ECOSMOBLTY - Ecos (India)

📊 NSE: ECOSMOBLTY 🏢 Travel Agencies 📅 Last Updated: 12/13/2025 21:44

💰 Financial Performance

Revenue Growth by Segment

In FY25, total revenue grew 17.9% to INR 653.97 Cr. The Employee Transportation Services (ETS) segment grew 25.8% to INR 381.54 Cr (58.3% of total), while Corporate Car Rental (CCR) grew 6.9% to INR 258.18 Cr (39.5% of total). Other services grew 48.3% to INR 14.26 Cr. For H1 FY26, revenue reached INR 395.3 Cr, a 28% YoY increase.

Geographic Revenue Split

Not disclosed in available documents, though the company mentions expansion into new domestic and international geographies to diversify its current footprint.

Profitability Margins

Net Profit (PAT) for FY25 was INR 60.10 Cr, a decrease of 5.37% YoY from FY24. PAT margin for H1 FY26 declined to 6.97% from 9.32% in H1 FY25, primarily due to a one-time provision and higher depreciation from fleet expansion.

EBITDA Margin

EBITDA margin moderated to 14% in FY25 from 16.3% in FY24 due to segment mix changes. In Q2 FY26, EBITDA margin was 11.47%, down 333 bps YoY from 14.79%, largely impacted by a one-time doubtful debt provision of INR 7.914 Cr. Excluding this, margins remain within the 13-15% guidance range.

Capital Expenditure

Not disclosed in absolute INR Cr for future plans, but the company reported higher depreciation in H1 FY26 due to 'new added fleets,' indicating ongoing investment in owned vehicle assets alongside its vendor model.

Credit Rating & Borrowing

The company maintains a healthy financial risk profile with a gearing ratio of 0.03 times as of March 31, 2025. Net worth stood at INR 221 Cr. The business is described as entirely self-funded, scaling without external capital.

⚙️ Operational Drivers

Raw Materials

The primary operational cost drivers are vendor-sourced fleet services (94% of total fleet), fuel (mitigated by escalation clauses), and driver/personnel costs.

Import Sources

Not applicable as a service provider; however, vehicle procurement and vendor networks are distributed across India to support domestic operations.

Key Suppliers

Approximately 94% of the fleet is sourced from third-party vendors; specific vendor company names are not disclosed.

Capacity Expansion

Trip volumes rose 25% to 4.04 million in FY25. In Q2 FY26, trip volumes increased by 33.5% YoY, supported by the acquisition of 188 new clients.

Raw Material Costs

Vendor and driver costs remain stable as a percentage of revenue. Fuel costs are largely passed through via fuel escalation clauses in 2-3 year client contracts, protecting operating profitability.

Manufacturing Efficiency

Operational efficiency is driven by technology-led platforms. Employee costs as a percentage of revenue showed marginal improvement in Q2 FY26, indicating the start of operating leverage.

Logistics & Distribution

Not applicable; distribution is managed through a network of 800 ground operations employees out of a total headcount of 1,100+.

📈 Strategic Growth

Expected Growth Rate

20-25%

Growth Strategy

Growth will be achieved through deepening presence in existing markets, expanding into new domestic and international geographies, and leveraging technology-led efficiencies. The company is targeting Global Capability Centers (GCCs), which already contribute 66% of ETS revenue.

Products & Services

Corporate Car Rentals (CCR), Employee Transportation Services (ETS), and Business-to-Consumer (B2C) car rentals.

Brand Portfolio

ECO Rent-A-Car

New Products/Services

Continued investment in digital solutions and expansion of the CCR segment, which saw its contribution rise from 37% to 45% during FY25.

Market Expansion

Expansion into new domestic and international geographies is planned for FY26 and beyond.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward organized corporate mobility providers. GCCs are a major growth driver, currently making up 66% of the company's ETS segment revenue.

Competitive Landscape

Intense competition from both organized and unorganized players, with some competitors utilizing aggressive capital-burning strategies to gain market share.

Competitive Moat

Durable advantages include a 20-year promoter track record, a tech-driven platform, and deep-rooted relationships where 60% of revenue comes from clients with 5+ year tenures.

Macro Economic Sensitivity

Sensitive to corporate travel budgets and the growth of Global Capability Centers (GCCs) in India.

Consumer Behavior

Increasing corporate preference for outsourced, reliable, and tech-enabled employee transportation and car rental services.

Geopolitical Risks

Changes in government regulations, tax laws, and economic developments within India are cited as potential operational influences.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to local and state regulations, including vehicle compliance, insurance mandates, and transport permits.

Taxation Policy Impact

Effective tax expense for H1 FY26 was INR 10.19 Cr on a Profit Before Tax of INR 38.09 Cr, representing a tax rate of approximately 26.7%.

Legal Contingencies

The company created a one-time provision for doubtful debts of INR 7.914 Cr (INR 79.14 million) in H1 FY26 related to receivables from FY23 and FY24.

⚠️ Risk Analysis

Key Uncertainties

Fluctuations in fuel prices, vehicle maintenance costs, and insurance premiums could impact margins by 2-3% if not managed through pricing adjustments.