Landmark Cars Ltd delivered its highest-ever revenue and EBITDA in FY26, supported by strong demand for premium vehicles, increasing electric vehicle penetration and a rapidly expanding after-sales business.
With partnerships spanning Mercedes-Benz, BYD, MG Motor, Mahindra & Mahindra, Honda, Kia, Renault and Jeep, the dealership chain is entering a new phase where management is focusing on improving returns rather than pursuing aggressive expansion.
Shares of the company were trading at ₹444, giving it a market capitalisation of around ₹1,800 crore. The stock trades at a price-to-earnings multiple of about 47 times, compared with an industry average of 12 times.
Record FY26 Performance
India’s passenger vehicle industry grew by around 13 percent during FY26, with total sales touching nearly 47 lakh units.
Landmark Cars outpaced the industry, reporting 20 percent growth in revenue.
Management attributed the performance to:
- A diversified brand portfolio.
- Higher contribution from premium vehicles.
- Growth in the after-sales segment.
- Expansion of dealerships and OEM partnerships over the past two years.
Having completed much of its expansion phase, the company is now focusing on:
- Asset optimisation.
- Margin improvement.
- Higher returns on capital.
After-Sales Revenue Crosses ₹1,000 Crore
One of the biggest milestones during FY26 was the performance of the after-sales business.
Revenue from servicing, spare parts and repairs crossed ₹1,000 crore for the first time and stood at ₹1,051 crore.
Management highlighted that the segment provides recurring income and is less dependent on vehicle sales cycles.
Key metrics included:
- Average revenue per service in FY26: ₹27,148
- Average revenue per service in Q4 FY26: ₹30,072
Higher-value repairs, OEM incentives and improved spare-parts pricing contributed to the increase.
The company also believes growing EV penetration will not hurt the segment significantly, as EV repairs tend to involve more expensive components.
EV Strategy Already Showing Results
Electric vehicles accounted for more than 21 percent of Landmark Cars’ sales, compared with an industry penetration level of around 5 percent.
The company has exposure to several EV-focused brands, including:
- BYD
- MG Motor
- Mahindra & Mahindra
Management expects rising fuel prices, better charging infrastructure and a wider range of products to support faster EV adoption in India.
Mercedes-Benz Continues to See Strong Demand
Mercedes-Benz remains one of Landmark Cars’ most important brands.
Recent launches include:
- V-Class, priced at around ₹1.4 crore.
- Electric CLA, priced at approximately ₹55 lakh.
According to management, both models have received strong customer response, resulting in waiting periods extending several months.
The average selling price of Mercedes vehicles sold through Landmark increased to ₹73 lakh in Q4 FY26, compared with ₹69 lakh in the previous quarter.
High-end models continue to account for nearly 20 percent of Mercedes sales.
The company also expects further support from the launch of the new S-Class plug-in hybrid, while Mercedes globally plans to introduce around 40 new products over the coming years.
BYD Expansion Could Become a Growth Driver
Management remains optimistic about the long-term opportunity offered by BYD India.
Supply constraints faced during FY26 have started easing, with vehicle availability improving from April.
Three BYD models have already been homologated in India:
- Sealion 7
- Atto 3
- eMAX
The company said BYD is also expected to launch hybrid vehicles later this year.
To strengthen its presence, Landmark Cars is adding new sales and service outlets in Pune, which are scheduled to become operational in July.
Management expects:
- Higher vehicle availability.
- New model launches.
- Market-share gains within the BYD network.
MG Motor and Mahindra Add to EV Opportunity
Landmark’s exposure to the EV segment extends beyond BYD.
Key developments include:
MG Motor
- MG Windsor emerged as India’s best-selling electric vehicle in FY26.
- The company plans to launch three products during FY27 across EV, hybrid and internal combustion engine segments.
Mahindra & Mahindra
- Demand remains healthy across product categories.
- Expansion of after-sales infrastructure is underway.
Management described the shift toward electric mobility as a structural trend rather than a cyclical one.
FY27 To Be a Year of Consolidation
After investing heavily over the past 18-24 months, Landmark Cars plans to focus on improving profitability in FY27.
Areas of emphasis include:
- Better utilisation of existing assets.
- Cost optimisation.
- Margin improvement.
- Technology adoption.
Capital expenditure is expected to remain near historical averages rather than increase sharply.
The company has already introduced artificial intelligence solutions in call centres and plans to expand AI usage across operations.
Management reiterated that the priority will remain profitable growth rather than growth at any cost.
Financial Performance
FY26 marked a record year for the company.
Key numbers included:
- Revenue: ₹4,896 crore
- EBITDA: ₹283 crore
- PAT: ₹38 crore
- PAT growth: 120 percent year-on-year
- Operating cash flow: Around ₹267 crore
Strong cash generation helped reduce debt while supporting expansion initiatives.
What Could Drive FY27?
Several factors could support growth in the coming year:
- Sustained luxury vehicle demand.
- Higher EV penetration.
- Improved BYD supplies.
- New launches by MG Motor.
- Continued momentum at Mahindra.
- Better utilisation of recently expanded facilities.
Execution and profitability improvement will remain the key monitorables as the company enters the next phase of growth.
TL;DR
Landmark Cars reported record FY26 revenue and EBITDA, supported by strong luxury demand, rising EV sales and a growing after-sales business. With Mercedes seeing healthy demand and BYD expanding in India, the company is focusing on improving margins and extracting returns from recent investments.
AI Summary
- FY26 revenue reached a record ₹4,896 crore.
- EVs contributed over 21% of vehicle sales.
- After-sales revenue crossed ₹1,000 crore.
- Mercedes and BYD remain key growth drivers.
- FY27 will focus on profitability and asset utilisation.
