LANDMARKNSEAugust 20, 2025

Landmark Cars Limited

8,010words
94turns
13analyst exchanges
4executives
Management on call
Sanjay Thakker
CHAIRMAN AND EXECUTIVE
Aryaman Thakker
EXECUTIVE DIRECTOR – LANDMARK CARS LIMITED
Surendra Agarwal
CHIEF FINANCIAL
Akhil Parekh
B&K SECURITIES
Key numbers — 40 extracted
rs 1
nks, Soumya. Good morning, everyone. On behalf of B&K Securities, I welcome you all to Landmark Cars 1Q FY '26 conference call. From the management side, we have with us Mr. Sanjay Thakker, Promoter,
2.59%
e has had a chance to have a look at it. While the Indian passenger vehicle market grew only by 2.59% year-on-year in the first quarter on volume basis, Landmark Cars achieved nearly 22% growth in re
22%
ew only by 2.59% year-on-year in the first quarter on volume basis, Landmark Cars achieved nearly 22% growth in revenue, which was driven by strong deliveries in new car sales segment. This performan
rs,
r sales segment. This performance was backed by recent brand additions over the past couple of years, which have significantly outperformed the industry. Our profit before tax and profit after tax hav
20%
erned. We now represent fast-growing brands in a meaningful way. BYD and MG together are nearly 20% of the company's business now. With the possible improvement of relationship between India and Ch
10%
ved its best-ever quarterly sales in April to June of 2025, retailing 4,238 vehicles, which was a 10% year-on-year growth. This performance was driven by strong demand for both high-end luxury models
INR75 lakh
nd has launched with 2 models in India currently. The Cyberster, which is priced at approximately INR75 lakhs and the MG M9 MPV positioned at INR69.9 lakhs. B
INR69.9 lakh
ntly. The Cyberster, which is priced at approximately INR75 lakhs and the MG M9 MPV positioned at INR69.9 lakhs. Both these models have received a positive respon
INR1,415 crore
ncial highlights for the quarter of FY '26. The total proforma revenue for the quarter stood at INR1,415 crores compared to INR1,164 crores in the same period last year, reflecting a year- on-year growth of 21
INR1,164 crore
uarter of FY '26. The total proforma revenue for the quarter stood at INR1,415 crores compared to INR1,164 crores in the same period last year, reflecting a year- on-year growth of 21.6%. Of this, the new car pr
21.6%
res compared to INR1,164 crores in the same period last year, reflecting a year- on-year growth of 21.6%. Of this, the new car proforma sale contribute approximate INR1,181 crores across all OEM partner
INR1,181 crore
lecting a year- on-year growth of 21.6%. Of this, the new car proforma sale contribute approximate INR1,181 crores across all OEM partners, while after-sale revenue was INR235 crores. Gross profit for the quarte
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Guidance — 20 items
Aryaman Thakker
opening
“We expect that this new outlet will further increase our market share for the brand.”
Aryaman Thakker
opening
“Also, the premium positioning of these models will help uplift our average selling price, and we expect MG Select to be a good long-term story, which will help expand the premium luxury market in India.”
Surendra Agarwal
opening
“We expect the after-sales business growth to pick up from H2 onwards when the newer workshops start contributing more.”
Sanjay Thakker
qa
“Our expectation is that we will reach the double-digit growth in the next half of the year and try going towards the 13%, 14% growth that we have seen for the last 10 years, which is the 10-year CAGR by end of the year.”
Arnav Sakhuja
qa
“And do we expect that it will provide any threat to our current product portfolio, especially the EV portfolio that we have?”
Sanjay Thakker
qa
“But the growth in luxury cars, we expect that it is generally around 3x right now.”
Aryaman Thakker
qa
“It's still early days of these products has just started this week, but we do expect the response so far and the waiting periods that we are showing so far are quite positive.”
Aryaman Thakker
qa
“And we think that this will be a good long-term bet in the Indian luxury space.”
Sanjay Thakker
qa
“We would also, I think, from -- after 2 quarters, stop reporting the new and old kind of a thing because I don't think it will be required after that.”
Surendra Agarwal
qa
“So full year, last full year, it was roughly around INR14 crores, and we expect similar or maybe a better number than the full year.”
Risks & concerns — 11 flagged
We will see the impact of reduced borrowing cost due to the reduction in repo rates from this quarter onwards.
— Surendra Agarwal
I don't think we see that much of a challenge.
— Sanjay Thakker
So the growth rate, as I -- see, it's slightly difficult to kind of put a hard-coded number on it.
