LANDMARKNSEQ4 & FY26June 03, 2026

Landmark Cars Limited

7,250words
108turns
12analyst exchanges
4executives
Management on call
Sanjay Thakker
PROMOTER, CHAIRMAN & EXECUTIVE DIRECTOR, LANDMARK CARS LIMITED
Aryaman Thakker
EXECUTIVE DIRECTOR, LANDMARK CARS LIMITED
Surendra Agarwal
CHIEF FINANCIAL OFFICER, LANDMARK CARS LIMITED
Ronak Mehta
ICICI SECURITIES LIMITED
Key numbers — 40 extracted
20%
iple milestones and encouraging performance across key segments. On an annual basis, we delivered 20% year-on-year top-line growth, ahead of the industry growth of 13%. One of the achievements we wer
13%
n an annual basis, we delivered 20% year-on-year top-line growth, ahead of the industry growth of 13%. One of the achievements we were particularly proud of is the performance of our after-sales busi
INR 1,000 crore
articularly proud of is the performance of our after-sales business that crossed the milestone of INR 1,000 crores in annual revenue. We believe this places us among the select group of Indian compan
47 lakh
ve achieved such a scale in after-sales. After a slow first half, Financial Year 2026 closed with 47 lakh passenger vehicles that were sold. This marks a 13% year-on-year growth. The GST 2.0 rationalizat
rs,
ffering a long growth runway. Most of our partner OEMs, along with several global automotive players, are increasingly positioning India at the center of their growth strategy. The recent announcement
5%
focusing on EVs is playing off big time. India's EV penetration in passenger cars is more or less 5%. For Landmark, EVs contribute to over 21% of its sales. BYD, Mahindra & Mahindra and MG Motors
21%
dia's EV penetration in passenger cars is more or less 5%. For Landmark, EVs contribute to over 21% of its sales. BYD, Mahindra & Mahindra and MG Motors are leaders in their segments in EVs. Over t
INR 1.4 crore
on our OEM partners: Mercedes-Benz recently launched the all-new V-Class priced at approximately INR 1.4 crores and the new electric CLA priced at around INR 55 lakhs. Both these models have opened to stron
INR 55 lakh
all-new V-Class priced at approximately INR 1.4 crores and the new electric CLA priced at around INR 55 lakhs. Both these models have opened to strong demand with waiting periods stretching up to a few mont
INR 73 lakh
started from this quarter, the current quarter. In Q4 FY26, we increased the ASP of Mercedes to INR 73 lakhs, up from INR 69 lakhs in Q3 of FY26. This shows that the luxury segment continues to see a stron
INR 69 lakh
arter, the current quarter. In Q4 FY26, we increased the ASP of Mercedes to INR 73 lakhs, up from INR 69 lakhs in Q3 of FY26. This shows that the luxury segment continues to see a strong pull. Top-end vehicl
INR 1,795 crore
st volume contributors for multiple OEMs. During the quarter, the total proforma revenue stood at INR 1,795 crore, representing a year-on- year growth of 18%. Reported revenue for the quarter came in at INR 1,279
Guidance — 20 items
Ronak Mehta
opening
“On behalf of ICICI Securities, we would like to welcome you all to Landmark Cars Q4 & FY26 Earnings Conference Call.”
Aryaman Thakker
opening
“In Q4 FY26, we increased the ASP of Mercedes to INR 73 lakhs, up from INR 69 lakhs in Q3 of FY26.”
Aryaman Thakker
opening
“The launch of the new S- Class in June will further strengthen the portfolio and will be the first plug-in hybrid product of the brand in India.”
Aryaman Thakker
opening
“BYD has also announced that they will be launching hybrid vehicles in India which are expected to arrive later in this year.”
Aryaman Thakker
opening
“We expect BYD to continue its strong performance this year and substantially grow its volumes.”
Aryaman Thakker
opening
“Our Pune Sales and Service outlets will be operational in July which will further increase our market share for BYD in the country.”
Aryaman Thakker
opening
“Stellantis has recently announced that they will be developing a new Jeep SUV in collaboration with Tata Motors which will be developed in India and also exported.”
Aryaman Thakker
opening
“Going forward, India will become a key hub for developing and producing vehicles for the domestic markets as well as for international markets.”
Aryaman Thakker
opening
“We have started with utilizing AI-based calling in our call centres and will expand to more use cases over time.”
Surendra Agarwal
opening
“Talking about our Q4-FY26 performance: I would like to highlight that our strong market presence and execution capabilities continue to position us as one of the largest volume contributors for multiple OEMs.”
Risks & concerns — 4 flagged
And I had referred to the Goldman Sachs report, which was published a few years back, and that had tried to see the impact of after-sales revenue on EVs versus ICE.
