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 , a prominent player in the automotive retail sector, has reported a significant loss for the quarter ended September 30, along with several key corporate decisions.

Financial Performance

Popular Vehicles & Services reported a standalone net loss of Rs 218.69 million for the quarter ended September 30, a stark contrast to the profit of Rs 15.66 million in the same quarter last year. Despite the bottom-line challenges, the company's revenue from operations increased to Rs 2,520.90 million from Rs 2,252.46 million in the previous year quarter, representing a year-over-year growth of approximately 11.9%.

Key Corporate Decisions

The company's board approved several important initiatives:

1. Employee Stock Option Scheme: The board gave the green light to the Popular Vehicles Employee Stock Option Scheme for eligible employees and subsidiaries.

2. Board Restructuring: Mr. Murali Narayanan has been recommended for appointment as an Independent Director.

3. New Subsidiary: Approval was granted for the incorporation of a new step-down subsidiary under Popular Mega Motors for a luxury dealership brand.

Strategic Moves

Popular Vehicles & Services has made significant strategic moves:

1. Divestment: The company completed the disinvestment of Kuttukaran Green Private Limited for Rs 20.00 million, recording a gain of Rs 11.57 million.

2. Acquisition: Popular Vehicles & Services acquired the Maruti Suzuki dealership business from R.K.S Motor Private Limited for Rs 930.00 million, with Rs 55.50 million paid as advance.

Looking Ahead

While Popular Vehicles & Services has managed to grow its top line, the substantial loss reported for the quarter may prompt the company to focus on cost management and operational efficiency. The approved ESOP scheme could help in aligning employee interests with the company's long-term goals.

As the automotive retail sector continues to evolve, Popular Vehicles & Services' ability to leverage its new acquisitions, manage its restructuring efforts, and return to profitability will be crucial for its long-term success. Investors and market analysts will likely be watching closely to see how the company addresses these challenges and works to improve its bottom line in the competitive market environment.