Popular Vehicles and Services Ltd (BOM:544144)

Q1 2027 Popular Vehicles and Services Ltd Earnings Call Transcript

Aug 12, 2026 / 05:00 AM GMT

Release Date Price: ₹120.3 (+8.82%)

Transcript

Key Points

Positve

Consolidated revenue grew approximately 44% YoY to Rs. 2,890 crores, with total vehicle volumes increasing approximately 81%.
Organic growth was strong, with organic revenue up 33% YoY and organic new vehicle volumes up approximately 58%, indicating growth is not solely acquisition-driven.
Reported EBITDA increased approximately 87% YoY to Rs. 71.5 crores, with EBITDA margins improving to 3.8% from 2.9% in Q1 last year.
Reported PBT returned to positive territory at approximately Rs. 1.9 crores, compared with a loss of Rs. 11 crores in Q1 last year.
The company achieved a key diversification milestone as revenue contribution from Kerala declined to below 50% for the first time.
New vehicle inventory days improved significantly to approximately 32 days from around 50 days a year ago, reflecting better working capital discipline.
The acquired businesses (RKS Motors, Globe CV, and Olympus Motors) are scaling well and are now contributing positively at the EBITDA level.
Customer sentiment has improved meaningfully, with better inquiries, healthier showroom footfalls, and improved conversions, supported by GST reforms.
The luxury vehicle segment saw strong growth, with service volumes increasing approximately 87% YoY, boosted by the addition of Audi.
The EV business reported strong growth, with revenue up 113% and new vehicle volumes up 153% YoY.

Negative

Acquisition-related depreciation and finance costs continue to impact reported profitability, with a combined negative impact of approximately Rs. 9.4 crores.
Reported service volumes grew only marginally by approximately 1% YoY, and passenger vehicle service volumes declined by around 5%.
The company revised its EBITDA margin guidance down to approximately 4.3%-4.4% for the year, falling short of its earlier 5% target due to a higher mix of lower-margin commercial vehicle sales.
The commercial vehicle tipper segment is experiencing low to negative growth due to a slowdown in the construction sector.
There are supply constraints on spare parts, causing vehicles to be stuck in workshops longer and potentially impacting service throughput.
Debt levels are higher compared to the same period last year, reflecting the acquisitions and network expansion undertaken during FY26.
The acquired businesses (RKS and Olympus) are still loss-making at the PAT level, with RKS posting a negative Rs. 5.3 crores and Olympus a negative Rs. 4 crores.
The company is facing a leadership transition as CEO Raj Narayan is departing, which could create short-term uncertainty.
Organic service volumes remained stable or declined slightly in the passenger vehicle segment, indicating a slower recovery in after-sales.
The EV segment's contribution to overall EBITDA remains insignificant at approximately Rs. 2 crores, limiting its near-term impact on profitability.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

POPL.NS - Popular Vehicles and Services Ltd
Q1 2027 Popular Vehicles and Services Ltd Earnings Call
Aug 12, 2026 / 05:00AM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good day and welcome to Popular Vehicles and Services Limited's Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing then 0 on your touchstone phone. Please note that this conference is being recorded.

Before we begin, a brief disclaimer. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on the date of this call.

These statements are

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