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Zelio E Mobility Ltd (544563)

📊 BSE: 544563 🏢 2/3 Wheelers 📢 Latest filing: 28 Sep 2026 📝 Analysis written: 13 Nov 2025

Latest quarterly results (Q4 FY26)

In its latest reported quarter, Q4 FY26, Zelio E's revenue was ₹176 Cr, and net profit ₹17.0 Cr; the operating margin was 11.4%.

Q4 FY26 (₹ Cr)	Value	YoY	QoQ
Revenue	₹176	—	—
Operating profit	₹20.0	—	—
Net profit	₹17.0	—	—
EPS (₹)	7.81	—	—
Operating margin	11.4%	—	—

Full quarterly financials → Results calendar →

📢 Recent Corporate Announcements

Zelio E-Mobility Calls EGM for ₹83 Cr Preferential Issue and ₹50 Cr Related-Party Deal

🟢 POSITIVE ⭐ 9/10

FUNDRAISE 📅 28 Sep 2026, 07:34 PM

Zelio E-Mobility has issued an EGM notice for October 20, 2026, seeking shareholder approval to raise ₹82.99 crore via a preferential issue of 9,73,000 equity shares at ₹853 per share. Key proposed non-promoter allottees include Motilal Oswal Financial Services (₹40.09 crore) and Calliope Capital Advisors (₹31.39 crore). The fundraise is substantial, representing nearly 75% of the company's net worth of ₹111 crore. Additionally, the company is seeking approval for material related-party transactions of up to ₹50 crore with Jai Bharat Auto Components, representing approximately 16% of FY26 turnover.

Preferential equity issuance to raise ₹82,99,69,000 via 9,73,000 shares at ₹853 per share
Motilal Oswal Financial Services to subscribe to 4,70,000 shares worth ₹40.09 crore
EGM scheduled for October 20, 2026; e-voting window runs from October 15 to October 19, 2026
Approval sought for ₹50 crore related-party transactions (~16% of FY26 turnover of ₹313.67 crore) with Jai Bharat Auto Components

💡 Track shareholder voting results following the EGM on October 20, 2026, and observe subsequent allotment timelines and stated capital deployment into capacity expansions.

Zelio E Mobility to Raise ₹167.96 Cr via Preferential Shares & Promoter Warrants at ₹853/sh

🟢 POSITIVE ⭐ 9/10

FUNDRAISE 📅 26 Sep 2026, 06:17 PM

Zelio E Mobility's board approved a ₹167.96 crore fundraise comprising ₹83.00 crore via equity shares to non-promoters and ₹84.96 crore via convertible warrants to promoters at ₹853 per unit. The total fundraise is substantial, exceeding the company's net worth of ₹111 crore (151% of net worth). Additionally, the board approved five separate related party transactions of up to ₹50 crore each for purchase/sale of goods. The EGM to vote on the proposals is scheduled for October 20, 2026.

Preferential equity issue of 9,73,000 shares at ₹853/share raising up to ₹82.99 crore from 4 non-promoter allottees
Preferential warrants issue of 9,96,000 warrants at ₹853/warrant raising up to ₹84.96 crore from 3 promoter allottees (25% upfront)
Total capital raise of ₹167.96 crore, representing ~151% of current net worth (₹111 crore)
Approval of 5 related party transactions for purchase/sale of goods up to ₹50 crore each
Extra-Ordinary General Meeting (EGM) convened for October 20, 2026 to seek shareholder approval

💡 Track shareholder approval at the EGM on October 20, 2026, and subsequent receipt of in-principle approval from BSE. Monitor utilization of proceeds overseen by Brickwork Ratings toward stated capacity expansion targets.

Zelio E-Mobility Board Approves ₹167.96 Cr Preferential Issue via Equity and Warrants

🟢 POSITIVE ⭐ 9/10

FUNDRAISE 📅 23 Sep 2026, 06:33 PM

Zelio E-Mobility has approved a preferential fundraise aggregating up to ₹167.96 crore at an issue price of ₹853 per share/warrant. This comprises ₹83.00 crore through 9,73,000 equity shares to 4 non-promoter investors and ₹84.96 crore through 9,96,000 convertible warrants to 3 promoters. The total capital raised exceeds the company's net worth of ₹111 crore, representing a massive ~151% of net worth. Additionally, the board approved five separate related-party transactions for up to ₹50 crore each and convened an EGM on October 20, 2026, for shareholder approval.

