Fresh Bus, an ixigo-backed electric intercity bus operator, reported a 2.4-fold increase in its operating revenue to ₹63.5 crore in FY26 from ₹26.3 crore in the previous fiscal, according to inc42.com. However, its net loss widened by 33% to ₹43.6 crore from ₹32.8 crore in FY25 amid rapid fleet and route expansion.
The revenue growth was driven by a significant increase in the electric bus fleet and route network, founder and CEO Sudhakar Reddy Chirra told inc42.com. The company’s total expenses rose 81.4% year-on-year to ₹107.2 crore from ₹59.1 crore, primarily due to higher lease costs, maintenance, captain salaries, tolls, and distribution expenses linked to scaling operations.
Fresh Bus aims to reach ₹180 crore in revenue in FY27 while reducing losses to ₹25-30 crore, Chirra said. The startup became contribution-margin positive in March 2026, with a 15-17% margin, and expects profitability by April-June 2027. The company plans to cut costs by up to 30% by expanding larger bus fleets, which will also help increase fare rates and customer retention.
Founded in 2019, Fresh Bus’s growth reflects rising demand for electric intercity transport in India. The company’s next financial update will clarify if its cost-reduction strategy and fleet expansion translate into improved profitability, as projected by Chirra.