Ecos (India)

ECOS Mobility reported a robust 17.5% year-on-year growth in revenue from operations, reaching ₹4,767 million for the first nine months of FY25, up from ₹4,054 million in 9M FY24. This growth was primarily fueled by the expansion of its core chauffeur car rentals (CCR) and employee transportation services (ETS) businesses. The company continues to establish itself as a leading provider of corporate mobility solutions in India, catering to over 109 cities and 30 countries globally.

Despite strong revenue growth, the company experienced a decline in profitability. EBITDA for 9M FY25 was ₹659 million, down from ₹678 million in 9M FY24, resulting in an EBITDA margin of 13.83%, a 289 basis point reduction from 16.72% in the prior year. This compression was attributed to increased competition, pricing pressures across all segments, higher operating costs, and approximately ₹2 crores in one-off^📎 expenses related to server hosting, GST input reversals, and events/festivals.

ECOS Mobility successfully added over 130 new clients in the past nine months, including prominent IT MNCs, port logistics providers, global management consultants, financial services firms, private equity firms, and consumer goods companies. Management emphasized their focus on increasing wallet share from existing customers, who showed a 23% year-on-year growth, and leveraging their strong brand and service quality to attract new clients, with new client contributions expected to ramp up towards the end of Q4 FY25.

The company maintains a very strong balance sheet with a negligible debt-to-equity ratio of 0.04% and no intention to take on more debt. Management highlighted a healthy cash position, which they plan to utilize for potential acquisitions and to distribute a good dividend by the end of the current financial year. This conservative financial approach provides flexibility for strategic investments and shareholder returns.

Management expressed a positive outlook for the industry, driven by economic expansion and tourism, and the shift from unorganized to organized players. However, they acknowledged the current volatile industry landscape marked by heightened competition and pricing pressures. The company is actively re-strategizing to improve and increase margins, focusing on operational excellence, brand premiumization, and optimizing purchase prices, while aiming for FY25 top-line growth of 16-17% and EBITDA margins of 13-15%.

While primarily serving the Indian market, ECOS Mobility's international operations are growing, with revenue increasing from ₹5 crores in FY24 to ₹8 crores in the first nine months of FY25. These operations are asset-light and EBITDA positive, serving existing Indian clients who are expanding their global usage and acquiring new international clients. The company's global presence spans Europe, the Middle East, and the US, with the US being a significant contributor.