Landmark Cars Limited , a leading multi-brand automotive dealership in India, reported a robust 31% year-on-year revenue growth to INR 1,657.00 crores in Q2 FY26, despite facing challenges during the GST rate transition period. However, the company experienced margin pressure due to inventory liquidation and discounts offered during this transition.

Financial Highlights

Key Takeaways

1. Revenue Growth: The company's proforma revenue saw a significant increase, driven by strong performance across all OEM partners.

2. Segment-wise Performance:

   • New car sales: INR 1,403.00 crores (+35% YoY)
   • Aftersales revenue: INR 254.00 crores (+11.2% YoY)

3. Margin Pressure: Gross margins compressed to 16.2% due to discounts and inventory liquidation during the GST rate transition period from August 15 to September 21, 2025.

4. Average Selling Price (ASP): The company achieved its highest-ever ASP of INR 23.16 lakhs for new cars in Q2 FY26, indicating a trend towards premium vehicle sales.

5. After-sales Performance: Per car service revenue stood at over INR 26,000 in Q2 FY26.

6. Cash Flow: The company generated a net operating cash flow of INR 177.00 crores in H1 FY26, surpassing the FY25 level of INR 152.00 crores.

GST Transition Impact

The GST rate revision announcement on August 15, 2025, led to a period of uncertainty and changed consumer behavior. Key impacts include:

• Buyers deferred purchases in anticipation of better pricing from September 22, 2025.
• The company implemented selective discounting and incentive schemes to maintain customer engagement.
• The transition period coincided with the festive season, further complicating market dynamics.
• The abolition of the compensation cess created ambiguity at the dealer level, leading to challenges in utilizing accumulated cess credits.

Future Outlook

1. Margin Recovery: Management has guided for a 100+ basis points margin improvement in the second half of FY26 as GST-related disruptions normalize.

2. Demand Momentum: The company expects sustained demand across luxury and premium segments.

3. New Launches: Honda, a key partner for Landmark Cars, plans to introduce 10 new models in India by 2030, primarily focusing on SUVs with hybrid and electric powertrains.

4. Electric Vehicle Growth: BYD, for which Landmark is the largest partner, crossed the 1,000-unit sales mark in October, reflecting growing customer acceptance of electric vehicles.

5. Expansion Plans: While the company has completed its planned expansions, it remains open to strategic acquisitions to consolidate its market position.

Sanjay Thakker, Chairman and Executive Director of Landmark Cars, commented on the results: "We navigated one of the most significant tax transitions in recent memory. While these short-term measures helped maintain customer engagement, they also exerted temporary pressure on the gross margins. We are guiding that the gross profit percentages going ahead for the balance part of the year will increase by over 100 basis points."

The company's management expressed optimism about the future of the Indian automotive market, anticipating that the recent GST reforms will lead to sustained profitable growth for several years to come.

As the automotive industry adapts to these changes, Landmark Cars appears well-positioned to capitalize on the growing demand for premium and luxury vehicles in the Indian market.

Landmark Cars Limited , a leading automotive retailer in India, has announced its financial results for the second quarter of fiscal year 2026, showcasing significant growth in revenue and profitability.

Financial Highlights

For the quarter ended September 30, 2025 (Q2 FY2026), Landmark Cars reported:

• Consolidated Revenue: ₹12,109.17 million, up 33.5% year-over-year (YoY)
• Profit After Tax: ₹45.02 million, compared to a loss of ₹10.24 million in Q2 FY2025
• EBITDA: ₹591.55 million, an increase of 8.0% YoY

Half-Year Performance

For the half-year period (H1 FY2026), the company achieved:

• Total Income: ₹22,827.02 million, a 30.9% increase from ₹17,433.49 million in H1 FY2025
• Profit After Tax: ₹88.68 million, up 134.9% from ₹37.76 million in the previous year

Operational Highlights

• New Vehicle Sales: The company's proforma revenue from new vehicle sales and allied businesses reached ₹14,031 million in Q2 FY2026, up from ₹10,391 million in Q2 FY2025.
• After-Sales Business: Revenue from after-sales services grew to ₹2,541 million in Q2 FY2026, compared to ₹2,286 million in the same quarter last year.
• Average Selling Price: The average selling price for new vehicles increased to ₹23.16 lakh in Q2 FY2026, up from ₹20.20 lakh in Q2 FY2025.

Strategic Developments

1. Agency Model with Mercedes-Benz: Landmark Cars has transitioned to an agency model for Mercedes-Benz sales, where the company earns commission on each sale made directly by Mercedes-Benz India Private Limited (MBIL) to customers.

2. Expansion: The company opened two new outlets during the quarter, bringing its total to 75 showrooms and 65 workshops across India.

3. New Subsidiary: Landmark Luxury Retail Private Limited, a wholly-owned subsidiary, was incorporated on August 14, 2025, for retail trading of luxury items.

4. Acquisition Plans: Landmark Cars has executed a Share Purchase Agreement to acquire the remaining 17% equity shares of its subsidiary, Landmark Cars (East) Private Limited, for ₹141.67 million.

Management Commentary

Sanjay Thakker, Chairman and Executive Director of Landmark Cars Limited, stated, "Our Q2 FY2026 results demonstrate strong growth across all business segments. The transition to the agency model with Mercedes-Benz has been smooth, and we're seeing positive impacts on our revenue streams. Our focus on expanding our network and diversifying into luxury retail is aligned with our long-term growth strategy."

Future Outlook

Landmark Cars remains optimistic about its future prospects, citing a robust product pipeline from partner brands and sustained demand driven by recent GST rate reductions. The company's strategic initiatives, including the expansion of its dealership network and entry into luxury retail, are expected to drive growth in the coming quarters.

As Landmark Cars continues to strengthen its position in the Indian automotive retail market, investors and industry observers will be watching closely to see how these strategic moves translate into long-term value creation for the company and its shareholders.