Voler Car Ltd Management Discussions

Economic Overview

Global Economy¹

The global economy grew 3.3% in CY 2024 despite inflation, supply chain realignments, and geopolitical uncertainties. While advanced economies slowed, emerging markets outperformed at 4.3%, powered by consumption and digital adoption. Inflation is easing (projected at 4.3% in CY 2025), creating a more stable operating environment.

What this means for Voler: Global enterprises in India are under pressure to optimise costs while ensuring employee safety. Our CPBE model, technology-led efficiency, and asset-light fleet fit perfectly into this demand. Voler is positioned not just to serve, but to reshape how enterprises think about mobility as a service.

Outlook²

The global economy is anticipated to grow at a steady pace, with projections indicating a 2.8% expansion in CY 2025 and 3.0% in CY 2026. This outlook is supported by a gradual disinflation and the implementation of targeted policies by Central Banks worldwide. Emerging markets are expected to maintain stable momentum, growing by 3.7%, while advanced economies are expected to witness a gradual recovery, registering a growth rate of 1.4% in CY 2025.

With inflation forecast to ease to 4.3% in CY 2025 and further to 3.6% in CY 2026, the consumer expenditure is predicted to gain momentum. Despite recent hikes in tariffs and the implementation of protectionist measures across several geographies, the global economy remains interconnected and resilient.

In response to uncertainties in global trade, governments and businesses are adapting by tapping into new markets and enhancing supply chain efficiencies. Additionally, a sharper focus on boosting productivity through technological innovation, improved workforce health and smarter infrastructure is expected to catalyse sustained growth, thereby, offering a pathway to renewed global progress.

Indian Economy – Growth Tailwinds for Voler³

India registered 6.5% GDP growth in FY 2024–25, becoming the worlds 4^th largest economy ($4 trillion GDP). This growth is being driven by:

Urbanisation & Office Expansion: Rising demand for reliable corporate commuting.

Government Infrastructure Spending ( 11.21 lakh crore):

Better roads and digital networks accelerate adoption of tech-enabled transport.

Digital Evolution: Widespread fintech and AI adoption makes Volers real-time dashboards, billing systems, and predictive routing instantly scalable across industries.

What this means for Voler: The mobility sector is at an inflection point. As companies expand campuses and Tier-2 cities emerge as corporate hubs, Volers scalable asset-light model enables rapid, capital-efficient expansion into these high-demand corridors.

Outlook

With India emerging as the worlds fourth-largest economy, the per capita income doubled since 2014, a testament to its sustained economic progress. Despite global headwinds, the way forward for India remains optimistic, supported by key factors such as the ongoing domestic demand and foreign investments, robust manufacturing growth, disinflation trends and a stable macro-economic setting, including, the improvement in trade and financial services.

The governments continued focus on capital expenditure, enhancement of rural demand and the rapid expansion of digital and physical infrastructure, are thereby, projected to further bolster economic growth, improving social well-being. As supply chains stabilise and input costs moderate, industries linked to essential services and daily consumption are well-positioned to benefit from rising demand and improved operational efficiency.

The Reserve Bank of Indias (RBI) repo rate cut aims to inject liquidity, enhancing credit availability and reinforcing market sentiment, while the government undertakes a calibrated measure to the evolving global tariff landscape to protect national economic interests. Simultaneously, the proposed UK–India Free Trade Agreement is set to strengthen bilateral trade via decreasing tariffs, efficient customs procedures and promoting investment, thereby enhancing market access, reflecting deepening economic ties and shared growth opportunities.

Indias GDP Growth Trend

Industry Overview

Indian Employee Transportation Service⁷

The corporate employee transportation services industry is on a resilient growth trajectory. This surge is being fuelled by the rapid expansion of office spaces, heightened urbanisation and an escalated number of employees reverting to physical workplaces. The market will potentially grow at an estimated CAGR of 8.2% from FY 2025 to FY 2030, with organised service providers pioneering their reliable and professional offerings that meet corporate requirements.

