Mukul Agrawal Stock: Can This EV Firm Capture 30% of India’s Low-Speed EV Market?

Synopsis: India’s low-speed EV market is witnessing rapid growth, and Zelio E-Mobility is emerging as a key player. Backed by strong financial growth, aggressive capacity expansion, rising dealer additions and increasing investor confidence led by Mukul Agrawal, the company aims to capture 20%-30% market share while sustaining robust growth. 

The electric vehicle market in India is currently growing very fast due to favorable policies from the government, a rise in fuel costs and consumer acceptance. Although most of the attention in the industry has been concentrated on the fast electric scooters, there exists a largely untapped market in the low-speed EVs. 

Zelio E-Mobility has recently become one of the fastest-growing companies in the space, growing its revenues from Rs 12.89 crore in FY22 to over Rs 313 crore in FY26 while making profits along the way. The company has aggressively expanded its manufacturing capacities and number of dealerships, and even the management is aiming for 20%-30% market share in the low-speed EVs.

With a market cap of Rs 1,300 crore, the shares of Zelio E-Mobility Ltd are trading at Rs 605 and are trading at a PE of 46 compared to their industry’s PE of 36. The shares have given a return of more than 230% since October 2025.

Ace Investor Mukul Agrawal Increases Stake 

The confidence of the investors in the company has increased by quite an extent in recent quarters. The famous investor Mukul Mahavir Agrawal increased his shareholding in Zelio E-Mobility from 2.00% in September 2025 to 7.25% in March 2026, becoming one of the biggest public investors in the company. 

Further, the book of Motilal Oswal Financial Services bought a 1.65% share in the company. The public shareholding in the company increased dramatically from 12.92% to 25.01%, whereas the promoter holding remained the same at 72.77%.

Building a Rare Profitable EV Business

Unlike many EV startup companies that depend extensively on capital infusions for sustenance, Zelio has succeeded in remaining profitable ever since its inception. The firm has recorded consolidated revenue from operations amounting to Rs 310.71 crore and total revenue amounting to Rs 313.68 crore in FY26, posting a growth rate of close to 81.8% compared to the previous FY revenue of Rs 172.19 crore. 

In the same fiscal year, the firm recorded a marginally positive EBITDA of Rs 38.01 crore at 12.2% and a profit after tax of Rs 28.39 crore at 9.1%. Additionally, the firm has been maintaining a PAT CAGR of approximately 124% since FY23.

The firm’s revenue growth from merely Rs 12.89 crore in FY22 to Rs 313 crore in four years suggests a highly impressive CAGR of revenue growth of approximately 121%. Most importantly, it is notable that the management noted that the company had not incurred a single loss of EBITDA in any fiscal year since inception.

Targeting India’s Overlooked Low-Speed EV Opportunity

While the investment community usually takes into account companies like Ola Electric, Ather, and TVS Motor that are active in the fast-moving market, Zelio has positioned itself in the slow-moving electric vehicle segment.

As per management, the segment of low-speed electric two-wheelers presently constitutes about 8 lakh to 10 lakh units per year and constitutes roughly 40-45% of the total sales of electric two-wheelers in India. The vehicles are priced in the range of Rs 50,000-Rs 75,000 and serve students, homemakers, gig workers and consumers from Tier-2 and Tier-3 cities. 

As these vehicles do not need to be registered or licensed and have no insurance mandated, they have become an extremely cheap mode of transport for a large part of the Indian populace. The management estimates that the segment is growing at a rate of 20-25% per year and is highly under-penetrated.

Can Zelio Capture 20%-30% Market Share?

Market share ambitions were among the key highlights in the conference call. Zelio had sold over 70,000 electric vehicles in FY26 against just about 38,000 units in FY25. Management sees more than 125,000 unit sales in FY27 for Zelio. Given industry growth expectations, it appears that Zelio has the potential to gain more than 10% market share in the near future and ultimately achieve over 20%-30% of market share in India’s low-speed EV space within the next two-three years.

