Popular Vehicles & Services Reports 44.6% YoY Revenue Growth to ₹1,903.1 Crore in Q1 FY27; Turns Profitable with ₹1.4 Crore PAT

Diversified automotive dealership operator Popular Vehicles and Services Limited (BSE: 544144, NSE: PVSL) has announced its unaudited consolidated financial results for the first quarter ended June 30, 2026.

The company posted a 44.6% year-on-year expansion in Total Income, driven by an 81.5% jump in new vehicle delivery volumes and strategic geographic diversification beyond its core home state of Kerala.

Consolidated Financial Performance

Total Income (including Other Income): Expanded 44.6% year-on-year to ₹1,903.1 crore in Q1 FY27, up from ₹1,316.0 crore in Q1 FY26 and ₹1,758.8 crore in Q4 FY26.

EBITDA: Rose 86.6% year-on-year to ₹71.5 crore, compared to ₹38.3 crore in Q1 FY26. EBITDA margins expanded by 90 basis points to 3.8% (up from 2.9% in Q1 FY26).

Profit After Tax (PAT): Turned positive at ₹1.4 crore, demonstrating a turnaround from a net loss of ₹8.8 crore in Q1 FY26 and a net loss of ₹5.0 crore in Q4 FY26.

Segment-Wise Performance Summary

1. New Vehicles Business

Total new vehicle sales volume surged 81.5% year-on-year to 17,300 units in Q1 FY27 (compared to 9,532 units in Q1 FY26), generating total segment revenue of ₹1,455 crore (up 56.1% YoY).

Passenger Vehicles (PV - including Luxury): Volume grew 82.6% YoY to 10,475 units, generating ₹835.8 crore in revenue (up 73.2% YoY).

Commercial Vehicles (CV): Volume grew 41.0% YoY to 3,495 units, generating ₹564.1 crore in revenue (up 32.9% YoY).

Electric Vehicles (EV): Volume spiked 152.7% YoY to 3,330 units, generating ₹54.9 crore in revenue (up 122.4% YoY).

2. Services & Repairs Business

Service and repair throughput reached 2,56,680 units (up 1.1% YoY), while total segment income rose 22.6% year-on-year to ₹278 crore.

PV Services: Volume stood at 1,90,801 units, while service income grew 11.1% YoY to ₹168.7 crore due to higher-value job cards and realisations.

CV Services: Volume grew 15.0% YoY to 52,647 units, delivering ₹106.9 crore in revenue (up 47.0% YoY).

EV Services: Volume rose 60.2% YoY to 13,232 units, yielding ₹2.5 crore in revenue.

3. Pre-Owned Vehicles & Spare Parts

Pre-Owned Vehicles: Volumes reached 3,010 units (up 16.9% YoY), delivering ₹101 crore in revenue (up 8.7% YoY).

Spare Parts Distribution: Generated ₹66 crore in total revenue (up 3.9% YoY).

Geographic Diversification and Network Expansion

Popular Vehicles achieved a geographic milestone during Q1 FY27, reducing its core Kerala revenue concentration below 50% for the first time:

State-Wise Revenue Mix: Kerala (49%), Tamil Nadu (22%), Karnataka (12%), Telangana (8%), Maharashtra (5%), Punjab (4%), and Andhra Pradesh (0.3%).

Inorganic Contribution: Top-line growth was supported by key strategic acquisitions completed in FY26, including R.K.S. Motors (MSIL - ₹126 crore contribution in Q1), Globe CV (BharatBenz - ₹71 crore contribution), and Olympus Motors (Audi - ₹20 crore contribution).

Organic Growth: Excluding acquisitions and network expansion, total revenue grew 33% organically, while total new vehicle unit sales grew 58% organically.

New Touchpoints: Operationalized a Maruti Suzuki service center in Koyilandy (Kerala), two Tata Motors CV sales outlets in Perumbavoor and Kazhakootam (Kerala), and a Jaguar Land Rover sales & service facility in Nagpur (Maharashtra).

Operational Efficiency and Inventory Management

Inventory Days: New vehicle inventory holding days were reduced to 32 days from ~50 days a year ago, reflecting disciplined working capital management.

Absolute Inventory: Increased 14% YoY, staying below overall revenue growth while preparing for OEM new model launches and upcoming festive demand.

Naveen Philip, Promoter & Managing Director of Popular Vehicles & Services Limited, stated: "We have delivered a strong start to FY27, with broad-based growth across our new vehicle business. Improving customer sentiment, supported by the GST reforms announced in September 2025, particularly in the entry-level segment, continued to drive demand during the quarter. Importantly, our performance was driven by a healthy combination of both organic and inorganic growth, demonstrating the strength of our existing network alongside the successful integration of the acquisitions completed during FY26.

As indicated earlier, we have also achieved an important diversification milestone, with the revenue contribution from Keralam declining to below 50% in Q1FY27. We will continue to focus on maintaining a well-diversified geographic revenue mix going forward.

Higher debt levels compared to last year primarily reflect investments towards strategic acquisitions and network expansion. While acquisition-related Ind AS accounting adjustments continued to weigh on reported profitability, the operating performance of the acquired businesses has improved steadily and continues to improve as integration progresses."

Shares of Popular Vehicles and Services Limited was last trading in BSE at Rs. 110.55 as compared to the previous close of Rs. 107.10. The total number of shares traded during the day was 941 in over 44 trades.

The stock hit an intraday high of Rs. 115.00 and intraday low of 106.75. The net turnover during the day was Rs. 102026.00.

Source : Equity Bulls

Keywords

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