LANDMARKNSENovember 18, 2025

Landmark Cars Limited

7,889words
92turns
10analyst exchanges
4executives
Management on call
Sanjay Thakker
PROMOTER, CHAIRMAN AND
Aryaman Thakker
EXECUTIVE DIRECTOR – LANDMARK CARS LIMITED
Surendra Agarwal
CHIEF FINANCIAL
Vivek Kumar
ICICI SECURITIES
Key numbers — 40 extracted
5.5 lakh
ntensity. The passenger car industry in October has seen a double-digit growth in reaching nearly 5.5 lakh cars for the first time in October. We are of the opinion that the demand for passenger cars has
100 basis point
t the gross profit percentages going ahead for the balance part of the year will increase by over 100 basis points. Our expansion has come at the right time when we have favourable wins behind us. Our large re
4%
ised so much, but has grown only at approximately 4% CAGR in the last over 10 years looks finally poised to break out. As we move into October, our de
rs,
l impact on the premium and the luxury segment, they are expected to attract a larger base of buyers, benefiting the entire value chain in the near as well as long term. The VAHAN numbers for October,
12%
term. The VAHAN numbers for October, which was the first full month post the new rates, show a 12% year-on-year growth for the price for the 4-wheeler market. Many of our OEM partners have long re
INR 70 lakh
s contributed meaningfully. Our average selling price in Mercedes-Benz has now reached just under INR 70 lakh, and this is evident from our highest ever ASP in new car sales posted by us in quarter 2 of FY '
20%
g their largest -- to reiterate, Landmark is the largest partner for BYD, contributing upwards of 20% to their volumes. Renault India posted a healthy growth in
INR 1,657 crore
r the quarter and the half year under review. Our total proforma revenue for the quarter stood at INR 1,657 crores as against to INR 1,268 crores in the corresponding quarter last year, reflecting a strong year-
INR 1,268 crore
under review. Our total proforma revenue for the quarter stood at INR 1,657 crores as against to INR 1,268 crores in the corresponding quarter last year, reflecting a strong year-on-year growth of 31%. Within
31%
R 1,268 crores in the corresponding quarter last year, reflecting a strong year-on-year growth of 31%. Within this, new car proforma sales contributed INR 1,403 crores, registering a growth of 35%
INR 1,403 crore
, reflecting a strong year-on-year growth of 31%. Within this, new car proforma sales contributed INR 1,403 crores, registering a growth of 35% year-on-year across all our OEM partners, while aftersales revenue
35%
of 31%. Within this, new car proforma sales contributed INR 1,403 crores, registering a growth of 35% year-on-year across all our OEM partners, while aftersales revenue stood at INR 254 crores, up
Advertisement
Guidance — 20 items
Sanjay Thakker
opening
“Having achieved the desired top line, the entire focus will be on getting the robust profitability back on track.”
Sanjay Thakker
opening
“We are also hearing that several trade agreements and free trade agreements included will be signed soon to further help the cause.”
Sanjay Thakker
opening
“The industry, which promised so much, but has grown only at approximately 4% CAGR in the last over 10 years looks finally poised to break out.”
Sanjay Thakker
opening
“While we are aware that some supply chain and delivery constraints still remain, we expect them to ease out in the coming time.”
Sanjay Thakker
opening
“Looking ahead, we anticipate the demand momentum to sustain by a great model lineup and the promotions and the pricing that are still being offered by the OEs.”
Aryaman Thakker
opening
“Globally, they will be going on a massive product offensive from 2026.”
Aryaman Thakker
opening
“Honda's plan to introduce 10 new models in India by 2030 signals a fresh chapter for the brand's market presence.”
Aryaman Thakker
opening
“The focus will be on SUVs with hybrid as well as electric powertrains.”
Aryaman Thakker
opening
“January will be the launch of the all-new Duster.”
Aryaman Thakker
opening
“This will be the first of a series of new Renault models expected over the next few years.”