— Sanjay Thakker
Sir, my first question is that if you look at the EBITDA margins in the after-sales business on a Y-o-Y basis, there has been a significant improvement from 16.5% to 18.2%, given the seasonality, whereas the revenue per the vehicle in after-sales has seen a decline.
— Bhargav
So it's difficult to kind of put a number, but you brought out a very interesting and a nice point saying that even brands like a Honda or a Jeep or a Renault have a higher contribution in after-sales.
— Sanjay Thakker
It will be more stickier like when there is a slowdown -- auto slowdown or anything, that component should be -- shouldn't be going down that much.
— Hitaindra Pradhan
One of them is that if there is an economic slowdown, then the car -- the people don't change their cars that frequently.
— Sanjay Thakker
But my people tell me on the ground that if there is a slowdown, people use their cars more often and change less frequently.
— Sanjay Thakker
So that servicing aspect can also become bigger in a slowdown.
— Sanjay Thakker
In the first quarter, it is difficult for me to kind of lay out what that strategy is.
— Sanjay Thakker
As we go through the year, we look at it with a lot of positive feelings that a lot of things are falling into place as far as Landmark is concerned, and the entire team, I thank for pulling their weight in difficult times that everybody contributed to make things happen.
— Sanjay Thakker
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Q&A — 13 exchanges
Q
My question is, first, with respect to the service revenues. So what we see is now that the new car sales growth rate is fairly strong for us. What is the lag between this and the service revenue growth rate to pick up because the service revenue is still 8% growth? So that's question one. Second question, if I look at your revenue growth this quarter and try to look at new brands-led growth and the legacy brand-led growth, the split up is even. Is it fair to assume that this new car -- new brand-led growth, which is like some 10% to 12% easily contributing to the overall growth number. Since
Sanjay Thakker
Yes. Thanks, Pritesh, for your questions. Let me first answer the after-sales question. And this is an important question. So I'll take a little time. So many of the questions of the next participants may also be answered simultaneously. After-sales also like sales is a seasonal business. Now why is it a little seasonal? Because the cars which are sold, they come for a service at an interval of, say, 12 months. The quarter that has gone by April, May, June quarter is the softest quarter in our trade. It contributes around 20%, 21% of the overall year, which is what we have seen historically. A
Q
So I just wanted to know how has been the response for Tesla in India since they recently launched their Model Y. And do we expect that it will provide any threat to our current product portfolio, especially the EV portfolio that we have?
Aryaman Thakker
Yes, this is Aryaman here. I'll just quickly answer that. Of course, there was a good amount of media hype and buzz surrounding the launch. I think on an on-ground level because their first showroom has opened in Mumbai, and we do have some of our EV brands like BYD also operating in the region. So far, we have not had any sort of impact on our sales. And this is at least what our data says that it has been low single-digit customers that we have at least experienced who have switched over to the brand in the time since they have launched. So so far, we have not seen any sort of meaningful imp
Q
Sir, just a couple of questions. One is on pre-owned vehicles. If you can share some developments on that side with some numbers for this quarter. And the second one is on financing and insurance numbers on that front as well for this quarter. It was not mentioned in the presentation. So has it inched up from 1% or is it still at 1%?
Sanjay Thakker
Yes. Lokesh, the first question about finance and insurance. No, it has not moved from 1%. It is in and around that. The sales has moved up. It will not -- it will gradually move up as Aryaman said, with better penetration, better margins and all that. This quarter has not been anything which is significantly different than some of the other quarters, but it is improving. On the POC front, we -- this is something we need to kind of crack but in a better way. Our focus in the last maybe 9 to 12 months has been to operationalize and stabilize the 25 outlets that we had done. We left everything e
Q
Congratulations on the result. Just a very basic question. I wanted to understand what really is the moat for our after-sales service? Or if you could kind of like try and quantify what percentage of the cars that we sell end up having after-sales only with us? Like as far as I understand, like whenever we buy a car, you end up somehow or the other receiving calls from a lot of other workshops for annual maintenance or like any kind of like service requests. So how do you ensure like a higher wallet share in after-sales from the cars that we sell?
Sanjay Thakker
Yes, Nishant, this is a good fundamental question that you are asking. So unlike the global environment, India doesn't have any local garages, which are a meaningful play as far as the after-sales business is concerned. Neither are there any insurance-backed garages where the car gets repaired. So the after-sales revenue is basically broken up into periodic and general maintenance and accident repair. The accident repairs take around -- give around 45% of our after-sales revenue comes from accident repair. Now that also should be kind of understood. Now the moat, what you are saying, the cars
Q
Congratulations on good set of numbers. Sir, I just have one doubt regarding our other income, which has come. So it has increased drastically. So what has driven this other income? And what would be a steady state of other income, which we should build on for the full year?
