| Ecos India Mobility and Hospitality Limited | ||||
| Rating reaffirmed at 'Crisil BBB+/Stable' | ||||
| Rating Action | ||||
| ||||
| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||
| 1 crore = 10 million | ||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed rationale Crisil Ratings has reaffirmed its ‘Crisil BBB+/Stable’ rating on the long-term bank facility of Ecos India Mobility and Hospitality Limited (EIMHL; part of the Ecos India group).
The rating continues to reflect the stable business risk profile of the group supported by growth in revenue and moderation in Earnings before interest, tax, depreciation and amortization (EBITDA) margins. Operating income has grown 18% to Rs 654 crore in fiscal 2025 from Rs 555 crore in fiscal 2024, driven by increased share of revenue from existing customers. Going forward, operating income is expected to grow 5-10% in fiscal 2026. EBITDA has moderated to 14% in fiscal 2025 from 16.3% in fiscal 2024 because of change in the segment mix from which the group has derived revenue in fiscal 2025. Sustained increase in revenue, while maintaining EBITDA at 14-15%, will remain a key monitorable.
The rating reflects the established market position and network of clientele and healthy financial risk profile. These strengths are partially offset by its exposure to intense competition. |
Analytical approach Crisil Ratings continues to consolidate the business and financial risk profiles of EIMHL, Ecreate Events Pvt Ltd, Eco Car Rental Services Pvt Ltd and Consultrans Technology Solutions Pvt Ltd as these are subsidiaries of EIMHL.
Crisil Ratings has also consolidated the business and financial risk profile of Ecos Fleet Management Services Pvt Ltd with the above entities. Incorporated on June 12, 2025, Ecos Fleet Management Services Pvt Ltd rents and leases motor vehicles, providing comprehensive vehicle rental solutions to individuals and organisations.
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key rating drivers and detailed description Strengths: Established market position and network of clientele: The promoters have experience of more than two decades in specialised consumer services that has given them a strong understanding of the market dynamics and enabled them to establish healthy relationships with vendors and customers. The group operates through its own brand- ECO Rent-A-Car, and provides corporate cab services, car rental and business-to-consumer (B2C) services, backed by efficient fleet management and diversified operations. The group has contracts with its clients for 2-3 years which are regularly renewed. All contracts have a fuel escalation clause available which also supports the group’s operating profitability.
Healthy financial risk profile: The group’s capital structure has been healthy because of lower reliance on external funds. Net worth and gearing were Rs 221 crore and 0.03 time, respectively, as on March 31, 2025 (Rs 177 crore and 0.12 time, respectively, as on March 31, 2024). The debt protection metrics have also been healthy on account of low leverage and healthy profitability. The interest coverage and net cash accrual to adjusted debt (NCAAD) ratios were 54 times and 11 times, respectively, in fiscal 2025. The financial risk profile is expected to improve in the near term, driven by no debt-funded capital expenditure (capex) and healthy accretion to reserves.
Weakness: Exposure to intense competition: The group competes with Carzonrent, Orix-RAC, WTI cabs and Avis India in the car rental segment. Though high competition has moderately impacted the car rental business, the group has built a healthy clientele over the past decade and has invested in technology and customer acquisition to competently deal with competitors. The group regularly adds new customers, resulting in increased scale of operations. The group’s ability to improve its market position in the car rental business will remain a key rating sensitivity factor. |
Liquidity: Adequate Expected net cash accrual of Rs 70-80 crore is sufficient to meet incremental working capital requirement and cater to its debt obligation of only Rs 6 crore in fiscal 2026. There will be no debt obligation from fiscal 2027. Bank limit utilisation was nil during the 12 months through April 2025. The current ratio is estimated to be 2.33 times as on March 31, 2025. The group had unencumbered cash and fixed deposits of Rs 105.7 crore as on March 31, 2025. |
Outlook: Stable Crisil Ratings believes the Ecos India group will continue to benefit from the extensive experience of its promoters and established relationships with clients. |
Rating sensitivity factors Upward factors
Downward factors
|
About the group EIMHL was incorporated in 1996. It is engaged in the business of car rental, tour operations, events management and other allied services. EIMHL is owned and managed by Mr Rajesh Loomba, Mr Aditya Loomba and Mrs Chanchal Loomba.
Ecreate Events Pvt Ltd is a fully owned subsidiary of EIMHL and was incorporated on June 21, 2011. The company is involved in the event management business.
Eco Car Rental Services Pvt Ltd is a fully owned subsidiary of EIMHL and was incorporated on April 9, 2015. It is involved in supporting auxiliary transport activities.
Consultrans Technology Solutions Pvt Ltd was incorporated on August 24, 2021 and is a fully owned subsidiary of EIMHL.
Ecos Fleet Management Services Pvt Ltd was incorporated on June 12, 2025 and is a fully owned subsidiary of EIMHL. |
Key financial indicators*
*Crisil-adjusted financials |
Any other information: Not Applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
|
Annexure – List of entities consolidated
|
| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
|
* - Issuer did not cooperate; based on best-available information
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||
|
Criteria Details
|