-based bus fleet operator Chartered Speed is targeting a more than doubling of its revenues, from around ₹750 crore currently to ₹1,800–1,900 crore over the next two years, powered by a 3,000-bus electric order book under central government schemes.
The company has already filed its Draft Red Herring Prospectus (DRHP) with to raise ₹855 crore, and its IPO likely to hit the markets in the second half of the current fiscal.
The contracted visibility underpins the growth outlook for Chartered Speed wth its 3,000 electric buses on order is expected to generate ₹1,100–1,300 crore in annual revenue once deployed.
“Current contracts 1,300 buses under PM e-Bus Seva and 1,700 under PM E-DRIVE, will contribute ₹400–500 crore and ₹700–800 crore annually, respectively. This is contracted revenue, not aspiration,” said Sanyam Gandhi, whole-time director.
The company operates under the gross cost contract (GCC) model, procuring, owning and operating buses for state transport undertakings in exchange for a fixed per-kilometre fee over long-term contracts — offering predictable revenue streams but demanding high upfront capital and tight operational execution.
IPO to fund expansion and reduce debt
The ₹855 crore IPO comprises a ₹655 crore fresh issue and a ₹200 crore offer-for-sale by promoters Pankaj Gandhi and Alka Pankaj Gandhi.
Proceeds will fund electric bus investment (approximately ₹98 crore) and debt repayment of around ₹396.4 crore, with a pre-IPO placement of up to ₹131 crore also under consideration.
From 7 trucks to 2,000 buses
What began as a family trucking business in 1993, with five breadwinners and seven trucks, has pivoted to buses in 2010 with a BRT contract in Ahmedabad.
Chartered Speed has since grown to over 2,000 buses across multiple states, with around 65% of revenue from government and municipal contracts. The company expects to close FY26 with revenues of approximately ₹750 crore and EBITDA of over ₹200 crore, placing it among the few genuinely profitable private bus operators in India.
The opportunity ahead remains substantial.
Of the 52,000 buses sanctioned under PM e-Bus Seva (38,000) and PM E-DRIVE (14,000), only around 17,000 have been tendered so far, leaving over 35,000 yet to be bid out. The segment is highly fragmented, and most operators run fewer than 300 buses, limiting competition at scale. In-house model drives margins
Chartered Speed keeps all operations, drivers, maintenance, tyres, and cleaning in-house. “If you outsource everything to vendors working at ₹2 per kilometre, you can never hold them accountable for your ₹70 per kilometre revenue,” Gandhi said.
The company is both EBITDA- and PAT-positive, a distinction few peers can claim. Policy support, execution gaps
Policy support, execution gaps, and industry status are seen as key levers
The government’s Payment Security Mechanism (PSM), backed by escrow accounts and a central liquidity buffer managed by CESL, has reduced payment risk from state transport undertakings. But execution remains hostage to depot electrification delays and OEM supply backlogs. “Orders are getting very chunky — they need to be synced,” Gandhi said.
The bus sector in India, despite accommodating nearly 400 million passengers on a daily basis, continues to lack formal industry recognition.
This absence of formal status, as noted by industry operators, contributes to an increased cost of capital, particularly in instances where project delays occur beyond their control.
“Even when delays are beyond our control, the cost of capital rises.” Chartered Speed founder emphasised the importance of aligning lending norms with the actual realities of the sector, particularly as the trend of electrification expands.