Major cities such as Bangalore, Mumbai and Hyderabad have recorded a particularly high demand for smart, efficient transport solutions. Moreover, the companies are prioritising employee safety, reducing commute duration and bolstering productivity by adopting advanced technologies. The revival of sectors such as Information Technology (IT), Business Process Outsourcing (BPO) and Banking, Financial Services and Insurance (BFSI), including the rising multinational and Indian firms, is further driving the need for well-structured employee mobility options.

Demand of electric vehicles, AI-powered route optimisation and flexible mobility models are expanding day by day, therefore, constituting approximately 60% of the emerging solutions for promoting sustainability and cost savings. Partnerships with ride-sharing platforms and investments in technology are becoming the norm, improving safety, efficiency and overall employee satisfaction.

There is a growing focus on Mobility-as-a-Service (Maas), contactless payments and last-mile connectivity, which are making commutes smoother and better suited to hybrid work arrangements. Overall, these trends are positioning Indias employee transportation sector as a key driver of workforce productivity and corporate sustainability in the current financial year.

Key Service Trends Shaping 2025

Widespread Adoption of Electric Vehicles (EVs)

Indian companies are rapidly switching to electric vehicles for employee transportation. This shift is driven by government incentives, improved charging infrastructure, and a strong push for cleaner, greener mobility. Major cities like Bengaluru, Delhi and Mumbai are leading the way and EVs are expected to make up a significant share of the corporate fleet by 2030.

Growth of Shared Mobility Solutions

Shared mobility like ride-sharing, carpooling and corporate shuttle services is becoming the norm. With urban congestion and environmental concerns rising, companies are partnering with mobility providers to offer efficient, cost-effective and eco-friendly commuting options for employees.

Rise of Mobility-as-a-Service (MaaS) Platforms

Mobility-as-a-Service platforms are transforming how employees commute by integrating various transport modes (buses, cabs, metro, etc.) into a single digital solution. This approach offers flexibility, reduces reliance on private vehicles and streamlines the commuting experience, making it more efficient and environmentally friendly.

Enhanced Employee Experience and Well-being

Companies are focusing on making commutes more comfortable and less stressful. This includes providing amenities such as Wi-Fi, comfortable seating and reliable schedules. The goal is to reduce commute-related fatigue, improve employee satisfaction and support retention by ensuring employees arrive at work refreshed.

Integration of AI and Smart Technologies

Artificial intelligence and real-time data analytics are being used to optimize routes, manage fleets more efficiently and reduce operational costs. These technologies enable smarter, more responsive transportation systems that adapt to traffic conditions and employee needs, further supporting sustainability goals.

Government Initiatives

PM GatiShakti National Master Plan

Launched to integrate and upgrade multimodal transport infrastructure, the PM GatiShakti plan connects rail, road, air and mass transport networks. This initiative leverages a dynamic GIS platform for real-time project mapping and aims to streamline connectivity across economic zones, industrial corridors and urban clusters. The plans focus on synchronized development and last-mile connectivity directly benefits employee transportation by improving access to workplaces and reducing commute times.

Regional Connectivity Scheme (RCS) – UDAN

The UDAN scheme is all about making air travel affordable and accessible, especially for people living in smaller towns or remote areas. With 160 operational airports as of March 2025, including new greenfield airports, the scheme supports decentralization of economic activity and provides more options for corporate mobility, particularly for employees of companies with operations in multiple cities or regions.⁸

National Electric Mobility Mission Plan (NEMMP) and State EV Policies

To promote sustainable corporate transportation, the government has enacted policies like NEMMP and various state-level EV policies. These initiatives provide incentives for adopting electric vehicles, support infrastructure development (such as charging stations) and encourage the use of EVs in employee transport fleets. By 2025, these frameworks are driving the shift toward greener, more efficient employee commute solutions.

Mobility-as-a-Service (MaaS) and Shared Mobility

The government is also encouraging shared mobility options like ride-sharing, carpooling, and app-based transport services. These solutions help reduce traffic jams, lower travel costs and cut down on air pollution. For employees, this means more flexible, affordable, and convenient ways to get to work whether its through a company shuttle, a shared cab.