The reason behind such ambitious plans from management lies in the fact that Zelio will be scaling its manufacturing capabilities along with expansion into new geographies and distribution. If these goals can be achieved by the company, then Zelio may well become a market leader in India’s low-speed EV mobility sector.

Aggressive Capacity Expansion Supports Growth 

In anticipation of future requirements, Zelio has gone on a manufacturing spree. The company ramped up its annual manufacturing capacity from 72,000 units to 240,000 units in FY26, a 3.3x increase in a single year. Moreover, the company went from just having one manufacturing facility to having four manufacturing facilities in India.

The Haryana plant, which is the largest, is capable of producing 120,000 units annually, whereas the Odisha facility has an annual capacity of 60,000 units and serves East and Northeast India. Also, two more plants have been set up in Patan and Coimbatore in order to cater to the needs of electric three-wheelers and South India, respectively. The extensive manufacturing capacity of Zelio provides it with enough space for growth over the coming years.

Expanding Distribution and Strengthening Brand Visibility 

Distribution continues to be the most critical aspect of adoption for EVs, particularly in small cities where awareness is still low. Currently, Zelio has over 400 dealerships in more than 25 different states. The company targets an increase in the total number of dealerships to over 550 dealers in FY27. Crucially, about 70% of its dealerships are already exclusive outlets, and management plans to make all dealerships exclusive eventually.

The company was able to boost its brand presence by becoming the official EV sponsor for Punjab Kings in IPL 2026. According to management, this partnership allows the company access to millions of homes with relatively lower costs compared to traditional advertisement campaigns. The company will also incur spending on advertising through Meta promotion worth more than Rs 1 crore in FY27, excluding IPL-related spending.

High-Speed EVs and Three-Wheelers Offer Additional Growth Levers 

Despite low-speed scooters being the key focus, there is some evidence that the company is expanding into adjacent markets. Zelio will roll out two variants of high-speed electric scooters in FY27 along with growing its electric three-wheeler business line. While it sold only 800 three-wheelers in FY26, management is expecting sales to exceed 2,000 units in FY27 due to operations from the Patan plant.

Moreover, management has disclosed that special teams and manufacturing facilities have been set up for the three-wheeler business line so as not to distract attention from its two-wheeler business line because of the expansion into adjacent markets. Such an approach may bring additional sources of income in addition to lower dependence on a particular product category.

Strong Balance Sheet and Increasing Localization 

Another major positive for the company is that it is in sound financial health. According to Zelio’s consolidated figures, the net worth of Zelio was Rs 111.53 crore as of FY26. The debt position is quite manageable, with a debt-to-equity ratio of just 0.18x and a current ratio of 3.4x, which provides ample liquidity to finance further growth.

The other positive factor for the company is the effective tax rate of 17% under section 115BAB, expected to stay for multiple years going forward. Moreover, Zelio is ramping up localisation in order to minimise its reliance on imported components. 

The management believes that by FY27, 5-6 models will be able to reach a localisation level of about 70%-80%. Zelio also acquired Zelio Auto Components in the form of a wholly-owned subsidiary. This can positively impact the company’s margins in the long run.

Conclusion 

Zelio E-Mobility has grown into one of India’s fastest-growing and profitable electric vehicle companies within a short period. It has its business operations in a huge market segment which makes up around 40%-45% of India’s electric two-wheelers.

As far as revenue growth is concerned, the company is growing at an annual rate of more than 80%. Its manufacturing capacity has increased to 240,000 units. Moreover, the addition of dealerships and market share expectations of more than 20%-30% in the low-speed EV segment make it seem that the company is well placed in India’s transition towards e-mobility.

It is further backed by the growing confidence of ace investor Mukul Agrawal and institutional investors. Nevertheless, execution of expansion strategy and consumer demand will decide whether the company succeeds in achieving its market share expectations or not.

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