Risks & concerns — 7 flagged
Although this period coincided with the festive period, it was impact of the GST transition that truly dominated the automotive market outcome in Q2 of this financial year.
— Sanjay Thakker
While these short-term measures helped maintain customer engagement, they also exerted temporary pressure on the gross margins.
— Sanjay Thakker
The surge in sales was largely fuelled by the successful launch of the updated Triber as well as Kiger models and the favourable impact of the GST 2.0 reforms.
— Aryaman Thakker
In quarter 2 FY '26, our profit after tax before the net impact of Ind AS stood at INR 3 crores, while cash PAT for the quarter was 17 crores.
— Surendra Agarwal
So in fact, what we are seeing on an industry basis is that because the new car prices have become affordable, there has been a pressure on used car sales because the difference between those prices have reduced.
— Sanjay Thakker
Sir, last question is on the interest expense that has come up this quarter to about INR 25 crores, if I look -- for the first half, if I remove the impact of Ind AS lease liability.
— Lokesh Manik
I mean this is the most difficult question that you have asked or this is a question has been asked on this call.
— Sanjay Thakker
Advertisement
Q&A — 10 exchanges
Q
So my first question is what kind of growth did you see in the pre-owned segment?
Sanjay Thakker
Yes. So Arnav, as you know, thankfully, we have not been holding a lot of inventory of preowned cars. If we were actually holding, the loss would have been much higher due to the reduction in the prices. So in fact, what we are seeing on an industry basis is that because the new car prices have become affordable, there has been a pressure on used car sales because the difference between those prices have reduced. And so my next question is with regards to BYD. So correct me if I'm wrong, but currently, these cars are being fully imported. So is there any talks of local assembly of these cars w
Q
Look, Pranay, congratulations on reading the numbers right. And you are doing it in a quick time. Now what happens in Mercedes type of business, there are 2 things which happened to compress our margins in Mercedes-Benz. We have a decent amount of demo car stock in our Mercedes portfolio, which is in our books. Now we had to liquidate a lot of demo cars because of the reasons that we have stated at length in our presentation as well So, this is something which has impacted us mainly. This is, I think, the main reason and that should answer you. Pranay Roop Chatterjee: So, is that liquidation d
Sanjay Thakker
Yes, it is done. Pranay Roop Chatterjee: Great. Second question is on your operating expenses. If I look at it on a quarter-on-quarter basis, your employee expenses have risen by about 15% to 16% quarter-on-quarter after remaining stable at around INR 64 crores to INR 65 crores for the prior 3 quarters. So is it because of -- can it entirely be explained by store openings plus a sort of salary hike? Or is there some other one-off... So, it is again, you have read it right. The point is that it is store opening, plus there has been an increment of our company, which has come into play from this
Q
Sir, my question was on the gross margin. I know you've clarified in detail, including in the previous question. In your presentation you mentioned that the cess is limited to 5% and you have been very well supported by OEMs. And then you have gone ahead and given further discounts over and above that. So this is purely demo cars and not to do with new cars, would that understanding be right?
Sanjay Thakker
Lokesh, I didn't understand the question. Cess at 5%? Cess impact you have been able to limit to mid-single digit cess liability. No, no, it is not 5%. We are saying that currently the cess liability, which is standing in our books, which is then subject to what the Supreme Court opines is in the region of around INR 5 crores to INR 6 crores, not 5%. No, I understand that. So that has been limited, and that is driven by both the OEM schemes and also you giving further discounts? Yes. Yes. So, the question was the further discounts that you gave, that was only for demo cars or there were other
Q
Just a quick question. Service margins fell Q-on-Q even with the same set of workshops. So what explains that decline?
