Landmark Cars FY26: Expansion Pays Off, Now the Focus Shifts to Consolidation

Landmark Cars ended FY26 with a clear message to investors: the heavy lifting on network expansion is largely done, and the next phase is about improving utilisation and profitability.

For the year ended March 31, 2026, the company reported proforma revenue of INR 6,719 crore, up 19.4 percent year on year. EBITDA rose to INR 283 crore, up 20.5 percent, while PAT increased to INR 38 crore, up 119.7 percent. In Q4 FY26, proforma revenue stood at INR 1,795 crore, EBITDA was INR 79 crore, and PAT was INR 15 crore.

A key highlight was cash generation. Net cash flow from operating activities was INR 267.5 crore in FY26, translating into an operating cash flow to EBITDA conversion of 0.95. In a dealership model where working capital can absorb profits, this metric is an important signal.

Two engines: new vehicles and a growing after-sales base

Landmark’s reported financial statements are influenced by the Mercedes-Benz agency model. The company therefore presents both reported revenue and proforma revenue. In FY26, reported revenue was INR 4,896 crore, while proforma revenue was INR 6,719 crore.

The core business remains new vehicle sales and allied activities, but the after-sales franchise is increasingly central to the investment narrative. FY26 after-sales revenue reached INR 1,051 crore, crossing the INR 1,000 crore milestone for the first time. After-sales EBITDA for FY26 was INR 191 crore, with the presentation indicating an EBITDA margin of 18.1 percent.

In Q4 FY26, after-sales delivered reported revenue of INR 283 crore and EBITDA of INR 57 crore. Average revenue per vehicle serviced rose to INR 30,072 in Q4 FY26 from INR 27,420 in Q4 FY25, while the full-year average was INR 27,148.

Portfolio shaping and the EV mix

A major strategic theme in the investor presentation is portfolio diversification. The company highlighted that it added three major brands in the last three years, taking the portfolio from 8 to 11 brands, and that these newer brands contributed around 20 percent of total proforma revenues in FY26.

The EV angle is a notable part of this diversification. Landmark stated that in FY26, EV vehicles contributed 21 percent of total new car sales on a proforma revenue basis. In the concall, management pointed to BYD, MG and Mahindra as key pillars for new energy vehicles.

Investors also raised the common concern that EV penetration could structurally reduce service revenues. Management responded that after-sales includes accident repair work and stated that around 47 percent of service income comes from accident repairs. It also cited global observations that EV accident repairs can be more expensive, partly due to battery replacement and higher part costs, implying the impact may not be very large.

Consolidation in FY27: sweating assets, controlling costs

Management repeatedly positioned FY27 as a consolidation year. After rapid expansion over the last 18 to 20 months, the stated priority is to improve utilisation and return metrics as newly opened outlets stabilise.

The company also emphasised cost discipline. In Q4 FY26, management stated that employee costs and other operating expenses remained below an internal benchmark of 4 percent of proforma revenue.

Capex expectations were also framed conservatively. In response to a question on FY27 capex guidance, the chairman said the company does not have a very large capex plan and referenced a historical average of around INR 50 crore as a ballpark, while clarifying it is not a firm commitment.

On working capital, Landmark disclosed that it intentionally increased inventory levels at the March-end quarter. The company’s inventory days were shown at 36 days as of March 2026, versus 31 days in December 2025. Management explained this was done to take advantage of expected price increases and as a hedge against potential supply chain disruptions. It also clarified this was not an ongoing inventory build.

Management also indicated a willingness to prune underperforming assets. On the concall, it explained that a Volkswagen location was exited because it was not profitable, while continuing operations in profitable Volkswagen locations in Gujarat.

Takeaways

Landmark’s FY26 performance shows the benefits of scale and a growing after-sales base, with profitability and cash generation improving alongside revenue growth. The company is now shifting from expansion to consolidation, with management focusing on sweating assets, maintaining cost discipline, and improving return metrics.

Near-term execution will likely be judged on two items that management itself highlighted: stabilisation of recently opened outlets and the ability to convert scale into consistent margins and cash flows in a year where aggressive network expansion is not the primary lever.