Popular Vehicles and Services Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Popular Vehicles and Services Ltd filed with BSE on 03 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Popular Vehicles and Services reported Q4 FY26 revenue growth of around 28% year-on-year and full year FY26 revenue growth of around 15%, with new vehicle volumes up 21% for the year. Management disclosed a corrected Q4 revenue figure following an error in the earlier business update, and reported FY26 EBITDA of Rs 203.4 crore, up 16% year-on-year, with a reported PAT loss of Rs 12.5 crore. The company completed three acquisitions during the year (BharatBenz Punjab, Maruti Suzuki Telangana, and Audi dealership operations in Telangana and Andhra Pradesh) and divested its Honda and Piaggio businesses.
Numbers mentioned
Revenue from operations growth: around 28% (Q4 FY26)
p. 4
“In Q4 FY '26, revenue from operations grew by around 28% Y-o-Y, while the full year FY '26 revenue from operations grew by around 15% Y-o-Y.”
Naveen Philip, page 4 of the filed PDF · View the filing
New vehicle volume growth: around 21% (FY26)
p. 4
“New vehicle volumes for FY '26 grew by around 21% Y-o-Y, with growth witnessed across segments.”
Naveen Philip, page 4 of the filed PDF · View the filing
EBITDA: INR203.4 crores (FY26)
p. 5
“On the operating profitability front, reported EBITDA for FY '26 stood at INR203.4 crores, up 16% year-on-year.”
Naveen Philip, page 5 of the filed PDF · View the filing
Adjusted EBITDA: INR200.9 crores (FY26)
p. 6
“For a like-to-like comparison after adjusting for Honda and Piaggio divestments, acquisition related EBITDA impact and the one-off such provision, adjusted EBITDA stood at INR200.9 crores, up 28% year-on-year.”
Naveen Philip, page 6 of the filed PDF · View the filing
Reported PBT before exceptional items: loss of INR27 crores (FY26)
p. 6
“At a PBT level, reported PBT before exceptional items was a loss of INR27 crores after adjusting for acquisition and divestment related depreciation and finance costs.”
Naveen Philip, page 6 of the filed PDF · View the filing
Non-Keralam revenue contribution: approximately 47% (FY26)
p. 5
“I'm pleased to share that we have achieved meaningful progress on this front with non-Keralam revenue contribution, increasing to approximately 47% in FY '26 from around 28% in FY '23.”
Naveen Philip, page 5 of the filed PDF · View the filing
Total income: INR1,758.8 crores (Q4 FY26)
p. 8
“Our total income for the quarter stood at INR1,758.8 crores, up 27.8% year-on-year.”
Abraham Mammen, page 8 of the filed PDF · View the filing
EBITDA margin: approximately 3.3% (Q4 FY26)
p. 8
“EBITDA margin stood at approximately 3.3% for quarter 4 FY '26.”
Abraham Mammen, page 8 of the filed PDF · View the filing
Total income: INR6,401.1 crores (FY26)
p. 9
“Financial performance, our total income stood at INR6,401.1 crores, up 15.1% year-on-year.”
Abraham Mammen, page 9 of the filed PDF · View the filing
PAT: loss of INR12.5 crores (FY26)
p. 9
“PAT stood at a loss of INR12.5 crores compared to a loss of INR10.5 crores in FY '25.”
Abraham Mammen, page 9 of the filed PDF · View the filing
Total bank loan facilities rating: increased from INR468 crores to INR643 crores
p. 9
“The amount of total bank loan facilities rate has been increased from INR468 crores to INR643 crores.”
Abraham Mammen, page 9 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Top line growth — high double-digit · FY27
stated as an aspiration by Naveen Philip
p. 7
“Our aim is to deliver growth in FY '27 with high double-digit top line growth.”
Naveen Philip, page 7 of the filed PDF · View the filing
EBITDA margin — 5% range · FY27
stated as an aspiration by Naveen Philip
p. 7
“EBITDA margins moving towards 5% range and PAT approaching FY '24 levels as scale benefits, operating leverage and integration benefits begin to reflect in performance.”
Naveen Philip, page 7 of the filed PDF · View the filing
Non-Keralam revenue contribution — over 50% · coming year
stated as an aspiration by Naveen Philip
p. 5
“With the recent acquisitions and expansion initiatives already undertaken, we believe this contribution should further increase to over 50% in the coming year, thereby significantly improving the geographic balance of our business.”