— Sanjay Thakker
So, given the macro dynamics going on and OEMs feeling the pressure of raw material events and other things and margin pressure, how do you see the dynamics between you and OEMs being played also?
— Vijay Pandey
What we had mentioned in our 2nd Quarter Presentation that the challenge was in the cess, which matter is now with the Supreme Court.
— Sanjay Thakker
No, it will be difficult to put an exact number to it, but we do expect a large number will come here.
— Aryaman Thakker
Q&A — 12 exchanges
Q
Yes, thank you so much. Sir, congratulations on a great set of numbers. Sir, just a couple of questions from my end. Just wanted to get your sense now how do we see profitability going forward? You know, we set out to achieve close to 6% margin this quarter. We have almost reached there. In terms of gross margin, also, we have seen good improvement. So, what is your overall sense as to how do we see gross margins and EBITDA margins going forward? And also, just wanted to understand, how do we see expansion of stores now? Do we see the pace coming off drastically over the next two, three years?
Sanjay Thakker
Yes, thanks, Rahul. The way the world is today, as we see it, and as I mentioned in my speech, we have built good amount of capacity in the last 18 months. We now need to sweat these assets. So, the expansion that we see for the current year, two, three years is a very long time. We want to kind of templatize what we have done so far. We rapidly grew and now we have to demonstrate to everybody, including us, that we are able to get the profit back in the way we always did. So, this is the year of consolidation. We will grow this year with one or the other things that are already there. Aryaman
Q
Hello, sir. Thank you for the opportunity and congratulations for your great set of numbers. Actually, I have two interrelated questions. So, it is I want to know that how is the car servicing frequency and cost for EV versus ICE? And if the frequency and cost is low, then how do you see servicing revenues scaling with rising penetration of EVs in your portfolio?
Sanjay Thakker
I hear you. Is there a second question or should I answer this? No, it was interrelated, sir. Actually, the question is how is the car servicing frequency and cost for EV versus ICE? And if that frequency and cost is low, then how do you see servicing revenues scaling with rising penetration of EVs in your portfolio? Yes, sure. So, what is important to note is that the servicing income currently as well as in the future, it includes the accident repair work. Currently, around 47% of our service income comes from accident repairs. Now, the global studies have shown that in the EVs, the cost of
Q
Hi, sir. Thanks for the opportunity. Primarily on the demand outlook, do you expect demand to kind of weaken a bit as all the OEs are taking a price hike? You can give a broad stroke of the premium and mid-end and the EVs. So, some color on the outlook on pricing impact.
Sanjay Thakker
So, if we were not reading the newspapers, we wouldn't have realized that there is a war on. So, we are also positively surprised by the resilience of the demand so far, except for commercial vehicles where we have seen some kind of hesitancy in the last 8-10 days, and some supply challenges in one or the other OEs. The demand remains to be fair so far. So, I hope that this is how it pans out. Okay. And among your customers, can you highlight like who have taken the most price increase and who was there to take it? You are talking about the OEs that have increased? Yes. So, this is continuous,
Q
Yes. Good morning, team and congratulations on a good set of numbers. Sir, my first question is that if you look at your revenue in after sales per vehicle, the realization has increased to about 30,000 and that's a substantial increase Q-on-Q as well as Y-on-Y. Any particular reason why we have seen such a sharp increase over there?
Sanjay Thakker
It is also, Bhargav, due to the bonuses that we get from OEs if we were to meet our quarterly or annual targets. So, that also is accounting for it. But as you will see, we are continuously trending upwards. There is also an increase in spare part prices which the OEs have been taking because of the metal prices and the FOREX which has happened. So, that also plays out and will continue to play out. So, just like car prices, spare part prices also increase. Secondly, sir, is it possible to know what is the capital employed deployed in this after sales because ROC here will be substantially hig
Q
Hi, sir. Thank you for taking my question. So, a couple of questions I had. So, given the macro dynamics going on and OEMs feeling the pressure of raw material events and other things and margin pressure, how do you see the dynamics between you and OEMs being played also? Are we able to manage the margins which we have with OEMs? Is that a little bit of negotiation going on? How should we look at it? I just wanted to get your idea on that.
