Ecos (India) Mobility & Hospitality Limited — Q2 FY26 earnings call

Call held 11 Nov 2025

Management summary

Ecos (India) reported strong top-line growth in Q2 and H1 FY26, driven by robust performance in ETS and CCR segments and significant client additions. However, profitability was impacted by a one-time doubtful debt provision of ₹7.914 crores, leading to EBITDA margin contraction and PAT decline. Management remains confident in underlying operational efficiency and future growth, guided by conservative estimates.

Highlights

  • Q2 FY26 Revenue of ₹214.2 crores, up 34% YoY, marking the best-ever performance.

  • H1 FY26 Revenue of ₹395.3 crores, up 28% YoY, driven by higher trip volumes.

  • Total trip volumes grew by a healthy 33.5% in Q2 FY26 compared to Q2 FY25.

  • Active client base reached 1,470, an almost 39% increase over Q2 FY25, with 67 new enterprise clients onboarded.

  • 55% of Q2 FY26 revenues were contributed by clients associated with ECOS for more than five years, demonstrating strong retention.

Concerns

  • Q2 FY26 EBITDA margin contracted to 11.47% from 14.79% last year, a 332 bps decline.

  • A one-time doubtful debt provision of ₹7.914 crores significantly impacted profitability.

  • Q2 FY26 PAT was ₹14.6 crores, about 7% below the prior year quarter.

  • H1 FY26 PAT was ₹27.9 crores, a modest decrease of 4.6% compared to ₹29.3 crores last year.

Key financials

3 periods

Headline

  • Revenue
    ₹214.2 Cr
    YoY +34%
  • EBITDA
    ₹24.56 Cr
    YoY +4%
  • EBITDA Margin
    11.5%
    YoY -3.3%
  • PAT
    ₹14.6 Cr
    YoY -7%
  • Doubtful Debt Provision
    ₹7.914 Cr
  • B2C Revenue (Last Year)
    ₹12 Cr

Q2 YoY

  • Trip Volume Growth
    33.5%
  • Active Client Base Growth
    39%

H1

  • Revenue
    ₹395.3 Cr
    YoY +28%
  • EBITDA
    ₹46.42 Cr
    YoY +4.8%
  • EBITDA Margin
    11.7%
    YoY -2.6%
  • PAT
    ₹27.9 Cr
    YoY -4.6%
  • International Revenue
    ₹4.7 Cr

What they filed

Q1 FY27: revenue up 16.6%, net profit up 15.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue160 168 177 181 214 +34%206 +23%207 +17%211 +17%
EBITDA24 22 26 22 25 +4%23 +5%24 −8%22 +0%
Net profit16 13 18 13 15 −6%14 +8%16 −11%15 +15%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Chauffeured Car Rentals (CCR)
    41% Revenue Contribution (Q2)
  • Employee Transport Services (ETS)
    59% Revenue Contribution (Q2)

Capital allocation

high confidence
  • Capex Capex disclosed
    • Vehicle purchase ₹17 Cr
    • Tech investments ₹1 Cr
    It is mostly vehicle purchase and some tech investments also. Approximately Rs. 1 crores is towards the tech investments and the rest is all vehicle purchase.
  • Liquidity Cash ₹100 Cr Almost Rs. 100 crores cash plus investment, with Rs. 24 crores cash generation in H1.
    And secondly, on the cash and the investments on the balance sheet, we are sitting on almost Rs. 100 crores cash plus investment. What are the plans for this? Are we planning any acquisition? Because this is acting as a drag on our ROE also now and we will continue to be cash accretive. Even in the first half, we have done almost Rs. 24 crores of cash generation.

Guidance & targets

Revenue

  • Top-line growth Revenue · FY26 · Medium confidence 17-20%
    Looking ahead, we expect to maintain top-line growth in the range of around 17% to 20%, supported by margin stability through technology-led efficiencies.

    — Rajesh Loomba

Margin

  • EBITDA Margin Margin · FY26 · Medium confidence 13-15%
    So, this year, we are forecasting between 13% to 15% is what we should manage.

    — Rajesh Loomba

Profitability

  • PAT Level Profitability · Current · Medium confidence 8-10%
    Yes, I would say, currently, we would range anywhere between 8% to 10%.

