Popular Vehicles and Services Limited has informed the Exchange about Transcript
PVSL · price
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Popular Vehicles and Services (PVSL) reported a weak FY25 with total income of Rs. 5,561 crores (down 1.5% YoY) and EBITDA of Rs. 175 crores (down 38%), slipping to a loss of Rs. 10.5 crores versus a Rs. 76 crore profit in FY24; EBITDA margin fell to 3.2% from 5.1%. The slump was blamed on subdued auto demand, inventory build-up during Q2-Q3, and higher discounts of roughly Rs. 50-55 crores for the year. The Board has approved the sale of two subsidiaries — Kuttukaran Green (Piaggio) and Vision Motors (Honda dealerships) — for Rs. 70 crores, with proceeds earmarked for network expansion outside Kerala and potential acquisitions. Management guided a return to 5.1% EBITDA margin in FY26, supported by ~Rs. 15 crores of identified cost savings, a service-productivity push with Accenture, and discounts that have already come down by around 50% in April-May. Expansion plans include a new Maruti 3S facility in Bangalore, Ather EV outlets in Maharashtra, and a JLR outlet in Nagpur, with FY26 CAPEX guided at Rs. 30 crores.
The weak FY25 print and swing to a loss may pressure the stock in the near term, especially since Q1 FY26 is also expected to remain soft. However, the clear roadmap back to 5.1% margins, visible cost-saving levers, the divestment-funded war chest for acquisitions, and improving discounting trends provide credible recovery signals for H2 FY26 onwards.