Zelio E-Mobility Limited: Electrifying Growth and Strategic Expansion in India's EV Market

Zelio E-Mobility Limited, a prominent player in India's electric mobility sector, recently shared its financial performance for the first half of FY26, alongside strategic insights and future plans. The company, which focuses on slow-speed electric two-wheelers (2Ws) and three-wheelers (3Ws), has demonstrated robust growth and a clear path for expansion, distinguishing itself in a competitive landscape.

For H1 FY26, Zelio E-Mobility Limited reported a consolidated revenue of ₹133.32 crore, marking an impressive 77% year-on-year (YoY) increase. This strong top-line growth was complemented by healthy improvements in profitability, with EBITDA rising by 65% YoY to ₹15.27 crore and Profit After Tax (PAT) increasing by 68% YoY to ₹11.82 crore. These figures underscore the company's consistent operational excellence and disciplined approach to growth.

Strategic Focus on the Bharat Market

Zelio's success is largely attributed to its strategic focus on the slow-speed EV segment, catering to the needs of students, housewives, and small shopkeepers in Tier-2, Tier-3, and rural markets across India. This segment, often overlooked by high-speed EV manufacturers, represents a significant and growing demand base. The company has successfully sold over 70,000 units in the last three years, achieving a remarkable 84% Compound Annual Growth Rate (CAGR) since FY2023, significantly outpacing the industry's average growth.

Unlike many of its peers, Zelio has maintained profitability since its inception, delivering a robust PAT CAGR of approximately 124% since FY2023. This financial prudence is coupled with a commitment to zero subsidy reliance, minimal marketing expenditure, and no equity dilution beyond its recent IPO. The company's product portfolio, which includes stylish slow-speed 2Ws and rugged 3Ws, is designed for reliability and high quality, backed by a strong service support network.

Expanding Manufacturing and Localization Efforts

To support its ambitious growth plans, Zelio E-Mobility Limited is actively expanding its manufacturing capabilities and strengthening its supply chain. The company's primary manufacturing facility in Ladwa, Hisar, Haryana, spans 24,458 square meters and has an installed capacity of 72,000 units per year, which is expandable to 120,000 units annually due to its modular assembly line design. This facility is ISO certified, ensuring adherence to quality, safety, and environmental standards.

Further expansion includes the establishment of a new manufacturing facility in Odisha, expected to be operational by February, which will add approximately 50,000 units per annum for 2-wheelers. Additionally, a 3-wheeler plant in Patan, Hisar, is slated to be operational by April 2026, with a capacity of 24,000 units per annum. These expansions are crucial for increasing production capacity, reducing transportation and logistics costs, and accelerating delivery timelines, especially in East and South India.

In line with the 'Make in India' and 'Aatmanirbhar Bharat' initiatives, Zelio is aggressively pursuing localization. The company aims to increase its localization level from the current 30% to 80% by the upcoming year. This vertical integration effort is bolstered by the incorporation of Zelio Auto Components Limited in May 2025, a wholly-owned subsidiary that already contributes positively to the group's revenue and profitability. This subsidiary is key to ensuring consistent availability of components, optimizing costs, and preparing for deeper supply chain integration.

Market Penetration and Future Outlook

Zelio's distribution network currently spans over 335 dealers across 25+ states and Union Territories. The company plans to expand this network to over 500 dealers by FY27, aiming for a presence in every major district of India. This geographical diversification is a strategic move to mitigate operational risks and deepen market penetration, particularly in Tier-2, Tier-3, and rural markets, while also exploring opportunities in Tier-1 cities where demand for low-speed EVs is increasing.

Looking ahead, Zelio E-Mobility Limited has set ambitious targets. For FY26, the company is targeting a turnover of more than INR260 crores. For the next financial year (FY27), it expects revenue to be between INR350 crores and INR400 crores. The company also aims to scale to 1 lakh annual units by 2026-2027. Despite operating in a competitive and largely unorganized segment, Zelio's focus on customer trust, strong unit economics, and durable products, rather than aggressive marketing, positions it for sustainable, volume-led growth.

The company's commitment to scaling capacity, enriching its product portfolio, and upholding strong governance reflects its vision of making clean mobility a widespread reality across Bharat. With its strategic initiatives and robust financial performance, Zelio E-Mobility Limited is poised to continue its journey of disciplined growth and purpose-driven innovation in India's dynamic EV landscape.