Sanjay Thakker
Yes, Vijay. So, this is an interesting question. So far, we have had no discussion with any OEM about renegotiating our margins as such. So, if the prices go up, we tend to make more money per unit. That's what it is. But one will have to wait and watch how that kind of pans out. Secondly, sir, you said that the ASP per unit that has gone up because of some benefit from the OEM for the target achievement. So, do you expect the ASP to increase going forward? Can you repeat? Your voice has been a little faint. I am not able to exactly understand what you are saying. I wanted to just check whethe
Q
Hello, Management Team and many congratulations for a fantastic set of numbers. So, let's come to the first question. I would like to ask that the current quarter has been quite transformational for us. We had a very high growth. It was the highest EBITDA that the company achieved and also a very good margin if we see in the past eight to nine quarters. And we also saw that the PAT has also been the highest in the past nine quarters, which was our best year in FY23 and FY24. So, are we expecting that this next year to be on the same path because structurally we are very well positioned right n
Sanjay Thakker
I mean, this is my hope also, Kaswan. We have done what we had to do and this is the time to reap the benefits. So, unless something happens on a macro basis, which is beyond our control, we are well poised for better results. The seasonality factor, of course, needs to be kept in mind where the auto industry is in the last two quarters, that's generally the better quarters. Though we have set a base for now what we can do. We are keeping our fingers crossed for a much better year. Okay. Yes. I mean, just like in this year, there were some issues due to inventory pileup due to the new GST rati
Q
Hello sir. You just talked about your ASP increasing and I think you talked about per unit profit increase.
Sanjay Thakker
I am not able to hear Jaiprakash. If you can please say it again. Yes. Can you hear me, sir, now? Yes, it's better. Yes, actually you just alluded to ASP going up and you will be benefiting more. So, if you can just give an example like how do you really benefit from it? Is it a cost loss or margin, what is it? And another question related to it is because there was a GST reduction, right? So, does it mean that your margin got impacted because of GST reduction and ASP was lower in the last couple of quarters? And basically whatever the ASP increase will happen will make up for the GST reductio
Q
Thank you. Good morning, sir. Thank you for the opportunity. Sir, my question is related that the VAHAN Portal shows that the BYD sale is growing month-on-month, but the Mercedes sale is either constant or reducing. So, how is our performance related to these two OEMs, sir?
Sanjay Thakker
Yes, so BYD, there is nothing to answer. It is basically a supply issue and once you have the vehicles, then we are able to sell. Mercedes, the ASP has continued to rise. So, one can measure the business growth in either numbers or in units sold. So, Mercedes has been focusing on per car realization rather than pure numbers, but they have announced and the VAHAN would have a lag. One or two states which were not on VAHAN, I think they are getting in Telangana and one other. So, this is something which is in everybody's sight and we believe it is in a good zone. Whatever was announced that were
Q
Yes, so one of the promoters has indicated that he wants to identify himself as a non-promoter category. So, can you inform who is that promoter and how many number of shares he is holding?
Sanjay Thakker
So, there is no promoter holding over there. There was a kind of a family separation which had happened and that's why it is that. The promoter was not holding any shares. Okay, thank you, sir. All the best, sir.
Q
Hi, Mr. Thakker, Greetings. Thank you for the opportunity. Mr. Thakker, most of my questions are answered. I hope I am audible. Most of my questions are answered. I have one question on our standalone numbers which is a major chunk of our profits, probably driven by our Mercedes business. Now, if I look at past few quarters, unfortunately, the profits there were declining. You know, we reached up to INR 7 crore of PAT there. But this quarter, again, we are seeing a substantial jump from INR 7 crore to INR 12 crore. So, the best of the quarters was actually having a lower profit, whereas now we
Sanjay Thakker
I think, as I mentioned, maybe around 20 minutes back, it's best to look at the business on an annual basis rather than a quarterly basis, because our targets bonuses sometimes get kind of pushed to one or the other quarter, whether it is sales or after sales. So, we are, as of now, confident of practically all of our portfolio that we hold and the profitability will be good across. Understood. And in these 40 model launches planned by Mercedes, will India get all the 40 or will get a lesser number there? Yes, this is Aryaman. No, we are unlikely to get all the 40, because there are certain mo
Q
Sir, thank you for the follow-up. Just wanted to check about how do we plan to reduce our debt? I see that we have lowered our debt.
Sanjay Thakker
You are sounding very faint. If you come a little closer. Is it okay now? Better, a little better, yes. Sir, wanted to check if we want to continue to lower our debt. This year, we have reduced our debt. So, just wanted to get your sense on the same. So, let us have a Surendra come in now. So, this year, our interest-bearing debt is reduced by INR 27 crore, Vijay. And we are expecting and we generated INR 267 crore operating cash flow as you see in our presentation. So, we are likely to generate good cash flow in the coming year as well. So, our debt is going to reduce. Only thing is if we exp
Q
Yes, thanks to the team of ICICI Securities for hosting us. At the closing, I would only reiterate that this year is the year of consolidation, where we will reap the benefits of whatever hard work that has been put in for the last one and a half years. The company will continue to focus on cost. The company will continue to generate good profits and go for all the matrices that are important to run the business. And we hope and believe that the Indian growth story is intact and is kicking. Thank you.
