Popular Vehicles and Services LimitedAutomobilesPVSL
Q1 FY27 earnings callPopular Vehicles and Services Limited
Q1 FY27 showed strong revenue growth driven by both acquired businesses scaling up and organic growth across segments, with improved demand and a focus on converting scale into sustainable profitability.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue from Operations | INR1,890 crores | 44% Y-o-Y | |
| Reported EBITDA | INR71.5 crores | 86.6% Y-o-Y | |
| EBITDA Margin | 3.8% | 0.9 p.p. | |
| Reported PBT | INR1.9 crores | Positive vs loss of INR11 crores | |
| Adjusted PBT | INR11.2 crores | — | |
| New Vehicle Volumes (Total) | 81% Y-o-Y | 81% Y-o-Y | |
| Service Volumes (Total) | 1% Y-o-Y | 1% Y-o-Y | |
| Inventory Days | 32 days | -18 days Y-o-Y |
Financials
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹1,364.67 Cr-3.7% YoY-9.8% QoQ | ₹-9.76 CrTurned loss-making YoYTurned loss-making QoQ | ₹-1.37Turned negative YoYTurned negative QoQ |
| Q2 FY25 | ₹1,512.75 Cr— YoY+17.1% QoQ | ₹7.57 Cr— YoY+38.9% QoQ | ₹1.06— YoY+37.7% QoQ |
| Q1 FY25 | ₹1,291.45 Cr— YoY-5.3% QoQ | ₹5.45 Cr— YoY-72.9% QoQ | ₹0.77— YoY-75.4% QoQ |
| Q4 FY24 | ₹1,363.71 Cr— YoY-3.7% QoQ | ₹20.11 Cr— YoY+26.3% QoQ | ₹3.13— YoY+23.2% QoQ |
| Q3 FY24 | ₹1,416.82 Cr— YoY— QoQ | ₹15.92 Cr— YoY— QoQ | ₹2.54— YoY— QoQ |
TL;DR
- Consolidated revenue grew 44% YoY to INR 1,890 crores, with organic growth at 33%.
- Reported EBITDA increased 87% YoY to INR 71.5 crores, with margins improving to 3.8%.
- Acquired businesses (Maruti Telangana, BharatBenz Punjab, Audi) are now EBITDA positive, with profitability at PAT level expected from Q2/Q3 onwards.
- Revenue contribution from Kerala fell below 50% for the first time, achieving a more diversified geographic mix.
- Demand environment is encouraging heading into the festive season, with inquiries and bookings up.
- Management guides for full-year blended EBITDA margin around 4.3-4.4%, lower than the earlier 5% target due to a higher-than-expected CV revenue mix.
Said on the call
“Q1 FY27 is beginning to demonstrate the benefits of those actions. We now have a wider OEM portfolio, a broader geographic footprint and a stronger platform across new vehicle services and the aftermarket.”
From the Q&A
| Topic | What management said |
|---|---|
| Demand and Festive Outlook | Inquiries are up ~20% YoY; bookings up ~22%. Management remains positive on H2 demand, especially with upcoming festivals, though PV growth may moderate from very high bases. |
| EBITDA Margin Trajectory | Earlier 5% margin target is unlikely this year due to a higher-than-expected Commercial Vehicle revenue mix (lower margins). Expect blended margin around 4.3-4.4% for the year, with sequential improvement. |
| Acquisition Profitability | All three acquired businesses are EBITDA positive (INR 9.4 crores combined). Globe (BharatBenz) has broken even; R.K.S. (Maruti) and Olympus (Audi) expected to become profitable at PAT level by Q3/Q4 FY27. |
| Rural Demand and Segment Trends | PV demand strong across all geographies. CV demand soft in construction/tipper segment but healthy in small/intermediate/LCV cargo. EV demand strong but rural pick-up still awaited. |
| Service Volume Guidance | Service volume growth was -5% in Q1 (impacted by Honda divestment). Expect 6-7% growth from Q2 onwards, lower than the earlier 10-12% guidance. ASP growth and mix shift to higher-value jobs supported service income. |
| Segmental Margins and Price Hikes | PV EBITDA margin is ~4%; JLR ~5%; CV ~3.6-3.7%. Recent OEM price hikes are minimal (INR 5k-7k) and have not impacted demand. Dealer incentives from higher national rankings (e.g., #2 in Maruti, Tata, BharatBenz, Ather) will aid profitability. |
| Use of Cash & Debt | Primary focus is to use operational cash flow to repay debt. No major acquisition or expansion capex planned beyond replacement and ongoing projects. |
Guidance
- Acquired businesses expected to achieve sustainable profitability at PAT level from Q2/Q3 onwards.
- Blended EBITDA margin for the year expected around 4.3-4.4% (lower than earlier 5% target due to higher CV mix).
- Revenue growth target of ~20-25% for FY27 (from ~INR 6,400 Cr to ~INR 8,200-8,300 Cr).
- Service volume growth expected at 6-7% from Q2 onwards.
- Demand environment remains encouraging for the festive period.
Source
Summary written from the transcript filed by Popular Vehicles and Services Limited for the call held on 12 Aug 2026; published 19 Aug 2026, 20:16 IST.