Landmark Cars Limited (ISIN: INE559R01029) has reported a mixed set of financial results for the second quarter of fiscal year 2026, showcasing strong revenue growth but facing pressure on profitability.

Revenue Surge

The company witnessed a significant year-over-year revenue growth of 33.5%, with reported revenue reaching ₹12,109.17 crore in Q2 FY26, up from ₹9,072.69 crore in the same quarter last year. This robust top-line performance indicates strong sales momentum and market demand for Landmark Cars' offerings.

Profitability Challenges

Despite the impressive revenue growth, Landmark Cars faced challenges in maintaining profit margins:

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 8% year-over-year to ₹592.00 crore. However, the EBITDA margin contracted to 4.89% from 6.04% in the same quarter last year, indicating increased operational costs.

Profit Before Tax (PBT) showed a modest increase of 26.7% to ₹6.07 crore, while Profit After Tax (PAT) saw a significant jump of 353.8% to ₹15.02 crore, benefiting from a tax credit during the quarter.

Operational Highlights

• The company's inventory management remained disciplined, with inventory days at 38 compared to the industry average of 60 days.
• Landmark Cars opened two new outlets during the quarter, expanding its retail presence.
• The after-sales business continued to show strength, with an 11.1% year-over-year growth in revenue to ₹2,541.00 crore.

Management Commentary

While specific management comments were not provided, the results suggest that Landmark Cars is focusing on expanding its market presence and sales volume, albeit at the cost of near-term profitability. The company's ability to grow its after-sales business is a positive sign, as this segment typically offers higher margins and more stable revenue streams.

Outlook

As Landmark Cars navigates through a challenging automotive retail environment, investors will be watching closely to see if the company can translate its strong revenue growth into improved profitability in the coming quarters. The expansion of outlets and growth in the after-sales segment may provide avenues for margin improvement, but managing operational costs will be crucial for enhancing bottom-line performance.

Investors should note that while the company has shown resilience in growing its top line, the pressure on margins warrants attention. The automotive retail sector's dynamics, including shifts in consumer preferences and regulatory changes, will continue to play a significant role in shaping Landmark Cars' performance in the near to medium term.

Landmark Cars Limited (LCL) has reported a robust financial performance for the second quarter of fiscal year 2026, marking significant growth and operational expansion. The multi-brand automotive retailer has demonstrated strong momentum in its business, driven by increased vehicle sales and after-sales services.

Financial Highlights

LCL reported impressive financial results for Q2 FY26:

The company achieved its fastest quarterly growth since its listing, with vehicle sales, including agency and pre-owned vehicle sales, showing a substantial increase of 35.03%. The after-sales service and spare parts segment also demonstrated solid growth, reaching its highest quarterly revenue level to date.

Operational Expansion

Landmark Cars has been actively expanding its operational footprint:

• July 2025: Operationalized two KIA workshops in Hyderabad and Mercedes-Benz operations in Patna
• October 2025: Opened an MG Select outlet in Kolkata
• November 2025 (Planned):
  • Strengthening Mahindra partnership with a new sales outlet in Hyderabad
  • Opening small KIA sales outlets in Hyderabad and Kolkata

Market Dynamics

The company's growth was particularly strong during the Navratra period, traditionally a time of high demand in the Indian market. However, LCL noted that some purchase deferrals occurred due to announcements regarding GST rate reductions, indicating consumer sensitivity to potential price changes.

Looking Ahead

With its strategic expansion and strong financial performance, Landmark Cars appears well-positioned to capitalize on the growing automotive market in India. The company's focus on both sales and after-sales services, coupled with its multi-brand strategy, provides a diverse revenue stream and potential for sustained growth.

Investors and market watchers will likely keep a close eye on how Landmark Cars leverages its expanded operations and navigates the evolving automotive retail landscape in the coming quarters.