Sanjay Thakker
So Bhavya, it is not the same set of workshops. What has happened is that in this quarter, many of the newly set up workshops got added into it. So the workshops of Mahindra, or Kia and MG, for example, are working currently not at the same level as our, say, Mercedes or Honda workshops are working. So it is a mix effect, which will over a period of time go back to its level. Okay. And if I can just squeeze in one more question. Sir, what was the average discount level that was given to offset the cess credit? I mean this is the most difficult question that you have asked or this is a question
Q
Congratulations on a good performance. Sir, in your opening remarks, you did mention that Honda is likely to have a fivefold increase in volume over the next 5 years. Is it possible to give some more details in terms of whether this will be back-ended or you believe that new launches can kick start from next year? And related question to Honda is that obviously the number of dealers for Honda are far lower. So is it fair to say that margins in Honda would be higher for us on new car sales?
Aryaman Thakker
Yes. This is Aryaman here. I was at the conference last week at the Japan Mobility Show. So there are 10 new car launches, which they have publicly announced. which will start from 2026, all the way till 2030. This will primarily be, out of the 10, I think 7 are SUVs, which are mainly going to be hybrid as well as battery electric cars. And some of these are also going to be India-focused, developed for India, manufactured here and then exported to other right-hand drive markets. So, I think starting from next year, we will start seeing a couple of new launches every year all the way till 2030
Q
Thank you for the opportunity. This is Vivek from ICICI Securities. I see a very interesting data point in your presentation regarding Landmark contributes about 0.5% to overall CV sales in India, while some of the biggest dealership chains in U.S. and China contribute about 1.5% and 2%. Could you talk a bit about this data point as in how many outlets the biggest dealerships must be running in those markets? What is the per dealership throughput? So if you can just give some more insights on that data point?
Sanjay Thakker
Yes, Vivek, thanks for asking this question. What has happened is that India, though being the third largest market in the world, has seen very fragmented kind of a retail landscape that we are looking at. This is because the management and the ownership in Indian dealership or the retail space has not been bifurcated. Now Landmark is one of the few organized retail players which has come into play. And nearly one-fourth or so of what we are is because of the acquisitions. Now acquisitions have played globally an important role in making these kind of retail chains the way they are today. As o
Q
Sir, my first question is on the October, November demand when you said it's very good. So is it fair to assume that it is in line to what we have achieved in second quarter?
Sanjay Thakker
Akhil, I don't know how to guide for sales numbers. We have kind of stuck our neck out and gone ahead with the profit margins at least. But it looks, as of now, pretty good. We'll have to kind of see how it pans out year-on-year. But this November, as Aryaman also mentioned in his speech, is looking significantly better than last November till date. Now we are only on the 11th, 12th of the month and the bookings that we have seen are far in excess of what we had hoped for. Let's not put a number, Akhil. Let's see what life has for us. Fair, sir. Sir, and second on the -- I didn't quite underst
Q
A few questions from my side, Sanjay ji. So first, on the guidance of gross margins, higher by 100 bps in second half. This is compared to the quarter 2 levels or H1?
Sanjay Thakker
It is compared to the quarter 2 levels that we are talking about right now. it will go back at least to the first quarter levels is what we are saying, or beyond. Understood. Got it. Second thing on the service business, I understand that many workshops probably would have opened during the quarter, and that's why margins kind of fell during the quarter. But my question is, I mean, we have been opening workshops for the past many quarters, right? And that has been the case for quarter 1 as well as quarter 4. I mean, past three, four quarters, this has been the expansion phase since we have tie
Q
So my question is on the performance of the existing outlets. So if I compare Q2 FY '26 existing outlet proforma revenue compared to the base quarter, which is Q2 FY '25. So we see a healthy 35% revenue growth. Even gross profit growth is also healthy around 15% to 17%. But at EBITDA level, it is hardly 4%, 5% growth. So in the existing outlet itself, which I believe has completed maybe more than 12 months in both numerator, denominator. So I mean, what -- how should -- I mean, what am I reading wrong? I mean I would have expected much higher growth in the EBITDA. And also, I mean, given the f
Sanjay Thakker
So Surendra will also answer this question. The existing outlets definition has also changed because some of the new outlets have got added into that. Yes, Surendra. So, Varun, the thing is in the current quarter, like our West Bengal, M&M and the Kia. So these outlets have now moved from new to existing and for these outlets, the service has still not ramped up to the older brand level. The moment the outlet completed the year, we moved from new to existing. In fact, good you brought it up. From next quarter, we don't really want to or we will need to report this because I believe every or mo
Q
Yes. Thank you, ICICI, again for hosting us. And as we enter into a new era of Indian automotive market, we are looking at it very optimistically as we see the future. And the future need not be one or two quarters. We are hoping that now we have a sustained profitable growth for several years to come. And with that, I would like to close this call. Thank you.
