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    Popular Vehicles

    PVSL
    Automobile and Auto Components·27 May 2026
    Management Summary

    Popular Vehicles reported a strong recovery in FY26 with a 15.1% YoY increase in total income to ₹6,401.1 crores, driven by strategic acquisitions and geographic expansion. Despite reporting losses for the year, adjusted EBITDA grew 28% YoY. The company is targeting high double-digit top line growth and a consolidated EBITDA margin of 4.8-5% for FY27, with sustainable profitability expected from Q2 FY27, while actively managing inventory and debt levels.

    Highlights

    5

    • FY26 total income grew 15.1% YoY to ₹6,401.1 crores, driven by improved demand and strategic initiatives.

    • Adjusted EBITDA for FY26 increased 28% YoY to ₹200.9 crores, demonstrating strong operational recovery.

    • Non-Keralam revenue contribution significantly increased to 47% in FY26, improving geographic diversification.

    • Strategic acquisitions of BharatBenz, Maruti Suzuki, and Audi dealerships completed, strengthening market presence.

    • Service business is expected to grow 10-12% in volumes and ASP in the Passenger Car segment for FY27.

    Concerns

    5

    • Reported a loss of ₹5 crores in Q4 FY26 and ₹12.5 crores for FY26, impacting overall profitability.

    • An error in the Q4 FY26 business update due to erroneous calculation, though processes are being strengthened.

    • Service volumes saw a 4% degrowth in FY26 (adjusted/organic), attributed to market conditions and focus on higher-value jobs.

    • Q1 FY27 is expected to face supply constraints from JLR and Maruti, along with concerns over petrol prices.

    • Raj Narayan, CEO, tendered his resignation to pursue an opportunity outside the industry.

    Key financials

    Metrics

    6

    Periods

    2

    Q4 FY26

    2
    • Total Income
      ₹1,758.8 Cr
      YoY+27.8%
    • PAT
      ₹-5 Cr

    FY26

    4
    • Total Income
      ₹6,401.1 Cr
      YoY+15.1%
    • EBITDA
      ₹203.4 Cr
      YoY+16%
    • EBITDA Margin
      3.2%
    • PAT
      ₹-12.5 Cr

    Segment breakdown

    New Vehicle VolumesNew Vehicle Volume GrowthTotal IncomeTotal Income Growth
    New Vehicles (Adjusted/Organic, FY26)————
    Services (Adjusted/Organic, FY26)————
    Passenger Vehicles (Q4 FY26)8,09020%₹654 Cr18%
    Commercial Vehicles (Q4 FY26)3,71659%₹645 Cr46%
    EV (Q4 FY26)3,079138%₹50 Cr113.0%
    Heatmap· 4 shared metrics

    Capital allocation

    6
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Gross ₹643 crores

    M&A

    Honda and Piaggio business

    divestment · closed

    M&A

    BharatBenz dealership in Punjab

    acquisition · closed

    M&A

    Maruti Suzuki dealership in Telangana

    acquisition · closed

    Guidance & targets

    13
    CategoryTargetPriority
    Profitability
    EBITDA Margin
    4.8-5%
    		High
    Profitability
    PAT
    approaching FY24 levels
    		Medium
    Profitability
    Audi Business Profitability
    breakeven
    		High
    Profitability
    Telangana, Andhra, Maruti Business Operational Profitability
    profitable
    		High
    Profitability
    Overall Company Profitability
    sustainable profitability
    		High
    Revenue
    Top Line Growth
    high double-digit
    		High
    Service Volume
    Passenger Car Segment Volume Growth
    10-12%
    		High
    Service Volume
    Commercial Vehicles Service Volume Growth
    5-7%
    		High
    Service Volume
    Overall Service Volume Growth
    2-3%
    		High
    Service ASP
    Passenger Car Segment ASP Growth
    similar to last year (around 13%)
    		Medium
    Service ASP
    Commercial Vehicles Service ASP Growth
    8-10%
    		High
    Spare Parts
    Spare Parts Margins
    5.5-6%
    		High
    Service Revenue
    Overall Service Revenue Growth
    15-16%
    		High

    Consolidated EBITDA Margin

    FY27
    Current3.2% (FY26)
    Target4.8-5% (FY27)

    Why it matters

    This is a key profitability metric, and management is targeting a significant improvement for the full year.

    But overall margins and overall profitability, we should head towards an EBITDA margin of about 5% consolidated, about 4.8% to 5% consolidated.