Industry Outlook

The corporate mobility market in India is at an inflection point fragmented, underpenetrated and ripe for consolidation. Rising demand is being fuelled by the expansion of multinational offices, extended work shifts and an increasing emphasis on employee safety, particularly for women. At the same time, enterprise ESG commitments are accelerating the adoption of low-emission mobility solutions, creating a structural shift towards electric and technology-enabled platforms. These factors present a significant opportunity for scalable, sustainable business models that can address both cost efficiency and stakeholder expectations.

Unlike traditional fleet-heavy operators, the Company vendor-first, asset-light model allows the Company to scale efficiently without large capital outlays. With 99% of its fleet sourced through vendors, combined with AI-driven routing and proactive EV adoption, the Company is uniquely positioned to deliver superior cost efficiency and reliability. The Companys flywheel effect, where more clients generate richer data that enables smarter routing, lower cost per employee, stronger renewals, and continuous reinvestment, creates a self-reinforcing growth loop. Each trip strengthens operational intelligence, builds trust with enterprises, and compounds long-term value, thereby reinforcing Volers competitive edge.

Company Overview

Voler Cars Limited is one of the leading providers of Employee Transportation Services (ETS) in India, serving blue-chip clients like Wipro, TCS, Cognizant and Teleperformance across nine major cities. With a vetted fleet of over 2,994 vehicles, including 454 electric vehicles (EVs), the company offers secure, technology-driven home-to-office travel solutions, enhanced by

GPS tracking, 24/7 support, and specialised location teams, all while operating an asset-light, cost-effective model.

Driven by a customer-centric vision and over a decade of industry experience, the company is rapidly expanding in Tier-I and Tier-II cities, supported by long-term service agreements and a robust Cost Per Boarded Employee (CPBE) model. The company is committed to sustainability through the introduction of electric and hybrid vehicles, positioning itself as a key player in Indias growing organised corporate transport sector.

SWOT Analysis

Strengths	Weaknesses
The Company has developed strategic long-term relationships with blue-chip clients like Wipro, TCS, Cognizant and Teleperformance (with 14 years of collaboration ).	The Company depends on vendor-supplied vehicles may limit control over service quality.
The asset-light business model facilitates operating leverage and limited fixed costs.	Limited brand visibility beyond core cities due to absence of public transport or driving opportunities.
GPS-enabled tracking and safety protocols such as prioritising women drop-off.	Limited availability of electric vehicles hinders the execution of the Companys sustainability initiatives.
The Company operates with a 24/7 customer support while adhering to the industry standards.
The Company prioritises operational efficiency with regular Management Information System (MIS), performance monitoring and compliance supervision.
Opportunities	Threats
The Company is expanding its presence in Tier- I and Tier- II cities such as , Hyderabad, Surat and Chandigarh. The emerging Indian employee transportation market will enable the Company to bolster its market presence.	Competitive pressure from established Business-to-Business (B2B) and Business-to-Consumer (B2C) mobility companies. Economic slowdowns or job market contraction may adversely impact the corporate employee mobility requirements.
Escalating demand for technology-integrated and safety- compliant transportation.	Changes in regulatory policies may affect urban transport or diesel vehicle operations.
Prioritisation of Environmental, Social and Governance (ESG) offers a significant opportunity to scale EV adoption.
Scope for bolstering brand value through fleet upgradation by adopting green and hybrid mobility alternatives.

Financial Performance

Particulars	FY 2024-2025	FY 2023-2024
Revenue from Operations	4,239.85	3,089.71
Other Income	59.20	55.43
Total Revenue	4,299.05	3,145.14
Profit Before Exceptional, prior period items and Tax	521.10	511.14
Profit for the year	449.89	836.10
Return on Capital Employed (RoCE) (%)	14.19	132.01

Financial Ratio

Particulars	FY 2024-2025	FY 2023-2024	% change From FY 23-24 to FY 24-25	Reasons for change
Debtors Turnover Ratio	10.37	10.13	2.42	Ratio increases due to sales increased but receivables didnt rise at the same pace, the ratio would go up, indicating more efficient revenue conversion during the year.
Inventory Turnover Ratio	NA	NA	NA	NA
Interest Coverage Ratio	525.55	51.88	913	Ratio change due to repayment of loan and hence reduction of payment of interest.
Current Ratio	6.81	1.23	453.72	Ratio improved due to Increase in current assets during the year.
Debt Equity Ratio	-	0.41	-100.00	Due to repayment of Loans, there is no ratio during the year.
Operating Profit Margin (%)	10.61	27.06	-60.79	Ratio decrease due to prior period profits deferred tax expenses recorded during the previous year.

