Financial Performance

Revenue: ₹2,113.72 million for Q1 FY27, representing 16.7% year-on-year growth and 2.2% sequential growth from Q4 FY26.

EBITDA: ₹218.47 million for Q1 FY27, compared to ₹219.18 million in Q1 FY26 and ₹241.53 million in Q4 FY26.

EBITDA Margin: 10.3% for Q1 FY27, down from 12.0% in Q1 FY26 and 11.7% in Q4 FY26. Management revised FY27 EBITDA margin guidance to approximately 10% from previous 11-13% range.

Profit Before Tax: ₹194.04 million for Q1 FY27, compared to ₹186.68 million in Q1 FY26.

Profit After Tax: ₹145.50 million for Q1 FY27, compared to ₹132.87 million in Q1 FY26.

Employee Costs: ₹237.63 million, up 21.9% year-on-year. Company expects employee costs to grow by around 20% for FY27.

Other Expenses: ₹70.32 million, reduced from ₹81.54 million in Q1 FY26 due to non-recurrence of one-time provision for doubtful debts.

Cost of Services: Increased 20.7% year-on-year.

Operational Metrics

Business Mix: ETS (Employee Transportation Services) contributed 59% of revenue, CCR (Chauffeur Driven Car Rentals) contributed 41%.

Trip Volume: Completed approximately 1.48 million trips during the quarter, up 27% year-on-year and nearly 7% sequentially.

Client Base: Added 61 new clients during Q1 FY27 compared to 53 in Q1 FY26. Active client base stood at 1,400 enterprise organizations, representing 18% year-on-year growth. 51% of revenue comes from customers with relationships exceeding five years.

Geographic Presence: Expanded to 151 cities in India (adding 20 new cities during quarter) and international network covering 100+ countries.

Fleet Capacity: Owned and vendor-operated vehicle network stood at approximately 19,500 vehicles as of June 30, 2026. EV fleet increased to 460 vehicles from 390 at end of Q4 FY26.

Capital Structure and Cash Position

Cash and Investments: ₹1,558 million as of June 30, 2026.

Dividend: Board recommended final dividend of ₹2.38 per equity share for FY26, subject to shareholder approval at upcoming AGM.

Strategic Developments

Technology Upgrades: Completed major upgrade of proprietary technology platform in Q1 FY27 to enhance scalability, operating efficiency, and customer experience. Launched direct web booking portal in Q4 FY26.

Partnerships: SIXT partnership progressing as planned, building distribution across corporate and leisure customer channels.

New Initiatives: Planning to launch B2C app in current quarter to address growing B2C demand for premium CCR services.

Event Management: Added event management capabilities to articles of association to address customer requirements, though management indicated this is not material.

Management Commentary

Competitive Environment: Significant pricing pressure in ETS segment, more intense than anticipated. Company has set internal pricing thresholds below which it will not pursue business.

Cost Efficiency Measures: Implementing technology automation, vendor negotiation strategies, and operational improvements to maintain margins. New technology platform expected to deliver productivity benefits once transition completes in current quarter.

Growth Strategy: Focus on adding high-quality enterprise relationships, increasing share of wallet with existing customers, geographic expansion with clear business case, and technology-driven efficiency improvements.

M&A Activity: Onboarded senior professional in strategic finance to evaluate acquisition opportunities. Company is considering inorganic growth opportunities given strong cash position.

Analyst Q&A Highlights

Margin Pressure: Primary driver is competitive pricing pressure in ETS segment, particularly from new market entrants. Gross margins declined due to price reductions to win business.

Client Retention: No major client losses to competition during quarter.

Fleet Utilization: Daily utilization of 10,000-11,000 vehicles out of 19,500 vehicle network capacity.

Online Bookings: 14% of bookings came through online platforms, consistent with previous quarter.

B2C App Expectations: Initial focus on addressing premium car rental market in India, with meaningful targets expected from next fiscal year.