BSE SME-listed electric vehicle manufacturer Zelio E-Mobility reported a sharp improvement in its financial performance for the first half of financial year 2026-27, with consolidated net profit increasing 164.3% year-on-year to ₹31.4 crore. The company had reported a net profit of ₹11.9 crore during the corresponding period of the previous financial year. Its operating revenue also more than doubled, rising 120% to ₹296.7 crore from ₹134.8 crore in H1 FY26.
The results, approved by the company’s board on November 13, 2026, reflect higher business activity and increased sales during the six months ended September 30. Including other income of ₹3.1 crore, Zelio’s total income reached ₹299.8 crore. However, expenses also increased substantially as the company expanded its operations, with total expenditure rising to ₹261.5 crore from ₹121.4 crore a year earlier.
Zelio E-Mobility Net Profit Rises 164.3% in H1 FY27
Zelio E-Mobility’s consolidated profit after tax increased to ₹31.4 crore in the first half of FY27, compared with ₹11.9 crore in H1 FY26.
The company also recorded a sequential improvement over the second half of FY26, when its net profit stood at ₹16.5 crore. The latest figure represents an increase of approximately 90.1% over that period.
Profit before tax reached ₹38.3 crore, compared with ₹14.4 crore in the year-ago period. The increase indicates that the company expanded its earnings alongside its revenue growth.
The financial performance also translated into higher earnings per share. Consolidated basic and diluted earnings per share stood at ₹14.84 for H1 FY27, compared with ₹7.18 in H1 FY26.
| Financial indicator | H1 FY27 | H1 FY26 | Growth |
|---|---|---|---|
| Revenue from operations | ₹296.7 crore | ₹134.8 crore | 120% |
| Total income | ₹299.8 crore | ₹135.8 crore | 120.8% |
| Profit before tax | ₹38.3 crore | ₹14.4 crore | — |
| Net profit | ₹31.4 crore | ₹11.9 crore | 164.3% |
| Total expenses | ₹261.5 crore | ₹121.4 crore | — |
| Earnings per share | ₹14.84 | ₹7.18 | — |
The figures show that profit grew faster than revenue during the reporting period. This suggests an improvement in the company’s reported profitability, although its rising operating costs and working-capital requirements remain important factors to monitor.
Revenue from Operations More Than Doubles
Zelio’s revenue from operations increased to ₹296.7 crore in H1 FY27 from ₹134.8 crore in the corresponding period last year.
On a sequential basis, operating revenue rose approximately 68.3% from ₹175.9 crore in H2 FY26.
Including other income of ₹3.1 crore, total income reached ₹299.8 crore during the six-month period, compared with ₹135.8 crore in H1 FY26.
The revenue expansion reflects the company’s growing electric vehicle business. Zelio manufactures and assembles electric two-wheelers, primarily targeting the low-speed electric scooter segment.
The company has been expanding its distribution network and manufacturing capabilities to serve customers across different parts of India.
Its business model includes supplying electric scooters through a dealer network, with operations reported across more than 25 states and over 300 dealers.
Rising Manufacturing Costs Push Total Expenses Higher
Despite the strong increase in revenue and profit, Zelio’s expenditure also more than doubled during the first half of FY27.
Total expenses increased to ₹261.5 crore from ₹121.4 crore in H1 FY26. The cost of materials consumed accounted for the largest share of expenditure.
The company spent ₹231.4 crore on materials during the reporting period, compared with ₹102.4 crore a year earlier. This represented an increase of approximately 126%.
Other major expense categories also increased:
| Expense category | H1 FY27 | H1 FY26 |
|---|---|---|
| Cost of materials consumed | ₹231.4 crore | ₹102.4 crore |
| Direct expenses | ₹8.3 crore | ₹4.2 crore |
| Employee benefits | ₹6.9 crore | ₹3.5 crore |
| Other expenses | ₹16.6 crore | ₹8.0 crore |
| Depreciation | ₹1.2 crore | ₹0.7 crore |
| Finance costs | ₹1.0 crore | ₹1.3 crore |
Employee benefit expenses increased as the company expanded its operations, while other expenses also more than doubled.