Management
Speaking time
Sanjay Thakker
37
Moderator
12
Lokesh Manik
10
Akhil Parekh
6
Surendra Agarwal
5
Sabyasachi Mukerji
5
Bhargav
4
Aryaman Thakker
3
Varun Singh
3
Arnav Sakhuja
2
Advertisement
Opening remarks
Vivek Kumar
Thank you, Huda. Good morning, everyone. On behalf of ICICI Securities, I welcome you all to Landmark Cars' Q2 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. We'll start the call with opening comments from the management, followed by Q&A. Thank you, and over to the management team.
Sanjay Thakker
Good morning. Thanks, ICICI Securities team for hosting us. On behalf of the company, I extend a sincere welcome to everybody who has joined us today. And as informed, we have Aryaman Thakker as well as Surendra Agarwal, our CFO, with me on this call. The results and the presentations are uploaded on the stock exchanges and the company website. I hope everybody has had a chance to look at it. We have witnessed a defining movement for the automobile industry. We navigated one of the most significant tax transitions in the recent memory that was also long awaited by the auto industry, revision of GST rates. What unfolded over the span of just 45 days is fundamentally reshaping the consumer behaviour, dealer operations and overall industry dynamics. Although this period coincided with the festive period, it was impact of the GST transition that truly dominated the automotive market outcome in Q2 of this financial year. With the announcement of GST rate revision on 15th August, buyers chos
Aryaman Thakker
Thank you. The GST rate transition during the quarter was a defining event for the entire industry. Although the transition phase brought short-term uncertainty, the overall reform has been received with optimism. The revised rate, which on a rupee basis have a substantial impact on the premium and the luxury segment, they are expected to attract a larger base of buyers, benefiting the entire value chain in the near as well as long term. The VAHAN numbers for October, which was the first full month post the new rates, show a 12% year-on-year growth for the price for the 4-wheeler market. Many of our OEM partners have long recognized the immense potential of the Indian automotive industry, which has gotten thrust due to the GST transition. During the Navratri phase, Mercedes-Benz delivered 1 car every 6 minutes and went on to record its best ever monthly sales in September. We at Landmark being the largest partners contributed meaningfully. Our average selling price in Mercedes-Benz has
Surendra Agarwal
Thank you, Aryaman, and a very good morning to everyone. Let me now take you through the financial highlights for the quarter and the half year under review. Our total proforma revenue for the quarter stood at INR 1,657 crores as against to INR 1,268 crores in the corresponding quarter last year, reflecting a strong year-on-year growth of 31%. Within this, new car proforma sales contributed INR 1,403 crores, registering a growth of 35% year-on-year across all our OEM partners, while aftersales revenue stood at INR 254 crores, up 11.2% year-on-year. The gross profit for the quarter stood at INR 196 crores with a gross margin of 16.2% on reported revenue. As explained previously, the GP was slightly lower in this quarter due to discontinuing in new as well as demo cars to utilize the cess in the period of 17th August (to be read as 15th August) to 21st September. One can notice that the lower GP as compared to last quarter is due to revenue mix also. Our new car sales have grown at a muc
Advertisement
← All transcriptsLANDMARK stock page →