Wise Travel aims for 22-25% EBITDA margin in FY27 from 11.9%
Revenue rose 51% to ₹826 cr in FY26, but ₹47 cr depreciation cut PAT growth to 26%. Management sees fleet maturation driving margins higher next year.
What's new
- Revenue grew 51% to ₹826 cr, but PAT only 26% due to ₹47 cr depreciation.
- Management guides 30-35% revenue growth and 22-25% EBITDA margin in FY27.
- Uber Black to add 1,000 more vehicles; Dubai revenue nearly doubled to ₹27 cr.
Why this matters
The guidance implies a near-doubling of EBITDA margins, rare for a fleet-heavy business. If executed, it would transform profitability, but ₹210 cr in receivables (75 days) signals working capital strain.
What we're watching
- Whether margin improvement materialises as the fleet matures.
- Uber Black expansion pace and occupancy trends.
- Dubai scale-up towards 3,000 vehicles by 2030.
The full read
Wise Travel India closed FY26 with ₹826 cr revenue (up 51%) and ₹99 cr EBITDA (67% growth), but ₹47 cr in depreciation from a fleet expansion to 1,932 vehicles restrained PAT to ₹29 cr (up 26%). The depreciation hit is the cost of growth. Now that the fleet is in place, management expects depreciation to ease and margins to expand as utilisation rises. The FY27 guidance is bold: 30-35% revenue growth and an EBITDA margin of 22-25%, nearly double the 11.9% reported. The Uber Black segment, with 1,000 vehicles at 80-83% occupancy and a 13% margin, is the template. Plans call for another 1,000 vehicles in FY27. Dubai nearly doubled revenue to ₹27 cr and targets 3,000 vehicles by 2030. The warning flag: trade receivables of ₹210 cr equal 75 days of sales, though the company expects to bring it down to 60 days. For a ₹248 cr market cap, the margin target is a steep climb. Execution will need to be near-flawless.
Questions answered
- Why did PAT grow only 26% despite 51% revenue growth?
- Depreciation of ₹47 cr from rapid fleet expansion to 1,932 vehicles weighed on the bottom line. Management expects depreciation to ease as the fleet ages.
- How does Wise plan to lift EBITDA margin from 11.9% to 22-25%?
- Through higher utilisation and lower depreciation as the owned fleet matures. The Uber Black segment already delivers a 13% margin at 80-83% occupancy.
- What is the Uber Black partnership and how profitable is it?
- Wise operates 1,000 vehicles under Uber Black with 80-83% occupancy and a 13% EBITDA margin. It plans to add another 1,000 vehicles in FY27.
- How large is the Dubai business?
- Dubai operations nearly doubled revenue to ₹27 cr in FY26. Management targets 3,000 vehicles across the UAE by 2030.
- Why are trade receivables so high?
- Receivables stood at ₹210 cr, equivalent to 75 days of sales, due to rapid client onboarding. Management expects normalisation to 60 days.