Finance costs, however, declined slightly to approximately ₹1 crore from ₹1.3 crore in the previous-year period.
Zelio reported tax expenses of approximately ₹6.9 crore during H1 FY27, including ₹6.6 crore in current tax and ₹23.2 lakh in deferred tax.
Manufacturing Expansion Supports Growth Plans
Zelio E-Mobility was founded in 2021 and manufactures electric scooters at its production facilities in India.
The company has been working to expand its manufacturing footprint and improve its ability to serve the growing electric two-wheeler market.
It inaugurated a manufacturing plant in Coimbatore in July 2026 as part of its capacity expansion plans. The company has indicated that its annual manufacturing capacity is expected to reach approximately 2.4 lakh units following the expansion.
Its product focus on low-speed electric scooters places it in a segment targeting customers looking for affordable electric mobility options for everyday travel.
The company also operates through a dealer network spread across more than 25 states, giving it access to markets beyond major metropolitan centres.
Expanding manufacturing capacity and distribution could support future revenue growth, although actual utilisation will depend on demand, production efficiency and the company’s ability to manage inventory.
Zelio Plans to Raise ₹167.9 Crore Through Preferential Issue
Alongside its operational expansion, Zelio has also taken steps to strengthen its financial resources.
The company’s board approved a proposal to raise up to approximately ₹167.9 crore through a preferential issue of equity shares and convertible warrants.
The proposal includes the issuance of up to 9.73 lakh equity shares for approximately ₹83 crore and up to 9.96 lakh convertible warrants for approximately ₹85 crore.
Shareholders approved the proposals at an extraordinary general meeting on October 20, 2026.
The proposed fundraising could provide additional capital for the company’s business requirements and expansion plans. However, the preferential issue and warrants are separate from the revenue and profit reported for H1 FY27.
The company stated that the fundraising proposals did not affect its financial position or results for the six months ended September 30, 2026.
Operating Cash Flow Remains an Important Monitorable
While Zelio reported strong accounting profits, its cash-flow statement presents another aspect of its financial performance.
The company recorded a net cash outflow of approximately ₹30.3 crore from operating activities during H1 FY27, compared with a cash inflow of ₹8 crore in the corresponding period last year.
The movement was influenced by working-capital requirements, particularly increases in short-term loans and advances and inventories.
Short-term loans and advances absorbed approximately ₹38.8 crore of cash, while inventory changes absorbed around ₹27.6 crore.
The company also reported that short-term borrowings increased to approximately ₹41.8 crore at September 30, 2026, compared with ₹17 crore at the end of March 2026.
These figures do not negate the reported profit growth, but they highlight the importance of monitoring cash conversion, inventory management and receivables as the business expands.
For an EV manufacturer scaling production and distribution, managing working capital efficiently will be important to sustaining growth.
The Bigger Picture
Zelio E-Mobility’s H1 FY27 performance reflects the expansion opportunities available to manufacturers operating in India’s electric two-wheeler market. Rising interest in electric mobility, wider dealer networks and investment in manufacturing capacity are creating opportunities for companies targeting affordable electric scooters.
However, revenue growth alone does not determine the long-term strength of an EV business. Manufacturers must manage component costs, distribution expenses, inventory, product quality and after-sales service while competing with established vehicle companies and newer electric mobility brands.
Zelio’s results show a substantial increase in profit, but the negative operating cash flow and higher short-term borrowings underline the importance of balancing expansion with financial discipline. The company’s ability to convert accounting earnings into operating cash will be an important indicator in subsequent reporting periods.
Looking Ahead
Zelio E-Mobility enters the second half of FY27 with higher revenue, stronger reported profitability and plans to expand its manufacturing capabilities. Its proposed ₹167.9 crore fundraising through equity shares and convertible warrants could provide additional financial resources, subject to completion of the required procedures. The company’s growing distribution network and expanded production capacity may support further business development.
Investors will be watching whether the company can maintain its revenue momentum while controlling material costs and working-capital requirements. The next set of financial results will also provide more information about inventory levels, operating cash flow and the utilisation of additional funds. Sustained profitability and stronger cash generation will be important to determining whether Zelio can turn its rapid expansion into long-term financial growth.
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