TUNWAL - Tunwal E-Motors

📊 NSE: TUNWAL 🏢 Automobiles - Motorcycles / Mopeds 📅 Last Updated: 12/14/2025 14:35

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for H1 FY26 reached approximately INR 145.22 Cr, representing a 100.4% growth compared to INR 72.46 Cr in H1 FY25. The growth is driven primarily by the electric vehicle manufacturing segment and the integration of its subsidiary, Palsana E Vehicles Private Limited.

Geographic Revenue Split

Not specifically disclosed in available documents; however, the company operates out of Pune, Maharashtra, with a registered office in Mumbai, indicating a strong domestic focus in the Indian market.

Profitability Margins

Consolidated Net Profit Margin for H1 FY26 was 5.9% (INR 8.56 Cr profit on INR 145.22 Cr revenue), compared to a 7.45% margin in H1 FY25. The slight compression is attributed to a 105% increase in total expenses, which rose to INR 133.81 Cr.

EBITDA Margin

Consolidated PBT margin for H1 FY26 stood at 7.85% (INR 11.41 Cr), down from 9.96% in H1 FY25. Core profitability is impacted by a significant rise in 'Other Expenses' which reached INR 16.31 Cr in H1 FY26.

Capital Expenditure

The company invested INR 4.60 Cr in fixed assets during H1 FY26. This follows a larger historical expenditure of INR 16.32 Cr in FY25, primarily funded through IPO proceeds to expand manufacturing capabilities.

Credit Rating & Borrowing

Total borrowings as of September 30, 2025, stood at INR 32.76 Cr (INR 3.43 Cr long-term and INR 29.33 Cr short-term). Finance costs for H1 FY26 were INR 0.89 Cr, representing approximately 0.6% of total revenue.

⚙️ Operational Drivers

Raw Materials

Electric vehicle components including batteries, motors, controllers, and scrap materials, which collectively contributed to an inventory increase of INR 40.01 Cr in H1 FY26.

Import Sources

Not specifically disclosed, though the company is under investigation by the Directorate of Revenue Intelligence (DRI) regarding import/customs matters, suggesting significant international sourcing.

Key Suppliers

Not disclosed in the provided financial statements or announcements.

Capacity Expansion

The company utilized IPO proceeds of INR 81.72 Cr (raised in July 2024) for expansion. Capital Work-in-Progress (CWIP) stood at INR 5.06 Cr as of September 2025, up 39% from INR 3.64 Cr in March 2025.

Raw Material Costs

Inventory of finished goods and stock-in-trade increased by INR 40.01 Cr in H1 FY26, indicating aggressive procurement or production scaling. Trade payables rose 100% to INR 91.01 Cr (non-MSME) to support this inventory build-up.

Manufacturing Efficiency

Not disclosed; however, the 100% YoY revenue growth suggests a rapid scale-up in production throughput.

Logistics & Distribution

Not specifically disclosed; however, the company operates a distribution network for its electric motors and vehicles across India.

📈 Strategic Growth

Expected Growth Rate

100%

Growth Strategy

Growth is being achieved through the utilization of INR 81.72 Cr in IPO funds for capacity expansion, the acquisition/integration of Palsana E Vehicles Private Limited, and aggressive market penetration in the Indian EV sector. The company doubled its revenue YoY in H1 FY26.

Products & Services

Electric two-wheelers, electric motors, and related EV components sold under the Tunwal brand.

Brand Portfolio

Tunwal E-Motors.

New Products/Services

Not specifically detailed, but the integration of Palsana E Vehicles suggests expansion into new EV categories or regional markets.

Market Expansion

Expansion is focused on the SME platform (NSE Emerge) to increase visibility and fund future manufacturing facilities.

Strategic Alliances

Subsidiary relationship with Palsana E Vehicles Private Limited (formerly ASG Mart India Private Limited).

🌍 External Factors

Industry Trends

The Indian EV industry is growing at a rapid pace driven by decarbonization goals. Tunwal is positioning itself as a listed SME player to capture this shift, though it faces increasing regulatory scrutiny regarding domestic value addition.

Competitive Landscape

Competes with other Indian EV startups and established ICE manufacturers entering the electric two-wheeler space.

Competitive Moat

The company's moat is based on its early-mover status in the SME EV space and its established manufacturing base in Pune. Sustainability is challenged by low barriers to entry in EV assembly and high regulatory risk.

Macro Economic Sensitivity

Highly sensitive to government EV subsidies (FAME-II/III) and interest rate changes affecting consumer vehicle loans.

Consumer Behavior

Shift toward eco-friendly transportation and lower total cost of ownership is driving demand for Tunwal's electric motors.

Geopolitical Risks

Trade barriers or import restrictions on EV components (especially from China) pose a significant risk to the assembly-heavy business model.

⚖️ Regulatory & Governance

Industry Regulations

Subject to the Customs Act, 1962, and EV manufacturing standards. The company is currently facing a Seizure Memorandum from the DRI Mumbai under Section 110(1) of the Customs Act, dated August 6, 2025.

Environmental Compliance

Not specifically disclosed in INR values, though the company's core business is environmentally focused.

Taxation Policy Impact

Effective tax rate for H1 FY26 was approximately 24.9% (INR 2.84 Cr tax on INR 11.41 Cr PBT).

Legal Contingencies

The company reports contingent liabilities in Note 27 of its standalone financial statements. The most significant recent legal matter is the DRI seizure memorandum issued in August 2025 regarding alleged customs violations.

⚠️ Risk Analysis

Key Uncertainties

The DRI investigation poses a high risk (potential impact >20% of profit) if it leads to heavy penalties or import bans. Working capital stress is also high due to the INR 40 Cr inventory build-up.