Popular Vehicles & Services Limited, a prominent player in the automotive retail sector, has recently provided a corporate guarantee of Rs 2.36 crore to South Indian Bank Limited. This guarantee is in support of a term loan sanctioned to its wholly owned subsidiary, Kuttukaran Cars Private Limited.

Key Details of the Corporate Guarantee

Transaction Insights

The company has emphasized that this transaction was conducted on an arm's length basis, ensuring fairness and transparency. Popular Vehicles & Services Limited has also clarified that no promoters, promoter group members, or directors have any interest in this transaction, underlining the company's commitment to corporate governance.

Financial Implications

According to the company's statement, the provision of this corporate guarantee is not expected to have any significant impact on Popular Vehicles & Services Limited, apart from the necessary disclosure requirements in its financial statements. This suggests that the company views this guarantee as a routine financial transaction in support of its subsidiary's operations.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Popular Vehicles & Services Limited has duly informed the stock exchanges about this corporate guarantee. This timely disclosure aligns with the company's obligations as a listed entity and demonstrates its commitment to keeping shareholders and the market informed about material financial decisions.

The provision of this corporate guarantee highlights the ongoing financial support that Popular Vehicles & Services Limited extends to its subsidiaries, potentially indicating a strategic move to strengthen the group's overall financial position and operational capabilities in the competitive automotive retail sector.

Popular Vehicles & Services Ltd , a leading automotive dealership company, has reported a mixed performance for the second quarter of fiscal year 2026 (Q2 FY26). The company's revenue grew by 1% year-over-year, with varied results across different vehicle segments.

Key Highlights

• Total revenue from operations increased by 1% compared to Q2 FY25
• Total number of vehicles sold grew by 2% year-over-year
• Luxury car segment sales rose by 14%
• Commercial vehicle (CV) segment sales increased by 19%
• Passenger vehicle (PV) sales, excluding the luxury segment, declined by 11%
• Other segments, including electric vehicles (EV) and spare parts distribution, grew by 3%

Segment-wise Performance

H1 FY26 Performance

For the first half of FY26, Popular Vehicles & Services reported:

• Total revenue growth of 1% compared to H1 FY25
• Luxury car segment growth of 25%
• Commercial vehicle segment growth of 11%
• Passenger vehicle segment (excluding luxury) decline of 9%
• Other segments (EV, spare parts distribution) growth of 8%
• Total number of vehicles sold increased by 1% compared to H1 FY25

Network Expansion

The company has been actively expanding its network, with new operations starting at various locations:

• Nexa showrooms in Thodupuzha and Perumbavoor, Kerala
• Tata Motors CV Service centre in Calicut, Kerala
• Spare parts retail outlets in Kollam and Pathanamthitta, Kerala
• Bharat Benz 3S facilities in Punjab
• Ather 2S facilities in Bangalore, Changrapur, Kamptee, Nagpur, Waluj, and Chennai

Additionally, Popular Vehicles & Services acquired the business of R.K.S. Motor Private Limited through a slump sale, effective from October 15, 2025. This acquisition includes 27 authorized Maruti Suzuki touchpoints across various segments in Telangana.

Business Performance Commentary

The company reported improvement in sales volume and revenue compared to Q1 FY26:

• New vehicle volume sales grew by 37% quarter-on-quarter
• Total revenue from operations increased by 17% quarter-on-quarter

The festive season performance was strong, with growth across markets, particularly in Kerala and Chennai. Entry-level and premium hatchbacks led the growth, supported by demand for SUVs.

Outlook

Popular Vehicles & Services expects the positive momentum to continue into November and December, potentially driving Q3 volume growth. The company anticipates a decline in inventory levels due to retail demand and limited new wholesale inflows by the end of October, with further reductions expected through the remainder of Q3.

It's important to note that these quarterly business updates are on a consolidated basis, and the financial results for Q2 FY26 are subject to review by auditors.