Skip to content

    Landmark Cars Q4 FY26 earnings call

    LANDMARK
    Automobile and Auto Components·27 May 2026
    Management Summary

    Landmark Cars delivered a strong Q4 and FY26, marked by robust revenue growth, record EBITDA, and significant PAT improvement. The after-sales segment crossed a major milestone of ₹1,000 crore in annual revenue. The company is now focusing on consolidation, sweating existing assets, and optimizing operations to sustain profitable growth, with a positive outlook on OEM product pipelines and EV penetration.

    Highlights

    5

    • FY26 Reported Revenue grew 22% YoY to ₹4,896 crore, outpacing industry growth.

    • After-sales business achieved a significant milestone, crossing ₹1,000 crore in annual revenue for FY26, growing 12% YoY.

    • Q4 FY26 PAT saw a substantial 758% YoY growth to ₹15 crore, reflecting improved profitability.

    • EBITDA for FY26 reached its highest ever at ₹283 crore, with a 5.8% margin, demonstrating continuous cost optimization.

    • Average selling price (ASP) for new vehicles increased to ₹23 lakh in Q4 FY26 and ₹21.96 lakh for FY26, driven by higher-variant model sales.

    Concerns

    3

    • Exceptional item for Q4 FY26 includes expenses written-off in relation to outlet closures and relocations, impacting reported profit.

    • Past inventory pileup issues due to GST rationalization and BYD quota limitations were acknowledged, though management expects a better year ahead.

    • Global studies suggest a marginal (12-14%) revenue drop in after-sales business for EVs compared to ICE, though accident repair remains constant.

    What Changed2

    vs Q1 FY27

    Guidance items3 → 5 (+2)Risks discussed3 → 5 (+2)
    Key financials

    Metrics

    9

    Periods

    2

    Q4

    4
    • Reported Revenue
      ₹1,279 Cr
      YoY+17%
    • EBITDA
      ₹79 Cr
      YoY+30%
    • EBITDA Margin
      6.2%
    • PAT
      ₹15 Cr
      YoY+7.6%

    FY26

    5
    • Reported Revenue
      ₹4,896 Cr
      YoY+22%
    • EBITDA
      ₹283 Cr
    • EBITDA Margin
      5.8%
    • PAT
      ₹38 Cr
      YoY+120%
    • Net Operating Cash Flow
      ₹267 Cr

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    ₹50 crores

    Debt

    Debt disclosed

    Dividend

    ₹1.5/share (final)

    Liquidity

    Liquidity disclosed

    Generated net operating cash flow of ₹267 crore in FY26, with an operating cash flow to EBITDA ratio of 0.94, prioritizing cash generation.

    Guidance & targets

    5
    CategoryTargetPriority
    Capex
    FY27 Capex
    ~₹50 crores
    		Medium
    Profitability
    Profitability and Metrics
    Get profits back and continuously work on all metrics
    		High
    Growth
    Growth
    Will grow this year with existing opportunities
    		Medium
    Debt
    Debt Reduction
    Debt is going to reduce
    		High
    BYD Performance
    BYD Sales
    Much better year for BYD
    		Medium

    What to watch in Q1 FY27

    5

    Profitability and metrics stabilization

    This year
    CurrentQ4 PAT up 758% YoY to ₹15 crore; FY26 EBITDA margin 5.8%
    TargetSustained profitable growth and improved metrics

    Why it matters

    Management emphasized this year as one of consolidation to get profits back and improve all metrics, crucial for long-term value creation.

    So, this is the year where we want to get the profits back and we have been continuously working on all the metrics very diligently.

