Zelio E-Mobility Ltd's stock surged 4.30% to an intraday high of ₹370.00 following the announcement of strong Q3 FY26 financial results. The electric vehicle manufacturer reported significant revenue growth and capacity expansion, reinforcing its position in India's evolving EV ecosystem.

Strong Q3 FY26 Financial Performance

The company delivered robust financial results for Q3 FY26, demonstrating sustained momentum across its business segments.

The sequential revenue growth from ₹49.50 crores in Q1 FY26 to ₹83.80 crores in Q2 FY26 and further to ₹91.60 crores in Q3 FY26 reflects sustained demand across all business segments.

Manufacturing Capacity Expansion

Zelio E-Mobility significantly expanded its operational capabilities during the quarter, positioning itself for future growth.

Festive Season Performance

The company achieved exceptional results during the 45-day Diwali festive season, highlighting strong market demand for its products.

Expansion Strategy and Future Outlook

Zelio E-Mobility outlined its strategic expansion plans with new manufacturing facilities coming online in the near term.

The company expects capacity optimization initiatives to yield operational benefits from February 2026 with minimal incremental capital expenditure. Management projects FY26 turnover to exceed ₹260.00 crores, representing over 51% growth compared to FY25.

Business Overview and Market Position

Zelio E-Mobility operates as an Indian electric vehicle manufacturer specializing in electric two-wheelers and three-wheelers. The company focuses on stylish slow-speed electric scooters and rugged electric three-wheelers tailored for Tier-2 and Tier-3 markets. Ace investor Mukul Agarwal holds a 2% stake in the company since Q2 FY26.

The company ranks among the top three players in the slow-speed EV two-wheeler segment, having sold over 70,000 units in the last three years and capturing a 4-5% market share. With a robust 2-year Profit CAGR of 124% and Sales CAGR of 84%, Zelio E-Mobility continues to strengthen its position in India's electric mobility sector.

Zelio E-Mobility has announced a substantial expansion of its manufacturing capabilities, marking a significant milestone in the company's operational growth trajectory. The electric mobility manufacturer has successfully increased its production capacity by 70.00%, positioning itself for enhanced market presence and revenue generation.

Production Capacity Enhancement

The capacity expansion has elevated the company's annual production capability to over 1.1 lakh units, representing a major scaling of manufacturing operations. This substantial increase in production capacity demonstrates the company's commitment to meeting growing market demand and expanding its operational footprint in the electric mobility sector.

Future Utilization Projections

Management has projected achieving 85.00% capacity utilization by FY25-26, indicating strong confidence in market demand and operational efficiency. This utilization target suggests the company anticipates robust demand for its products and expects to effectively leverage the expanded manufacturing infrastructure.

Strategic Implications

The 70.00% capacity expansion reflects Zelio E-Mobility's strategic focus on scaling operations to capitalize on opportunities in the electric mobility market. The enhanced production capability positions the company to serve a larger customer base and potentially increase market share. The substantial investment in manufacturing capacity indicates management's positive outlook on business prospects and market growth potential.

The combination of increased production capacity and projected high utilization rates suggests the company is well-positioned to achieve improved operational performance and revenue growth in the coming fiscal years.