ECOS (India) Mobility & Hospitality Limited: Navigating Growth with Strategic Precision

ECOS (India) Mobility & Hospitality Limited, a prominent player in corporate managed mobility solutions, has reported a robust performance for the second quarter and first half of fiscal year 2026. The company's management highlighted this period as their 'best-ever' in terms of revenue, underscoring consistent client traction and healthy demand across both its core segments: Chauffeured Car Rental (CCR) and Employee Transport Services (ETS). Despite a one-time provision impacting profitability, the underlying operational strength and strategic initiatives signal a confident trajectory for the company.

For Q2 FY26, ECOS recorded a revenue from operations of 214.21 crore, marking an impressive 34.23% year-on-year growth. The momentum continued into the first half, with H1 FY26 revenue from operations reaching 395.33 crore, an increase of 28.15% over the previous year. This growth was largely fueled by exponential expansion in both the ETS and CCR businesses, complemented by a 33.5% surge in trip volumes. The company's extensive geographic footprint, spanning over 128 cities in India and 30+ countries, alongside a resilient client base, enabled this robust top-line performance.

Profitability and Strategic Investments

While the top-line growth was impressive, profitability metrics showed a slight moderation. Q2 FY26 EBITDA (excluding other income) grew by 4.05% to 24.57 crore, and H1 FY26 EBITDA rose by 4.77% to 46.42 crore. However, EBITDA margins contracted from 14.79% to 11.47% in Q2 and from 14.36% to 11.74% in H1. Similarly, profit after tax (PAT) for Q2 was 14.61 crore, a 7.25% decrease year-on-year, and H1 PAT was 27.90 crore, down 4.64%. Management attributed this moderation primarily to a one-time provision of 7.914 crore for doubtful debts related to trade receivables from FY 2022-23 and FY 2023-24, as well as higher depreciation from newly added fleets.

Management clarified that the doubtful debt provision was a one-time, non-recurring expense from a credible client, with legal processes initiated for recovery. Excluding this one-off item, the underlying margins are largely consistent with the previous year, indicating efficient core operations. The company's strategic investments are focused on business development, innovation in service offerings, and digital infrastructure, which are expected to drive long-term value.

Operational Excellence and Market Expansion

ECOS's operational strategy is deeply rooted in technology and client-centricity. The company onboarded 67 new enterprise clients in Q2 FY26, expanding its active client base to 1,470, a 39% increase year-on-year. These new engagements span key sectors such as IT, BFSI, pharmaceutical, manufacturing, and consulting, reflecting an industry-wide shift towards organized and reliable mobility partners. Client retention remains robust, with 55% of Q2 FY26 revenues generated from clients associated with ECOS for over five years.

The company's fleet capacity has expanded to over 18,000 vehicles, including 1,002 owned units, supporting an agile, asset-light scalability. During Q2 FY26, approximately 3,200 vehicles were added, comprising both owned and outsourced fleets. Technology plays a crucial role, with 22.6% of Q2 FY26 CCR bookings powered by their CabDrive Pro platform, API integrations, and customer app. These digital initiatives are not only enhancing operational benefits but also shaping the evolution of a fully digital ECO.

Future Outlook and Management Confidence

Looking ahead, ECOS management expressed confidence in maintaining top-line growth in the range of 17% to 20%, supported by margin stability through technology-led efficiencies. They are committed to continued investments in digital solutions, deepening their presence in existing markets, and expanding into new domestic and international geographies. The company's journey has been entirely self-funded, scaling consistently without external capital, and reinvesting profits to drive operational excellence and sustainable expansion.

Management highlighted that the second half of the year (H2 FY26) is expected to be stronger than the first half, with new strategies and service areas anticipated to kick in over the next two quarters. This includes a focus on B2C offerings for premium customers and a dedicated team for events, with the season commencing in Q3. The company's ability to pass through fuel price increases in 99% of its contracts further strengthens its resilience against external volatilities.

ECOS (India) Mobility & Hospitality Limited is well-positioned to capitalize on the industry's growth, particularly the shift from unorganized to organized mobility solutions. The company's strategic clarity, disciplined execution, and continuous focus on enhancing customer experience and technology capabilities reinforce its commitment to delivering sustainable long-term growth and value to all stakeholders.