Tunwal E-Motors FY26: Revenue Up 55% to ₹277 Cr, Margins Down to 7%, and a ₹9.96 Cr Customs Question Parked Off the P&L

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1. At a Glance

Tunwal E-Motors closed FY26 with revenue of ₹276.84 crore, up 55% from ₹178.59 crore, a top line that has now compounded 193% over five years. Volumes moved with it: 69,737 electric two-wheelers left the Palsana line versus 46,082 the year before. That is the loud number.

The quieter number is the operating margin, which sat at 7% — the same 7% as FY25, and a long way down from the 17% posted in FY24. Profit after tax inched to ₹12.73 crore from ₹11.86 crore, a 7% move against that 55% revenue surge. CRISIL upgraded the company’s ₹60 crore bank facilities to BBB-/Stable in May 2026. In the same board meeting, an independent director resigned.

Sitting beside all of it is ₹9.96 crore of additional customs duty the company paid after a reclassification, and which does not appear in the profit figure above — it is held off the P&L pending a writ petition.

A company selling more scooters to more states, earning thinner on each one. The record for the year is below.

2. Introduction

Incorporated in December 2018 and reconstituted as a public limited company in December 2023, Tunwal E-Motors designs, manufactures and distributes electric two-wheelers under the Tunwal brand. The manufacturing unit sits in Palsana, Sikar, Rajasthan. Equity shares list on the NSE Emerge SME platform, where the July 2024 IPO raised ₹81.72 crore in fresh issue.

The year’s calendar was busy. In August 2024 the company acquired Palsana EV Industries India as a wholly owned subsidiary. In April 2025 it signed a customer-financing arrangement with Bajaj Finance. Also in April 2025, 23.91 lakh shares were allotted to the promoter on a preferential basis, converting his existing unsecured loan into equity. The FY26 audited results, the CRISIL upgrade and the director resignation all landed together on 25 May 2026.

Management framed the year around dealer-network expansion and deeper penetration in Tier II and Tier III cities, particularly eastern India. That is the company’s own account of what drove the 55%.

3. Business Model: WTF Do They Even Do?

They make electric scooters. Over 23 models across six variants, of which — per the prospectus — roughly 75% are low-speed vehicles that need no registration and 25% are high-speed ones that do. The registration-optional catalogue is a real strategy: it lowers the ownership friction that keeps first-time EV buyers hesitating.

Distribution is the actual machine here. The company reaches customers through 370+ dealers across 20+ states, and those dealers double as the after-sales network — routine maintenance, battery management, diagnostics, component replacement. Tunwal manufactures; the dealer handles the relationship. Revenue historically skewed West (50.5%) and North (31.5%), with the top 10 distributors accounting for 74% of FY24 revenue — a concentration that means the dealer roster is not a detail, it’s the business.

One structural fact colours everything downstream: per CRISIL, the company imports nearly 80% of its parts from China. A rupee-denominated scooter built substantially on dollar-priced, yuan-sourced components is a margin story waiting for a currency move — which, this year, it got.

Does a 370-dealer network across 20 states create a moat, or just 370 places for working capital to sit?

4. Financials Overview

Figures are consolidated, in ₹ crore. Tunwal reports half-yearly; the latest period is the half ended March 2026.

Revenue rose 27% against the year-ago half but fell from the September 2025 half’s ₹144 crore. Operating profit in the latest half was ₹8 crore against ₹12 crore in the prior half. The Mar 2026 half carried a 6% operating margin.

For the full year, management reported PBT of ₹17.02 crore and PAT of ₹12.73 crore on revenue of ₹276.84 crore, with consolidated EPS of ₹2.21. The auditor issued an unmodified opinion on both standalone and consolidated results.

5. Market Expectations & Historical Multiples

This section describes how the market is currently pricing the company and how that compares with its own history and peer group. It is descriptive, not predictive.