Zelio consolidated profit rises to Rs 31.3865 crore in first half

Zelio E-Mobility Limited reported unaudited consolidated profit of Rs 31.3865 crore for the half year ended September 30, 2026, compared with Rs 11.8739 crore a year earlier, as revenue from operations reached Rs 296.6642 crore; net cash used in operating activities was Rs 30.3312 crore.

How did Zelio perform in the half year ended September 2026?

Zelio more than doubled revenue and profit in the half year ended September 30, 2026. Revenue from operations increased from Rs 134.7802 crore in the half year ended September 30, 2025 to Rs 296.6642 crore, while total revenue, including other income, rose from Rs 135.7697 crore to Rs 299.7577 crore.

Profit before tax increased from Rs 14.4118 crore to Rs 38.2632 crore, and profit after tax rose by Rs 19.5126 crore to Rs 31.3865 crore. That half-year profit exceeded the Rs 28.3871 crore reported for the full year ended March 31, 2026. Basic and diluted earnings per share were Rs 14.84, against Rs 7.18 a year earlier; Zelio said half-year earnings per share are not annualised.

What drove Zelio’s change in costs and profit?

Zelio’s total expenses rose from Rs 121.3579 crore to Rs 261.4945 crore, an increase of Rs 140.1366 crore, while total revenue grew by Rs 163.988 crore. Cost of materials consumed was the largest expense at Rs 231.4283 crore, up from Rs 102.3926 crore. Direct expenses increased to Rs 8.333 crore and employee benefits expense rose to Rs 6.8593 crore.

Other expenses increased from Rs 7.9682 crore to Rs 16.5785 crore and depreciation rose from Rs 65.67 lakh to Rs 1.2195 crore. Finance costs declined from Rs 1.2787 crore to Rs 1.0086 crore. The expenses statement recorded a Rs 3.9327 crore reduction in finished-goods inventories, compared with a Rs 1.3623 crore increase in the corresponding prior-year half.

Tax expense rose from Rs 2.5379 crore to Rs 6.8767 crore, comprising current tax of Rs 6.6449 crore and deferred tax of Rs 23.18 lakh. In the prior-year half, deferred tax was a credit of Rs 2.78 lakh. These reported tax movements left Zelio with profit after tax of Rs 31.3865 crore for September 2026.

Why did Zelio’s operating cash flow turn negative?

Zelio used Rs 30.3312 crore in operating activities in the September 2026 half year, compared with Rs 8.0276 crore generated in the September 2025 half. Operating profit before working-capital changes rose from Rs 16.6672 crore to Rs 40.8763 crore, but cash generated from operations moved from positive Rs 11.9276 crore to negative Rs 24.3092 crore.

Short-term loans and advances absorbed Rs 38.8064 crore of cash, compared with Rs 7.0872 crore a year earlier. Inventory absorbed Rs 27.5916 crore, trade receivables absorbed Rs 5.5026 crore after releasing Rs 2.6817 crore in the previous period, and trade payables declined by Rs 2.5024 crore after increasing by Rs 6.7625 crore a year earlier.

Direct taxes paid were Rs 6.022 crore, compared with Rs 3.90 crore. Investing activities used Rs 12.5644 crore, principally Rs 12.8017 crore spent on fixed assets. Financing activities supplied Rs 23.955 crore, including Rs 24.5404 crore of proceeds from short-term borrowings, leaving cash and cash equivalents at Rs 7.0984 crore versus Rs 26.039 crore at March 31, 2026.

What changed on Zelio’s balance sheet?

Zelio’s total consolidated assets increased from Rs 154.9045 crore at March 31, 2026 to Rs 218.1684 crore at September 30, 2026. Current assets rose from Rs 133.2697 crore to Rs 185.0854 crore, led by inventories of Rs 85.72 crore and short-term loans and advances of Rs 82.4008 crore.

Trade receivables increased from Rs 3.4757 crore to Rs 8.9783 crore, while cash and bank balances declined from Rs 26.039 crore to Rs 7.0984 crore. Capital work in progress rose from Rs 6.8956 crore to Rs 16.1621 crore, and property, plant and equipment increased from Rs 13.8442 crore to Rs 16.1599 crore.

Short-term borrowings increased from Rs 17.0025 crore to Rs 41.7613 crore over the six months. Current liabilities rose from Rs 39.6928 crore to Rs 70.5191 crore, while shareholders’ funds increased from Rs 111.5284 crore to Rs 142.9148 crore as reserves and surplus rose to Rs 121.7648 crore. Share capital remained Rs 21.15 crore.

How has Zelio used its IPO proceeds and what funding was approved?

Zelio completed its initial public offer on October 3, 2025, issuing 46.20 lakh equity shares at Rs 135 each and raising Rs 62.832 crore. Its shares were listed on the BSE SME platform on October 8, 2025. By September 30, 2026, the company had used Rs 59.62 crore and reported Rs 3.212 crore as unutilised, with no deviation or variation in use of the funds.

Of Rs 19.4487 crore allocated to a new manufacturing unit, Zelio had used Rs 16.35 crore, leaving Rs 3.0987 crore. It had fully used Rs 20 crore allocated to debt repayment and Rs 8 crore for working capital. The company said Rs 3.8299 crore of unutilised net IPO proceeds, including accrued interest reinvested, was temporarily placed in fixed deposits with HDFC Bank.

During the half year, the board approved, subject to required approvals, up to 9.73 lakh preferential equity shares for Rs 82.9969 crore and up to 9.96 lakh convertible warrants for Rs 84.9588 crore. Shareholders approved the proposals on October 20, 2026. Zelio said the proposals and approvals had no effect on the September 2026 half-year financial position or results.

Conclusion

Zelio’s September 2026 half-year results combined a Rs 19.5126 crore year-on-year increase in profit after tax with a Rs 161.884 crore increase in revenue from operations. At the same time, increases in inventories, receivables and short-term loans and advances contributed to operating cash use of Rs 30.3312 crore, despite Rs 38.2632 crore of profit before tax.

The next disclosures can show deployment of the Rs 3.0987 crore remaining for the new manufacturing unit and the progress of the shareholder-approved preferential equity shares and warrants. Zelio’s subsequent balance sheets can also clarify changes in Rs 82.4008 crore of short-term loans and advances, Rs 85.72 crore of inventories, Rs 41.7613 crore of short-term borrowings and Rs 7.0984 crore of cash and bank balances.