Approved preferential issue of up to 9,73,000 equity shares at ₹853 each to raise ₹82.99 crore from non-promoters
Approved issue of up to 9,96,000 convertible warrants at ₹853 each to raise ₹84.96 crore from promoters (25% upfront)
Total fundraising of ₹167.96 crore is ~1.5x the company's reported net worth of ₹111 crore
Promoter holding to adjust from 72.76% to 70.87% post-dilution (assuming full warrant conversion)
Appointed Brickwork Ratings as Monitoring Agency since issuance exceeds ₹100 crore; approved multiple RPTs up to ₹50 crore each

💡 Track shareholder approval at the EGM on October 20, 2026, regulatory in-principle approval from BSE, and subsequent disclosures on the deployment of funds toward ongoing capacity expansion targets.

Zelio E-Mobility Board to Meet on Sept 23, 2026 to Consider Fundraise via Equity or Warrants

🔵 WATCH ⭐ 6/10

FUNDRAISE 📅 19 Sep 2026, 06:18 PM

Zelio E-Mobility Ltd has scheduled a Board of Directors meeting on September 23, 2026, to consider raising funds via equity shares and/or warrants. Potential modes include private placement, preferential issue, or Qualified Institutions Placement (QIP), subject to regulatory and shareholder approvals. The quantum and issue price of the proposed fundraise have not yet been disclosed. Trading window remains closed for designated persons until 48 hours after the board meeting outcomes are published.

Board meeting scheduled for September 23, 2026, to evaluate fundraising options
Fundraise proposed through equity shares and/or warrants via preferential issue, QIP, or other permissible modes
Trading window closed until 48 hours after the conclusion and disclosure of the board meeting outcome
Target fundraise size and pricing not disclosed in the intimation filing

💡 Track the outcome of the board meeting on September 23, 2026, specifically looking for the dilution quantum, issue pricing, and intended end-use of proceeds relative to existing net worth (₹111 Cr).

Zelio E Mobility to participate in Emkay Confluence 2026 from Aug ust 12-14

🟡 NEUT RAL ⭐ 3/10

ROUTINE 📅 08 Aug 2026, 09:55 PM

Zelio E Mobility's senior managemen t team will participate in the 'India: Full Throttle Ahead' conference organized by Emkay Global from Aug ust 12 to 14, 2026. The phy sical meeting s will take place in Mumbai starting at 2:00 P.M. each day. The company has stated that no unpublished price-sensitive information will be shared. This comes as the company reported a TTM revenue of ₹475 cr and a strong ROCE of 38.0%.

Senior managemen t participation sched uled for 3 day s between Aug ust 12-14, 2026
Company reported TTM revenue of ₹475 cr with a n operating profit margin of 11.6%
Curren t installed capacity stand s at 72,000 unit s per annum
Exec uting a ~70% capacity expansion to reach 1,20,000 unit s by Feb r uary 2026

💡 Monitor for any post-even t investor presentation s or trans cript s that may provide update s on the Patan 3-wheeler plan t commis sioning and localization target s.

Zelio E Mobility receives Customs Show Cause Notice for duty recovery and misclassification

🔵 WATCH ⭐ 7/10

REGULATORY 📅 03 Aug 2026, 10:51 PM

Zelio E Mobility has received a Demand cum Show Cause Notice from the Principal Commissioner of Customs, Delhi, dated July 29, 2026. The notice alleges misclassification of imported E-Scooters in Completely Knocked Down (CKD) condition and incorrect availment of IGST concessions. While the specific monetary impact is not yet quantified, the company is required to respond within 30 days. This development is critical as the company currently relies on imports for 71.51% of its components, making it sensitive to customs duty changes.

Show Cause Notice received from Principal Commissioner of Customs, Delhi, dated July 29, 2026.
Allegations involve misclassification of goods and incorrect IGST concessions under Section 28(4) of the Customs Act, 1962.
Company has a 30-day window to file a formal reply to the competent authority.
Import reliance is currently high at 71.51%, posing a structural risk to margins if duties are revised.
Notice was initially missed due to being routed to a spam folder, discovered on August 03, 2026.

💡 Investors should monitor future disclosures for the specific monetary demand amount and the company's legal response. The key metric to watch is the impact on gross margins if the customs classification is permanently adjusted to a higher duty bracket.

