Popular Vehicles and Services Ltd

AGM details

• AGM date and time: 28 August 2026 at 04:00 PM IST, via VC/OAVM.

Auditor appointment (Item No. 3)

• Proposes appointment of MSKA & Associates LLP as Statutory Auditors for five consecutive years.
• Term from conclusion of 42nd AGM to conclusion of 47th AGM, subject to member approval.
• Remuneration for 2026-27 is lower than ₹6.10 million paid to outgoing auditor.
• Board recommends Ordinary Resolution; expands audit scope to cover an additional material subsidiary.
• None of the Directors or KMP are interested in the resolution.
• Audit coverage expansion aims to include all material subsidiaries.

Financial Performance

• Total income from operations: INR1,903.1 crores; up 44.6% YoY.
• EBITDA: INR71.5 crores; up 86.6% YoY; margin 3.8%.
• Adjusted EBITDA: INR62 crores; up ~82% YoY.
• Adjusted PBT: INR11.2 crores.
• Reported PBT: INR1.9 crores; vs loss in Q1 FY26.
• Acquisitions contributed: RK.S Motors (Telangana); Globe CV (Punjab); Olympus Audi (Telangana/AP).
• Keralam revenue share declined below 50%; diversification progress.

Operating Update

• PV revenue: INR836 crores; new-vehicle volumes: 10,475 units (up 83% YoY).
• CV revenue: INR564 crores; new-vehicle volumes: 3,495 units (up 41% YoY).
• EV revenue: INR55 crores; new-vehicles: 3,330 units (up 153% YoY).
• Consolidated organic revenue up 33% YoY; PV up 49%; EV up 54%.
• PV organic new-vehicle volumes up 70%; EV up 57%.
• Inventory days: 32 days; inventory up ~14% YoY.
• Geographic mix: Keralam share below 50%; diversification underway.

Balance Sheet and Cash Flow

• Debt higher YoY due to acquisitions; replacement capex only; no expansion capex planned.
• Working-capital efficiency to improve; focus on stronger cash generation.

Projects and Capex

• New centers: Maruti Koyilandy; Tata CV at Perumbavoor/Kazhakuttam; JLR Nagpur.
• EV supply constraints: Ather ~5 days stock; JLR supply constrained; spare parts tight.
• Acquisitions scaling; no major capex planned; integration ongoing.

Outlook and Guidance

• Festive demand supportive; H2 expected to remain strong.
• Blended EBITDA target around 4% from Q2; could rise to 4.3-4.4% by Q3-Q4.
• FY27 turnover guided to INR8,200-8,300 crores; ~20-25% growth.
• Acquisitions to reach PAT breakeven by Q3 FY27.

Q&A Highlights

• Inquiries up ~20% YoY; bookings up ~22% YoY; Onam demand expected.
• Three acquisitions EBITDA-positive; PAT positive by Q3; depreciation/finance drag.
• PV margin around 4%; Audi/JLR contributions rising; margins to improve.
• Maruti service volumes to grow; blended EBITDA target ~4% in Q2-Q4.
• All-India PV dealer ranking: top-2; strong position across several OEMs.
• Free service post-GST ends; paid service starts October.

Meeting Details

• Date: 12 August 2026.
• Type: Group investor conference call.
• Mode: Audio conference call (virtual).
• Event/organiser: Analyst and Investor Conference Call hosted by Popular Vehicles and Services Ltd.

Participants

• Key company role: Company Secretary & Compliance Officer.

Purpose

• Earnings results discussion for Q1 ended 30 June 2026.

Additional Notes

• Audio recording of the conference call available on the company website.

Business Overview

• Diversified auto dealership platform across multiple OEMs with service and spare-parts distribution.
• Geographic footprint across 7 states with 500+ touchpoints; listed entity since 2024.
• Strategic acquisitions expanded footprint: BharatBenz, MSIL, and Audi dealerships; EV/spare parts initiatives.

Key Operational Highlights

• Q1 FY27 revenue from operations Rs 1,889.6 Cr; total income Rs 1,903.1 Cr; YoY growth 44.6%.
• Acquisitions contributed Rs 71 Cr (BharatBenz), Rs 126 Cr (MSIL), Rs 20 Cr (Audi) in Q1FY27.
• Inventory days reduced to 32 from 50; inventory up ~14% YoY.
• PV volumes up 72% YoY; EV volumes up 153% YoY; Luxury up 39% YoY; CV up 41% YoY.

