Yulu Bikes reported ₹281 crore in operating revenue and a net loss of ₹96.6 crore for FY26, as its electric two-wheeler rental business continued expanding. Revenue increased 18.6% from ₹237 crore in FY25, while losses narrowed approximately 23% from ₹126 crore.
The Bengaluru-based startup generated more than 93% of its operating revenue from renting electric vehicles. It is increasingly focused on supplying electric two-wheelers to gig-economy workers and delivery partners, rather than relying primarily on its original urban bike-sharing model. The financial improvement comes as Yulu prepares to expand its fleet from approximately 50,000 vehicles to 200,000 by 2028.
Key Takeaways
- Yulu’s FY26 operating revenue increased 18.6% to ₹281 crore.
- Net loss narrowed 23% to ₹96.6 crore from ₹126 crore in FY25.
- Electric vehicle rentals generated ₹262 crore, accounting for more than 93% of operating revenue.
- Total expenses increased 7.4% to ₹377 crore.
- Employee benefit expenses reached ₹94 crore, while battery-as-a-service costs stood at ₹87 crore.
- EBITDA margin improved to -5.89% from -15.41%.
- Yulu raised $93 million in August 2026 to support expansion.
- The company plans to enter approximately 20 cities and expand its fleet to 200,000 vehicles by 2028.
Yulu FY26 Financial Results: Revenue Grows Faster Than Expenses
Yulu’s FY26 financial results show improving operating performance, with revenue increasing faster than overall expenses.
The company reported consolidated operating revenue of ₹281 crore for the financial year ended March 2026, compared with ₹237 crore in FY25.
Its net loss declined to ₹96.6 crore from approximately ₹126 crore.
| Financial indicator | FY26 | FY25 | Change |
|---|---|---|---|
| Operating revenue | ₹281 crore | ₹237 crore | +18.6% |
| Total expenses | ₹377 crore | ₹351 crore | +7.4% |
| Net loss | ₹96.6 crore | ₹126 crore | Loss narrowed 23% |
| EBITDA margin | -5.89% | -15.41% | Improved 9.52 percentage points |
| Cash and bank balances | ₹11.51 crore | ₹9.65 crore | Increased |
Source: Consolidated financial statements reported by Entrackr. Figures are rounded.
The difference between revenue and expense growth is important.
Operating revenue increased by approximately ₹44 crore, while total expenses rose by around ₹26 crore. This helped reduce the company’s annual loss.
However, Yulu remains loss-making. Its improving financial performance indicates progress towards profitability, but it has not yet demonstrated sustained net profitability.
Electric Vehicle Rentals Generate More Than 93% of Revenue
Yulu’s financial results reveal how significantly its business model has shifted towards electric vehicle rentals.
The company generated ₹262 crore from renting electric vehicles in FY26, compared with ₹201 crore in FY25. This represents growth of 30.3%.
The rental business contributed more than 93% of operating revenue.
| Revenue source | FY26 | FY25 | YoY change |
|---|---|---|---|
| Electric vehicle rentals | ₹262 crore | ₹201 crore | +30.3% |
| Sale of goods | ₹9.2 crore | ₹22.6 crore | -59.3% |
| Manpower services | ₹5.7 crore | ₹13.2 crore | -57% |
| Delivery services | ₹2.6 crore | Approximately ₹0.1 crore | More than 22X |
| Franchisee income | ₹0.8 crore | ₹0.36 crore | +122.2% |
The numbers show that vehicle rentals have become the company’s main source of income.
Yulu initially built its business around app-based electric bicycle and scooter sharing for urban commuters. Over time, it expanded into renting electric two-wheelers to delivery workers and other commercial users.
This shift gives the company access to customers who use vehicles regularly for work rather than occasionally for personal transportation.
Delivery partners working with food delivery, quick-commerce and e-commerce platforms need affordable vehicles to complete daily orders. Renting an electric two-wheeler can reduce the upfront cost of vehicle ownership and provide an alternative to petrol-powered vehicles.
The increase in delivery-services revenue also suggests that Yulu is developing additional services around its mobility network, although this category remains small compared with vehicle rentals.
Yulu’s Expenses Increase 7.4% to ₹377 Crore
Despite higher revenue, Yulu continues to face substantial operating costs.
Total expenses increased 7.4% to ₹377 crore in FY26 from ₹351 crore in FY25.
Employee benefits represented the largest expense category, followed by battery-as-a-service costs and other operating expenses.
| Expense category | FY26 | FY25 | YoY change |
|---|---|---|---|
| Employee benefits | ₹94 crore | ₹88 crore | +6.8% |
| Battery-as-a-service costs | ₹87 crore | ₹84 crore | +3.6% |
| Depreciation | ₹65 crore | Approximately ₹66 crore | -1.5% |
| Finance costs | ₹15.5 crore | Approximately ₹11 crore | +40.9% |
| Technology and infrastructure | ₹15 crore | ₹13.4 crore | +11.6% |
| Cost of materials consumed | ₹8 crore | ₹20 crore | -60% |
| Other expenses | ₹92.5 crore | ₹68.56 crore | +34.9% |
Employee expenses increased to ₹94 crore as the company continued operating and expanding its workforce.
Battery-as-a-service costs reached ₹87 crore, highlighting the importance of battery infrastructure in Yulu’s business model.
Electric two-wheeler rental companies need to manage battery charging, swapping, maintenance and availability. These activities create recurring expenses that can influence profitability as the fleet grows.
Finance costs increased 40.9% to ₹15.5 crore, which is another area investors will need to monitor.
The company’s expansion plans could increase funding requirements, making financing costs and capital efficiency increasingly important.
