Ecos (India) Mobility & Hospitality Limited — Q4 FY25 earnings call

Call held 19 May 2025

Management summary

Ecos (India) Mobility & Hospitality Limited delivered robust financial results for Q4 and FY25, with significant revenue growth of 19% and 18% respectively. The company expanded its client base by 188 new clients, leading to a 25% increase in total trips. Despite competitive pressures, Ecos maintained stable EBITDA margins and demonstrated strong capital management, culminating in a recommended final dividend of ₹2.5 per share.

Highlights

  • Q4 FY25 revenue from operations increased by 19% YoY to ₹177.24 crores, driven by increased wallet share and new client acquisitions.

  • FY25 revenue from operations reached ₹653.96 crores, reflecting an 18% increase YoY, highlighting strong core business expansion.

  • The company onboarded 188 new clients in FY25, leading to a 25% increase in total trips to 3.88 million, including Fortune 500 and multinational companies.

  • Maintained a stable EBITDA margin of approximately 15% in Q4 FY25 despite rising competition, with FY25 EBITDA at ₹92.32 crores.

  • A final dividend of ₹2.5 per equity share for FY25 was recommended, representing almost 25% of PAT, demonstrating commitment to shareholder returns.

Concerns

  • Rising competition in the market is putting pressure on margins, though management stated they are maintaining stable EBITDA margins.

  • EBITDA growth for FY25 was 2.65% YoY (₹92.32 crores vs ₹90.00 crores), lower than revenue growth, indicating some margin compression over the full year.

Key financials

2 periods

Q4 FY25

  • Revenue from Operations
    ₹177.24 Cr
    YoY +19%
  • EBITDA
    ₹26.47 Cr
    YoY +19.3%
  • EBITDA Margin
    15%

FY25

  • Revenue from Operations
    ₹653.96 Cr
    YoY +18%
  • EBITDA
    ₹92.32 Cr
    YoY +2.6%
  • Cash Balance
    ₹116.1 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.

Capital allocation

high confidence
  • Capex ₹30 Cr internal accruals/cash
    • Adding 250-300 new cars
    • Retiring 150-200 older cars
    • Opportunistic investments in own cars
    Average, I would say around Rs. 35 to Rs. 50 crores depending upon, so lot of our CAPEX is also opportunistic in terms of if some really good opportunity comes in where we feel that it makes sense to invest in our own cars, then we will not shy away from that. So which is why we, of course, we have this good pile of cash like that instead of debt so that we are able and act fast on taking advantage of any opportunities that arise.
  • Debt Debt disclosed
    company itself funded with minimum external finance and low working capital requirement. ... good pile of cash like that instead of debt
  • Dividend ₹2.5/share (final) Payout ratio 25%
    We have achieved the Board of Directors and its meeting held today has considered and recommended a final dividend of 2.5 per equity share for the Financial Year ended March 31st 2025. Of course, this final dividend is subject to approval of the shareholders at the ensuing AGM of the company.
  • Liquidity Cash ₹116.1 Cr Cash balance including investment stood at Rs. 1,161 million (₹116.1 crores) as of Financial Year '25, which will be reinvested into business to deepen market penetration and enhance client service.
    As of Financial Year '25, the cash balance including investment stood at Rs. 1,161 million which will reinvest it into business to deepen market penetration and enhance client service.

Guidance & targets

Revenue

  • Overall Revenue Growth Revenue · next 2 years · Medium confidence 15-18%
    So as you are aware, we cannot be giving out future earnings and forward earnings and all. But yes, continuing the same pattern, we would look at anywhere between a 15% to 18% growth and in between the 13% to 15% EBITDA margins is what we are hopeful of.

    — Rajesh Loomba

Margin

  • EBITDA Margin Margin · next 2 years · Medium confidence 13-15%
    So as you are aware, we cannot be giving out future earnings and forward earnings and all. But yes, continuing the same pattern, we would look at anywhere between a 15% to 18% growth and in between the 13% to 15% EBITDA margins is what we are hopeful of.

