Landmark Cars

Landmark Cars reported a strong Q3 FY26, achieving record revenue, gross profit, and EBITDA. Total proforma revenue stood at ₹1,851 crores, an 11% year-on-year growth. Reported revenue was ₹1,345 crores, up 12.6% YoY. Gross profit reached ₹220 crores, with a gross margin of 16.4%. EBITDA for the quarter was ₹79 crores, reflecting a 13.3% YoY growth and a 5.9% margin on reported revenue. PAT for the quarter was ₹14 crores, with cash PAT at ₹34 crores, marking the highest in the last seven quarters.

The company anticipates significant benefits from the India-EU Free Trade Agreement. While 92% of Mercedes-Benz vehicles sold are CKD, where price changes may be minimal, the FTA is expected to lead to a substantial drop in duties for CBU (Completely Built Unit) vehicles. This opens new avenues for brands like Volkswagen, Jeep, and Renault to import vehicles at lower duties, creating new business opportunities for Landmark Cars as a major partner for these brands.

Mercedes-Benz, the largest luxury brand, continues to focus on value over volume, with 12 new models expected to launch in India starting next month. BYD recorded robust 80% volume growth in calendar year 2025, with full regularization of supplies expected from April. Mahindra saw strong booking momentum for its XEV 9S and XUV 7XO, accumulating over 93,000 bookings. Renault is gaining traction with the relaunch of the Duster, and MG continues to perform well with multiple product launches.

The aftersales business delivered a record quarter, with revenue growing 13.1% year-on-year to ₹279 crores. For the nine months ended December 31, 2025, the number of services increased by 11% to 293,000. Management noted that the mix of sales and service is shifting towards service, which has a higher gross profit. The current contribution of aftersales to overall revenue is around 15%, with expectations for this to grow as newer workshops stabilize.

Landmark Cars maintained strict cost discipline, keeping employee costs and other operating expenses below 4.4% of proforma revenue. The company generated approximately ₹265 crores in net operating cash flow for the nine months ended December 31, 2025, reflecting improved working capital management. Inventory levels are currently at 31 days, and the company aims to reduce this further, emphasizing that lower inventory leads to better cash generation.

Newer brands currently contribute 20% of the company's revenue. While these brands are not yet as profitable as established ones, management expects them to reach a 'much better zone' of profitability within a few more quarters. The company is committed to building on its solid platform and exploring exciting opportunities, with a focus on tactical expansion rather than large-scale new expansions, having already completed significant capacity build-up.