EBITDA Margin Improves as Yulu Moves Towards Profitability
One of the more encouraging indicators in Yulu’s FY26 results is the improvement in its EBITDA margin.
The margin improved to -5.89% from -15.41% in FY25.
EBITDA measures earnings before interest, taxes, depreciation and amortisation. It is commonly used to assess operating performance before financing and certain accounting expenses.
A negative EBITDA margin indicates that the business is still generating an operating loss at this level.
However, the improvement suggests that Yulu is generating more revenue relative to its operating costs.
The company also reduced the amount spent to generate every rupee of operating revenue.
| Efficiency indicator | FY26 | FY25 |
|---|---|---|
| Expenses per ₹1 of operating revenue | ₹1.34 | ₹1.48 |
| EBITDA margin | -5.89% | -15.41% |
Yulu spent approximately ₹1.34 for every ₹1 of operating revenue in FY26, compared with ₹1.48 in FY25.
This is an improvement in operating efficiency, although the company still needs to close the remaining gap between revenue and costs.
Yulu Raises $93 Million to Expand Its EV Fleet
Yulu secured $93 million in funding in August 2026 through a combination of equity and debt.
The funding round included approximately $63 million in equity and $30 million in debt.
The capital is intended to support fleet expansion, entry into additional cities and the company’s longer-term profitability plans.
According to Reuters, the company wants to increase its active electric two-wheeler fleet from approximately 50,000 vehicles to 200,000 over the next two years.
It also plans to expand its presence from 12 cities to approximately 20 cities over the following year.
The expansion would increase the scale of Yulu’s operations and allow it to serve more delivery workers and commercial mobility customers.
However, adding vehicles also requires investment in batteries, charging and swapping infrastructure, servicing facilities and operational support.
The company will need to ensure that additional fleet capacity generates sufficient rental revenue to justify the investment.
Yulu Shifts Its Focus Towards Gig Workers and Delivery Companies
The company’s financial performance reflects a broader change in its target customer base.
Rather than relying mainly on urban commuters who rent electric vehicles for short journeys, Yulu has increasingly focused on gig workers who need vehicles for regular commercial use.
This includes delivery partners working in:
- Food delivery.
- Grocery and quick-commerce delivery.
- E-commerce logistics.
- Last-mile parcel transportation.
- Other urban mobility services.
For gig workers, electric two-wheelers can provide an alternative to petrol-powered vehicles, potentially reducing fuel-related expenses.
For Yulu, commercial rentals can create recurring income through longer-term or subscription-based arrangements.
The business also benefits from the growing demand for last-mile logistics in Indian cities.
However, this strategy creates a degree of concentration in the delivery and gig-economy segment. Changes in platform partnerships, worker demand, rental pricing and fleet utilisation could influence revenue.
The company’s ability to diversify customers and applications will therefore matter as it expands.
The Bigger Picture
Yulu’s FY26 results reflect the changing economics of India’s electric mobility industry. The company has moved towards a rental-led business model, with gig workers and delivery partners becoming its most important customer group. Its rental revenue grew 30.3%, while total expenses increased at a slower pace, helping narrow its annual loss. The improvement in EBITDA margin also indicates that the business is becoming more efficient.
However, Yulu still reported a loss of ₹96.6 crore, and its expansion plans will require substantial investment in vehicles and battery infrastructure. The $93 million funding round provides additional capital, but scaling to 200,000 vehicles will introduce new operational and financial challenges. The central question is whether Yulu can convert fleet growth into sustainable profitability rather than simply increasing the size of its operations.
Looking Ahead
Yulu’s next phase will focus on expanding its presence to approximately 20 cities and increasing its fleet to 200,000 electric vehicles by 2028. The company will need to build the supporting infrastructure required to keep a larger fleet operational, including battery services, charging facilities and maintenance networks. Its ability to maintain high vehicle utilisation and secure recurring rental demand will be essential.
Investors will also watch whether the company can continue narrowing its losses while managing finance costs and other operating expenses. Stronger delivery demand and additional commercial partnerships could support revenue growth, but profitability will depend on disciplined expansion and efficient fleet management. Yulu’s FY26 results show progress, although the transition from a loss-making startup to a consistently profitable mobility business remains unfinished.
Frequently Asked Questions
1. What was Yulu’s revenue in FY26?
Yulu reported operating revenue of ₹281 crore in FY26, an increase of 18.6% from ₹237 crore in FY25.
2. What was Yulu’s net loss in FY26?
The company reported a net loss of approximately ₹96.6 crore in FY26, narrowing around 23% from ₹126 crore in FY25.
3. What is Yulu’s main source of revenue?
Electric vehicle rentals are Yulu’s primary revenue source. The company generated ₹262 crore from vehicle rentals in FY26, accounting for more than 93% of operating revenue.
4. Why did Yulu’s losses narrow?
Revenue increased faster than total expenses. Operating revenue grew 18.6%, while total expenses increased 7.4%, helping reduce the company’s annual loss.
5. How much funding has Yulu raised recently?
Yulu raised $93 million in August 2026 through a combination of equity and debt to support fleet expansion and business growth.
6. What is Yulu’s fleet expansion target?
Yulu plans to increase its active electric two-wheeler fleet from approximately 50,000 vehicles to 200,000 by 2028.
7. How many cities does Yulu plan to operate in?
The company plans to expand from approximately 12 cities to around 20 cities over the next year.
8. Is Yulu profitable?
No. Yulu remained loss-making in FY26, reporting a net loss of ₹96.6 crore. However, its losses narrowed compared with the previous financial year.
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