Detailed Narrative
Strong Financial Performance and Growth Drivers
Wise Travel India Limited reported robust financial performance for FY26, with consolidated revenues from operations increasing by 51% year-on-year to ₹826 crores from ₹548 crores. Total income also saw a significant jump to ₹832 crores. EBITDA grew by an impressive 67% to ₹99.1 crores from ₹59.5 crores, leading to an improvement in EBITDA margins from 10.7% to 11.9%. Profit after tax (PAT) increased by 26% to ₹29 crores, despite higher depreciation and finance costs associated with fleet expansion.
Fleet Expansion and Asset Strategy
The company's own fleet expanded substantially, growing from 1226 vehicles to 1932 vehicles in FY26, with a net addition of 795 vehicles after disposing of 89. This investment, including ₹87 crores in fixed assets, was made to support future growth and enhance service quality. Management plans to add at least another 1000 cars in FY27. While this strategy has led to increased depreciation and finance costs, the company believes these costs have peaked, and asset utilization is a key focus for improving profitability.
Segmental Performance and Margins
Wise Travel operates across multiple verticals: Car Rental (CRD) contributed 20% of revenue, Employee Transportation (ETS) 26%, Managed Service Provider 18%, Airport Business 5%, Long-term Rental 16%, Uber Black 12%, and Dubai Business 3.25%. Uber Black currently has an EBITDA margin of 13%, with a target to reach 30-35% as operations stabilize. The Airport business, despite high rental costs (30-35% of revenue), achieves an EBITDA margin of 17-18% due to high visibility. The aggregated business is expected to yield 25% EBITDA, while owned cars are targeted for 30-35% EBITDA.
Working Capital and Receivables Management
Operating cash flows saw a significant improvement, reaching ₹52 crores in FY26 from near break-even in FY25. However, trade receivables remain high at ₹210 crores against ₹800 crores of revenue. Management acknowledged that new accounts typically have a longer collection cycle of 150-180 days, which streamlines to about 60 days once established. The company is actively working to improve this trend and is selective about client agreements, primarily focusing on Fortune 500 companies.
International Expansion in Dubai
The Dubai subsidiary, WTI Tech Car LLC, saw its revenue almost double to ₹27 crores in FY26, generating a PAT of ₹1.28 crores. The deployed fleet in Dubai is around 400 vehicles. While the US-Iran conflict caused a temporary 5-10% drop in car rental business in April and May, June showed signs of revival. The company aims to expand its Dubai fleet to a minimum of 3,000 vehicles in the next three years and targets over ₹100 crores in revenue from Dubai by 2030.
Competitive Landscape and EV Strategy
Wise Travel maintains its position as the largest mobility company in the B2B space in India. When questioned about new competitors like VinFast and Bharat Taxi, management expressed confidence in their service quality and market leadership, stating that new entrants have limited scale. The company has over 400 EVs on its balance sheet, acknowledging that while EVs are not yet positively contributing to profitability, they are a necessary investment for future sustainability and market demand.