Popular Vehicles & Services Limited (PVSL), a leading automotive dealership player in India, has reported a significant uptick in its performance for the quarter ended September 30, 2025 (Q2FY26). The company witnessed a 36.5% quarter-on-quarter increase in new vehicle volumes, reaching 13,012 units.

Financial Highlights

• Total income stood at Rs. 1,534.60 crores, marking a 16.6% increase sequentially.
• Adjusted EBITDA (including other income) was Rs. 53.00 crores, with margins at 3.5%.
• The passenger vehicle segment, including luxury vehicles, recorded 8,498 units with revenue of Rs. 664.30 crores.

Segment-wise Performance

Key Developments

1. GST Impact: Some customers deferred purchases following GST rate cut announcements in September, moderating the full impact of sales growth.

2. Divestments: The company completed the divestment of Vision Motors and Kuttukaran Green during the quarter.

3. Network Expansion: PVSL expanded its network with a new NEXA workshop in Kerala.

4. Corporate Guarantees: The company extended corporate guarantees for its subsidiaries:

   • Rs. 17.50 crores for Popular Autoworks Private Limited
   • Rs. 37.50 crores for Popular Mega Motors (India) Private Limited

Management Commentary

Naveen Philip, Promoter and Managing Director, stated, "Q2 is seasonally a stronger quarter for us, supported by the Onam festive period. While we saw healthy enquiry levels and improved footfalls, the GST rate cut announcement led to some purchase deferrals. This was predominantly a timing issue, and we expect Q3 to reflect stronger volume momentum."

Future Outlook

Management expects stronger volume momentum in Q3 as deferred purchases materialize. The company cites a favorable economic environment supported by GST rate reductions and improved monsoon conditions as positive factors for future growth.

Popular Vehicles & Services Limited continues to focus on expanding its presence across six states in India, leveraging its partnerships with leading OEMs in the passenger vehicle, commercial vehicle, and electric vehicle segments.

Popular Vehicles & Services Limited has announced plans to establish a new NEXA workshop in Perumbavoor, Kerala, further expanding its service network and strengthening its partnership with Maruti Suzuki.

Investment and Facility Details

The company has received a Letter of Intent (LOI) for the new workshop, which will be equipped with state-of-the-art facilities:

The new workshop is designed to work in synergy with the existing NEXA Studio in Perumbavoor, aiming to provide a seamless and high-quality service experience for customers.

Strategic Expansion

Mr. Naveen Philip, Promoter and MD of Popular Vehicles & Services Limited, commented on the development: "We are delighted to further expand our NEXA network with this upcoming workshop, underscoring our enduring partnership with Maruti Suzuki. This initiative aligns with our focus on continuously elevating our service standards and reinforcing our leadership in the Maruti service ecosystem."

The expansion is part of the company's broader strategy to:

1. Increase the share of service revenues
2. Improve overall profitability
3. Strengthen its position as a leading Maruti service partner across India

Company Overview

Popular Vehicles & Services Limited, part of the diversified Kuttukaran Group, has been operating multi-brand automobile dealerships for 70 years. The company has a significant presence across the automotive retail value chain, including:

• Sale of new passenger, commercial, and electric two/three-wheeler vehicles
• Services and repairs
• Spare parts distribution
• Sale of pre-owned passenger vehicles
• Facilitation of third-party financial and insurance products

With operations in Kerala, Tamil Nadu, Karnataka, and recently expanded into Maharashtra, the company boasts an extensive network of 64 showrooms, 137 sales outlets and booking offices, 32 pre-owned vehicle showrooms, 154 authorized service centers, 48 retail outlets, and 24 warehouses across 46 districts in these states.

This expansion move by Popular Vehicles & Services Limited demonstrates the company's commitment to enhancing its service capabilities and strengthening its market position in the automotive dealership sector.