    — Rajesh Loomba

Fleet

  • New Car Additions Fleet · this year (FY26) · High confidence 250-300 cars
    We are looking to add between 250 to 300 new cars, but we also are looking to retire around 150 to 200 cars.

    — Rajesh Loomba

  • Car Retirements Fleet · this year (FY26) · High confidence 150-200 cars

    — Rajesh Loomba

International Business

  • International Business Growth International Business · this year (FY26) · Medium confidence 60-70%
    Okay. And we see this business growing at the same pace, like at 60%, 70%.

    — Rajesh Loomba

Segment Mix

  • CCR Contribution to Business Segment Mix · end of next quarter · Medium confidence 50-50 (ideal), potentially 55%

    From 45% today

    So 50-50 is the ideal. So like last quarter, CCR was 45%. And maybe end of next quarter, CCR could be even for 55%.

    — Rajesh Loomba

What to watch in Q1 FY26

CCR Contribution to Business

next quarter
Current 45% (Q4 FY25)
Target 50-55%

Why it matters

Tracking the shift towards higher-margin CCR business is crucial for overall profitability improvement.

So 50-50 is the ideal. So like last quarter, CCR was 45%. And maybe end of next quarter, CCR could be even for 55%.

Risks & concerns

  • Rising competition and pricing pressure

    medium

    Rising competition is putting pressure on margins, though the company managed to maintain stable EBITDA margins. Pricing pressures are a factor in guidance conservatism.

    Management acknowledged

  • EV infrastructure and product maturity

    low

    Demand for EVs has cooled off due to lack of charging infrastructure and product maturity, leading to cautious scaling of EV fleet.

    Management acknowledged

Q&A highlights

6 direct
Client additions breakdown and growth regions Direct
We have seen almost equal growth in almost all the regions. But yes, Bangalore, we have seen a little higher growth than the others. Besides that, we have also seen growth in Chennai. And if you look at just as a percentage wise, yes, Coimbatore has seen a very good growth because we started some big operations in Coimbatore. So yes, the South has seen a higher growth.

Clarifies the nature of new client additions (both CCR and ETS) and identifies key geographic growth drivers, particularly in South India.

Asked by Vaidik from Monarch Networth Capital

EBITDA margin improvement and CCR contribution Direct
We have seen in the last few quarters, wherein our proportion of CCR business has risen from 37% in the first quarter to 45% in the last quarter. And of course, which also helps us improve the margins etc.

Explains the drivers behind the improved EBITDA margins, attributing it to the increasing contribution of the higher-margin CCR business and easing competitive pressures.

Asked by Aman from Incred Capital

Applicability of gig worker pension norms Direct
We would comply with any law of the land that would come in. As far as I know, we are not a gig platform in anyway and where we have one-to-one contracts with our vendors who provide us the services in full.

Addresses a potential regulatory risk regarding gig worker benefits, clarifying that the company's vendor model does not fall under these norms, thus avoiding additional costs.

Asked by Jigar Jani from Nuvama Wealth Research

Utilization of cash balance and M&A plans Partial
Of course, one is that we have declared a dividend, which is almost 25% of, we can recommend a dividend, which is almost 25% of the PAT. But beyond that, yes, we believe that we need to be patient and there will be opportunities that would come, which would offer a lot of value to us as a business in terms of the synergies and also for our shareholders in terms of the value that we can acquire them. So yes, we are keeping our eyes open and looking out.

Indicates management's strategy for deploying its significant cash reserves, including dividends and a proactive stance on potential inorganic acquisitions, signaling future growth avenues.

Asked by Jigar Jani from Nuvama Wealth Research

EV fleet demand and scaling strategy Direct
EVs, there was maybe a year back, let's say a demand for EVs, but it's cooled off now once, you know, it's pretty apparent that EVs is not something that solves all the problems. But at the same time, we are cautiously scaling up our EVs, seeing the infrastructure improvement in the EV ecosystem, especially the charging infrastructure, and maturity in terms of the products, and that is the cars that we are buying. Definitely our scale-up would happen only as per the availability of charging and the availability of good products in the market in terms of the cars.