    — Rajesh Loomba

What to watch in Q3 FY26

EBITDA Margin Restoration

next quarter / FY26
Current 11.47% (Q2 FY26)
Target 13-15%

Why it matters

To confirm that the margin contraction was indeed due to a one-time event and that underlying profitability is stable.

So, this year, we are forecasting between 13% to 15% is what we should manage. And next quarter also, if we see a steady growth, without the one-off, we would see a restoration within that parameter only.

Risks & concerns

  • One-time doubtful debt provision

    high

    A provision of ₹7.914 crores was made for doubtful debts pertaining to previous financial years, impacting current quarter profitability. Management stated it's from one credible client and hopeful of recovery.

    Management acknowledged

  • EBITDA margin contraction

    medium

    Q2 FY26 EBITDA margin declined to 11.47% from 14.79% last year. Management attributed this primarily to the one-time doubtful debt provision, stating underlying margins are essentially in line with last year.

    Management downplayed

  • Competitive intensity and pricing pressure

    low

    Management acknowledged that both ETS and CCR segments are competitive and pricing pressure is cyclical. However, they expressed confidence in their brand and services to maintain margins of 13-15%.

    Both acknowledged

Q&A highlights

7 direct
Contribution of CCR and ETS to revenue Direct
CCR would be around 41% in this quarter and ETS 59%.

Provides a clear breakdown of revenue contribution from the two core business segments.

Asked by Jainam Shah

Conservatism of revenue growth guidance Direct
Yes, so 2H should also go well, with God's grace. And although we maintain our 17% to 20% forecast, yes, we are conservative in our forecast, but we would outperform rather than overpromise.

Management confirms a conservative approach to guidance, suggesting potential for upside.

Asked by Jainam Shah

Nature and impact of the one-time doubtful debt provision Partial
So here, we have only taken a provision from, I would say, a very, very, the client is still very credible. There is not even a dispute. And so that is why we are hopeful of recovering this debt. It is from one client only and from a very credible client.

Clarifies the one-time nature and source of the significant provision, and management's expectation of recovery.

Asked by Pawandeep Bhatia

Explanation of unbilled revenue and its client profile Direct
Unbilled revenues pertain to all our top MNC and top Indian corporates. Why there is an unbilled revenue at the end of every quarter or end of every month is that a billing cycle for the previous month actually gets over between the mid to the end of the next month as we have to first submit all the billing MISS to our clients, they get approved, and then we generate the bills.

Provides insight into the company's billing cycle and the nature of its receivables from large corporate clients.

Asked by Pooja Doshi

Client concentration and contribution from top clients Direct
So, for this quarter, for Q2, the top 25 actually constitutes around 46%.

Quantifies the revenue contribution from the largest clients, indicating a degree of concentration.

Asked by Harshil Bhayani

Impact of IT/GCC hiring slowdown on business growth Direct
We are seeing quite a heavy growth in the GCCs which are opening up. And we are constantly monitoring the market for new GCCs as this is one of the essential services that are required by any organization like that for their employees. So we are seeing a pretty good growth in the GCCs and that is also contributing to our sales.

Addresses a potential macro headwind and management's confidence in mitigating it through GCC growth and unorganized to organized transition.

Asked by Rahul Agarwal

Utilization of cash and plans for acquisitions Direct
We would be looking at investing part of it into, of course, the new fleets that we are adding on. And rest, we are also leaving enough dry gunpowder if we find the right acquisition target which gives an exponential kind of benefit to the organization so that we are ready with the cash to put into it. So, we are constantly looking out for acquisitions also.

Outlines the company's capital allocation strategy, including fleet expansion and potential M&A to drive growth.

Asked by Jigar Jani

Plans for B2C segment expansion Direct
B2C we are already also doing for the premium customers wherein; we have done around Rs. 12 crores last year in the B2C, and we are definitely going to try to better this year. Over and above that, yes, we are launching and working on launching certain website, dynamic website for the bookings and a customer app for our premium customers.

Reveals specific initiatives to grow the B2C segment, which is a new area of focus for the company.

Asked by Jainam Shah

2 min read 6 chapters

Detailed narrative

Strong Top-line Growth Driven by ETS & CCR

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.

Significant Client Expansion and Robust Retention

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.

Profitability Impacted by One-time Doubtful Debt Provision

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.

Strategic Investments in Technology and Fleet Expansion

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.

Conservative Outlook and Future Growth Drivers

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.

Capital Management and Acquisition Focus

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.

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