    How to verify

    key_financials.metrics[label='EBITDA Margin']

    Risks & concerns

    7
    RiskSeverity

    Error in Q4 FY26 Business Update

    An error in the business update published on April 17, 2026, for Q4 FY26 results due to erroneous calculation during data gathering and consolidation, especially with multiple acquisitions and system updates. — Management acknowledged

    medium

    CEO Resignation

    Mr. Raj Narayan, CEO, has tendered his resignation to pursue an opportunity outside the industry. — Management acknowledged

    low

    Standalone Business Losses

    Standalone business is still seeing losses, attributed to acquisitions and IndAS impact, though operational profitability is expected by year-end. — Both acknowledged

    medium

    Cyber-attack Impact on JLR Supply

    A cyber-attack impacted JLR's supply in Q3, leading to lost revenue and PBT, but is expected to be resolved. — Management acknowledged

    low

    Higher Debt Levels

    Increased debt due to acquisitions, though primarily inventory-related (₹520 crores out of ₹600-800 crores), and management is comfortable with current levels. — Both acknowledged

    low

    Service Volume Degrowth

    Overall service volume degrowth of 4% in FY26 (adjusted/organic), attributed to focus on higher-value jobs, market conditions, and customers postponing services. — Both acknowledged

    medium

    Q1 FY27 Supply Constraints and Petrol Prices

    Supply constraints from JLR and Maruti, and concern over petrol prices are expected to impact Q1 FY27. — Management acknowledged

    medium

    Q&A highlights

    8

    “So I think on the Service volumes, the largest dip has been in the job card, which is in very low in the quantity because we focused on the higher value thing to improve the holdup ratio, et cetera, for the customer experience. So while -- overall for the entire group, while the service volume for the last year would have degrown at about closer to minus 6%. The ASP has grown at about 14%, resulting in a revenue growth of over 8%.”

    Analyst challenged the company's service margin compared to peers; management clarified the reasons for volume dip and explained the ASP growth and segment-specific margin targets.

    asked by Preet Pitani

    2 min read6 chapters

    Detailed Narrative

    01

    Q4 & FY26 Financial Performance and Recovery

    Popular Vehicles reported a strong recovery in FY26, with total income growing 15.1% YoY to ₹6,401.1 crores. Q4 FY26 saw a 27.8% YoY increase in total income to ₹1,758.8 crores. Despite this growth, the company recorded a loss of ₹5 crores in Q4 FY26 and a loss of ₹12.5 crores for the full year. However, adjusted EBITDA for FY26, excluding one-off📎 items and acquisition impacts, stood at ₹200.9 crores, marking a 28% YoY increase.

    02

    Strategic Acquisitions and Geographic Diversification

    FY26 was a pivotal year for strategic repositioning, including the divestment of Honda and Piaggio businesses. The company expanded its presence into new states like Andhra, Telangana, Punjab, and Maharashtra through three key acquisitions: BharatBenz dealership in Punjab, Maruti Suzuki dealership in Telangana, and Audi dealership operations across Telangana and Andhra Pradesh. These initiatives significantly boosted non-Keralam revenue contribution to approximately 47% in FY26, up from 28% in FY23, with a target to exceed 50% in the coming year.

    03

    Focus on Service and Aftermarket Ecosystem

    The company is enhancing its higher-margin service and aftermarket offerings. It commenced the BKT distribution business for 2-wheeler and passenger car radial tyres in Kerala and Tamil Nadu. Additionally, the launch of Yanik under ZPAREX Digisolutions, an e-commerce platform for spare parts and accessories, aims to build an integrated omnichannel ecosystem. While overall service volumes saw a 4% degrowth in FY26, service revenue grew 8% due to improved ASPs.

    04

    FY27 Outlook and Profitability Targets

    Management is optimistic about FY27, targeting high double-digit top line growth. Consolidated EBITDA margins are projected to reach the 4.8-5% range, with PAT expected to approach FY24 levels. Sustainable profitability is anticipated from Q2 FY27, although Q1 may still face headwinds from JLR and Maruti supply constraints and petrol price concerns. Passenger Car service volumes are expected to grow 10-12% with similar ASP growth in FY27.

    05

    Inventory Management and Debt Profile

    The company is actively managing its inventory levels, aiming to reduce inventory days to below 30 from 36 days in FY25. Total bank loan facilities increased from ₹468 crores to ₹643 crores, with approximately ₹520 crores of the debt being inventory-related. Management expressed comfort with the current debt levels and confirmed plans to repay term loans as per scheduled cycles, with no additional debt planned for current business operations.

    06

    Segmental Performance and Growth Drivers

    In Q4 FY26, Passenger Vehicle new unit volumes grew 20% YoY to 8,090 units, with total income up 18% to ₹654 crores. Commercial Vehicle new unit volumes surged 59% YoY to 3,716 units, and total income grew 46% to ₹645 crores. EV new unit volumes saw a significant 138% YoY increase to 3,079 units, contributing ₹50 crores in total income. These segments are expected to drive future growth, with Audi business targeted for breakeven and other acquired Maruti businesses in Telangana and Andhra Pradesh expected to be operationally profitable by end of FY27.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.