Landmark Cars Limited — Q3 FY26 earnings call

Call held 11 Feb 2026

Management summary

Landmark Cars reported a robust Q3 FY26 with record revenue, gross profit, and EBITDA, driven by strong performance across its OEM partners and a record quarter for aftersales. The company highlighted strategic benefits from the India-EU FTA, particularly for CBU imports and new brand avenues, alongside disciplined cost management and improved working capital. While newer brands are currently less profitable, management expects their contribution to improve in the coming quarters, positioning Landmark for sustained growth.

Highlights

  • Total proforma revenue reached a record ₹1,851 crores, an 11% YoY increase.

  • EBITDA grew 13.3% YoY to ₹79 crores, with an EBITDA margin of 5.9% on reported revenue.

  • Net operating cash flow for 9M FY26 was ₹265 crores, demonstrating improved working capital discipline.

  • Aftersales business delivered a record quarter with 13.1% YoY growth, contributing ₹279 crores.

  • PAT for the quarter was ₹14 crores, with cash PAT at ₹34 crores (2.5% margin), the highest in seven quarters.

Concerns

  • Newer brands, contributing 20% of revenue, are currently less profitable than older brands, though expected to improve in a few quarters.

  • Analyst concern about potential demand postponement for CKD vehicles due to India-EU FTA, though management clarified minimal impact for 92% of Mercedes sales.

Key financials

  1. Proforma Revenue ₹1,851 Cr +11%YoY
  2. Reported Revenue ₹1,345 Cr +12.6%YoY
  3. Gross Profit ₹220 Cr +13.6%QoQ
  4. Gross Margin 16.4%
  5. EBITDA ₹79 Cr +13.3%YoY
  6. EBITDA Margin 5.9%
  7. PAT ₹14 Cr
  8. Cash PAT ₹34 Cr

What they filed

Q1 FY27: revenue up 22.6%, net profit up 114.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue907 1,195 1,091 1,062 1,211 +34%1,345 +13%1,279 +17%1,302 +23%
EBITDA52 66 55 61 54 +4%74 +12%76 +38%72 +18%
Net profit0 12 2 7 2 14 +17%15 +650%15 +114%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

medium confidence
  • Liquidity Liquidity disclosed The company generated net operating cash flow of approximately INR265 crores for the nine months ended December 31, 2025, reflecting improved working capital discipline.
    As of 31st December 2025, the company generated net operating cash flow of approximately INR265 crores, reflecting improved working capital discipline.

Guidance & targets

Profitability

  • Employee Expenses as % of Proforma Revenue Profitability · Ongoing · High confidence within 4%
    This will remain within the 4% as we committed

    — Sanjay Thakker

  • Depreciation (Ind AS) Profitability · Yearly basis · High confidence around INR150 crores
    depreciation would be around, for the yearly basis, it will be around INR150 crores for the year with the Ind AS thing.

    — Sanjay Thakker

  • Aftersales Growth Rate Profitability · Future · Low confidence possible
    Yes. The answer is it is possible, and that's all what we are working towards.

    — Sanjay Thakker

  • New Brands Profitability Profitability · few more quarters · Medium confidence much better zone
    Some are on their way. So, it's a matter of a few more quarters, and they will get to a much better zone than they are.

    — Sanjay Thakker

What to watch in Q4 FY26

Mercedes-Benz volume growth

Next month onwards
Current Lost market share in volume terms globally
Target Volume growth from new model launches

Why it matters

Mercedes is a 'crown jewel' and its volume performance, driven by 12 new model introductions, is crucial for overall growth.

But the industry works on kind of spurts that you get when the new models are launched, then you get into a kind of a steady growth.

Risks & concerns

  • Lower profitability of newer brands

    medium

    New brands, contributing 20% of revenue, are currently less profitable than established brands, impacting overall margins.

    Management acknowledged

  • Competitive intensity from new OEM entrants

    medium

    Analyst asked about Chinese OEMs entering India via JVs and their potential impact, management stated it's too early to comment.

    Analyst not addressed

  • Potential demand postponement due to India-EU FTA

    low

    Analyst concern that customers might delay purchases awaiting FTA benefits, but management clarified minimal impact on majority CKD vehicles.

    Analyst downplayed

Q&A highlights

5 direct, 1 evasive
Aftersales revenue growth vs. new car sales growth Partial
So, what is happening is that the mix of our sales and service will get more in favour of service, which will lead to a higher gross profit in those brands. ... But to kind of say that it will be a significant year-on-year growth, it is a little premature.

Analyst questioned if aftersales growth would outpace new car sales significantly, management indicated it would improve but was cautious on magnitude.

Asked by Bhargav Buddhadev

Impact of India-EU FTA on demand and pricing Direct
Around 92% of the vehicles that we sell, say, in Mercedes-Benz, I believe, are the CKD vehicles where the price drop may not be anything meaningful... The CBU is something that will see a big drop. ... this opens up avenue for vehicles that were not initially imported by brands like a Volkswagen or a Jeep or Renault.

Clarified that FTA impact on CKD vehicles (majority) would be minimal, but CBU prices would drop, and new import avenues would open for other brands, creating new business opportunities.

Asked by Bhargav Buddhadev

Mercedes-Benz performance and future growth Direct
Mercedes is our crown jewel clearly. Now the thing is that the Mercedes brand and as explained in their investor presentations, it has grown in value terms. They have lost market share in volume terms that has been the global strategy so far. ... there are 40 new models which are getting launched globally... But the industry works on kind of spurts that you get when the new models are launched, then you get into a kind of a steady growth.

Addressed concerns about Mercedes' volume growth, explaining global strategy shift to value over volume, and highlighted upcoming new model launches as a driver for future volume growth.

Asked by Pritesh

Aftersales business as a percentage of overall revenue Direct
Yes. So currently, it is at around 15%. I think that's where we are.

Provided a key metric for the aftersales business, which is a higher-margin segment, and confirmed its current contribution to overall revenue.

Asked by Ajox Frederick H

Profitability of new brands Direct
So yes, they are clearly not as profitable as the old brands. Some of them have already turned profitable. Some are on their way. So, it's a matter of a few more quarters, and they will get to a much better zone than they are.

Addressed the margin impact of newer brands, acknowledging lower initial profitability but expressing confidence in future improvement.

Asked by Jyoti Singh

Impact of EU FTA on ASP and brand value Direct
No, ASP will be reduced only on imported cars, not on locally built cars. So locally built is 92% of what we sell right now.

Clarified that the FTA's impact on Average Selling Price (ASP) would be limited to imported cars, not the majority of locally built vehicles, mitigating concerns about overall brand value dilution.

Asked by Subhanu Bangal

Entry of Chinese OEMs via JV and market impact Evasive
It's very early days to kind of comment on any impact on it. It's an evolving kind of a thing. So maybe in the next few quarters, we will know who are the new players and how they would like to kind of come and all that.

Analyst raised a strategic question about new competitive threats, but management deferred a detailed response due to early stages of development.

Asked by Arnav Sakhuja

2 min read 6 chapters

Detailed narrative

Q3 FY26 Financial Performance Highlights

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.

Strategic Benefits from India-EU FTA

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.

OEM Partner Performance and Outlook

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.

Aftersales Business Growth and Contribution

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.

Cost Management and Working Capital Efficiency

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.

New Brands and Future Growth Strategy

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.

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