SYNOPSIS: Zelio E-Mobility, amongst India’s prime three slow-speed EV gamers, reported a 3x income progress since FY23 and stays worthwhile, positioning itself as a robust challenger to Ola Electrical and Ather Vitality.
One in every of India’s fastest-growing electrical mobility firms, manufacturing and supplying fashionable slow-speed two-wheelers (e-2Ws) and rugged three-wheelers (e-3Ws) for India’s evolving transportation wants – making it an organization to observe in India’s increasing EV panorama.
We’re speaking about Zelio E-Mobility Restricted, one of many prime three gamers within the slow-speed EV 2W Trade, having achieved 3x income progress since FY23 (CAGR of 84 p.c). Notably, Zelio stands out as one of many few EV firms in India to stay worthwhile since inception, delivering a PAT CAGR of practically 124 p.c over the identical interval.
The corporate is engaged in manufacturing, assembling, and supplying electrical automobiles throughout a number of designs, colors, and pace variants. Its merchandise are marketed below the model names “Zelio” for electrical e-2Ws and “Tanga” for e-3Ws. Each product traces are constructed with a concentrate on sustainability, decrease emissions, lowered noise, and long-term power effectivity.
Zelio launched its first vary of electrical scooters in FY22 and as we speak operates via a rising community of unique and non-exclusive sellers throughout city, semi-urban, and rural markets, making certain its EVs attain each nook of the nation.
Inventory Efficiency
Zelio E-Mobility debuted on the BSE SME platform on October eighth 2025 at Rs. 154.9 apiece, marking a 13.8 p.c premium over the IPO worth of Rs. 136. The Rs. 78 crore IPO closed with a average investor curiosity and no seen traction within the gray market, with gray market premium (GMP) standing at Rs 0, suggesting muted itemizing expectations and a cautious stance from buyers.
Throughout Friday’s buying and selling session, the inventory was buying and selling within the pink at Rs. 255.10 on BSE, down by round 3.59 p.c, as in opposition to its earlier closing worth of Rs. 264.60, with a market cap of Rs. 539.54 crores.
As per the September 2025 shareholding information, the ace investor Mukul Mahavir Agrawal holds a 2 p.c stake in Zelio E-Mobility Restricted.
Current Rivals
As of October 2025, Zelio has emerged as a worthwhile outlier in India’s e-2Ws phase, setting itself other than bigger friends reminiscent of Ola Electrical and Ather Vitality, which proceed to report working and internet losses. With a market capitalisation of Rs. 539 crore, income of Rs. 172 crore, EBITDA of Rs. 21 crore, and a internet revenue of Rs. 16 crore, Zelio maintains sturdy progress momentum and resilient margins.
In distinction, Ola Electrical reported Rs. 4,514 crore in income with EBITDA and PAT losses of Rs. 1,735 crore and Rs. 2,276 crore, respectively, with a market cap of Rs. 23,342 crores, whereas Ather Vitality recorded Rs. 2,255 crore in income with losses of Rs. 581 crore (EBITDA) and Rs. 812 crore (PAT), with a market cap of Rs. 26,841 crores.
Regardless of its smaller scale, Zelio stands out with profitability and operational effectivity, buying and selling at a P/S a number of of simply 2x – considerably decrease than Ola’s 5x and Ather’s 10x. This positions Zelio as a compelling worth proposition, combining profitability, scalability, and affordability at a fraction of the valuation of its bigger, loss-making opponents.
Development Outlook
The corporate goals to ascertain itself as a number one model in India’s slow-speed e-2Ws phase, providing dependable, high-quality automobiles supported by a robust after-sales community. Its merchandise are designed to cater to housewives, college students, and senior residents throughout Tier-2 and Tier-3 cities, selling accessible, license-free, and registration-free mobility options that align with the objectives of financial inclusion and sustainable transportation.
In keeping with the Aatmanirbhar Bharat initiative, it continues to strengthen its home manufacturing base, improve provide chain localisation, and contribute to employment era via innovation-led progress.
From a strategic standpoint, the corporate’s vendor community has expanded greater than threefold since FY21, growing from 94 retailers to over 337. Common onboarding drives are performed to align community enlargement with market demand, with a robust concentrate on Tier-2, Tier-3, and rising EV markets.
Wanting forward, the corporate targets a presence in each main district of India with over 500 sellers by FY27, supported by dealer-centric digital platforms geared toward bettering operational effectivity and associate engagement.
Authorities Initiatives
The Authorities of India has reaffirmed its dedication to selling electrical mobility, with a goal of attaining 30 p.c electrical automobile (EV) penetration by 2030.
Underneath FAME II (Sooner Adoption and Manufacturing of Hybrid and Electrical Automobiles), which commenced on April 1, 2019, the federal government allotted a complete budgetary help of $1.43 billion (Rs. 10,000 crore). The scheme mandates that 30 p.c of procurement below this system ought to come from small and medium enterprises (SMEs), making certain broader participation in India’s EV manufacturing ecosystem.
As well as, the Union Price range introduced customs responsibility exemptions on the import of capital items and equipment used for the manufacture of lithium-ion batteries, geared toward decreasing manufacturing prices and inspiring native meeting.
The just lately launched Electrical Mobility Promotion Scheme additional strengthens this push, supporting 3,72,215 EVs, together with 3,33,387 e-2Ws and 38,828 e-3Ws – comprising 13,590 e-rickshaws and e-carts, and 25,238 e-3Ws within the L5 class. The scheme supplies incentives solely for automobiles outfitted with superior batteries, selling innovation and adoption of energy-efficient applied sciences.
Monetary Efficiency
In FY25, Zelio reported a income from operations of Rs. 172 crores, a big progress of round 83 p.c YoY from Rs. 94 crores in FY24. Throughout the identical interval, the corporate’s internet revenue for the 12 months stood at Rs. 16 crores, representing a powerful rise of greater than 166 p.c YoY from Rs. 6 crores.
In FY25, Zelio reported a complete income of Rs. 172.2 crore, with the E-2W phase contributing the bulk share at Rs. 166.2 crore (96.53 p.c). The 3W phase accounted for Rs. 3.22 crore (1.87 p.c), whereas different merchandise, together with batteries, spare elements, and equipment, contributed Rs. 2.7 crore (1.60 p.c) to the general income.
In FY25, the corporate reported a Return on Fairness (RoE) of 85.75 p.c, in comparison with 83.99 p.c in FY24, indicating a marginal enchancment in shareholder returns. Equally, the Return on Capital Employed (RoCE) elevated to 36.86 p.c in FY25 from 34.84 p.c in FY24, demonstrating enhanced effectivity in capital utilisation and sustained profitability momentum.
Written by Shivani Singh
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