Landmark Cars Limited's board of directors has approved a substantial ₹80.00 crore investment in its three wholly owned subsidiaries during a board meeting held on December 31, 2025. The meeting commenced at 4:30 p.m. and concluded at 5:10 p.m., with the board unanimously approving the strategic investment decision.

Investment Structure and Distribution

The ₹80.00 crore investment will be executed through subscription to Optionally Convertible Redeemable Preference Shares (OCRPS) of ₹10.00 each across the three subsidiaries. The investment distribution reflects the varying capital requirements of each entity:

Subsidiary Details and Performance

All three subsidiaries operate within the automobile industry and maintain established market positions. Aeromark Cars Private Limited, incorporated on June 19, 2023, specializes in sales and after-sales services for MG brand vehicles. The company has demonstrated strong revenue growth, reporting ₹425.08 crores in FY 2024-25 compared to ₹138.37 crores in FY 2023-24.

Landmark Premium Cars Private Limited generated revenue of ₹113.51 crores in FY 2024-25, while Landmark Mobility Private Limited recorded ₹183.42 crores in FY 2024-25, significantly higher than ₹0.79 crores in FY 2023-24.

Capital Structure and Ownership

Each subsidiary maintains identical capital structures with authorized and paid-up share capital of ₹25.00 crores. The investment will not alter the ownership structure, as Landmark Cars Limited will continue to hold 100% stakes in all three entities:

Strategic Objectives and Implementation

The primary objective of this investment is to reduce existing loans between Landmark Cars Limited and its wholly owned subsidiaries. This restructuring approach will optimize the group's financial structure and improve inter-company debt management. The investment constitutes related party transactions, with Landmark Cars Limited serving as the promoter of all three subsidiaries.

The company expects to complete the investment process by March 31, 2025, with the entire consideration being paid in cash. No governmental or regulatory approvals are required for this internal restructuring initiative, streamlining the implementation process.

Mercedes-Benz India has announced a price increase of 2% across its vehicle portfolio, marking an adjustment in the luxury car segment. This pricing decision by the German automaker represents a moderate revision in the premium automotive market.

Impact on Dealership Partners

The price increase holds particular significance for Landmark Cars , which has a substantial business relationship with Mercedes-Benz India. The company's revenue structure shows a notable dependence on the German luxury brand.

Market Positioning

With Mercedes-Benz accounting for 42.00% of Landmark Cars' total revenues, this pricing adjustment could have implications for the dealership's business operations. The 2% price increase may influence customer demand patterns and sales volumes in the luxury car segment.

Business Relationship Dynamics

The substantial revenue contribution from Mercedes-Benz sales underscores the importance of this partnership for Landmark Cars. The company's business model demonstrates significant exposure to Mercedes-Benz's market performance and pricing strategies. This relationship highlights the interconnected nature of automotive manufacturers and their authorized dealer networks in the luxury car segment.

Potential Impact

Landmark Cars may be impacted by this pricing adjustment, given its significant reliance on Mercedes-Benz car sales. The extent of this impact will likely depend on various factors, including market response to the price increase and any adaptive strategies Landmark Cars may implement to address the changing market dynamics.