Zelio E Mobility Receives Customs Show Cause Notice for E-Scooter Import Misclassification

🔵 WATCH ⭐ 7/10

REGULATORY 📅 03 Aug 2026, 06:17 PM

Zelio E Mobility has received a Demand cum Show Cause Notice from the Principal Commissioner of Customs, Delhi, regarding the import of E-Scooters in Completely Knocked Down (CKD) condition. The notice alleges misclassification of goods and incorrect availment of IGST concessions, proposing recovery of differential duty, interest, and penalties. The company, which has a high import reliance of 71.51%, is currently evaluating the financial impact and has 30 days to respond. This regulatory challenge is significant given the company's TTM revenue of Rs 475 Cr and its reliance on imported components for its EV lineup.

Notice dated July 29, 2026, alleges misclassification under Section 28(4) and Section 99A of the Customs Act, 1962.
Company relies on imports for 71.51% of its components, making customs compliance critical for margins.
The notice proposes recovery of differential duty, interest under Section 28AA, and penalties under Section 114A.
Zelio is required to file a formal reply within 30 days of the notice receipt.
Potential risk of goods being held liable for confiscation under Section 111(m) of the Customs Act.

💡 Watch for follow-up disclosures quantifying the specific monetary demand and the company's legal strategy to contest the misclassification claims.

33% Capacity Expansion: Zelio E-Mobility Opens New 60,000 Unit Plant in Coimbatore

🟢 POSITIVE ⭐ 7/10

EXPANSION 📅 13 Jul 2026, 10:33 AM

Zelio E-Mobility has inaugurated a new 39,000 sq. ft. manufacturing facility in Coimbatore, increasing its total annual production capacity from 180,000 to 240,000 units. The expansion involves a capital expenditure of up to ₹1 crore, funded entirely through internal accruals. While existing capacity utilization stood at approximately 40% as of March 31, 2026, the new plant is strategically positioned to serve the South Indian market and improve logistics efficiency. The facility is expected to initially produce 24,000–30,000 units annually, scaling up over the next 12-24 months.

Total annual production capacity increased by 33.3% to 240,000 units
New Coimbatore facility spans 39,000 sq. ft. with an installed capacity of 60,000 units per annum
Capital expenditure for the plant is capped at ₹1 crore, funded via internal accruals
Company reported FY2025-26 revenue of ₹313.68 crore, representing 81.8% YoY growth
Existing capacity utilization was approximately 40% as of March 31, 2026

💡 Investors should monitor the utilization ramp-up at the Coimbatore facility and the company's progress toward its target of 550+ dealerships by FY27 to justify the capacity increase.

33% Capacity Expansion: Zelio E-Mobility Opens New 60,000 Unit Plant in Coimbatore

🟢 POSITIVE ⭐ 7/10

EXPANSION 📅 13 Jul 2026, 10:27 AM

Zelio E-Mobility has inaugurated a new 39,000 sq. ft. manufacturing facility in Coimbatore, increasing its total annual capacity from 180,000 to 240,000 units. The expansion requires a modest capital investment of up to ₹1 crore, funded through internal accruals, and specifically targets the South Indian market. While existing capacity utilization was 40% as of March 31, 2026, the company aims to use this facility to improve regional logistics and support its goal of reaching 550+ dealers by FY27. The plant is expected to initially produce 24,000–30,000 units annually.

Total annual manufacturing capacity increased by 33% to 240,000 units per annum
New 39,000 sq. ft. facility in Coimbatore to serve Tamil Nadu, Karnataka, Kerala, and other southern states
Capital expenditure of up to ₹1 crore funded entirely through internal accruals
Company reported FY2025-26 revenue of ₹313.68 crore, representing 81.8% year-on-year growth
Initial production target for the new plant set at 24,000–30,000 electric two-wheelers annually

💡 Monitor the ramp-up of capacity utilization, which was relatively low at 40% for existing plants, and track the progress of dealer network expansion from 400 to 550+ by FY27.

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💰 Financial Performance

Revenue Growth by Segment

The company operates in the slow-speed electric vehicle (EV) segment, including 2-wheelers and 3-wheelers. H1 FY26 revenue reached INR 134.78 Cr, representing an 80% YoY growth. Q3 FY26 revenue grew 67% YoY to INR 91.62 Cr, driven by festive demand and deeper penetration in Tier-2 and Tier-3 markets.

Geographic Revenue Split

Zelio has a pan-India presence across 25+ states and Union Territories with a network of 360+ dealers. The company is strategically expanding into East and South India through a new facility in Odisha to reduce regional reliance and logistics costs.

Profitability Margins

Zelio has been profitable since inception. FY25 PAT was INR 16 Cr with a PAT CAGR of ~124% since FY23. H1 FY26 PAT grew 70% YoY to INR 11.8 Cr, maintaining a net margin of approximately 8.7%.

