Popular Vehicles and Services Limited has informed the Exchange about Transcript
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Popular Vehicles and Services Limited reported Q1 FY26 total income of INR1,316 crores, up 1.3% year-on-year, but posted a loss of INR8.8 crores versus a profit of INR5.4 crores a year ago. EBITDA fell 26.3% to INR38.3 crores with margins at 2.9%, weighed down by weak passenger vehicle demand, though EV revenue nearly doubled (up 97.7%) and pre-owned vehicle income rose 10.2%. Management secured LOIs for 8 new Bharat Benz 3S facilities in Punjab (INR12 crore investment) and new Ather outlets in Chennai and Bangalore, continuing efforts to reduce Kerala's revenue share from 58% to below 50%. Discounts have been cut by nearly 50% from Q4 FY25 peak levels, and inventory is expected to reduce from 43-44 days to 37 days by September. The company expects to receive INR70 crores from its Honda and Piaggio exits by end of August, with potential acquisitions in Telangana targeted for Q2 close.
Short-term pain from weak PV volumes and margin pressure is evident, but management's guidance for stronger H2 FY26 driven by potential GST rate cuts, expansion into new states, and operational cost measures provides a constructive outlook. The articulated roadmap to nearly double turnover in 4 years with EBITDA margins improving to 6% offers a positive long-term narrative, though execution on the acquisition pipeline and festive season demand recovery will be key catalysts for the stock.