Tesla’s Indian subsidiary reported a nearly twelvefold increase in revenue to ₹247.31 crore ($26.05 million) and a net profit of ₹5.16 crore ($543,000) for the fiscal year ended March 2026, Moneycontrol reported, citing regulatory filings.

The period marked Tesla’s first year of vehicle sales in India, following the introduction of its Model Y electric sport utility vehicle (SUV) in July 2025.

Revenue rose from ₹20.83 crore ($2.19 million) in FY25, while net profit increased from ₹55.49 lakh ($58,500).

Tesla India Motors and Energy generated ₹214.69 crore ($22.61 million) from vehicle sales, accounting for nearly 87% of reported revenue. Services contributed another ₹32.40 crore ($3.41 million).

Despite the rise in revenue, the Indian business remains small and operates on thin margins. Net profit was about 2.1% of revenue, reflecting the costs of importing vehicles and establishing sales and service operations.

A separate analysis of company filings by Fortune India showed operating profit increased to ₹13.7 crore ($1.44 million) from ₹2.8 crore a year earlier. However, operating margin narrowed to 5.5% from 13.7% as the business shifted from providing services to selling cars.

The cost of goods sold reached ₹143.4 crore ($15.1 million), compared with negligible vehicle-related costs in the preceding year.

Employee and rental costs climb

Tesla’s expansion in India was accompanied by a sharp increase in expenditure. Employee benefit expenses rose to ₹43.67 crore ($4.6 million) from ₹13.46 crore in FY25. The latest figure included ₹11.99 crore ($1.26 million) in share-based compensation.

Rental expenses increased more than elevenfold to ₹30.32 crore ($3.19 million) from ₹2.64 crore, indicating higher spending on the company’s expanding physical operations.

Advertising and promotional expenses stood at ₹2.16 crore ($228,000), while total expenses reached about ₹240 crore ($25.28 million).

Tesla also reported cash expenditure of ₹62.54 crore ($6.59 million) on property, plant and equipment and capital work in progress, compared with ₹1.16 crore in the previous year.

The investments accompanied the establishment of showrooms, service facilities and other infrastructure needed to support vehicle sales.

Tesla’s balance sheet expanded during the year. Total assets reached ₹293.5 crore ($30.91 million) at the end of March, up from ₹62.6 crore, according to Fortune India’s analysis.

Inventory increased to ₹44.6 crore ($4.7 million) from ₹40 lakh, while trade receivables rose to ₹53.4 crore ($5.62 million) from ₹34.7 crore. The Indian subsidiary reported no borrowings for either fiscal.

Tesla injects ₹86 crore in fresh capital

Tesla’s overseas entities contributed ₹86 crore ($9.06 million) in fresh equity during FY26. Tesla International BV supplied ₹85.91 crore, while Tesla Motors Netherlands BV contributed ₹8.6 lakh. The investment raised the Indian subsidiary’s equity capital to ₹136 crore ($14.32 million) from ₹50 crore, according to the filings.

Cash and cash equivalents stood at ₹87.82 crore ($9.25 million) at the end of March, compared with ₹10.28 crore a year ago.

Tesla’s financial growth came from a relatively small number of vehicle deliveries. According to government Vahan registration data cited by Moneycontrol, the company registered 346 vehicles between September 2025 and March 2026.

Registrations increased to 650 in the following six months, from April to September 2026, taking the cumulative figure for the two periods to nearly 1,000. Average monthly registrations rose from about 49 in the initial seven-month period to 108 in the subsequent six months.

The improvement followed changes to Tesla’s Indian vehicle lineup and pricing. In April 2026, Tesla introduced the six-seat Model Y L, a longer version of its electric SUV with all-wheel drive and a claimed driving range of 681 kilometers under the WLTP testing standard.

The following month, the company introduced a lower-priced Model Y Premium Rear-Wheel Drive variant at ₹50.89 lakh ($53,600), down ₹9 lakh from the earlier entry-level Model Y price of ₹59.89 lakh.

The Model Y L currently starts at ₹61.99 lakh ($65,300), ex-showroom, according to Tesla’s Indian website.

Both models were introduced after FY26 ended on 31 March.

Import tariffs limit Tesla’s reach

Tesla continues to import fully built vehicles into India rather than manufacture them locally, leaving its products exposed to substantial import duties.

India imposes high tariffs on imported electric passenger vehicles. The Ministry of Heavy Industries told Parliament in December 2025 that fully built electric cars faced import duties of 70% or 110%, depending on their import value.

A government scheme provides for reduced duties of 15% on eligible imported electric cars, but participating manufacturers must commit at least ₹4,150 crore to Indian manufacturing facilities and meet local production requirements.

Tesla has not announced a timetable for establishing a vehicle manufacturing plant in India.

The absence of local production has kept the automaker concentrated in the premium market, while established manufacturers offer electric models at substantially lower prices.

Tata Motors and Mahindra and Mahindra dominate the broader Indian electric passenger vehicle market, while BMW, Mercedes-Benz, BYD, MG and VinFast compete across different price segments.

Tesla’s September registrations showed a considerable improvement over its earlier monthly volumes, but its share of the wider electric vehicle market remained small.

According to data from the Federation of Automobile Dealers Associations, Tesla retailed 291 electric vehicles in September 2026, compared with 502 for BMW, 14,791 for Tata Motors and 7,780 for Mahindra.

Tesla ranked second behind BMW in India’s luxury electric vehicle segment that month, ahead of Mercedes-Benz, which recorded 125 registrations.