Naveen Philip, page 5 of the filed PDF · View the filing
Passenger Vehicle service volume growth — 10% to 12% · FY27
stated firmly by Naveen Philip
p. 10
“We're looking at least 10% to 12% growth for FY '27 in terms of service volumes in the Passenger Car segment.”
Naveen Philip, page 10 of the filed PDF · View the filing
Consolidated EBITDA margin — about 4.8% to 5%
stated firmly by Naveen Philip
p. 11
“But overall margins and overall profitability, we should head towards an EBITDA margin of about 5% consolidated, about 4.8% to 5% consolidated.”
Naveen Philip, page 11 of the filed PDF · View the filing
Jaguar Land Rover volume — 550 to 600 vehicles · this year
stated conditionally by Naveen Philip
p. 11
“Assuming no such incident happen going forward and with our expansion in Nagpur, we are looking at the guidance of about 550 to 600 vehicles from Jaguar Land Rover this time with also the help that happened between the U.K. FDA process that has happened and prices of certain higher-end models have come down drastically.”
Naveen Philip, page 11 of the filed PDF · View the filing
Spare parts business margin — 5.5%, 6%
stated as an aspiration by Naveen Philip
p. 13
“We're looking at around 5.5%, 6% in terms of margins.”
Naveen Philip, page 13 of the filed PDF · View the filing
Sustainable profitability — Q2 FY27
stated firmly by Naveen Philip
p. 15
“So from Q2 of next year, we will -- we expect to be sustainably profitable for the company and guidance for close to 4.8% to 5% remains there.”
Naveen Philip, page 15 of the filed PDF · View the filing
Inventory days — not to cross 30 days
stated firmly by Naveen Philip
p. 12
“And going forward, we'll ensure that the inventory levels do not cross 30 days at any given point of time.”
Naveen Philip, page 12 of the filed PDF · View the filing
Commercial vehicle service volume growth — 7% to 8% · this year
stated firmly by Naveen Philip
p. 10
“This year would be slightly lower than that, about 7% to 8% growth in terms of service volume numbers.”
Naveen Philip, page 10 of the filed PDF · View the filing
Acquisitions — no high-value acquisitions · this year
stated firmly by Naveen Philip
p. 12
“We're only looking at consolidation of our -- the acquisitions that we've done in the previous year and growing that business forward.”
Naveen Philip, page 12 of the filed PDF · View the filing
Q1 FY27 profitability — Q1 FY27
stated firmly by Naveen Philip
p. 20
“The profitability improvement from Q2. Q1 we'll still have one, there has been supply constraints from both JLR and Maruti side.”
Naveen Philip, page 20 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the largest dip was in low-value job cards as focus shifted to higher-value work, ASP grew 14%, and recovery has begun with Accenture-led structural changes.
Answered by Raj Narayan
Asked by Preet Pitani: Why did service volumes decline and what is the growth guidance for FY27 service volumes and ASP?
p. 9
“So while -- overall for the entire group, while the service volume for the last year would have degrown at about closer to minus 6%. The ASP has grown at about 14%, resulting in a revenue growth of over 8%.”
Raj Narayan, page 9 of the filed PDF · View the filing
Management said consolidated margins won't reach 18% due to CV and Ather mix, but passenger car service margins could reach 18-19%.
Answered by Naveen Philip
Asked by Preet Pitani: Can consolidated EBITDA margins reach peer levels of 18%?
p. 10
“So, if you look at our mix, we will not reach the 18% consolidated EBITDA margins because we have both commercial and a large chunk in terms of commercial and Ather 2- wheelers.”
Naveen Philip, page 10 of the filed PDF · View the filing
Management attributed margin erosion to acquisitions and organic expansion in Telangana/Andhra and Karnataka.
Answered by Naveen Philip
Asked by Preet Pitani: Why is the standalone business still loss-making despite reduced discounting and top-line growth?
p. 11
“So if you look at in terms of analysis, our acquisitions, both our acquisition and organic expansion in Karnataka and Andhra is what is -- I mean Telangana is what has eroded our margins in terms of both IndAS and everything.”
Naveen Philip, page 11 of the filed PDF · View the filing
Management cited a cyberattack-related supply constraint in Q3 that reduced volumes and impacted revenue and profit.