Management
Speaking time
Sanjay Thakker
37
Moderator
14
Vijay Pandey
8
Jaiprakash Kumhar
7
Aryaman Thakker
6
Ajox Frederick
6
Bhargav Buddhadev
6
Nilesh Doshi
5
Rahul Dani
4
Dhiraj Kaswan
4
Opening remarks
Ronak Mehta
Thanks, Avirat. Good morning, everyone. On behalf of ICICI Securities, we would like to welcome you all to Landmark Cars Q4 & FY26 Earnings Conference Call. Today, we have with us from the Management Team, Mr. Sanjay Thakker – Promoter, Chairman, Executive Director, Mr. Aryaman Thakker – Executive Director, and Mr. Surendra Agarwal – Chief Financial Officer. We will start the call with a brief opening remarks from the Management Team about the quarter gone by. Then we will proceed with the Q&A session. Thank you, and over to you, sir.
Sanjay Thakker
Thanks a lot. Good morning, everyone, and thank you, ICICI Securities, for hosting us. On behalf of the company, I extend a sincere welcome to everyone who has joined this call today. On this call, I am joined by Mr. Aryaman Thakker – Executive Director, and Surendra Agarwal – CFO, and as well as SGA, our Investor Relations Advisors. The Results and the Presentations are uploaded on the Stock Exchanges and the Company's Website. I hope everybody has had a chance to have a look at it. Financial year 2026 has been a good year for us, marked by multiple milestones and encouraging performance across key segments. On an annual basis, we delivered 20% year-on-year top-line growth, ahead of the industry growth of 13%. One of the achievements we were particularly proud of is the performance of our after-sales business that crossed the milestone of INR 1,000 crores in annual revenue. We believe this places us among the select group of Indian companies across industries who have achieved such a
Aryaman Thakker
Thank you. The beginning of this financial year has seen the industry continue its strong momentum. With April showing a healthy volume growth, May has shown a similar trend so far. Due to foreign exchange fluctuations as well as global supply challenges, most OEMs have increased prices in April with another price increase expected in June. This will help us with further improving our average selling price. Let me now give you a brief update on our OEM partners: Mercedes-Benz recently launched the all-new V-Class priced at approximately INR 1.4 crores and the new electric CLA priced at around INR 55 lakhs. Both these models have opened to strong demand with waiting periods stretching up to a few months each. Deliveries for both have started from this quarter, the current quarter. In Q4 FY26, we increased the ASP of Mercedes to INR 73 lakhs, up from INR 69 lakhs in Q3 of FY26. This shows that the luxury segment continues to see a strong pull. Top-end vehicles continue to contribute appr
Surendra Agarwal
Thank you, Aryaman and good morning, everyone. I would like to share key performance metrics to illustrate our performance in this Quarter and the Financial Year. Talking about our Q4-FY26 performance: I would like to highlight that our strong market presence and execution capabilities continue to position us as one of the largest volume contributors for multiple OEMs. During the quarter, the total proforma revenue stood at INR 1,795 crore, representing a year-on- year growth of 18%. Reported revenue for the quarter came in at INR 1,279 crore, representing a year-on-year growth of 17%. Gross profit for the quarter stood at INR 219 crore, with gross margin of 17.1%. Employee costs and other operating expenses were within the set internal benchmark at 4% of proforma revenue. EBITDA for the quarter stood at INR 79 crore, reflecting year-on-year growth of 30%, with an EBITDA margin of 6.2% on reported revenue. The growth of EBITDA outpaced the revenue growth. This reflects the continuous c
Now moving on to the annual performance
In FY26, the proforma revenues grew by 19% year-on-year, translating to INR 6,719 crore. Within this, new car sales revenues stood at INR 5,668 crore, registering a growth of 21%. Reported revenues stood at INR 4,896 crore, growing by 22% year-on-year. After sales, revenue stood at INR 1,051 crore, growing 12% year-on-year. This marked the after-sales revenue, crossing INR 1,000 crore mark on an annual basis. Gross profit for the period stood at INR 819 crore, translating into gross margin of 16.7%. The company reported its highest-ever annual EBITDA of INR 283 crore, with an EBITDA margin of 5.8% and continues to maintain cost discipline. The exceptional item for the year includes a gratuity provision due to the new Labor Code and expenses written-off in relation to outlet closure and relocation. Profit after tax stood at INR 38 crore, marking 120% year-on-year growth. Annual average selling price for new cars stood at INR 21.96 lakh versus INR 20.79 lakh in FY25. The average revenue
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