Shares of Wise Travel India Ltd., which operates under the WTiCabs brand, gained around 6.6 percent after management outlined its growth plans during its FY26 post-results conference call.
The stock traded at around Rs. 105, compared with levels near Rs. 98.50 in previous sessions. The company had a market capitalization of Rs. 250.02 crore and traded at a P/E ratio of 8.54.
FY26 revenue rises 51%
Wise Travel India reported strong top-line growth during FY26.
Financial highlights
- Revenue from operations rose to Rs. 826 crore from Rs. 548 crore, up 51 percent.
- EBITDA increased 67 percent to Rs. 99.1 crore.
- EBITDA margin improved to 11.9 percent from 10.7 percent.
- Profit after tax grew 26 percent to Rs. 29 crore.
- Net worth increased to Rs. 201 crore from Rs. 172 crore.
- Debt-to-equity ratio rose to 0.73, compared with 0.61 a year earlier.
Management said higher depreciation and finance costs arising from fleet expansion restricted profit growth.
Fleet almost doubled during FY26
The company added 795 vehicles during the year and disposed of 89 vehicles.
Its owned fleet expanded from 1,226 vehicles to 1,932 vehicles.
According to management, the fleet is deployed across:
- Around 1,000 vehicles under Uber Black
- About 400 self-drive vehicles in Dubai
- Nearly 500 vehicles servicing corporate customers
The company estimated vehicle yields in the 15-20 percent range before overhead expenses.
Segment margins
Management said:
- Uber Black operations generate EBITDA margins of about 13 percent.
- Airport counter operations deliver margins of 17-18 percent despite paying concession fees to airport operators.
The company’s subsidiary Fleet Pro reported:
- Revenue of Rs. 97.7 crore
- EBITDA of around Rs. 13 crore
However, after accounting for depreciation and finance expenses, the unit reported a loss of around Rs. 0.8 crore.
Management expects profitability to improve as utilization levels rise.
Receivables remain elevated
Trade receivables stood at approximately Rs. 210 crore, against annual revenue of around Rs. 826-832 crore.
Management said higher receivables were mainly due to onboarding of new corporate clients.
According to the company:
- Collection periods for new accounts are usually 150-180 days.
- Mature relationships generally see collection cycles of around 60 days.
The company said most of its customers are Fortune 500 companies.
Management also addressed questions regarding an entity referred to as Aweg or Away, which handles bus operations outside WTI’s core business.
The company said:
- Some legacy customers continue billing through that entity.
- Most of the revenue eventually flows back to WTI.
- Clients are being shifted to direct billing arrangements over time.
FY27 outlook
Management guided for:
FY27 targets
- Revenue growth of 32-35 percent
- Addition of at least 1,000 more vehicles
The company indicated that capital expenditure intensity is likely to remain high.
Dubai expansion plans
The Dubai business reported:
- Revenue of around Rs. 27 crore
- Profit after tax of Rs. 1.28 crore
Management said utilization has recovered to 85-90 percent after temporary disruptions linked to the US-Iran conflict affected demand during April and May.
Long-term plans include:
- Expanding to a fleet of 3,000 vehicles across the UAE within three years
- Exploring entry into Saudi Arabia
- Targeting around Rs. 100 crore in Dubai revenue by FY30
Dividend plans
Management said dividend payouts are possible but are unlikely in the near term due to ongoing investments in fleet expansion.
A dividend may be considered over the next two to three years.
About the company
Founded in 2009-10, Wise Travel India Ltd. provides:
- Corporate mobility services
- Employee transportation
- Car rentals
- Managed fleet solutions
- Government and infrastructure mobility projects
The company operates in more than 130 cities across India.
TL;DR
WTiCabs operator Wise Travel India reported 51% revenue growth and 67% EBITDA growth in FY26. However, aggressive fleet expansion nearly doubled the number of owned vehicles, resulting in higher depreciation and finance costs and limiting profit growth to 26%.
AI summary
- Wise Travel India’s shares rose 6.6% following FY26 results.
- Revenue increased 51% to Rs. 826 crore.
- PAT rose 26% to Rs. 29 crore due to higher fleet-related costs.
- The company expanded its owned fleet to 1,932 vehicles.
- Management expects 32-35% revenue growth and another 1,000 vehicle additions in FY27.
