Popular Vehicles and Services Limited reported a 28% year-on-year growth in revenue from operations for the fourth quarter of FY26, while the full-year revenue grew by 15%. The company released the transcript of its earnings conference call held on May 27, 2026, providing detailed financial results and operational updates for the period ended March 31, 2026.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. For the full year FY26, the company reported a total income of ₹6,401.1 crore, up 15.1% year-on-year. EBITDA stood at ₹203.4 crore, a 16% increase from the previous year, with an EBITDA margin of 3.2%. The company narrowed its net loss for the year to ₹12.5 crore compared to a loss of ₹10.5 crore in FY25.

Financial Performance

The management attributed the revenue growth to improving demand conditions post-GST reforms, network expansion, and contributions from strategic acquisitions. In Q4 FY26, total income reached ₹1,758.8 crore, up 27.8% year-on-year, with EBITDA rising 93.5% to ₹57.5 crore. The EBITDA margin for the quarter was approximately 3.3%, and the net loss for the quarter narrowed to ₹5 crore from ₹13.7 crore in the same period of the previous year.

Segment Highlights

New vehicle volumes for FY26 grew by 21% year-on-year to 53,452 units. The Passenger Vehicles segment sold 32,572 units, up 9%, generating ₹2,551 crore in income. The Commercial Vehicle segment saw volumes rise 30% to 12,546 units, with income growing 32% to ₹2,125 crore. The Electric Vehicle segment reported a strong 89% volume growth to 8,154 units, with income increasing 72% to ₹137 crore.

Service revenue remained resilient, growing 7% year-on-year to ₹968 crore despite a 6% decline in service volumes. The company noted that adjusted EBITDA, excluding divestments and acquisition impacts, stood at ₹200.9 crore, up 28% year-on-year.

Strategic Developments and Outlook

During FY26, the company completed three strategic acquisitions: a BharatBenz dealership in Punjab, a Maruti Suzuki dealership in Telangana, and Audi dealership operations in Telangana and Andhra Pradesh. These moves expanded its geographic footprint, with non-Keralam revenue contribution rising to approximately 47% in FY26 from 28% in FY23.

Looking ahead to FY27, management guided for high double-digit top-line growth and expects EBITDA margins to move towards the 5% range. The company anticipates returning to sustainable profitability from Q2 FY27, driven by the consolidation of recent acquisitions, improved service revenue, and operating leverage. CRISIL Ratings Limited has extended the company's long-term credit rating to CRISIL A/Stable and short-term rating to CRISIL A1, valid till March 31, 2027.

Popular Vehicles and Services Ltd reported a consolidated net loss of ₹12.5 crore for the financial year ended March 31, 2026, narrowing from a loss of ₹10.5 crore in the previous year. Revenue from operations increased 15.1% to ₹6,401.1 crore for FY26, compared to ₹5,561.6 crore in FY25. For the quarter ended March 31, 2026, the company posted a net loss of ₹5.0 crore, a significant improvement from the loss of ₹13.7 crore in the same period last year, while Q4 revenue rose to ₹1,754.5 crore from ₹1,372.4 crore year-on-year. The company clarified that Q4 revenue growth was restated to 28% following rectifications for erroneous calculations related to recent acquisitions and divestments.

The Board of Directors, in its meeting held on May 26, 2026, approved the audited standalone and consolidated financial results. The statutory auditors, B S R & Associates LLP, issued an unmodified opinion on the annual financial results. The company recorded total income of ₹6,401.1 crore and total expenses of ₹6,428.3 crore for the year. EBITDA for the full year stood at ₹203.4 crore, with margins at 3.2%.

Quarterly Performance

Q4 performance reflected a strong operational turnaround, with EBITDA surging 93.5% to ₹57.5 crore from ₹29.7 crore in the same quarter of the previous year. EBITDA margin for the quarter improved to 3.3% from 2.2% year-on-year. The following table summarises the key quarterly and annual financial metrics:

Operational Performance

New vehicle volumes for FY26 stood at 53,452 units, up 21.2% year-on-year, while total income from new vehicles grew 19.1% to ₹4,813 crore. The commercial vehicle (CV) segment led the growth in Q4 FY26 with volumes rising 58.9% to 3,716 units, while electric vehicle (EV) volumes surged 137.6% to 3,079 units. Services and repairs income increased 7.2% to ₹968 crore for the full year, despite a 5.8% decline in volumes, driven by higher average realizations.

Strategic Acquisitions and Expansion

During the year, the company completed strategic acquisitions, including a BharatBenz dealership in Punjab, a Maruti Suzuki dealership in Telangana, and Audi dealership operations in Telangana and Andhra Pradesh. Concurrently, the company divested its Honda and Piaggio businesses. Additionally, subsidiary Prabal Motors Private Limited acquired the commercial vehicle business of Globe CV Private Limited, and Imperion Cars Private Limited acquired an Audi India dealership.

Exceptional Items and Ratings

The company reported an exceptional item of ₹152.87 million related to the statutory impact of new Labour Codes. Care Ratings Limited extended the long-term rating of CRISIL A/Stable and the short-term rating at CRISIL A1, valid till March 31, 2027. The total bank loan facilities rated increased from ₹468 crore to ₹643 crore.