strain: Net loss expanded 33% YoY to ₹43.6 crore from ₹32.8 crore in FY25.
- Expense Surge: Total operating expenditure rose 81.4% to ₹107.2 crore, driven by fleet onboarding, charging infrastructure buildouts, and customer acquisition.
- Fleet and Route Scaling: Founder & CEO Sudhakar Reddy Chirra attributed the sharp rise in expenditure to aggressive electric bus additions, charging yard setups, and high-frequency intercity route rollouts.
- Ixigo Stake Divestment: In August 2026, OTA major ixigo agreed to offload a 17.39% stake in Fresh Bus to Twelve Stone LLP for ₹36.6 crore, while booking an ₹11.22 crore share of loss from Fresh Bus during the fiscal year.
- Forward Outlook: Fresh Bus is targeting a revenue run rate of approximately ₹180 crore in FY27 as it inducts 150 additional smart electric coaches onto high-density intercity routes.
1. FY25 vs. FY26 Financial Snapshot
+-----------------------------------------------------------------------------------+
| FRESH BUS: CONSOLIDATED FINANCIAL METRICS (FY25 vs. FY26) |
+-----------------------------------------------------------------------------------+
| Metric (₹ Crore) | FY25 Baseline | FY26 Reported | YoY Growth / Change |
+--------------------------------+-------------------+-------------------+----------------------+
| **Operating Revenue** | ₹26.30 Cr | **₹63.50 Cr** | **+141.4% (2.4X)** |
| **Total Expenses** | ₹59.10 Cr | **₹107.20 Cr** | **+81.4%** |
| **Net Loss** | ₹32.80 Cr | **₹43.60 Cr** | **+32.9%** |
| **FY27 Top-Line Target** | — | **₹180.00 Cr** | Growth Pipeline |
+--------------------------------+-------------------+-------------------+----------------------+
FINANCIAL PERFORMANCE OVERVIEW
│
┌───────────────────────────────┴───────────────────────────────┐
▼ ▼
OPERATING REVENUE: +141.4% NET LOSS: +32.9%
• FY25: ₹26.3 Cr ──► FY26: ₹63.5 Cr • FY25: ₹32.8 Cr ──► FY26: ₹43.6 Cr
• Driven by EV route additions & passenger loads • Widened by fleet leasing, depot capex & energy
2. Cost Anatomy: Why Losses Outpaced Unit Capacity
Electric intercity coach operations have a distinct cost structure compared to traditional diesel fleet operators:
COST DRIVERS IN FLEET EXPANSION
│
┌───────────────────────────────────┼───────────────────────────────────┐
▼ ▼ ▼
DEPOT & FAST-CHARGING ASSETS BUS FLEET LEASING & DEPLOYMENT DRIVER TRAINING & STAFFING
Setting up proprietary high-speed Long-term lease and purchase Specialized high-voltage training,
charging hubs at transit corridors. commitments for 12m luxury coaches. in-cabin attendants, and safety tech.
- High Upfront Infrastructure Outlays: Intercity EV routes require dedicated fast-charging stations and dedicated parking depots at highway waypoints, tying up initial capital before passenger load factors reach steady state.
- Expansion Drag: While revenue scaled 2.4X, unit operational costs (driver personnel, cabin crew, charging electricity tariffs, and marketing incentives) pushed total expenditures up by 81.4% to ₹107.2 crore.
- Route Maturation Curve: New routes typically operate at suboptimal seat occupancy (load factor) during their initial quarters before establishing passenger predictability against legacy diesel state transport and private aggregators.
3. Cap Table Realignments: Ixigo’s Partial Exit
The company’s expansion has coincided with ownership realignments among key early corporate investors:
- Twelve Stone LLP Transaction: Online travel agency (OTA) platform ixigo entered into a definitive agreement in August 2026 to sell a 17.39% equity stake in Fresh Bus to Twelve Stone LLP for ₹36.6 crore.
- P&L Impact on Backers: As an associate company, Fresh Bus’ widened deficit resulted in ixigo recognizing an ₹11.22 crore share of loss on its books for the fiscal year.
- Institutional Runway: Fresh Bus previously secured institutional funding led by Maniv Mobility, Riverwalk Holdings, and Saama Capital, enabling the firm to execute its planned addition of 150 electric buses across southern and western transport hubs.
Frequently Asked Questions (FAQs)
What was Fresh Bus’ revenue in FY26?
Fresh Bus reported operating revenue of ₹63.5 crore in FY26, representing a 2.4X (141.4%) increase from ₹26.3 crore in FY25.
Why did Fresh Bus’ net loss increase?
The startup’s net loss widened by 33% to ₹43.6 crore in FY26 (up from ₹32.8 crore in FY25) due to an 81.4% jump in operational expenses, which climbed to ₹107.2 crore as the company invested heavily in electric bus fleet additions, charging yards, and route scaling.
Who founded Fresh Bus?
Fresh Bus was founded by Sudhakar Reddy Chirra, who previously founded and built the bus ticketing platform AbhiBus before launching Fresh Bus to build a branded, full-stack electric intercity bus operator.
Did ixigo sell its stake in Fresh Bus?
Yes. In August 2026, ixigo agreed to sell a 17.39% stake in Fresh Bus to Twelve Stone LLP for ₹36.6 crore, while recording an ₹11.22 crore share of loss from Fresh Bus for FY26.
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