Wardwizard Q3 FY26 Sees Profit Plunge to ₹0.03 Cr Amid Revenue Decline

Wardwizard Innovations & Mobility Ltd. reported a stark 99% year-on-year drop in net profit for the third quarter of FY26, falling to just ₹0.03 crore from ₹3.82 crore in the same period last year. Revenue from operations also declined by 27% to ₹62.72 crore, compared to ₹86.27 crore in Q3 FY25.

Q3 FY26 Financial Performance

Wardwizard Innovations & Mobility Limited's latest investor presentation for Q3 FY26 reveals a significant downturn in its financial performance for the quarter. Net profit slumped to ₹0.03 crore for the three months ended December 31, 2025, a steep fall from ₹3.82 crore recorded in Q3 FY25. Revenue from operations mirrored this trend, decreasing to ₹62.72 crore in Q3 FY26 from ₹86.27 crore in the corresponding quarter of the previous fiscal year.

However, for the nine-month period (9MFY26), the company reported a net profit of ₹1.29 crore, a turnaround from a loss of ₹0.09 crore in 9MFY25. Revenue for 9MFY26 declined to ₹128.42 crore from ₹195.87 crore.

Performance Amid Strategic Growth

This significant drop in quarterly profit and revenue points to current operational challenges. The performance stands in contrast to Wardwizard's ambitious long-term goals and strategic expansion plans. Investors are watching closely to see if the company can leverage its forward-looking strategies, like global expansion and new partnerships, to achieve better financial results amid growing competition in the EV market.

Company Background and Key Initiatives

Wardwizard Innovations & Mobility Limited is an Indian electric vehicle (EV) manufacturer listed on the BSE, known for its 'Joy E-Bike' and 'Joy E-rik' brands. Recent strategic initiatives include a significant USD 1.29 billion order from Philippines-based Beulah International Development Corporation for EV supply. The company has also partnered with Battery Smart to deploy battery-swapping infrastructure, a move aimed at reducing EV costs via a 'battery-as-a-service' model. Additionally, Wardwizard plans a joint venture in Saudi Arabia for EV assembly and cell production, holding a 49% stake.

Strategic Expansion Drivers

Key strategic initiatives are designed to drive future growth:

• Global Footprint Expansion: The Saudi Arabia joint venture marks a significant step toward international manufacturing and market presence.
• Battery Swapping Integration: The Battery Smart partnership aims to boost EV accessibility by lowering upfront costs and mitigating range anxiety.
• Order Fulfillment: Executing the USD 1.29 billion Philippines order requires substantial operational capacity and potential funding, such as the announced rights issue.
• Product Diversification: Ongoing development of new EV models, including for commercial and fleet use, targets diverse market segments.

Key Risks and Financial Metrics

Wardwizard's forward-looking statements are subject to market conditions, competition, and execution challenges. Specific financial concerns highlighted include a return on equity of 6.18%, return on capital employed of 12.4%, high debtors days at 186 days, and promoter share pledges totaling 38.3%.

Competitive EV Market

Wardwizard competes in the dynamic Indian EV market alongside established companies like TVS Motor Company and Bajaj Auto. TVS Motor is expanding globally and integrating new EV assets, while Bajaj Auto is scaling its EV production and navigating regulatory landscapes. India's EV market is forecast for substantial growth, aiming for 30% penetration by 2030, primarily from two- and three-wheelers.

Future Outlook

Investors will monitor:

• Progress on establishing and operating the Saudi Arabia joint venture.
• The actual impact of the Battery Smart partnership on sales volumes and customer adoption.
• Execution timelines and financial details of the USD 1.29 billion order from Beulah International.
• The company's capacity to enhance profitability and revenue in upcoming quarters.
• Shifts in market share within the fast-evolving Indian EV sector.