Popular Vehicles & Services Limited (NSE: PVSL, BSE: 544144), a leading integrated automotive dealership player in India, has announced a significant expansion of its commercial vehicle operations in Punjab. The company's 100% step-down subsidiary, Prabal Motors Private Limited, has successfully acquired BharatBenz dealership operations from Globe CV Private Limited in the state.

Acquisition Details

Prabal Motors has executed a Business Transfer Agreement (BTA) to acquire Globe CV's BharatBenz dealership operations in Punjab as a going concern. The transaction, valued at ₹12.00 crores, includes the transfer of entire business units, encompassing new vehicle inventory, assets, and manpower. Notably, the current vehicle inventory is worth ₹22.00 crores.

Expanded Presence

This strategic move positions Prabal Motors as the exclusive dealer partner for BharatBenz in Punjab, with operations spanning eight state-of-the-art facilities across key cities in the state. The acquisition includes:

• Seven integrated 3S outlets (Sales, Service, and Spare Parts)
• One dedicated after-market spare parts facility
• A total of 32 service bays across the facilities

Strategic Importance

The acquisition marks a significant step in Popular Vehicles' long-term growth strategy, expanding its commercial vehicle retail and service ecosystem beyond its strongholds in Kerala, Tamil Nadu, and Maharashtra. This move establishes the company as a pan-India player in the sector.

Mr. Naveen Philip, Promoter and MD of Popular Vehicles and Services Limited, commented on the development: "This transaction marks a major step forward in our long-term growth strategy of expanding beyond our strongholds in Kerala, Tamil Nadu and Maharashtra, positioning us as a pan-India player in the commercial vehicle retail and service ecosystem. Punjab is a key market with significant potential in both freight and passenger movement."

Financial and Operational Impact

The acquisition is expected to bolster Popular Vehicles' presence in Northern India's commercial vehicle market. Globe CV reported revenues of approximately ₹250.00 crores and employed a workforce of 222 people. The integration of these operations is anticipated to strengthen Popular Vehicles' partnership with Daimler India Commercial Vehicles, the manufacturer of BharatBenz trucks.

Future Outlook

With this expansion, Popular Vehicles aims to capture a significant share of Punjab's growing commercial vehicle market. The company plans to leverage its expertise and the newly acquired facilities to achieve stronger and sustainable growth in the region. Popular Vehicles remains committed to investing in capability-building, technology-driven service excellence, and customer-centric solutions as it scales its commercial vehicle business into newer geographies.

This strategic acquisition not only enhances Popular Vehicles' geographic footprint but also reinforces its position as a key player in India's automotive dealership landscape, particularly in the commercial vehicle segment.

Popular Vehicles & Services , a leading automotive dealership company in India, has reported mixed financial results for the first quarter, reflecting ongoing challenges in the domestic passenger vehicle market.

Revenue Growth and Segment Performance

The company reported a total income of Rs. 1,316.00 crores, representing a modest 1.3% year-on-year increase. This growth was primarily driven by strong performances in the luxury and electric vehicle (EV) segments, which helped offset weaknesses in other areas.

Key highlights of the quarter include:

• Service revenue grew by 4.5% year-on-year and 9.6% quarter-on-quarter, driven by an increase in higher-ticket service volumes.
• The luxury vehicle portfolio recorded year-on-year growth in both volumes and realizations.
• The 2-wheeler EV segment showed strong momentum, with volumes and revenue doubling year-on-year.
• The passenger vehicle segment (excluding luxury) continued to face challenges due to a prolonged slowdown, affecting both volumes and revenue.
• Commercial vehicle volumes improved quarter-on-quarter but remained lower than the previous year.

Profitability and Cost Management

Despite the revenue growth, Popular Vehicles faced pressure on its bottom line:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at Rs. 38.30 crores, with margins at 2.9%.
• On a year-on-year basis, EBITDA margins declined by 109 basis points.
• The company reported a loss before tax of Rs. 11.10 crores for the quarter.

However, the company's efforts in cost management showed some positive results:

• EBITDA margins improved to 2.9% from 2.2% in the previous quarter.
• The company implemented discount control measures that significantly reduced discount levels from their peak.

Management Commentary

Naveen Philip, Promoter & Managing Director of Popular Vehicles and Services Limited, commented on the results: "The quarter began with several uncertainties for the domestic passenger vehicle segment. We saw a marginal volume uptick in April; however, May and June remained subdued. The first quarter is generally soft for us. That said, revenue improved by ~2% over last year, supported by strong performance in our luxury and EV portfolio."

He added, "Even in this challenging market, we are continuing to execute our growth strategies, as we believe this is merely a prolonged slowdown and the long-term India growth story remains intact. With the Indian economy expected to grow at a healthy pace and consumption likely to improve, we anticipate a demand recovery—particularly in the compact car segment."

Strategic Initiatives and Outlook

To navigate the challenging market conditions, Popular Vehicles is focusing on several strategic initiatives:

1. Expanding footprint and deepening presence in existing markets
2. Implementing cost-control measures
3. Undertaking selective divestments
4. Channeling resources toward high-growth opportunities

The company believes that as industry growth picks up, the investments made and internal measures implemented over the last 12-15 months will enable it to deliver stronger performance going forward.

Business Highlights

Popular Vehicles and its subsidiaries received several accolades during the quarter, including:

• All-India 1st Runner-Up Award for 'Retail of the Year' by JLR for Popular Autoworks Pvt Ltd
• 'Dealer with the Highest Paid Service to Sales Ratio' for NEXA by Maruti Suzuki
• Multiple awards from Tata Motors for Popular Mega Motors (India) Pvt Ltd

The company maintained its credit ratings, with CRISIL reaffirming its long-term rating at CRISIL A/Stable and short-term rating at CRISIL A1.

Revenue Breakdown

By State:

By Business Vertical:

In conclusion, while Popular Vehicles and Services Limited faced challenges, particularly in the non-luxury passenger vehicle segment, the company's diversified portfolio and strategic initiatives position it to capitalize on the anticipated recovery in the Indian automotive market.