1. Macro Economic Overview

The world s relationship with the automobile is being rewritten. Against a backdrop of moderating global growth, easing but still elevated interest rates, and fuel prices that have remained both high and volatile through the year, the economics of personal transport have shifted in a way that policy alone could never have achieved. Tightening emission regulations have pushed in the same direction, and a steep, sustained fall in lithium-ion battery pack costs has pulled from the other side. Together these forces have turned electric mobility from a policy experiment into an economic inevitability, and nowhere is this shift more visible than in the two and three wheeler category, the workhorse of daily transportation across much of the developing world.

The urgency of this transition has been further amplified by major geopolitical conflicts, such as tensions involving the US and Iran that threatened critical shipping lanes like the Strait of Hormuz. The resulting volatility in crude oil supplies caused global fuel prices to skyrocket, placing a heavy financial burden on daily commuters and commercial operators alike. This energy crisis starkly exposed the vulnerabilities of relying on fossil fuels, prompting consumers and last-mile delivery fleets to accelerate their migration toward electric alternatives to secure predictable, lower operational costs per kilometer.

The scale of this transition is now evident in the numbers. The global electric two wheeler market, valued at USD 24.63 billion in 2026, is projected to reach USD 41.51 billion by 2031, expanding at a compound annual rate of approximately 11%. The three wheeler segment is growing faster still, from USD 4.32 billion in 2025 to an expected USD 15.37 billion by 2034, reflecting how central these vehicles have become to last mile passenger movement and cargo delivery in cities and towns that were never designed around the private car. Close to nine out of every ten dollars spent on electric three wheelers globally is spent in the Asia Pacific region, and within that region India alone is estimated to account for more than half of global volumes. Critically, a large part of this growth is no longer being pulled along by subsidies. As battery costs continue to decline, electric vehicles have moved decisively ahead of their petrol counterparts on total cost of ownership across markets such as India, Indonesia and Vietnam, and demand is increasingly standing on its own economic merit rather than on government support.

China s experience offers one lesson worth carrying forward. The world s largest electrified two wheeler fleet was not built by premium, high-performance machines but by affordable, low-speed vehicles, helped considerably by regulation: in many major Chinese cities conventional motorcycles are restricted from entering the city centre, while low-speed electric two wheelers requiring no driving licence are generally excluded from those restrictions. Having now moved past its first-time buyer phase into replacement-driven demand, China illustrates both where this industry eventually settles and, more usefully, what kind of vehicle carries it there.

India is at the opposite end of that same curve. Where China is now replacing an existing fleet, India is still building one, adding first-time riders at a pace that took registered electric two wheeler sales close to 50% higher over the two years to FY2026. India is the market still finding its feet on the way, and that is where this discussion turns next.

2. Industry Overview

India continues to consolidate its position as the world s fastest-growing major economy, driven by robust public capital expenditure, accelerated infrastructure development, and resilient domestic demand. Within this macroeconomic landscape, the automotive industry remains a cornerstone of national growth, contributing 7.1% to India s GDP and accounting for over 49% of total manufacturing GVA. The ongoing national pivot toward clean energy and zero-emission mobility is not merely an industrial evolution but a strategic macroeconomic lever. It directly supports India s long-term objectives of energy independence, crude import substitution, and Current Account Deficit (CAD) optimization, thereby reinforcing fiscal stability and industrial competitiveness.

The two-wheeler (E2W) and three-wheeler (E3W) electric mobility market in India is expanding rapidly, transitioning from policy-supported adoption to mass-market commercial scaling. India s electric two wheeler market comprises two distinct regulatory categories, differentiated by motor power and speed, which in turn shape customer profile and distribution. The high speed electric two wheeler segment which requires registration, a driving licence and insurance, recorded sales of approximately 1.4 million units in FY 2025-26, an increase of around 21% over the previous year, as per data published on the Vahan portal. And the low speed electric vehicle segment is also growing at the same pace but the numbers of low speed vehicles are not available on Vahan portal as these are non-registered vehicles but its market is also big, as the adoption of affordable, low-speed electric vehicles across Tier 2 and Tier 3 cities is significant and growing.

3. Company Overview

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Ratio Comp arative of Financials

Note: Ratios are based on standalone audited figures for the respective year-ends. Changes below 25% do not require a detailed explanation under the applicable disclosure requirements.

MANAGEMENT OUTLOOK: STRATEGIC EXPANSION & MARKET LEADERSHIP

As India consolidates its macroeconomic transition toward sustainable mobility, your company is executing a structured, multi-segment growth strategy designed to capture emerging market share and accelerate top-line compounding.

High-Speed Electric Two-Wheelers: Along with low speed electric vehicles the company is expanding expanding beyond non-RTO platforms into registered high-speed classifications, the Company will broaden its total addressable market (TAM) across all geographies. These high-speed platforms offer superior speed, extended range and high-tech connectivity, directly capturing consumer demand in the rapidly growing High Speed EV sector.

Three-Wheeler Sector Scaling: Through dedicated commercial infrastructure-including dedicated production lines- the expansion of the Tanga three-wheeler division positions the company to capture the surging demand across quick-commerce, hyperlocal logistics, and passenger transit. By providing high-payload utility loaders and durable passenger e-rickshaws with an exceptionally low total cost of ownership, the company delivers rapid ROI for commercial fleet operators while establishing a resilient, recurring revenue driver.

Strategic Brand Amplification via IPL Sponsorship To accelerate brand reach and support market expansion, the Company entered into a strategic sponsorship partnership with Punjab Kings in the Indian Premier League (IPL). Leveraging the massive nationwide reach of cricket, this association significantly enhanced brand visibility, strengthened consumer recall across urban and semi-urban markets, and reinforced our position as a dynamic, mainstream mobility brand.

Retail Network Alignment: Leveraging an expansive nationwide network of over 360 authorized dealerships across 25+ states ensures immediate market penetration, localized after-sales service, and high brand visibility for newly launched models. The Company plans to further expand its footprint by entering new cities and underserved markets, with a strong focus on building a wider and more accessible retail network across India.