Financial Performance

• EBITDA Rs 71.5 Cr; margin 3.8%; Adjusted EBITDA Rs 62.0 Cr; Adjusted PBT Rs 11.2 Cr.
• PBT Rs 1.9 Cr; PAT Rs 1.4 Cr; EPS Rs 0.19 in Q1FY27.
• FY26 total revenue Rs 4,813.3 Cr; EBITDA Rs 203.4 Cr; PAT Rs -12.5 Cr; gross margin 13.5%.
• Net cash from operations Rs 100.2 Cr; cash Rs 66.1 Cr; total assets Rs 2,383 Cr.

Capital Structure & Liquidity

• Total borrowings FY26 Rs 696.1 Cr; debt/equity 1.1x; net debt/EBITDA 3.1x.
• Cash and cash equivalents Rs 66.1 Cr; net cash from operations Rs 100.2 Cr.
• Resignation of CS Varun T. V effective 21 Aug 2026.

Strategic Priorities & Outlook

• Diversified OEM/geography growth; expand service, repairs, and spare parts business.
• Scale digital spare-parts platform ZPAREX; widen BKT distribution; expand network.
• Improve product mix with luxury/premium vehicles to lift ASPs.

Risks & Mitigation

• Higher debt due to acquisitions; Ind AS adjustments weigh on profitability.
• Integration progress expected to improve profitability; acquisitions fund expansion.

Governance & Leadership

• Company Secretary & Compliance Officer Varun T. V resignation effective 21 Aug 2026.
• Promoter/MD Naveen Philip; board includes independent and non-executive directors.

Financial highlights

• Total income Rs 1,903.1 Cr, up 44.6% YoY.
• New vehicles volume 17,300 units; up 81.5% YoY.
• EBITDA including other income Rs 71.5 Cr; margin 3.8%.
• PAT Rs 1.4 Cr; margin 0.1%.

Acquisition contributions

• Globe CV Private Limited (BharatBenz) Rs 71 Cr.
• R.K.S Motors Private Limited (MSIL) Rs 126 Cr.
• Olympus Motors Private Limited (Audi) Rs 20 Cr.

Network expansion

• MSIL service center opened at Koyilandy, Kerala.
• Tata Motors CV sales outlets opened at Perumbavoor and Kazhakootam, Kerala.
• JLR sales and service facility opened at Nagpur, Maharashtra.

Geographic mix

• Kerala 49%; Tamil Nadu 22%; Karnataka 12%.
• Maharashtra 5%; Punjab 4%; Telangana -8%; Andhra Pradesh -0.3%.

Operational metrics

• Inventory days reduced to ~32 days from ~50 a year ago.
• Absolute inventory up ~14% YoY.
• Total service volume up 13% YoY; EV volume up 95%.

Outlook and debt

• Higher debt due to acquisitions and expansion; Ind AS adjustments weighed profitability.

Awards

• PMMIL awarded four honors at Tata Motors National Dealer Conference.

Financial results approved

• Unaudited standalone and consolidated results for quarter ended 30 June 2026 approved; Limited Review Reports attached.

Disinvestments completed

• Standalone: disinvestment of Kuttukaran Green Private Limited completed for Rs 20 million; gain Rs 11.57 million.
• Consolidated: disinvestment of Kuttukaran Green (Rs 20m) and Vision Motors Private Limited (Rs 680m); gain Rs 152.87m.

Labour Code impact

• Standalone: Labour Codes impact as exceptional item; gratuity Rs 6.24m; long-term absences Rs 2.46m.
• Consolidated: incremental Labour Code impact as exceptional item; gratuity Rs 8.43m; long-term absences Rs 4.33m; other items Rs 0.70m.

Lease modification impact

• Telangana leases amended; term reduced from nine to four years; net gain Rs 54.09m recognized as Other income.

Auditor remarks

• Statutory Auditors issued unmodified Limited Review reports for standalone and consolidated results.

Meeting Details

• Q1 FY27 earnings conference call on Wednesday, 12 August 2026 at 10:30 AM IST.
• Virtual earnings conference call.
• Event: Q1 FY27 Earnings Conference Call.
• Organizer: Popular Vehicles and Services Limited.
• Key company participants: Promoter & Managing Director, CEO, Group CFO, Deputy CEO.
• Purpose: Present quarterly results and discuss Q1 FY27 financial and operational performance.