Outlook

The Companys outlook for FY 2025–26 and beyond is shaped by a clear roadmap built around three core themes.

Scale with Discipline

By expanding into key metropolitan hubs like Bengaluru, Hyderabad and Chennai, alongside select Tier-2/3 cities, the Company aims to unlock new growth pools while maintaining financialprudence.Thestrategyemphasisesachievingbreakeven within the first year of entry, underscoring a disciplined approach to scaling operations without compromising profitability.

Invent with Technology

The Company is accelerating its investments in AI-driven solutions. Predictive routing, anomaly detection and the development of unified platforms for clients, drivers and employees are expected to create stronger operational resilience and customer stickiness. These technology interventions improve efficiency and also enable smarter decision-making, positioning the Company as a forward-looking player in its sector.

Grow with Responsibility

The Company is forming sustainability as a central pillar of its long-term agenda. The push towards achieving 40% EV penetration by 2027 is aligned with both client ESG priorities and the broader industry shift towards green mobility. This transition combines environmental responsibility with cost efficiency, ensuring that growth is sustainable, inclusive, and aligned with evolving stakeholder expectations.

The Company is confident that Indias robust growth momentum, coupled with its differentiated business model, will drive sustainable free cash flow generation, strengthen resilience and create enduring value for shareholders

Human Resources

The Company consistently bolstered its human capital, acknowledging it as a foundation for its operational excellence and service reliability. It expanded its workforce by employing Employee Count 89 dedicated professionals across India, thereby, propelling rapid geographical footprint expansion and streamlining service complexity. Strategic investments were made in terms of onboarding, consistent training and safety sensitisation, particularly for driver-partners. Mandatory training programs including soft skill development, defensive driving and first aid education were promoted, while performance-based incentives and digital tracking ensured high service quality and accountability. Additionally, the Company prioritised gender sensitivity and passenger safety, reinforcing its No Woman Last Drop policy and deploying safety officers in high-density client zones. These initiatives, alongside real-time compliance systems and centralised operational oversight, contributed to high workforce efficiency, retention and client satisfaction, demonstrating the Companys commitment to establish a reliable, tech-enabled and socially responsible mobility ecosystem.

89 Number Of Employees

Risk and Management- Playing the long Game

The Company operates in a sector exposed to fuel price volatility, regulatory shifts and vendor quality risks. However, its asset-light sourcing model, multi-year contracts and city-level profitability dashboards help mitigate these challenges. Similar to Amazon, the Company recognises that some strategic bets may not succeed (as the self-drive car initiative demonstrated), but the successful ones have the potential to compound shareholder value disproportionately

Internal Control Systems and their Adequacy

The Companys internal audit system is under constant review and improvement to guarantee the protection of its assets, adherence to all relevant regulations and timely resolution of any outstanding issues. The Audit Committee regularly examines reports from the internal auditors, carefully noting their findings and implementing corrective measures as needed. The Committee also maintains an ongoing dialogue with both statutory and internal auditors to ensure the effectiveness of our internal control systems.

Cautionary Statement

The objective of this report is to convey the Managements perspective on the external environment, the paper industry, the strategies involved, operating and financial performance, developments in human resources and industrial relations, risks and opportunities, as well as internal control systems and their adequacy in the Company during the financial year 2024-25. This should be read in conjunction with the Companys financial statements, the schedules and notes thereto and other informationincludedelsewhereintheReportandAnnualFinancial Statements 2024-25. The Companys financial statements have been prepared in accordance with Indian Accounting Standards (‘Ind AS) complying with the requirements of the Companies Act, 2013, as amended and regulations issued by the Securities and Exchange Board of India (‘SEBI) from time to time.

"Voler is not just navigating Indias growth — we are compounding with it."