Landmark Cars Limited has announced the incorporation of a new wholly owned subsidiary, marking its entry into the luxury retail sector. The company, in a strategic move to diversify its business portfolio, has established 'Landmark Luxury Retail Private Limited' (LLRPL) on August 14, 2025.

Key Details of the New Subsidiary

• Name: Landmark Luxury Retail Private Limited
• Incorporation Date: August 14, 2025
• Industry: Retail, focusing on luxury items
• Registered Office: Ahmedabad, Gujarat
• Initial Investment: Rs. 1,00,000 (10,000 equity shares at Rs. 10 each)
• Shareholding: 100% owned by Landmark Cars Limited

Strategic Expansion

The newly formed subsidiary is set to operate in the retail industry, specifically targeting the luxury items segment. This move represents a significant expansion for Landmark Cars Limited, which has traditionally been known for its presence in the automotive retail sector.

Financial Implications

While the initial investment is relatively modest at Rs. 1,00,000, Landmark Cars Limited expects the new venture to contribute positively to its financial status in the future. The company stated that the subsidiary's business would play a role in driving growth for the parent company.

Regulatory Compliance

The incorporation of LLRPL has been duly reported to the stock exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided all necessary details as required by the regulatory authorities.

Current Status and Future Prospects

As of now, Landmark Luxury Retail Private Limited is yet to commence its business operations. The company's entry into the luxury retail space signals its intent to tap into the growing luxury market in India, potentially leveraging its existing retail expertise and network.

This strategic move by Landmark Cars Limited reflects the company's ambition to diversify its revenue streams and capitalize on the burgeoning luxury retail sector in India.

Landmark Cars Limited, a leading multi-brand automotive retailer in India, has reported a mixed financial performance for the first quarter of fiscal year 2026 (Q1 FY26). The company saw significant revenue growth but experienced a slight decline in profitability compared to the same period last year.

Revenue Growth

Landmark Cars reported total income of ₹10,668.83 crore for Q1 FY26, marking a substantial increase of 28.00% from ₹8,332.83 crore in Q1 FY25. This growth was primarily driven by strong sales across its multi-brand portfolio, which includes Mercedes-Benz, Honda, Jeep, Volkswagen, and BYD, among others.

Profitability

Despite the robust revenue growth, the company's net profit after tax saw a marginal decline. Landmark Cars reported a net profit of ₹73.66 crore for Q1 FY26, compared to ₹87.25 crore in the same quarter last year. This represents a decrease of 15.60% year-on-year.

Operational Highlights

A key development in Landmark Cars' business model has been the transition of its Mercedes-Benz dealership to an agency model. Under this new arrangement, customers place orders directly with Mercedes-Benz India through Landmark Cars, which earns a commission on sales. During Q1 FY26, Mercedes-Benz cars worth ₹3,767.05 crore were sold under this model.

Financial Metrics

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed improvement, rising to ₹662.00 crore in Q1 FY26 from ₹498.00 crore in Q1 FY25, representing a growth of 32.90%.

Earnings per share (EPS) for the quarter stood at ₹1.67, compared to ₹0.77 in the same period last year, showing a significant improvement in this metric.

Management Commentary

While specific management comments were not provided in the financial results, the shift to the agency model for Mercedes-Benz sales represents a strategic change aimed at potentially improving margins and reducing inventory risks for Landmark Cars.

Outlook

As Landmark Cars continues to adapt to changing market dynamics, including the shift towards electric vehicles with brands like BYD in its portfolio, the company appears to be positioning itself for future growth in the evolving automotive retail landscape.

Investors and analysts will likely be watching closely to see how Landmark Cars manages its profitability in the coming quarters, especially in light of its significant revenue growth and operational changes.