Landmark Cars: Accelerating Growth with Record Performance and Strategic Tailwinds

Landmark Cars Limited, a prominent player in India's automotive retail sector, has delivered a robust performance for the third quarter and nine months ended December 31, 2025 (Q3 FY26 and 9MFY26). The company reported its highest-ever quarterly proforma revenue, gross profit, and EBITDA, signaling strong operational momentum and effective strategic execution. This impressive financial showing comes amidst significant policy shifts and an exciting pipeline of new model launches, positioning Landmark Cars for sustained growth in the dynamic Indian automotive market.

For Q3 FY26, Landmark Cars recorded a proforma revenue of INR 1,851.3 crore, marking an 11.0% year-on-year growth. EBITDA for the quarter stood at INR 78.8 crore, a 13.3% increase year-on-year, while Profit After Tax (PAT) surged by 20.1% to INR 14.2 crore. The nine-month period (9MFY26) further underscored this positive trajectory, with proforma revenue reaching INR 4,923.6 crore, a substantial 20.1% year-on-year growth. EBITDA for 9MFY26 was INR 204.1 crore (up 17.2% YoY), and PAT grew by an impressive 47.9% to INR 23.0 crore. Notably, the company generated INR 265.2 crore in net cash from operating activities during 9MFY26, reflecting enhanced working capital discipline.

Strategic Expansion and Product Pipeline Fueling Future

Landmark Cars is actively expanding its physical footprint and enriching its product offerings. In Q3 FY26, the company operationalized a Mahindra & Mahindra (M&M) showroom in Hyderabad, with a Mercedes-Benz showroom in Bhopal slated for operationalization in January 2026. These strategic expansions are crucial for enhancing market reach and catering to growing demand in key geographies. The company's management highlighted that these new outlets, part of a broader capacity build-up over the last 18 months, are now stabilizing and are expected to contribute significantly to future revenue and profitability.

The future growth trajectory is further bolstered by an exciting lineup of new model launches from its partner OEMs. For calendar year 2026, multiple high-profile models are anticipated, including the Mercedes-Benz V Class and CLA, Mahindra XUV 7XO and XUV 9S, the new-generation Kia Seltos, Renault Duster, Volkswagen Tayron, and MG Majestor. Deliveries for these models are expected to commence in the March quarter, promising to drive healthy sales momentum and maintain strong customer interest. Mercedes-Benz alone is expected to launch 12 new models in 2026, underscoring the brand's confidence in the Indian premium market.

Policy Tailwinds: EU FTA and US-India Trade Deal

A significant catalyst for Landmark Cars' long-term growth is the conclusion of the India-EU Free Trade Agreement (FTA) and the interim US-India trade deal. These policy milestones are expected to reshape the automotive industry, particularly benefiting premium and luxury segments. The management emphasized that over 50% of Landmark's current brand portfolio, including Mercedes-Benz, Volkswagen, Jeep, Citroën, and Renault, are poised to gain from these agreements. The FTAs are anticipated to reduce import duties on Fully Built Units (CBUs) and potentially parts, making premium luxury cars more affordable and expanding the addressable market. This improved pricing flexibility and the ability to introduce select models on a measured basis will allow OEMs to test market response and build demand ahead of wider launches. While the full implementation timeline is subject to parliamentary approvals, the long-term benefits, including reduced cost of ownership and new avenues for vehicle imports, are substantial.

Operational Excellence and Financial Discipline

Landmark Cars' strong financial performance is not merely driven by market tailwinds but also by rigorous operational discipline. The company has maintained a sharp focus on cost optimization, successfully keeping employee costs and other operating expenses below the targeted 4% of proforma revenue. This commitment to efficiency is a key factor in their improved profitability metrics.

Inventory management remains a competitive edge for Landmark Cars. The new car inventory days were further reduced to approximately 31 days, significantly below the industry average of 39 days. This lean inventory approach minimizes carrying costs and enhances cash conversion, reflecting prudent working capital management. The company aims to further reduce this to below 30 days, indicating a continuous drive for efficiency. The aftersales business also achieved a new record in quarterly revenue, with year-on-year growth outperforming the last five quarters, supported by the ramp-up and stabilization of workshops. This segment, with its higher gross profit margins, is expected to contribute increasingly to the company's overall profitability as new workshops mature.

Outlook and Investor Takeaways

Landmark Cars' Q3 FY26 and 9MFY26 results demonstrate a company in strong operational health, strategically positioned to capitalize on evolving market dynamics. The combination of network expansion, a robust product pipeline, and favorable policy changes like the EU FTA provides significant growth opportunities. The management's disciplined approach to cost control and working capital management further reinforces its financial stability.

While newer brands are still in the process of achieving full profitability, their growing contribution to revenue, alongside the strong performance of established brands, paints a positive picture. The company's ability to generate substantial net cash from operating activities highlights its robust business model and capacity for self-funded growth. Investors can look forward to continued momentum, driven by strategic initiatives and a commitment to operational excellence in the premium and luxury automotive retail space.