Ecos (India)

Ecos (India) reported its best-ever performance in Q2 FY26, with revenue growing 34% year-on-year to ₹214.2 crores. For the first half of FY26, revenue increased by 28% year-on-year to ₹395.3 crores. This robust growth was primarily driven by exponential performance in both the Employee Transport Services (ETS) and Chauffeured Car Rentals (CCR) segments, with total trip volumes growing by 33.5% in Q2 FY26 compared to the prior year. ETS contributed 59% and CCR 41% to the Q2 revenue.

The company demonstrated strong client acquisition and retention in Q2 FY26. It onboarded 67 new enterprise clients during the quarter, expanding its active client base to 1,470, an almost 39% increase over Q2 FY25. Furthermore, client retention remains a key strength, with 55% of Q2 FY26 revenues generated from clients who have been associated with ECOS for more than five years, highlighting enduring relationships and consistent value delivery.

While top-line growth was strong, profitability was affected by a one-time^📎 event. Q2 FY26 EBITDA grew 4% year-on-year to ₹24.56 crores, but the EBITDA margin contracted to 11.47% from 14.79% in Q2 FY25, a 332 bps decline. This was largely due to a one-time^📎 doubtful debt provision of ₹7.914 crores. Consequently, Q2 FY26 PAT was ₹14.6 crores, approximately 7% below the prior year quarter. Management clarified that excluding this one-off^📎 item, underlying margins are in line with the previous year.

Ecos (India) continues to invest in technology and fleet capacity to support its growth. The company's back-end efficiencies are strengthened by real-time tracking and advanced technology integrations, with 22.6% of CCR bookings powered by its CabDrive Pro API and customer app platforms. Fleet capacity expanded to over 18,000 vehicles, including 1,002 owned units. Capital expenditure for H1 FY26 was ₹18 crores, with ₹1 crore allocated to tech investments and the remainder for vehicle purchases.

Management maintains a conservative full-year top-line growth guidance of 17-20%, despite H1 FY26 revenue growth of 28%, aiming to outperform rather than overpromise. The company's focus for the year remains on continued investments in digital solutions, deepening its presence in existing markets, and expanding into new domestic and international geographies. They are also launching a dynamic website and customer app for premium B2C customers, a segment that generated ₹12 crores last year.

The company holds almost ₹100 crores in cash and investments, having generated ₹24 crores in cash during H1 FY26. Management plans to deploy this capital for new fleet additions and is actively seeking suitable acquisition targets that could provide exponential benefits. Ecos (India) has consistently paid a 25% dividend for the last two years and expects to continue this trend, balancing growth with shareholder returns.