Popular vehicles & services Limited has announced the provision of a corporate guarantee worth ₹6,00,00,000 to HDFC Bank Limited for an inventory funding facility sanctioned to its wholly owned subsidiary. The company informed both BSE and NSE about this development through a regulatory filing dated February 19, 2026, in compliance with SEBI listing regulations.

Corporate Guarantee Details

The guarantee has been provided in favor of HDFC Bank Limited for an existing and enhanced Inventory Funding (TWIF) Floating Facility sanctioned to Kuttukaran Cars Private Limited, the company's wholly owned subsidiary. The facility amount stands at ₹6,00,00,000, equivalent to six crores rupees.

Regulatory Compliance and Transaction Structure

The corporate guarantee arrangement has been structured as an arm's length transaction, with the company confirming that none of the promoters, promoter group members, or directors have any interest in this transaction. This ensures compliance with regulatory requirements for related party transactions.

The company has provided comprehensive details as mandated under SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, which governs disclosure requirements for corporate guarantees, indemnities, and sureties.

Impact Assessment

According to the company's disclosure, the guarantee is provided on behalf of its subsidiary, which forms part of the consolidated group. The management has indicated that there is no immediate impact of the guarantee on the listed entity, other than the mandatory disclosure requirements in the financial statements.

The transaction reflects the parent company's support for its subsidiary's working capital requirements through inventory funding arrangements. Such guarantees are common corporate practices where parent companies provide financial backing to enable subsidiaries to access banking facilities for business operations.

Filing and Documentation

The intimation was signed by Varun T.V., Company Secretary and Compliance Officer, and submitted to both stock exchanges where the company's shares are listed. The company trades on BSE with scrip code 544144 and on NSE with the symbol PVSL, under ISIN INE772T01024.

Popular Vehicles & Services Limited announced its unaudited financial results for the quarter ended December 31, 2025, along with significant board-level decisions during its meeting held on February 10, 2026.

Financial Performance Overview

The company's standalone operations showed mixed results for Q3FY26. While revenue from operations increased to Rs 8,751.73 million from Rs 6,445.91 million in the corresponding quarter of the previous year, the company continued to report losses.

Nine-Month Performance

For the nine months ended December 31, 2025, the standalone operations reported revenue of Rs 21,189.35 million compared to Rs 19,889.25 million in the corresponding period of the previous year. The net loss for the nine-month period stood at Rs 343.86 million against Rs 105.61 million in the previous year.

Board Decisions and Leadership Changes

The Board of Directors approved several important resolutions during their meeting:

Leadership Appointments:

• Recommended re-appointment of Mr. John Kuttukaran Paul (DIN: 00016513) as whole-time director via postal ballot
• Noted Mr. Francis Kuttukaran Paul's (DIN: 00018825) decision not to seek re-appointment upon conclusion of his term ending March 31, 2026
• Approved convening a postal ballot for shareholders' approval of John Paul's re-appointment

Senior Management Designations: Three executives were designated as Senior Management Personnel:

• Mr. Aamir Ahmed, Deputy Chief Executive Officer (Telangana & Karnataka)
• Mr. N C Dilip Kumar, Group Head Marketing
• Mr. Gopikrishnan J, Head Operations- Tamil Nadu

Committee Restructuring

The Board approved comprehensive restructuring of key committees effective February 10, 2026:

Nomination and Remuneration Committee:

Stakeholders Relationship Committee:

Risk Management Committee:

Business Acquisitions and Exceptional Items

The company completed a significant business acquisition during the quarter, taking over a Maruti Suzuki India Limited dealership from R.K.S Motor Private Limited in Telangana for Rs 930.00 million. The transaction resulted in goodwill of Rs 14.87 million.

Exceptional items for the quarter included Rs 8.70 million impact from new Labour Codes implementation, reflecting statutory changes in wage definitions affecting gratuity and long-term compensation benefits.

Consolidated Performance Highlights

On a consolidated basis, the company showed improved performance with revenue from operations reaching Rs 17,853.64 million in Q3FY26 compared to Rs 13,646.72 million in Q3FY25. The consolidated results benefited from disinvestment gains of Rs 152.87 million during the nine-month period from the sale of subsidiaries Kuttukaran Green Private Limited and Vision Motors Private Limited.

The company's segment-wise performance showed strength across passenger cars, luxury vehicles, and commercial vehicles, with the commercial vehicles segment contributing Rs 6,986.04 million in revenue for the quarter.