Tesla entered India with big plans. Do its latest results show profit?

The company reported revenue of Rs 247.31 crore in FY26, with vehicle sales accounting for nearly 87% of the total.

In Short

• Tesla India reported net profit of Rs 5.16 crore in FY26
• Revenue rose to Rs 247.31 crore, vehicle sales at 87%
• Sales rising but scale still small compared to global presence

Tesla India Motors and Energy reported a net profit of Rs 5.16 crore in FY26, its first financial year in which vehicle sales contributed to revenue, as Elon Musk's electric carmaker scaled up operations in India after entering the market in 2025.

The company reported revenue of Rs 247.31 crore in FY26, with vehicle sales accounting for nearly 87% of the total. While the numbers mark an increase in business activity, Tesla's India operations are still at an early stage, with vehicle registrations remaining modest compared with the scale of the global electric vehicle maker.

According to regulatory filings reviewed by Moneycontrol, Tesla India's revenue from operations rose nearly 12-fold from Rs 20.83 crore in FY25. Its net profit also increased from Rs 55.49 lakh in the previous financial year to Rs 5.16 crore in FY26.

The company began selling its Model Y in India after opening its first showroom in Mumbai in July 2025. FY25 revenue had come entirely from services, making FY26 the first financial year in which vehicle sales contributed to its reported turnover.

MODEL Y DRIVES MOST OF TESLA INDIA'S REVENUE

Vehicle sales generated Rs 214.69 crore in FY26, while services contributed Rs 32.40 crore. The Model Y was central to the company's early sales performance as it began building its presence in the Indian market.

Tesla recorded 346 vehicle registrations between September 2025 and March 2026, according to Vahan data. Registrations rose to 650 in April-September FY27, exceeding the previous period's tally within six months.

Average monthly registrations increased from around 49 to 108. While this indicates a pickup in sales activity, the increase comes from a small initial base.

Tesla currently offers the Model Y and Model Y L in India. The five-seat Model Y starts at Rs 50.89 lakh, ex-showroom, and offers a claimed range of up to 500 km. The three-row, six-seat Model Y L starts at Rs 61.99 lakh and offers a claimed range of up to 681 km.

TESLA INVESTS IN INDIA AS COSTS RISE

Tesla also infused Rs 86 crore into its Indian entity during FY26, largely through a contribution of Rs 85.91 crore from Tesla International BV.

Cash expenditure on property, plant and equipment and capital work-in-progress increased to Rs 62.54 crore in FY26, compared with Rs 1.16 crore a year earlier. Cash and cash equivalents stood at Rs 87.82 crore at the end of March, up from Rs 10.28 crore.

The expansion also brought higher operating costs. Employee benefit expenses more than tripled to Rs 43.67 crore from Rs 13.46 crore, including Rs 11.99 crore in share-based compensation. Rent expenses rose to Rs 30.32 crore from Rs 2.64 crore, while advertising and promotion expenditure stood at Rs 2.16 crore.

Total expenses were reported at Rs 240 crore.

HAS TESLA'S INDIA BET PAID OFF?

Tesla's FY26 results show that its Indian entity has reported a profit while beginning vehicle sales, rather than relying entirely on services revenue. However, one profitable financial year does not establish whether the company can sustain profits as it expands its operations.

The rise in registrations during the first six months of FY27 points to growing sales activity, but the company will need to build volumes further to establish a larger presence in India's electric car market.

Tesla has experience centres in Delhi, Noida, Gurugram, Mumbai, Chennai, Bengaluru and Hyderabad, alongside approved body shops in Pune and Ahmedabad.

- Ends