Mann Fleet Partners IPO

India’s cab services market recovered from ₹303 billion in FY2021 to ₹1,742 billion in FY2025 and is estimated to reach ₹1,935 billion in FY2026.  

The market is projected to grow at around 9.8% CAGR and reach ₹2,750–2,850 billion by FY2030, supported by urbanisation, business travel, airport connectivity and rising demand for app-enabled mobility.  

Fleet management systems, data analytics and AI are helping organised operators improve demand forecasting, route planning and fleet utilisation, supporting the shift from unorganised to organised mobility services.  

The coach rental market increased from ₹53 billion in FY2021 to ₹254 billion in FY2025 and is estimated at ₹272 billion in FY2026.  

The market is projected to reach ₹335–350 billion by FY2030, supported by highway and expressway development, domestic tourism, religious travel, corporate events, destination weddings and MICE activities.  

India’s expanding HNI and UHNI population is supporting demand for premium mobility and personalised travel services. Younger affluent consumers are also showing greater preference for convenience and experience-led spending.  

Luxury car sales increased from 28,329 units in FY2022 to nearly 52,954 units in FY2026, reflecting rising premiumisation in the automobile market.  

Corporate clients and affluent consumers are increasingly opting for chauffeur-driven premium vehicles on a rental basis, avoiding the capital costs, depreciation and operational responsibilities associated with ownership.  

Corporate summits, international events, diplomatic movements and destination weddings are creating demand for premium cars and coaches, particularly from organised fleet operators.  

Fleet operators are gradually adopting EVs and hybrid vehicles as corporate customers place greater emphasis on sustainability and emission reduction. 

Over Three Decades of Industry Experience: Mann Fleet Partners has been operating in the premium passenger transport segment since 1992. Its promoters bring extensive experience in chauffeur-driven and luxury fleet services.  

Established Corporate Customer Base: The company serves multinational corporations, embassies, government organisations and other institutional clients. Repeat customers contributed ₹784.34 million, accounting for 87.24% of corporate contracted revenue for the nine months ended December 31, 2025.  

Owned Fleet and Service Control: As of May 31, 2026, the company owned 364 vehicles across economy, premium, luxury and coach categories. Owning a significant portion of its fleet allows greater control over vehicle maintenance, service quality and customer experience.  

High Operating Margins: Mann Fleet reported a 50.04% EBITDA margin in FY25, indicating high operating profitability compared with some larger listed peers in the mobility services sector.  

Presence Across Multiple Cities: The company operates across approximately 80 cities in 26 states and 3 Union Territories, while its international partner network enables it to provide transportation services in key overseas markets.  

Noida International Airport Opportunity: The company has entered into agreements for mobility services at Noida International Airport, covering rental cars, employee transportation, inter-city transfers and intra-terminal shuttle services.  

Growing Demand for Premium Mobility: Rising incomes and the expanding HNI and UHNI population could support demand for luxury chauffeur-driven cars and premium transport services.  

Shift Towards Outsourced Fleet Services: Corporates and affluent customers are increasingly opting to rent vehicles rather than bear the costs of vehicle ownership, maintenance and fleet management. This could create opportunities for organised fleet operators.  

Expansion of MICE and Luxury Weddings: Corporate events, exhibitions, conferences, destination weddings and other large gatherings require coordinated transportation, creating opportunities for premium car and coach rental services.  

Growth in Electric Mobility: Increasing corporate focus on sustainability could create demand for EV and hybrid fleet solutions. The company can explore this segment to cater to customers with ESG and emission-reduction requirements.  

Expansion into Tier-II and Tier-III Cities: Improving road infrastructure, rising incomes and increasing corporate activity in smaller cities could provide opportunities for geographic expansion.  

Digital Customer Acquisition: The company's Mann Fleet mobile application could help expand its retail customer base by enabling direct bookings and improving the efficiency of its booking and fleet management processes. 

Low Current Ratio: The company’s current ratio has remained below 1.00, standing at 0.68 as of December 31, 2025, compared with 0.80 in FY25. This indicates limited short-term asset cover against current liabilities.  

Customer Credit Risk: Mann Fleet extends credit to corporate customers, which can delay cash collections. Trade receivable days stood at 58 days as of December 31, 2025, while they had reached 97 days in FY25. Delayed payments or customer defaults could affect liquidity.  

Repayment Risk on Unsecured Borrowings: The company had ₹8.11 million of unsecured borrowings as of December 31, 2025. Some of these loans are repayable on demand, which could create an immediate funding requirement.  

Dependence on Promoter Guarantees: Promoters have provided personal guarantees for certain bank facilities. Any default by the company could result in obligations for the promoters and may affect the company’s financial position.  

Customer Concentration: Repeat and retained customers accounted for 87.24% of corporate contracted revenue for the nine months ended December 31, 2025. Losing a few major customers or facing contract cancellations could materially affect revenue.  

Capital-Intensive Fleet Model: The company requires significant capital to purchase, maintain and replace vehicles. It spent ₹572.37 million on vehicle procurement during the nine months ended December 31, 2025. Higher vehicle costs, financing expenses or limited access to credit could increase pressure on cash flows.  

Chauffeur Availability and Costs: The business depends heavily on trained chauffeurs to deliver premium services. Hiring and retaining skilled drivers can be challenging, while higher wages and incentives could increase operating costs.  

Fuel Cost Volatility: Changes in petrol, diesel and CNG costs can affect fleet operating expenses. Although some corporate contracts may allow cost adjustments, contractual restrictions could limit the company’s ability to pass on the full increase to customers.  

Intense Competition: The corporate car rental market is fragmented, with competition from organised fleet operators, digital mobility platforms and local service providers. Price competition could put pressure on margins and customer retention.  

Technology Adoption Risk: Digital booking and fleet-management platforms are becoming increasingly important. Although Mann Fleet has launched its mobile application, slower adoption or inadequate technology capabilities could affect its competitiveness.  

Changing Corporate Travel Patterns: Increased adoption of hybrid and remote working, along with greater availability of public transport such as metro networks, could reduce demand for certain employee transportation and corporate car rental services.  

Changing Regulations: The company operates across multiple states and must comply with commercial vehicle permits, RTO requirements, environmental norms and other transport regulations. Changes in vehicle age limits or compliance requirements could increase operating costs.  

Potential Related-Party Conflicts: The company has group entities operating in similar business areas and does not have non-compete agreements with certain entities. This could create potential conflicts over business opportunities, customers or resources.  

Vehicle Recall Risk: Dependence on selected vehicle manufacturers exposes the company to manufacturer-initiated recalls. A major recall affecting commonly used vehicles could temporarily reduce fleet availability and disrupt customer services. 

Mann Fleet Partners IPO DRHP 

Khambatta Securities Limited 

Contact Number: 8657578989/8069219065/8069219060 

Email Address: ipo@bigshareonline.com