Popular Vehicles and Services Stock Surges 7% After Strong Q3 FY26 Performance
Popular Vehicles and Services Ltd shares surged 7% to ₹118.50 after reporting strong Q3 FY26 results with 40% YoY revenue growth and 50% increase in new vehicle volumes. The company showed robust performance across all segments, with commercial vehicles revenue up 57% and EV and spare parts growing 69%. Operational efficiency improved with inventory days reducing to 37 days from 44 days previously, while the company expanded its network and acquired AUDI dealership business from Olympus Motors.
*this image is generated using AI for illustrative purposes only.
Popular Vehicles & Services shares jumped 7% in today's trading session, reaching a high of ₹119.95 from the previous close of ₹112.45, currently trading at ₹118.50 per share. The surge came after the multi-brand automobile dealership reported strong Q3 FY26 performance across all business segments.
Financial Performance Highlights
The company delivered robust financial results during Q3 FY26, with broad-based growth across all segments:
| Metric | Q3 FY26 Growth (YoY) | 9MFY26 Growth (YoY) |
|---|---|---|
| Total Revenue from Operations | ~40% | ~14% |
| New Vehicle Volume Sales | 50% | 17% |
| Commercial Vehicles Revenue | 57% | 26% |
| EV and Spare Parts Distribution | 69% | 11% |
| Passenger Vehicles (excluding luxury) | 35% | 6% |
| Luxury Passenger Vehicles | -5% | 15% |
The company's market capitalisation stands at ₹843.00 crores, reflecting strong investor confidence in its growth trajectory.
Operational Improvements
Popular Vehicles and Services demonstrated significant operational efficiency improvements during the quarter. Inventory days reduced to approximately 37 days from 44 days in the previous year, bringing the company closer to industry averages. This improvement reflects healthy retail demand, particularly in the entry-level segment.
The entry-level vehicle segment recorded over 35% year-on-year growth, while the premium vehicle segment grew by more than 30%, aided by favorable GST reforms. The passenger vehicle segment showed improved performance during the quarter, with rising demand supporting sustained volume growth expectations.
Network Expansion and Acquisitions
During the period, the company strategically expanded its network footprint through multiple initiatives:
| Expansion Details | Location |
|---|---|
| Tata Motors CV Sales Outlet | Mananthavady, Kerala |
| Ather Sales Outlets | 3 outlets in Bengaluru, Karnataka |
| Ather Service Centre | 1 centre in Bengaluru, Karnataka |
Significantly, Popular Vehicles and Services acquired the AUDI dealership business of Olympus Motors Private Limited through an Asset Purchase Agreement effective December 31, 2025. This strategic acquisition adds five AUDI touchpoints to the network:
- Showroom and service centre in Hyderabad
- Showroom and service centre in Visakhapatnam
- Service centre in Vijayawada
Company Background
Popular Vehicles & Services Limited operates as part of the diversified Kuttukaran Group and functions as a leading multi-brand automobile dealership across Kerala, Tamil Nadu, and Karnataka. The company holds the distinction of being one of Maruti Suzuki's earliest dealers in India and has significantly scaled its operations since inception.
The company's business encompasses the sale and service of automobiles, spare parts distribution, and finance and insurance commission services. Despite being in an expansion phase with higher debt levels compared to earlier periods, the company continues to demonstrate strong operational performance and strategic growth initiatives.
Historical Stock Returns for Popular Vehicles & Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.35% | -1.43% | -3.98% | -12.81% | -23.47% | -57.87% |
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