Zelio E-Mobility H2FY26 Results (BSE: 544563)
Signal: Steady quarter
The read
Top-line growth remains robust (+75.6% YoY) with gross margin expansion on input cost tailwind, but EBITDA margin contracted as other expenses (A&P, distribution) surged 130.8%. Post-IPO, net cash position strengthens, but cash flow from operations turned negative (-₹7.39 Cr) as inventory and advances balloon to fund growth. EPS diluted by IPO share count. High growth trajectory intact but margin sustainability and cash conversion key to monitor.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹170.22 Cr | 75.65% | 27.66% |
| EBIT | ₹19.09 Cr | 62.13% | |
| Net profit | ₹16.21 Cr | 80.82% | |
| EPS | ₹7.73 | 42.62% | |
| EBIT margin | 11.22% |
P&L walk
Revenue growth of 75.6% YoY driven by volume/mix; gross margin improved 221bps on lower raw material cost %, but EBITDA margin contracted 93bps as other expenses (up 130.8% YoY) outpaced revenue; PAT growth in line with PBT; EPS diluted due to IPO share count increase.
Key positives
- Revenue ₹170.22 Cr, +75.6% YoY (consistent with 3-yr CAGR of 76.5%)
- PAT ₹16.21 Cr, +80.8% YoY, outpacing revenue growth
- Gross margin expanded 221bps YoY to 16.92% on lower raw material cost proportion
- Net cash position achieved (-₹7.40 Cr) post-IPO, vs net debt of ₹30.36 Cr a year ago
- Receivable days improved sharply to 3.1 days from 10.0 days
Key concerns
- EBITDA margin contracted 93bps YoY to 11.22% as other expenses surged 130.8% (vs revenue +75.7%)
- EPS growth lagged PAT growth significantly (+42.6% vs +80.8%) due to IPO dilution
- Cash flow from operations negative (-₹7.39 Cr) as inventory and loans/advances consumed ₹52.41 Cr
- Other expenses (₹11.77 Cr) grew faster than revenue, indicating rising A&P or expansion costs
Research and educational content only. Not investment advice.