Landmark Cars Q1 Results: Net profit nearly doubles on 22% revenue rise
Landmark Cars posted record Q1 FY27 results with pro forma revenue surging over 22% YoY and PAT nearly doubling. EVs drove 30% of sales by value, with management highlighting strong aftersales potential and a new charging partnership with ChargeZone. Mercedes-Benz ASP rose to ₹79 lakh, while overall cash generation remains robust at ₹60 crore for the quarter.
*this image is generated using AI for illustrative purposes only.
Landmark Cars Limited delivered its strongest first-quarter performance in history for FY27, reporting pro forma revenue from operations growth of over 22% year-on-year. The automotive retailer saw profit after tax (PAT) nearly double compared to the prior period, outpacing the revenue expansion due to improving operating leverage and disciplined cost management.
The results were announced during an earnings conference call held on August 12, 2026, where management emphasized the structural shift toward electric mobility. Electric vehicles (EVs) accounted for 30% of vehicles sold by value at Landmark, a figure substantially higher than the broader industry average. This mix shift is supported by new partnerships and expanded capacity across key brands.
Financial Highlights
| Metric | Performance | Context |
|---|---|---|
| Pro Forma Revenue | >22% YoY growth | Best-ever Q1 performance |
| Profit After Tax | Nearly doubled | Outpaced revenue growth |
| EV Sales Mix | 30% by value | Significantly above industry avg |
Management noted that the corresponding period last year was influenced by GST-related changes and deferred purchases, creating a lumpy baseline. With these dynamics largely resolved, the company expects a more normalized demand trajectory for the remainder of the fiscal year.
What the Numbers Show
A key divergence in the current quarter is the disproportionate contribution of EVs to the sales mix versus their impact on aftersales revenue. While EVs represent 30% of sales by value, management indicated that aftersales revenue from EVs is not negatively impacted compared to internal combustion engine (ICE) vehicles. In fact, higher running frequency and costlier accident repairs for EVs are driving higher revenue per vehicle in the full-year outlook. This suggests that the annuity-based aftersales business model remains resilient despite the powertrain transition.
Brand Performance and Expansion
Mercedes-Benz remained the leading luxury brand in India, recording 9,786 unit sales in H1 calendar year 2026, a 9% year-on-year increase. The average selling price (ASP) for Mercedes-Benz rose to approximately ₹79 lakh in Q1 FY27, up from ₹73 lakh in Q4 FY26, driven by a focus on top-end vehicles.
MG Motors benefited from increased EV penetration, with the new MG Majestor commencing deliveries to strengthen its premium portfolio. Landmark also received a letter of intent for an additional MG showroom in Ahmedabad, expanding its network to 17 outlets for the brand.
Other notable developments include:
- Mahindra: Strong momentum continues with new launches; a new workshop in Hyderabad will soon begin operations.
- BYD: Supply is expected to improve significantly, with hybrid models launching later in FY27. New outlets in Pune became operational in July.
- Kia: Healthy momentum post-Seltos launch, with the Syros EV receiving strong order bookings.
- Honda: Encouraging improvements supported by the City, Amaze, and Elevate models.
Strategic Initiatives
Landmark has signed a memorandum of understanding with ChargeZone, one of India’s leading EV charging networks. Under this industry-first partnership, EV customers will receive wallet credit redeemable at ChargeZone locations, while Landmark earns a share of the charging revenue. This creates a recurring revenue stream beyond the point of sale.
On the infrastructure front, the company inaugurated a large 50,000 square foot workshop in Mumbai to cater to Mercedes-Benz, BYD, and Jeep. Management clarified that future capacity additions will be measured in bays rather than just workshop counts, allowing for better consolidation and margin improvement.
Outlook and Guidance
Looking ahead, management expects demand to remain positive, supported by GST 2.0 reforms. The company plans to maintain capital discipline while selectively expanding service facilities. Operating cash flow for the quarter stood at approximately ₹60 crore, contributing to robust annual cash generation of ₹250–260 crore in the previous fiscal year. Management indicated that borrowing costs remain stable and capex is in line with guidance of around ₹50 crore for the year.
Historical Stock Returns for Landmark Cars
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.59% | -10.76% | -4.69% | +19.82% | -4.68% | +11.31% |
How will the ChargeZone partnership's recurring revenue model impact Landmark's long-term EBITDA margins compared to traditional one-time sales commissions?
Given the higher ASP for Mercedes-Benz, will the shift toward premium EVs accelerate the consolidation of aftersales revenue per vehicle as predicted by management?
What specific operational challenges might arise from integrating BYD's hybrid models into existing workshop infrastructure, and how will this affect service bay utilization rates?
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