Landmark Cars H1FY27 profit triples as EBITDA margin rises

Landmark Cars reported H1FY27 profit after tax of Rs 33.03 crore, up 272.5% year on year, as earnings before interest, tax, depreciation and amortisation (EBITDA) rose 28.8% to Rs 161.44 crore and its EBITDA margin increased to 5.86% from 5.52%.

What did Landmark Cars report in H1FY27?

Landmark Cars reported revenue from operations of Rs 2,753.97 crore in H1FY27, up 21.2% from Rs 2,272.64 crore in H1FY26. Proforma revenue, which includes the value of Mercedes-Benz agency-model cars sold less agency commission, increased 19.7% to Rs 3,678.10 crore. Profit before tax rose to Rs 43.68 crore from Rs 10.49 crore, while reported profit after tax rose from Rs 8.87 crore.

EBITDA growth exceeded gross-profit growth during the half year. Gross profit increased 13.8% to Rs 432.62 crore, while EBITDA rose 28.8% to Rs 161.44 crore. Consequently, EBITDA margin increased by 0.34 percentage points to 5.86%, even as gross-profit margin declined to 15.71% from 16.73%, both measured against reported revenue.

Q2FY27 made a larger contribution to the improvement than Q1FY27. Q2 reported revenue was Rs 1,451.61 crore, 19.9% above Q2FY26 and 11.5% above Q1FY27, while EBITDA rose 45.7% year on year to Rs 86.20 crore. Q2 profit after tax reached Rs 18.49 crore, compared with Rs 1.50 crore in Q2FY26 and Rs 14.50 crore in Q1FY27.

How did cost rationalisation affect Landmark Cars’ margins?

Landmark Cars’ operating costs grew more slowly than reported revenue in H1FY27. Employee benefits expense increased 6.1% to Rs 145.62 crore and other expenses increased 6.8% to Rs 125.56 crore. Their combined reported increase was 6.4%, below the 21.2% increase in revenue from operations.

Measured against proforma revenue, employee costs fell to 4.0% in H1FY27 from 4.2% in FY26. Other expenses declined to 3.4% from 3.8% over the same comparison. Management said it remained committed to cost discipline with the goal of improving profitability further.

The difference between gross-profit and EBITDA growth shows the effect of expense control. Gross profit rose by Rs 52.46 crore from H1FY26, while EBITDA increased by Rs 36.09 crore. Reported employee and other expenses rose by Rs 16.37 crore to Rs 271.18 crore, allowing EBITDA to grow faster than gross profit despite the 1.02-percentage-point decline in gross-profit margin.

Landmark Cars also presented adjusted results excluding the net Indian Accounting Standards, or Ind AS, effect. Adjusted EBITDA rose 48.7% to Rs 108.67 crore, compared with reported EBITDA growth of 28.8%. Adjusted profit after tax increased 224.4% to Rs 35.92 crore, while reported EBITDA included an Ind AS effect of Rs 52.77 crore in H1FY27 and Rs 52.28 crore in H1FY26.

Which business lifted Landmark Cars’ H1FY27 EBITDA?

New-vehicle sales and allied businesses delivered the larger absolute EBITDA increase in H1FY27. Segment EBITDA rose by Rs 24.90 crore to Rs 57.30 crore, while proforma revenue increased 21.1% to Rs 3,128.20 crore. The average selling price of a new vehicle sold rose to Rs 22.71 lakh from Rs 22.11 lakh.

After-sales EBITDA increased by Rs 15.30 crore to Rs 99.10 crore, while after-sales revenue increased by Rs 61.20 crore to Rs 550.00 crore. The number of services was broadly unchanged at 191,691, compared with 191,359 in H1FY26. The revenue increase therefore coincided with average revenue per vehicle serviced rising to Rs 28,690 from Rs 25,543.

Q2 after-sales results showed the same revenue-per-vehicle pattern despite lower workshop volumes. Q2FY27 services fell to 93,410 from 97,582 in Q2FY26, but average revenue per vehicle serviced increased to Rs 30,288 from Rs 26,037. Landmark Cars said after-sales revenue grew 11.4% year on year in Q2FY27 despite floods disrupting workshop operations in Gujarat.

The relative contribution changed between the two verticals. New-vehicle EBITDA grew 76.9% from Rs 32.40 crore, compared with 18.3% growth in after-sales EBITDA from Rs 83.80 crore. After-sales nevertheless remained the larger EBITDA contributor at Rs 99.10 crore, compared with Rs 57.30 crore for new vehicles and allied businesses.

What should investors watch after Landmark Cars’ H1FY27 result?

Landmark Cars ended September 2026 with 35 new-car inventory days, compared with 34 days in June 2026 and 36 days in March 2026. Management said it had strategically built inventory for festive demand, which increased working-capital requirements. The industry inventory measure cited by Landmark Cars was 45 days in September 2026.

Management said the festive season had started well and cited a healthy pipeline of customer bookings for newly launched models. These are management statements rather than reported H2FY27 results. The next reported measures will show whether Q2FY27 proforma revenue of Rs 1,945.70 crore, up 17.4% year on year, converts into inventory reduction and changes in working-capital needs.

Conclusion

Landmark Cars’ H1FY27 result reflected revenue growth, slower growth in employee and other expenses, and higher profitability in both main verticals. Reported revenue increased 21.2%, EBITDA margin rose to 5.86%, and profit after tax reached Rs 33.03 crore. New-vehicle and allied EBITDA added Rs 24.90 crore year on year, while after-sales EBITDA added Rs 15.30 crore.

The next issues to watch are festive-season sell-through, bookings for newly launched models and the working-capital effect of inventory. Landmark Cars had 35 new-car inventory days in September 2026 after building stock for the season, while management’s stated plan is to maintain cost discipline and improve profitability further.