Wise Travel India bets on fleet expansion to nearly double EBITDA margins in FY27
Revenue surged 51% to ₹826 crore but PAT grew only 26% as accelerated depreciation from 795 new vehicles weighed. Management targets 22-25% EBITDA margin, more than double the 11.9% reported.
What's new
- FY26 revenue ₹826 crore, up 51% YoY; EBITDA ₹99.1 crore, up 67%.
- Owned fleet expanded 65% to 1,932 vehicles, driving ₹47 crore depreciation charge.
- Uber Black partnership: 1,000 vehicles at 80-83% occupancy, 13% EBITDA margin.
Themes from the call
Demand
Corporate urbanization and Fortune 500 client additions drove 51% revenue growth; Dubai operations doubled despite geopolitical dip.
Margins
EBITDA margin improved to 11.9% from 10.7%, but PAT at ₹29 crore grew only 26% due to fleet depreciation and finance costs.
Capital allocation
₹87 crore capex deployed in FY26; FY27 plans for at least 1,000 more vehicles, funded by operating cash flow of ₹52 crore and cash reserves of ₹67 crore.
Guidance watch
- FY27 revenue growth 30-35% — prepared, range, full year consolidated.
- FY27 EBITDA margin 22-25% — more than double the 11.9% reported in FY26.
- FY27 PAT margin 5-7% — versus current PAT of ₹29 crore on ₹826 crore revenue.
- Owned segment EBITDA potential 32-35% once depreciation normalizes — targeted FY27-FY28.
Risk flags
- FY26 depreciation charge of ₹47 crore could persist if fleet utilization or occupancy fails to reach targets.
- Trade receivables at 75 days (₹210 crore) from rapid client acquisition; management expects normalization but timeline uncertain.
- Dubai operations saw 5-10% revenue dip from geopolitical tensions; recovery assumed but not guaranteed.
- Uber Black partnership currently at 13% EBITDA margin; 85% occupancy target is key for profitability.
Key quotes
-
"For our owned cars, the EBITDA will be higher, close to 32-35%. However, there is depreciation and interest cost, so at the PAT level, it will be around 7% to 8% for the owned category."
— Ashok Vashist, Management -
"Very positive profit results expected FY27 as occupancy climbs toward 85% target and early-stage costs amortize."
— Management on Uber Black
The brief
Wise Travel India closed FY26 with revenue of ₹826 crore, up 51%, and EBITDA of ₹99.1 crore, up 67%. The headline looks like a breakout year. Yet PAT grew only 26% to ₹29 crore. The difference is the fleet. The company added 795 vehicles to its owned fleet, taking the total to 1,932. That capex of ₹87 crore created a ₹47 crore depreciation charge under the 40% WDV method, compressing PAT growth despite strong EBITDA.
Management's FY27 guidance is ambitious. Revenue growth of 30-35% is consistent with the pace, but the margin target is a leap: EBITDA margin of 22-25%, more than double the 11.9% reported. The owned segment alone is expected to deliver 32-35% EBITDA margins once depreciation and finance costs normalize through volume. The Uber Black partnership, with 1,000 vehicles at 80-83% occupancy, currently generates 13% EBITDA margins. Management sees that climbing to 'very positive' profit as occupancy hits 85%.
The bridge assumes the FY26 fleet cohort's depreciation burden rolls off sharply in year two and that utilization at Uber Black and corporate accounts improves. That is plausible but tight. Working capital is also elevated. Receivables stand at ₹210 crore, or 75 days of sales, driven by rapid onboarding of Fortune 500 clients with 150-180 day initial cycles. Management expects normalization as those contracts mature.
Dubai provided a buffer, doubling revenue to ₹27 crore despite a 5-10% geopolitical dip in April-May. The 400-vehicle fleet recovered to 85-90% utilization, and the target is 3,000 vehicles across UAE by 2030. That is a long-term ambition, not a near-term profit driver.
Wise Travel's growth story is real, but the margin target requires a lot to go right. Depreciation roll-off, fleet utilization, receivable compression: all three must cooperate. If they do, FY27 could be the year the EBITDA margin breaks out. If one slips, the gap between EBITDA and PAT will stay wide.
Wise Travel's guidance implies a step-change in margins. The numbers say it's possible on paper. The execution will say whether it's real.