ECOS Mobility Navigates Growth and Margins in Q3 FY26

ECOS (India) Mobility & Hospitality Limited, a prominent player in corporate managed mobility solutions, has reported a robust performance for the third quarter and nine months ended December 31, 2025. The company demonstrated resilient revenue growth, underscoring the strength of its business model amidst strategic investments aimed at long-term scalability and market share expansion. Despite a moderation in margins due to these growth-related initiatives, management remains confident in its strategy to enhance profitability in the coming quarters through targeted actions.

For Q3 FY26, ECOS recorded revenue from operations of 206.071 Crore, marking a significant 22.48% year-on-year increase. This growth was primarily fueled by consistent enterprise demand and strong execution across both its Chauffeur-driven Car Rentals (CCR) and Employee Transportation Services (ETS) segments. The nine-month period ending December 2025 saw revenue from operations reach 601.398 Crore, up 26.15% year-on-year, further highlighting the sustained momentum. EBITDA for Q3 FY26 grew by 8.05% to 23.355 Crore, while for the nine months, it rose by 5.85% to 69.776 Crore. Profit after tax for Q3 FY26 stood at 13.943 Crore, a 9.12% increase, though the nine-month PAT remained broadly stable at 41.840 Crore.

Strategic Investments and Market Expansion

ECOS Mobility's strategic focus remains on driving sustainable growth through client acquisition, enhancing wallet share from existing relationships, and expanding its presence both domestically and internationally. The company is making significant investments to establish itself as a technology-driven, globally relevant mobility platform. This includes increasing the adoption of its end-to-end CCR platform, with over 21% of CCR bookings from corporate clients now powered by ECOS's digital solutions. A direct web booking portal was also launched during the quarter, marking a key milestone in its digital transformation journey. This portal aims to extend enterprise-grade reliability to individual users and small and medium enterprises, broadening the company's reach beyond traditional corporate contracts.

Geographically, ECOS's business is well-diversified across major Tier-1 and Tier-2 cities, with Bangalore, Delhi, Gurugram, Mumbai, and Hyderabad collectively contributing 60% of the total revenue. The company further strengthened its footprint by inaugurating a new second office in Bengaluru, a strategic move to cater to one of India's most significant enterprise and technology hubs. This expansion aligns with ECOS Mobility's broader growth strategy of scaling responsibly while investing in people, technology, and governance-led mobility solutions.

Client acquisition remains robust, with 39 new clients onboarded in Q3 FY26, bringing the active client base to 1,734, a 34% growth compared to Q3 FY25. This growth reflects an industry-wide shift towards organized and reliable mobility partners. Client retention is also strong, with 55% of the first nine months' revenue contributed by clients associated with ECOS for over five years, underscoring the longevity of its client relationships. The fleet capacity expanded to over 19,000 vehicles, including 997 owned units, supporting a calibrated asset-light approach for capital efficiency.

Navigating Margin Pressures and Future Outlook

The moderation in EBITDA and PAT margins during the period is attributed to planned investments in technology and people, as well as higher variable and vendor-linked costs associated with servicing incremental volumes and onboarding large enterprise accounts. Management noted that new enterprise clients typically involve higher startup and ramp-up costs, with margins expected to normalize over two to three quarters as operations scale up. To address these pressures, ECOS has initiated targeted actions on pricing, cost optimization, and utilization enhancement, which are expected to support margin improvement in the coming quarters.

Despite the near-term cost pressures, the company's operating cash flows remained aligned with its EBITDA, and working capital days stayed stable, reflecting disciplined execution and strong cash flow management. The balance sheet remains healthy, and demand visibility is strong. Management expects operating leverage to improve, leading to sustainable growth with improving profitability. The long-term revenue growth guidance remains between 15% to 20%, with EBITDA margins targeted at 13% to 15% and PAT margins between 8.5% to 10% in the mid to long term. ECOS Mobility is committed to advancing its technology-led mobility strategy and capturing a larger market share in the fragmented mobility sector, aiming to be India's most trusted and future-ready corporate managed mobility partner.