Can this Mukul Agrawal stock be able compete with Ola Electric and Ather?

SYNOPSIS: Zelio E-Mobility, among India’s top three slow-speed EV players, reported a 3x revenue growth since FY23 and remains profitable, positioning itself as a strong challenger to Ola Electric and Ather Energy.

One of India’s fastest-growing electric mobility companies, manufacturing and supplying stylish slow-speed two-wheelers (e-2Ws) and rugged three-wheelers (e-3Ws) for India’s evolving transportation needs – making it a company to watch in India’s expanding EV landscape.

We are talking about Zelio E-Mobility Limited, one of the top three players in the slow-speed EV 2W Industry, having achieved 3x revenue growth since FY23 (CAGR of 84 percent). Notably, Zelio stands out as one of the few EV companies in India to remain profitable since inception, delivering a PAT CAGR of nearly 124 percent over the same period.

The company is engaged in manufacturing, assembling, and supplying electric vehicles across multiple designs, colours, and speed variants. Its products are marketed under the brand names “Zelio” for electric e-2Ws and “Tanga” for e-3Ws. Both product lines are built with a focus on sustainability, lower emissions, reduced noise, and long-term energy efficiency.

Zelio launched its first range of electric scooters in FY22 and today operates through a growing network of exclusive and non-exclusive dealers across urban, semi-urban, and rural markets, ensuring its EVs reach every corner of the country.

Stock Performance

Zelio E-Mobility debuted on the BSE SME platform on October 8th 2025 at Rs. 154.9 apiece, marking a 13.8 percent premium over the IPO price of Rs. 136. The Rs. 78 crore IPO closed with a moderate investor interest and no visible traction in the grey market, with  grey market premium (GMP) standing at Rs 0, suggesting muted listing expectations and a cautious stance from investors.

During Friday’s trading session, the stock was trading in the red at Rs. 255.10 on BSE, down by around 3.59 percent, as against its previous closing price of Rs. 264.60, with a market cap of Rs. 539.54 crores.

As per the September 2025 shareholding data, the ace investor Mukul Mahavir Agrawal holds a 2 percent stake in Zelio E-Mobility Limited.

Present Competitors

As of October 2025, Zelio has emerged as a profitable outlier in India’s e-2Ws segment, setting itself apart from larger peers such as Ola Electric and Ather Energy, which continue to report operating and net losses. With a market capitalisation of Rs. 539 crore, revenue of Rs. 172 crore, EBITDA of Rs. 21 crore, and a net profit of Rs. 16 crore, Zelio maintains strong growth momentum and resilient margins.

In contrast, Ola Electric reported Rs. 4,514 crore in revenue with EBITDA and PAT losses of Rs. 1,735 crore and Rs. 2,276 crore, respectively, with a market cap of Rs. 23,342 crores, while Ather Energy recorded Rs. 2,255 crore in revenue with losses of Rs. 581 crore (EBITDA) and Rs. 812 crore (PAT), with a market cap of Rs. 26,841 crores.

Despite its smaller scale, Zelio stands out with profitability and operational efficiency, trading at a P/S multiple of just 2x – significantly lower than Ola’s 5x and Ather’s 10x. This positions Zelio as a compelling value proposition, combining profitability, scalability, and affordability at a fraction of the valuation of its larger, loss-making competitors.

Growth Outlook

The company aims to establish itself as a leading brand in India’s slow-speed e-2Ws segment, offering reliable, high-quality vehicles supported by a strong after-sales network. Its products are designed to cater to housewives, students, and senior citizens across Tier-2 and Tier-3 cities, promoting accessible, license-free, and registration-free mobility solutions that align with the goals of economic inclusion and sustainable transportation.

In line with the Aatmanirbhar Bharat initiative, it continues to strengthen its domestic manufacturing base, enhance supply chain localisation, and contribute to employment generation through innovation-led growth.

From a strategic standpoint, the company’s dealer network has expanded more than threefold since FY21, increasing from 94 outlets to over 337. Regular onboarding drives are conducted to align network expansion with market demand, with a strong focus on Tier-2, Tier-3, and emerging EV markets. 

Looking ahead, the company targets a presence in every major district of India with over 500 dealers by FY27, supported by dealer-centric digital platforms aimed at improving operational efficiency and partner engagement.

Government Initiatives

The Government of India has reaffirmed its commitment to promoting electric mobility, with a target of achieving 30 percent electric vehicle (EV) penetration by 2030.

Under FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles), which commenced on April 1, 2019, the government allocated a total budgetary support of $1.43 billion (Rs. 10,000 crore). The scheme mandates that 30 percent of procurement under the program should come from small and medium enterprises (SMEs), ensuring broader participation in India’s EV manufacturing ecosystem.

In addition, the Union Budget announced customs duty exemptions on the import of capital goods and machinery used for the manufacture of lithium-ion batteries, aimed at reducing production costs and encouraging local assembly.

The recently launched Electric Mobility Promotion Scheme further strengthens this push, supporting 3,72,215 EVs, including 3,33,387 e-2Ws and 38,828 e-3Ws – comprising 13,590 e-rickshaws and e-carts, and 25,238 e-3Ws in the L5 category. The scheme provides incentives exclusively for vehicles equipped with advanced batteries, promoting innovation and adoption of energy-efficient technologies.

Financial Performance

In FY25, Zelio reported a revenue from operations of Rs. 172 crores, a significant growth of around 83 percent YoY from Rs. 94 crores in FY24. During the same period, the company’s net profit for the year stood at Rs. 16 crores, representing an impressive rise of more than 166 percent YoY from Rs. 6 crores.

In FY25, Zelio reported a total revenue of Rs. 172.2 crore, with the E-2W segment contributing the majority share at Rs. 166.2 crore (96.53 percent). The 3W segment accounted for Rs. 3.22 crore (1.87 percent), while other products, including batteries, spare parts, and accessories, contributed Rs. 2.7 crore (1.60 percent) to the overall revenue.

In FY25, the company reported a Return on Equity (RoE) of 85.75 percent, compared to 83.99 percent in FY24, indicating a marginal improvement in shareholder returns. Similarly, the Return on Capital Employed (RoCE) increased to 36.86 percent in FY25 from 34.84 percent in FY24, demonstrating enhanced efficiency in capital utilisation and sustained profitability momentum.

Written by Shivani Singh

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