Provides insight into the company's cautious approach to EV adoption, highlighting the current challenges with infrastructure and product maturity, which impacts their fleet strategy.

Asked by Pranay Agarwal

Conservatism in revenue growth guidance Direct
Not just there may be pricing pressure, but we still see a lot of growth in that same market and pricing pressures come and go. But I think 15% to 18% is fair guidance. Of course, the way we are pushing our people and the team is working on it. We hope to exceed all the targets. But as far as our investors are concerned, I would not want to give more than this kind of guidance so that we do not end up in a situation where we are unable to meet expectations.

Explains the rationale behind the 15-18% revenue growth guidance, indicating a balance between market potential and a conservative approach to setting investor expectations, acknowledging potential pricing pressures.

Asked by Jigar Jani from Nuvama Wealth Research

Strategy for international business growth Direct
We are targeting all the major business gateway cities across the world, which is in the Middle East, Europe, USA, Southeast Asia. So all these countries where typically our clients travel to is what we target.

Outlines the company's specific geographic focus for expanding its international business, indicating a clear strategy for capturing global mobility opportunities.

Asked by Aman from Incred Capital

2 min read 6 chapters

Detailed narrative

Robust Financial Performance in Q4 and FY25

Ecos (India) Mobility & Hospitality Limited reported strong financial results for Q4 FY25, with revenue from operations growing 19% YoY to ₹177.24 crores and EBITDA increasing by 19.33% YoY to ₹26.47 crores. For the full fiscal year 2025, revenue from operations reached ₹653.96 crores, an 18% increase over FY24. FY25 EBITDA stood at ₹92.32 crores, reflecting a 2.65% YoY growth, with the company maintaining a stable 15% EBITDA margin in Q4 despite competitive pressures.

Significant Client Acquisition and Operational Expansion

The company successfully onboarded 188 new clients in FY25, a strong validation of its brand credibility. This led to a 25% increase in total trips, reaching 3.88 million in FY25. New client acquisitions included Fortune 500 companies and large multinational Indian companies. Ecos Mobility's services now cater to top-tier enterprises across 109 cities in India and over 30 countries globally, with a focus on corporate car rentals and employee transportation services.

Strategic Emphasis on Technology and Market Organization

Ecos Mobility is committed to technology, currently implementing the latest version of its software to enhance efficiencies, improve customer experience, and deepen client penetration. The company aims to lead the transformation of the fragmented and unorganized corporate mobility market in India into an organized, tech-enabled, and client-centric ecosystem. Technology serves as a key differentiator for client retention and long-term enterprise partnerships, particularly in the chauffeured car rental division.

Capital Allocation and Shareholder Returns

The company operates with minimal external finance and low working capital requirements, funding its growth through internal cash flows. As of FY25, the cash balance including investments stood at ₹116.1 crores, which will be reinvested into the business. The Board of Directors recommended a final dividend of ₹2.5 per equity share for FY25, representing almost 25% of the PAT. Annual CAPEX is projected to be around ₹30-50 crores for FY26, primarily for adding 250-300 new cars and retiring 150-200 older vehicles.

Segmental and Geographic Growth Drivers

Both employee transportation and chauffeured car rentals maintained strong momentum, driven by new client acquisitions and increased wallet share. The contribution of the higher-margin Corporate Car Rental (CCR) business increased from 37% in Q1 FY25 to 45% in Q4 FY25, positively impacting margins. Geographically, the South region, particularly Bangalore, Chennai, and Coimbatore, showed higher growth. The international business also grew from ₹5 crores in FY24 to approximately ₹9 crores in FY25, with targets for 60-70% growth in FY26 across major business gateway cities globally.

Vendor Management and Fleet Strategy

Ecos Mobility manages a fleet of approximately 14,000 active cars, with 841 owned as of March 31, 2025. While vendors are not forced into exclusivity, high stickiness is observed due to fair business practices. The company employs a strict onboarding process for vendors, including background checks, police verifications, and driver training. Demand for EV fleets has cooled off, and Ecos is cautiously scaling its EV fleet based on charging infrastructure and product maturity.

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