LANDMARK - Landmark Cars

📊 NSE: LANDMARK 🏢 Trading 📅 Last Updated: 12/14/2025 9:11

💰 Financial Performance

Revenue Growth by Segment

New Vehicle Sales & Allied Business recorded proforma revenue of INR 4,688.6 Cr in FY25, growing 23.2% YoY. In H1 FY26, New Car proforma sales grew 30.1% YoY to INR 258.4 Cr, while After-Sales revenue grew 9.7% YoY to INR 48.9 Cr. Total Proforma Revenue for Q2 FY26 was INR 1,657.2 Cr, up 30.7% YoY.

Geographic Revenue Split

Not disclosed in available documents, though the company operates across multiple regions with specific mentions of a new Kia workshop in Hyderabad operationalized in Q2 FY26.

Profitability Margins

Gross Profit Margin for Q2 FY26 was 16.17%, down from 18.44% YoY. Reported PAT Margin was 0.12% in Q2 FY26 compared to 0.04% in Q2 FY25. Adjusted PAT Margin (Pre-Ind AS) stood at 0.25% in Q2 FY26.

EBITDA Margin

Reported EBITDA Margin was 4.89% in Q2 FY26, a decline from 6.04% in Q2 FY25. H1 FY26 EBITDA Margin was 5.52% compared to 6.01% in H1 FY25, impacted by temporary discounts and the liquidation of demo cars.

Capital Expenditure

The company operationalized 23 out of 24 planned outlets in FY25. While specific future INR Cr figures are not disclosed, the strategy involves acquiring strategic assets annually to drive a 3-5 year growth plan.

Credit Rating & Borrowing

Finance costs increased by 20.5% YoY in H1 FY26 to INR 40.6 Cr. Q2 FY26 finance costs were INR 20.2 Cr, up 10.9% YoY, reflecting increased borrowing to support expansion and inventory.

⚙️ Operational Drivers

Raw Materials

New Vehicles (Inventory) represents the primary cost, with COGS at INR 1,020 Cr in Q2 FY26 (84.2% of reported revenue). Spare parts and consumables for the After-Sales segment (41.1% gross margin) are secondary costs.

Import Sources

Sourced domestically from OEM manufacturing plants across India, including Mercedes-Benz, Honda, Volkswagen, and MG facilities.

Key Suppliers

Key OEM partners include Mercedes-Benz, Honda, Volkswagen, Jeep, Ashok Leyland, MG, BYD, Mahindra & Mahindra (M&M), Renault, and KIA.

Capacity Expansion

Current network includes 75 showrooms and 65 workshops as of Q2 FY26. The company added 2 new outlets in Q2 FY26 and plans to continue strategic acquisitions annually.

Raw Material Costs

COGS grew 37.3% YoY in Q2 FY26 to INR 1,020 Cr. Procurement is driven by OEM inventory allocations, with a focus on lean management to mitigate pricing volatility.

Manufacturing Efficiency

New outlets take approximately 4 quarters to reach full potential. 20% of workshops are currently 'under-ramped' (<18 months old), generating half the revenue of mature facilities.

Logistics & Distribution

Not disclosed as a separate percentage, but integrated into the dealership model where OEMs typically handle primary vehicle logistics to the showroom.

📈 Strategic Growth

Expected Growth Rate

25-30%

Growth Strategy

Achieving growth through the 'After-Sales Engine' (targeting INR 1,000 Cr annual revenue), ramping up 20% of workshops that are currently new, and expanding the brand portfolio with high-growth partners like BYD (3x volume growth) and KIA.

Products & Services

Luxury and premium passenger vehicles, commercial vehicles (Ashok Leyland), vehicle servicing, spare parts sales, finance and insurance brokerage, and pre-owned car sales.

Brand Portfolio

Mercedes-Benz, Honda, Volkswagen, Jeep, Ashok Leyland, MG, BYD, M&M, Renault, and KIA.

New Products/Services

Expansion into the EV segment with BYD and adding mass-premium brands like Kia and MG, which are expected to contribute to the 100 bps gross margin improvement targeted for H2 FY26.

Market Expansion

Focus on acquiring strategic assets in chosen markets annually to become 'significantly bigger' over a 3-5 year horizon.

Market Share & Ranking

Landmark's 23.2% growth in FY25 significantly outperformed the broader passenger vehicle industry growth of 5%.

Strategic Alliances

Agency model partnership with Mercedes-Benz and dealership agreements with 10 major OEM partners.

🌍 External Factors

Industry Trends

The luxury segment is growing faster than the mass market. The industry is shifting toward EVs (BYD volumes up 3x) and integrated digital retail platforms.

Competitive Landscape

Competes with other regional luxury dealerships; Landmark differentiates through scale (10 brands) and operational efficiency (EBITDA positive new outlets).

Competitive Moat

Durable moat through a high-margin (41.1% GM) After-Sales business that is non-cyclical and provides steady cash flow, coupled with superior inventory management (42 days).

Macro Economic Sensitivity

Highly sensitive to premium consumer sentiment and interest rates; finance costs represent a significant expense at INR 40.6 Cr for H1 FY26.

Consumer Behavior

Shift toward premiumization and higher service expectations, reflected in the rising average revenue per vehicle serviced.

Geopolitical Risks

Trade barriers or import duties on luxury car kits (CKD/CBU) could impact the 42% revenue share from Mercedes-Benz.

⚖️ Regulatory & Governance

Industry Regulations

Impacted by GST and Cess interpretations; a lack of clarity led to a 5-week sales suspension for Mercedes-Benz in Q2 FY26.

Environmental Compliance

Not disclosed in absolute INR; involves compliance with workshop waste management and EV infrastructure readiness.

Taxation Policy Impact

Effective tax rate of 15.2% in H1 FY26 (INR 1.6 Cr tax on INR 10.5 Cr PBT).

⚠️ Risk Analysis

Key Uncertainties

Uncertain macro environment delaying outlet breakeven (expected in Q3 FY26) and volatility in OEM incentive structures impacting gross margins by ~200 bps.