EBITDA Margin

FY25 EBITDA was INR 21 Cr (12.2% margin). H1 FY26 EBITDA reached INR 15.36 Cr, up 71% YoY, reflecting a margin of 11.4% despite scaling operations.

Capital Expenditure

The company is investing less than INR 3 Cr for the Odisha plant. Other planned capex includes the Patan manufacturing facility (expected April 2026) and the ongoing construction of the Hisar plant to support a 1 lakh unit annual target by FY27.

Credit Rating & Borrowing

Not disclosed in available documents; however, the company emphasizes zero subsidy reliance and zero equity dilution beyond the IPO, indicating a self-sustaining capital structure.

⚙️ Operational Drivers

Raw Materials

Key raw materials include auto components such as motors, controllers, and batteries. Imports accounted for 71.51% of total costs in FY25, which the company aims to reduce through localization.

Import Sources

Import markets (primarily implied as China/overseas given the CKD assembler status) currently supply 71.51% of components.

Capacity Expansion

Current installed capacity is 72,000 units per annum. The company is executing a ~70% expansion to reach 1,20,000 units per annum by February 2026.

Raw Material Costs

Raw material costs are heavily influenced by imports (71.51% in FY25). The company is targeting 80% localization by FY28 to optimize costs and improve margins through manufacturing efficiencies.

Manufacturing Efficiency

Expected FY25-26 capacity utilization is ~85% on the existing 72,000-unit base. The new Odisha facility is expected to improve regional supply efficiency and logistics economics.

Logistics & Distribution

Distribution is handled through a 360+ dealer network. The company focuses on 'Bharat' (Tier-2/3) to minimize aggressive marketing spend, relying instead on dealer productivity.

📈 Strategic Growth

Expected Growth Rate

35-40%

Growth Strategy

Growth will be achieved by scaling capacity from 72k to 120k units by Feb 2026, commissioning the Patan 3-wheeler plant by April 2026, expanding the dealer network to 500+ by FY28, and increasing localization from 30% to 80% to improve unit economics.

Products & Services

Slow-speed electric 2-wheelers (EEVA, Gracy), rugged 3-wheelers (Tanga), and high-speed electric scooters (Mystery).

Brand Portfolio

Zelio, EEVA, Gracy, Tanga, Mystery.

New Products/Services

The high-speed electric scooter 'Mystery' and the 3-wheeler 'Tanga' are expected to diversify the portfolio and contribute to the FY27 target of 1 lakh units.

Market Expansion

Targeting East and South India through the Odisha plant (Feb 2026) and evaluating a Southern India assembly facility to deepen penetration in Tier-2 and Tier-3 markets.

Market Share & Ranking

Zelio holds a ~5% market share in the slow-speed EV industry and ranks among the top 3 players in the slow-speed EV 2W segment.

Strategic Alliances

Financing tie-ups for 3-wheelers with 6-7 companies including Bajaj and Kotak Mahindra to support customer livelihood purchases.

🌍 External Factors

Industry Trends

The slow-speed EV industry is growing at a 30% CAGR, while Zelio is outperforming at an 84% CAGR. The industry is shifting toward 'Aatmanirbhar' manufacturing and deeper rural penetration.

Competitive Landscape

Competes with larger players like Ola and Ather, but distinguishes itself by being profitable and focusing on the slow-speed segment for 'Bharat' rather than premium high-speed urban markets.

Competitive Moat

Zelio's moat is its consistent profitability (unlike loss-making peers Ola and Ather), a robust 360+ dealer network, and a focus on the 'no-license' segment which lowers the barrier to entry for consumers. This is sustainable due to low marketing spend and high RoE (85.75%).

Macro Economic Sensitivity

Highly sensitive to the 'Bharat' economy (Tier-2/3/Rural), where demand is driven by affordability and the lack of license/registration requirements for slow-speed EVs.

Consumer Behavior

Targeting students, housewives, and senior citizens who prioritize affordability, reliability, and ease of use (no registration required).

Geopolitical Risks

Trade barriers or supply chain disruptions in import markets could significantly impact the 71.51% import-dependent cost structure.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by ICAT certifications for vehicle models (e.g., Tanga and Mystery). The business model relies on the current regulatory exemption for slow-speed EVs (no license/registration).

Environmental Compliance

The company holds ISO 14001:2015 (Environmental Management) and ISO 45001:2018 (Occupational Health and Safety) certifications.

⚠️ Risk Analysis

Key Uncertainties

The primary risk is the 71.51% import dependency for components, which could lead to supply chain bottlenecks or margin compression if localization targets (80% by FY28) are not met.