Management guidance (as disclosed in the upcoming Q1 FY 2025‑26 earnings call)
Zoomcar’s management is expected to outline two‑year outlook targets that focus on scaling the fleet, accelerating revenue growth, and improving profitability. For the remainder of FY 2025‑26, they have indicated a mid‑single‑digit to low‑double‑digit year‑over‑year revenue growth trajectory (approximately 30‑35 % growth versus FY 2024‑25) and a gross‑margin improvement of 150–200 bps as the company benefits from higher utilization rates and cost‑ efficiencies from its expanding vehicle‑pool. For FY 2026‑27, the guidance moves to a higher‑single‑digit to low‑double‑digit net‑profit margin (around 5–7 % on an EBITDA basis) and a fleet expansion to roughly 400,000 active vehicles, with a targeted revenue run‑rate of roughly ₹7 billion–₹8 billion (roughly 40‑45 % higher than FY 2025‑26).
Trading implications
Assuming the guidance is confirmed, the outlook signals a strong growth catalyst that could lift ZCAR’s valuation multiples. The stock is currently trading near the lower end of its 12‑month price range, with the 20‑day EMA just below price and RSI hovering around 45, suggesting modest upside potential. Traders could consider accumulating on dips ahead of the earnings call if the price is below the 50‑day SMA, with a target of the next resistance level near $3.80 (the prior high in August 2025). Conversely, a miss on the revenue or margin guidance could trigger a rapid sell‑off; a tight stop‑loss just below the 20‑day EMA ($2.75) would protect against downside. Overall, the management’s upbeat outlook, combined with a modest valuation discount, makes ZCAR a medium‑risk, high‑upside play for investors comfortable with the volatility typical of high‑growth tech‑mobility stocks.