Answered by Naveen Philip
Asked by Preet Pitani: What caused the JLR volume shortfall versus the 450-vehicle guidance?
p. 11
“So though we had guided for about 450 vehicle volume overall for the year, we ended up doing Audi about 380, which means we lost of about INR70 crores in terms of top line and probably approximately INR8 crores to INR9 crores in terms of bottom line from the JLR business and that is because of the cyber-attack that happened in Jaguar Land Rover.”
Naveen Philip, page 11 of the filed PDF · View the filing
Management said inventory days had been reduced from 49 to 36 days and would be kept below 30 days.
Answered by Naveen Philip
Asked by Preet Pitani: How is inventory being managed given higher debt from acquisitions?
p. 12
“But I think from 49 days, we were down to about 36 days in terms of inventory FY '25, March to FY '26, March.”
Naveen Philip, page 12 of the filed PDF · View the filing
Management said Telangana's acquisition-related losses and cess provisions drove the FY26 loss, and expects sustainable profitability from Q2 FY27.
Answered by Naveen Philip
Asked by Nilesh Doshi: When will the company return to sustainable profitability given repeated quarterly losses?
p. 15
“In terms of profitability from Q2 of FY '27, we should be having sustainable profitability.”
Naveen Philip, page 15 of the filed PDF · View the filing
Management apologized and said processes were being fixed to prevent recurrence.
Answered by Abraham Mammen
Asked by Nilesh Doshi: Why was the business update revenue figure incorrect, and how will this be prevented in future?
p. 16
“Definitely, Nileshji point taken, we've definitely fixed those issues that is there. We will proactively mention that this does not occur in future.”
Abraham Mammen, page 16 of the filed PDF · View the filing
Management confirmed Q4 delays due to FTA expectations, with clarification that price cuts apply only to UK-manufactured JLR models.
Answered by Naveen Philip
Asked by Gautam Madhvan: Are luxury car buyers delaying purchases ahead of the UK FTA price cuts?
p. 17
“Yes. So in Q4, we -- there were a lot of delay in terms of purchases because of the FTA, especially because the U.K. FTA had kicked in and people were expecting a price drop across all segments of JLR”
Naveen Philip, page 17 of the filed PDF · View the filing
Management described a combination of volume ramp-up, capacity utilization, and operational efficiency measures across Telangana and Punjab operations.
Answered by Abraham Mammen
Asked by Lokhan Devia: What operational steps are needed to make recent acquisitions profitable beyond accounting adjustments?
p. 19
“So it's a combination of different things that we will really need to look at holistically and we should take necessary corrections and some of them are also in progress”
Abraham Mammen, page 19 of the filed PDF · View the filing
Risks flagged
Shortage of entry-level vehicles from key OEM affecting revenue growth
p. 6
“That said, revenue growth was moderated by product mix and supply constraints from key OEM in Keralam during the quarter.”
Naveen Philip, page 6 of the filed PDF · View the filing
Cyberattack at Jaguar Land Rover disrupting vehicle supply
p. 11
“and that is because of the cyber-attack that happened in Jaguar Land Rover.”
Naveen Philip, page 11 of the filed PDF · View the filing
Cess provision and new labor code impacting profitability
p. 7
“At the PBT level, this year, also included acquisition-related impacts, cess provisions and the impact of the new labor code.”
Naveen Philip, page 7 of the filed PDF · View the filing
Acquisition-related depreciation and finance costs under IndAS reducing reported profitability
p. 16
“What I am trying to tell is that because of the IndAS rules that are effective and because of the depreciation on account of these acquisitions, there has been a larger in terms of impact on profitability.”
Naveen Philip, page 16 of the filed PDF · View the filing
Q1 FY27 supply constraints from JLR and Maruti
p. 20
“Q1 we'll still have one, there has been supply constraints from both JLR and Maruti side.”
Naveen Philip, page 20 of the filed PDF · View the filing
Potential impact of geopolitical situation on demand
p. 7
“Demand indicators remain positive in spite of the war situation with inquiries and footfall showing healthy momentum.”
Naveen Philip, page 7 of the filed PDF · View the filing
Decline in running repair service volumes due to loss of focus and postponed services by customers
p. 18
“In terms of running repair is where we lost about 17% to 18% in terms of running repair in terms of the drop in volumes.”
Naveen Philip, page 18 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.