Sanjay Thakker
Yes, I'll have Surendra here. So Vaidik, it is not increased drastically. If you look at the total year, it is in line with that. It mainly consist of the interest income, which we put the FD against the bank guarantee we used to take. And then the miscellaneous income, which is like an old provision write-back, etcetera. So it is in the line. Some quarter, it may have slightly up, or some quarter, it may slightly down. Sir, for the full year, how much should we build in? So full year, last full year, it was roughly around INR14 crores, and we expect similar or maybe a better number than the f
Q
I had a question on the after-sales for EVs. So I want to understand how is the average service realization for vehicles compared to ICE models? And how should we think about service visit frequency for EVs maybe annually? So if you can broadly explain this?
Sanjay Thakker
These are, Bhavya, probably early days for us to kind of stick our neck out and give a very definitive number. The experience that we have had with, say, a BYD, which is a pure EV brand. In case of MG, for example, it's a mixed thing that we keep on selling. The accidents what we have seen are more frequent in EVs is what we are seeing. As I had said that the -- around 45% of our after-sales business comes from body and paint accident repairs. So this is slightly more in EVs because they run more, they accelerate more and the damage whenever it happens, has a disproportionate amount of claim a
Q
Congratulations on a strong performance. Sir, my first question is that if you look at the EBITDA margins in the after-sales business on a Y-o-Y basis, there has been a significant improvement from 16.5% to 18.2%, given the seasonality, whereas the revenue per the vehicle in after-sales has seen a decline. So what explains this EBITDA margin improvement, sir?
Sanjay Thakker
So Bhargav, as far -- I'll answer the second part first. The marginal drop in the average service cost is kind of expected because the product mix, when we service non-Mercedes vehicles, it will drop. So that -- I'm really not too concerned about because the margins, whether we service this or that is more or less similar. So that is the first part. The second is that the after-sales businesses, a lot of the workshops have started to get in a mature state or near breakeven or profitable stage. We had a lot of workshops last year, which we were paying the rent, the salaries, electricity bills,
Q
So I have a few questions. One, do you compute the market share gains in the services business versus the competitors?
Sanjay Thakker
The data is really not available. The OEs do not share us that data readily. So we do not -- as of now, we wish we had, but we do not have any source of getting that information from co- dealers wherever they are. Sure. Sir, my second question, Mr. Thakker, was related to the consolidation in the industry. You have done a few purchases across India. So is there a way to accelerate this? And assuming that your analysts would suggest that you would get a 14% to 16% IRR on the business what you acquired. So can this be a debt funded or some kind of structure could be made where you can accelerate
Q
Hope I'm audible. So my first question is with regards to the comment that you made earlier. So you talked about the -- you talked about the servicing business and how 45% comes from the accident repairs and all. So sir, like if I segregate into 2 basically, the normal warranty- based servicing and accident-based servicing. So what are the trends that you are seeing like accident part would be more secure, right?
Sanjay Thakker
Secure, I don't understand what would that mean? It will be more stickier like when there is a slowdown -- auto slowdown or anything, that component should be -- shouldn't be going down that much. It should be like in the frame, should be secure... Actually -- there is -- in fact, there are several theories I have heard during my 26-, 27-year career. One of them is that if there is an economic slowdown, then the car -- the people don't change their cars that frequently. So they need to maintain them well. Now this is also some theory. It is untested and there is no scientific data to support i
Q
Great set of results. Congratulations on that. So my first question is, sir, like this year, as we've seen in the presentation that we are not going to open any more outlets as we had planned in the past 2 years. So we are going to have a lot of cash flow from operations this year is what I'm estimating. Based on that, we did great numbers last year also INR152 crores, and this year, we are not going to take the blow of extra inventory, change in inventory that we had to put in all the new outlets that we like constructed last year. So like what are the plans of using those funds?
Sanjay Thakker
Sorry, your voice broke my friend, Dhiraj. What is the question here? Sir, we are going to have a lot of cash flow from operations this year like last year also, we did INR150 crores. And this year, we are doing more sales. And this year we are not going to have the effect of change in inventory that happens because of when we open new outlets, we have to like put a lot of cars in the new showrooms. So we are not going to have that also. So I think we will do to around INR200 crores to INR250 crores of cash flow from operations this year. So what are our plans of using those funds as we are no
Q
Sorry, I am unable to hear.
