Yulu Bikes Financial Performance and Expansion Plans
Yulu Bikes, an electric mobility startup, has successfully narrowed its losses by 23% to Rs 96.6 crore for the fiscal year ending March 2026. This positive trend is attributed to a significant increase in revenue generated from its electric vehicle rental operations, with overall expenses rising at a slower rate compared to revenue.
Revenue Growth in Electric Vehicle Rentals
The company’s revenue from operations saw an 18.6% rise, reaching Rs 281 crore in FY26, up from Rs 237 crore in FY25, as detailed in its consolidated financial statements. Income from electric vehicle rentals, Yulu’s primary revenue source, surged by 30.3% to Rs 262 crore from Rs 201 crore, representing over 93% of the total operating revenue for the fiscal year ending March 2026.
Other Revenue Streams
However, revenue from goods sales dropped sharply, declining by 59.3% to Rs 9.2 crore, while manpower services plummeted by 57% to Rs 5.7 crore, down from Rs 13.2 crore. On a more positive note, delivery services revenue increased remarkably, rising over 22 times to Rs 2.6 crore. Additionally, income from franchisees grew by 122.2%, climbing to Rs 80 lakh from Rs 36 lakh.
Cost Management and Efficiency
Yulu’s employee benefit expenses, which represent the largest cost category, climbed by 6.8%, increasing to Rs 94 crore in FY26 from Rs 88 crore in FY25. Conversely, costs associated with battery-as-a-service rose by 3.6% to Rs 87 crore, while depreciation expenses experienced a slight reduction of 1.5% to Rs 65 crore. Finance costs also witnessed a significant increase of 40.9%, reaching Rs 15.5 crore, while the cost of materials consumed dropped by 60% to Rs 8 crore. The expenses for technology and infrastructure experienced an increase of 11.6%, amounting to Rs 15 crore.
Total Expenses Overview
Overall, Yulu’s total expenses climbed by 7.4% to Rs 377 crore in FY26, up from Rs 351 crore in the previous fiscal year. The company’s losses reduced by 23% to Rs 97 crore in FY26 compared to Rs 126 crore in FY25. This enhanced operating efficiency is evidenced by a decrease in expenses incurred to generate each rupee of operating revenue, falling to Rs 1.34 from Rs 1.48 in the previous year.
Financial Indicators
The EBITDA margin improved to -5.89% in FY26 from -15.41% in FY25, while the return on capital employed (ROCE) recorded a decline to -119.29%, as compared to -27.26% a year earlier. Furthermore, Yulu’s cash and bank balance grew to Rs 11.51 crore from Rs 9.65 crore, alongside a rise in total current assets, which increased to Rs 152 crore from Rs 102 crore.
Future Expansion Plans
This financial performance is particularly notable as Yulu aims to expand its electric two-wheeler rental network. The company successfully raised $93 million in August 2026 and currently operates a fleet of approximately 50,000 vehicles. Plans are in place to expand to about 20 cities over the upcoming year, with a target of increasing its fleet to 200,000 electric vehicles by 2028.
Infrastructure and Cost Management
The expansion will necessitate scaling both the fleet and the supporting infrastructure, including battery services, while effectively managing the operational costs tied to a larger network. Yulu’s further commitment to B2B services presents a more appealing proposition, gaining investor support despite the initial challenges faced with the original consumer rental model launched in 2017.
Looking Ahead
As the company navigates losses, expansion strategies, and a competitive landscape, further funding rounds are anticipated. The strategic selection of cities and stringent cost control will be crucial in determining the success of Yulu’s future endeavours. The revenue so far has been primarily driven by gig workers, highlighting the potential for further diversification into high-usage categories to broaden market reach. While past experiences have directed Yulu toward effective strategies, the responsibility now lies with the founders to successfully lead the next phase of growth.