    Risks & concerns

    5
    RiskSeverity

    Inventory pileup and margin pressure due to GST rationalization

    Management stated this was a past issue in FY26 and not expected next year, with current outlets having headroom for organic growth. "But next year, I don't think any such thing is a possibility." — Analyst downplayed

    low

    Impact of EV penetration on after-sales revenue

    Global studies suggest a marginal 12-14% revenue drop for EVs in after-sales due to lower maintenance, but accident repair and value-added services remain constant. "So, this is the global study, and we will have to see how things pan out in India." — Analyst acknowledged

    medium

    OEM price hikes impacting demand

    Management noted the resilience of demand despite price increases, except for commercial vehicles. "we are also positively surprised by the resilience of the demand so far" — Analyst downplayed

    low

    Supply chain disruption

    Fear of supply chain disruption led to a slight inventory buildup. "That's what the fear was at that time. So, we kind of did not want to go down below that 30 day-mark where we were and we built up slightly." — Management acknowledged

    low

    BYD supply issues and quota limitations

    Past issues were due to quota limitations for homologated cars, now resolved with new quotas. "Now, we have a new year which has happened with new quotas. But the good part as Aryaman mentioned is that most of the cars which we sell are out of that quota system. So, this should be a much better year for BYD." — Analyst downplayed

    low

    Q&A highlights

    8

    “So, this is the year where we want to get the profits back and we have been continuously working on all the metrics very diligently. In fact, the teams are so much focused on cost, you will not believe. So, this is something that has gotten into our DNA. So, we will have profitable growth continue to happen and you will see it this year.”

    Analyst questioned the sustainability of margin improvement; management emphasized consolidation and cost focus for profitable growth.

    asked by Rahul Dhani

    2 min read6 chapters

    Detailed Narrative

    01

    Q4 & FY26 Performance Overview

    Landmark Cars reported a strong Q4 FY26 with reported revenue of ₹1,279 crore, growing 17% YoY, and a PAT of ₹15 crore, marking a 758% YoY increase. For the full year FY26, reported revenues grew 22% YoY to ₹4,896 crore, with EBITDA reaching a highest-ever ₹283 crore, reflecting a 5.8% margin. The company also generated a net operating cash flow of ₹267 crore, demonstrating a focus on cash generation.

    02

    After-Sales Business Milestone

    The after-sales business achieved a significant milestone in FY26, crossing ₹1,000 crore in annual revenue, growing 12% YoY to ₹1,051 crore. The average revenue per vehicle service increased to ₹30,072 in Q4 FY26 from ₹27,420 in Q4 FY25. Management highlighted that 47% of service income comes from accident repairs, and while global studies suggest a marginal drop in EV after-sales, accident repair and value-added services remain constant.

    03

    OEM Updates and EV Focus

    The company noted strong demand for new Mercedes-Benz models like the V-Class and electric CLA, with ASP for Mercedes increasing to ₹73 lakh in Q4 FY26. BYD supplies have improved, and the company expects a much better year for BYD sales with new quotas. Landmark Cars is well-positioned in the EV segment, with EVs contributing over 21% of its sales. Honda is planning a strong comeback with 10 upcoming product launches, and Stellantis is developing a new Jeep SUV in collaboration with Tata Motors.

    04

    Operational Efficiency and Cost Optimization

    Management emphasized a phase of consolidation and sweating existing assets to improve profitability. Continuous cost optimization efforts resulted in employee costs and other operating expenses remaining within the 4% benchmark of proforma revenue. The growth in EBITDA outpaced revenue growth, indicating successful efficiency measures. The company aims to achieve its historic profit matrices by diligently working on all metrics.

    05

    Capital Allocation and Shareholder Returns

    The Board approved a dividend of ₹1.5 per share for FY26, a significant increase from ₹0.50 paid last year. The company reduced its interest-bearing debt by ₹27 crore in FY26 and expects further debt reduction in the coming year due to strong cash flow generation. Capex for FY27 is projected to be around ₹50 crore, indicating a conservative approach during the consolidation phase.

    06

    Market Outlook and Inventory Strategy

    India's auto retail market is entering FY27 with strong momentum, with healthy volume growth observed in April and May. OEMs have increased prices due to foreign exchange fluctuations and global supply challenges, which is expected to improve average selling prices. Landmark Cars proactively maintained higher inventory levels to leverage pricing advantages and ensure better availability for customers, benefiting from price hikes on existing stock.

    This is an AI-generated summary of a publicly available earnings call transcript.