Management
Q
So sir, largely, you spoke about BYD, and you mentioned the multiple partners. Do you have any kind of -- if you can share with us any kind of conversations with the team and what's the plan for expansion going forward? You already are 8 outlets. So in the medium term, 3 to 4 years, where do you expect this to go?
Sanjay Thakker
No. Sorry, Puneet. This is something I would not like to share on the call at this point. It is an important thing, which will be unfolding. And would you also currently having a workshop also for BYD in India? Yes, yes. We have it. We are partners with them in the NCR and the Greater Mumbai region. We have it at both ends. And is there a similar agreement that you have for MG Select as well? Because that as well, you mentioned that the average selling price is quite higher compared to the existing models and rightly so. So for these models as well, do you have anything that you can share on g
Q
Yes. Thank you for hosting us, B&K. As we go through the year, we look at it with a lot of positive feelings that a lot of things are falling into place as far as Landmark is concerned, and the entire team, I thank for pulling their weight in difficult times that everybody contributed to make things happen. And the ship has turned around is what we believe and the better days are ahead. Thank you.
Management
Speaking time
Sanjay Thakker
35
Moderator
15
Surendra Agarwal
5
Bhargav
5
Puneet Javeri
5
Arnav Sakhuja
4
Manish Bhandari
4
Hitaindra Pradhan
4
Dhiraj
4
Aryaman Thakker
3
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Opening remarks
Akhil Parekh
Thanks, Soumya. Good morning, everyone. On behalf of B&K Securities, I welcome you all to Landmark Cars 1Q FY '26 conference call. From the management side, we have with us Mr. Sanjay Thakker, Promoter, Chairman and Executive Director; Mr. Aryaman Thakker, Executive Director; and Mr. Surendra Agarwal, Chief Financial Officer. Without taking much time, I will hand over the call to Sanjay sir for his opening remarks, post which we will open the floor for Q&A session. Over to you, sir.
Sanjay Thakker
Thank you, Akhil. Much appreciated. On behalf of the company, I extend a sincere welcome to everyone, who has joined the call today. As explained by Akhil, we have Aryaman and Surendra, who are along with me for this call. The results and the presentations are uploaded on the stock exchanges and the company website. I hope everyone has had a chance to have a look at it. While the Indian passenger vehicle market grew only by 2.59% year-on-year in the first quarter on volume basis, Landmark Cars achieved nearly 22% growth in revenue, which was driven by strong deliveries in new car sales segment. This performance was backed by recent brand additions over the past couple of years, which have significantly outperformed the industry. Our profit before tax and profit after tax have more than doubled over the same period last year. And if we consider the pre-Ind AS numbers, the underlying growth was even stronger. The auto industry globally is currently waiting for clarity on tariffs and bila
Aryaman Thakker
Thank you. Let me first start with an update on our network expansion. During July, which is in quarter 2, we operationalized the Mercedes-Benz showroom in Patna as well as the workshop. It is the first luxury brand outlet in Bihar. We, at Landmark Cars, have again iterated our status as a partner of choice for our OEMs. We expect that this new outlet will further increase our market share for the brand. In July, we operationalized the showroom and service center for MG Select in Ahmedabad as well, with deliveries and operations beginning in August. One, a further outlet of MG Select in Kolkata and a workshop for Kia in Hyderabad are set to commence operations in the later part of Q2 FY '26. In quarter 1, FY '26, saw healthy performance from most of our OEM partners. Mercedes- Benz India achieved its best-ever quarterly sales in April to June of 2025, retailing 4,238 vehicles, which was a 10% year-on-year growth. This performance was driven by strong demand for both high-end luxury mod
Surendra Agarwal
Thank you, Aryaman. Good morning, everyone. I would now like to present the financial highlights for the quarter of FY '26. The total proforma revenue for the quarter stood at INR1,415 crores compared to INR1,164 crores in the same period last year, reflecting a year- on-year growth of 21.6%. Of this, the new car proforma sale contribute approximate INR1,181 crores across all OEM partners, while after-sale revenue was INR235 crores. Gross profit for the quarter was INR184 crores versus INR161 crores in Q1 FY '25, reflecting a growth of 14.8%. The GP margin in Q1 FY '26 stood at 17.4%. The rate of growth in new car sales has been much faster than the growth in after sales segment, thus impacting the GP margin on year-on-year basis. Once the new workshop reached full operational capacity and start generating more after-sale revenue, it is likely to improve the GP margin. The EBITDA for Q1 FY '26 was recorded at INR66 crores with the EBITDA margin of 6.2% on a reported revenue basis. At L
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