Tesla India Motors and Energy Private Limited reported a sharp rise in revenue in FY26 as the electric carmaker began selling vehicles in the country, with sales increasing more than 11-fold to ₹247.3 crore.
The company’s revenue stood at ₹20.8 crore in FY25, as per company filings reviewed by Fortune India. The jump in FY26 came as Tesla began commercialising its India operations with the Model Y.
Vehicle registration data shows that Tesla sold 1,782 cars in India during the financial year, with the Model Y accounting for the bulk of registrations. The sales mark Tesla’s first meaningful presence in India’s passenger vehicle market, although its volumes remain small compared with established carmakers and leading electric vehicle manufacturers.
Despite the sharp increase in sales, Tesla India’s operating margin narrowed to 5.5% in FY26 from 13.7% a year earlier. Operating profit increased nearly five-fold to ₹13.7 crore from ₹2.8 crore.
Tesla India reported a net profit of ₹5.2 crore for FY26, compared with ₹0.6 crore in FY25. Profit before tax rose to ₹7.3 crore from ₹0.5 crore.
The company’s gross margin also declined sharply to 42% in FY26 from 100% in FY25, reflecting the change in its business mix as vehicle sales became a much larger part of operations.
Employee costs and inventory rise as Tesla builds India operations
Tesla India’s expenses rose to ₹240 crore in FY26 from ₹20.4 crore a year earlier. The biggest component was the cost of goods, which stood at ₹143.4 crore.
Employee costs more than tripled to ₹43.7 crore from ₹13.5 crore in FY25, while other costs increased to ₹46.6 crore from ₹4.5 crore.
The balance sheet also expanded significantly during the year. Tesla India’s total assets stood at ₹293.5 crore at the end of March 2026, compared with ₹62.6 crore a year earlier.
Fixed assets increased to ₹68.9 crore from ₹6.6 crore, including ₹3.1 crore of capital work in progress. Current assets rose to ₹213.2 crore from ₹51.2 crore.
Inventory, which stood at ₹0.4 crore at the end of FY25, increased to ₹44.6 crore in FY26. Trade receivables also rose to ₹53.4 crore from ₹34.7 crore. Cash and cash equivalents increased to ₹87.8 crore from ₹10.3 crore.
Tesla India had no borrowings on its books in either FY25 or FY26. Its equity capital increased to ₹136 crore from ₹50 crore, while net worth rose to ₹143.9 crore from ₹57.4 crore.