Popular Vehicles lifts Q2 EBITDA 57% as margin reaches 3.7%

Popular Vehicles and Services Limited reported earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 77.7 crore in the second quarter of financial year 2027 (Q2FY27), up 56.8% year on year, as its margin rose to 3.7% from 3.2% and profit after tax reached Rs 2.2 crore.

How did Popular Vehicles perform financially in Q2FY27?

Popular Vehicles increased EBITDA by 56.8% year on year to Rs 77.7 crore in Q2FY27, while its margin expanded by 0.5 percentage points to 3.7%. Total income, including other income, rose 36.0% from Rs 1,539.8 crore in Q2FY26 to Rs 2,093.8 crore and was 9.7% above Rs 1,908.5 crore in Q1FY27.

Profit after tax (PAT) was Rs 2.2 crore, compared with Rs 0.6 crore a year earlier and Rs 1.4 crore in the preceding quarter. For H1FY27, PAT was Rs 3.6 crore, reversing the Rs 8.2 crore loss reported in H1FY26; first-half EBITDA rose 70.4% to Rs 149.8 crore and the EBITDA margin moved to 3.7% from 3.1%.

What drove Popular Vehicles' Q2FY27 revenue growth?

Popular Vehicles' Q2FY27 income growth was led by new-vehicle income of Rs 1,631 crore, up 42.3% year on year, on new-vehicle volume growth of 46.4% to 19,052 units. New-vehicle volumes were also 10.1% higher than the 17,300 units sold in Q1FY27, while income increased 12.2% from Rs 1,454 crore.

Passenger vehicles, including luxury vehicles, accounted for 11,818 Q2FY27 new-vehicle units, up 39.1%, and generated Rs 987.0 crore of income, up 48.1%. Commercial-vehicle volume increased 26.9% to 3,549 units, while electric-vehicle volume rose 114.6% to 3,685 units; Popular Vehicles attributed electric-vehicle demand to Ather's wider product portfolio, launches and dealership presence.

The reported approximate 40% growth in revenue from operations included acquired businesses and network expansion, while management calculated organic growth at 26% after excluding those contributions. Popular Vehicles also excluded Honda and Piaggio volumes and revenue, which were accounted for only until August 2025, from these growth calculations. Globe CV contributed Rs 52 crore, R.K.S Motors contributed Rs 115 crore and Olympus Motors contributed Rs 33 crore of Q2FY27 revenue.

Which Popular Vehicles businesses improved sales and service income?

Popular Vehicles' services and repairs business generated Rs 284 crore in Q2FY27, up 19.8% year on year, while service volume increased 8.3% to 2,67,350 units. The difference reflected a 10.6% increase in average selling price to Rs 10,636, with management citing a higher mix of high-value passenger-vehicle service jobs and increased commercial-vehicle service intensity and realisations.

Pre-owned vehicle income increased 22.5% to Rs 108 crore on a 20.0% volume increase to 3,067 units, and average selling price rose 2.1% to Rs 3,51,088. By contrast, spare-parts income grew 2.4% to Rs 68 crore. Service income was unchanged sequentially at Rs 284 crore despite a 4.2% rise in service volumes, as average service selling price declined 4.0% from Q1FY27.

New vehicles remained the largest operating line, with Q2FY27 income of Rs 1,631 crore, compared with Rs 284 crore from services and repairs, Rs 108 crore from pre-owned vehicles and Rs 68 crore from spare parts. Over H1FY27, new-vehicle income rose 48.4% to Rs 3,085 crore, while services and repairs income increased 21.4% to Rs 569 crore, showing that new-vehicle growth was faster over the first half.

What is Popular Vehicles planning after Q2FY27?

Popular Vehicles is expanding its network and adjacent revenue lines, including Yanik, the business-to-business e-commerce marketplace for automotive spare parts operated by step-down subsidiary ZPAREX Digisolutions Private Limited. Yanik began full-scale commercial operations with more than 13,000 verified parts for spare-parts dealers and independent garages, while Popular Vehicles opened one Maruti Suzuki India service centre at Karukachal and one Tata Motors commercial-vehicle service centre at Kayamkulam.

Management said its priorities are to scale acquired operations, develop Yanik and expand the KBT tyre-distribution business. It said vehicle inventory was built ahead of the festive season and is expected to gradually normalise in the coming months. Management retained its financial year 2027 revenue-growth guidance of 20% to 25% over FY26 and said it expects to end the year profitably.

Popular Vehicles generated 50% of Q2FY27 revenue in Kerala, followed by Tamil Nadu at 22%, Karnataka at 14% and Telangana at 7%. Management said acquisitions in Punjab and Telangana, completed nearly a year earlier, had been integrated and were scaling. Separately, it said promoter John K. Paul stepped away from the businesses on 1 October 2026, with his shareholding set to transfer in phases to continuing promoters by December 2029.

Conclusion

Popular Vehicles' Q2FY27 results showed EBITDA rising faster than total income, with EBITDA up 56.8% against 36.0% total-income growth and margin increasing from 3.2% to 3.7%. The Rs 3.6 crore H1FY27 PAT, compared with an Rs 8.2 crore H1FY26 loss, places the September-quarter Rs 2.2 crore profit within a first-half return to profitability.

The next measures are whether revenue growth remains within management's 20% to 25% FY27 guidance range and whether acquired operations continue contributing as management expects. Management's expectation that festive inventory will normalise over coming months, alongside commercial deployment of Yanik's catalogue of more than 13,000 parts, are further disclosed developments to watch.