Popular Vehicles posts profit as September revenue rises 36%

Popular Vehicles and Services Limited posted consolidated profit of Rs 2.20 crore for the quarter ended 30 September 2026 as revenue from operations rose 36% year on year to Rs 2,088.92 crore. Profit before tax and exceptional items was Rs 4.27 crore, compared with a Rs 3.63 crore loss on that basis a year earlier.

Did Popular Vehicles return to profit in the September quarter?

Popular Vehicles recorded a Rs 2.20 crore consolidated profit for the quarter ended 30 September 2026, compared with Rs 0.57 crore in the quarter ended 30 September 2025. The year-earlier reported result included Rs 15.29 crore of exceptional income from subsidiary disinvestment, whereas the latest quarter contained no exceptional item. On a pre-tax and pre-exceptional basis, Popular Vehicles moved to profit of Rs 4.27 crore from a loss of Rs 3.63 crore.

The September 2026 result also improved sequentially from Rs 1.37 crore profit in the June 2026 quarter. Total income was Rs 2,093.76 crore, including Rs 4.84 crore of other income, while total expenses were Rs 2,089.48 crore. Current tax was Rs 6.06 crore and deferred tax produced a credit of Rs 3.99 crore, leaving a net tax charge of Rs 2.07 crore.

Which Popular Vehicles segments drove revenue growth?

Popular Vehicles' passenger-car segment excluding luxury vehicles generated the largest quarterly revenue, rising to Rs 1,041.72 crore from Rs 749.65 crore a year earlier. Commercial-vehicle revenue increased to Rs 681.14 crore from Rs 539.42 crore, while luxury-vehicle revenue rose to Rs 230.98 crore from Rs 150.35 crore. Each of the three vehicle segments therefore reported higher revenue in the September 2026 quarter.

The other segment, which includes spare-parts retail sales outside the respective vehicle segments and electric two- and three-wheelers sold until 31 August 2025, reported revenue of Rs 135.08 crore, up from Rs 96.22 crore. Segment profit before income tax was Rs 10.53 crore for passenger cars excluding luxury vehicles, Rs 7.51 crore for luxury vehicles and Rs 20.69 crore for commercial vehicles. Others reported a Rs 1.81 crore loss, while total segment profit was Rs 36.91 crore.

The six-month comparison showed a similar revenue pattern. Revenue from operations for the half year ended 30 September 2026 reached Rs 3,983.89 crore, compared with Rs 2,851.21 crore in the corresponding 2025 period. Passenger-car revenue excluding luxury vehicles was Rs 1,968.36 crore, commercial-vehicle revenue was Rs 1,351.90 crore and luxury-vehicle revenue was Rs 407.37 crore during the six months.

What costs limited Popular Vehicles' September-quarter profit?

Popular Vehicles' finance costs of Rs 32.01 crore absorbed most of the Rs 36.91 crore segment profit in the September quarter. Unallocated expenses, net of unallocated income, added Rs 0.64 crore, reducing profit before tax and exceptional items to Rs 4.27 crore. Finance costs were higher than Rs 25.78 crore in the September 2025 quarter and Rs 30.73 crore in the June 2026 quarter.

Purchases of stock-in-trade were Rs 2,026.60 crore, employee-benefit expense was Rs 120.93 crore and depreciation and amortisation was Rs 41.40 crore during the latest quarter. Other expenses increased to Rs 69.71 crore from Rs 58.92 crore a year earlier. Popular Vehicles also recorded a Rs 1.14 crore reversal of impairment losses on financial and contract assets, compared with a Rs 1.70 crore impairment charge in the year-earlier quarter.

For the six months ended 30 September 2026, finance costs rose to Rs 62.73 crore from Rs 48.46 crore a year earlier. Profit before tax and exceptional items was Rs 6.14 crore, compared with a Rs 14.74 crore loss in the prior-year half. After tax, Popular Vehicles reported Rs 3.57 crore profit for the latest half year, against a Rs 8.19 crore loss in the corresponding period.

How did Popular Vehicles' balance sheet and cash flow change?

Popular Vehicles' total assets rose to Rs 2,667.45 crore at 30 September 2026 from Rs 2,383.27 crore at 31 March 2026, alongside higher inventory and receivables. Inventory increased to Rs 920.26 crore from Rs 617.37 crore, while trade receivables rose to Rs 302.14 crore from Rs 259.37 crore. Cash and cash equivalents were Rs 26.73 crore at the September reporting date, down from Rs 66.06 crore at the start of the financial year.

Total equity was Rs 630.96 crore at 30 September 2026, compared with Rs 627.84 crore six months earlier. Current borrowings increased to Rs 883.68 crore from Rs 648.55 crore, while non-current borrowings rose to Rs 128.17 crore from Rs 47.52 crore. Total liabilities stood at Rs 2,036.48 crore, compared with Rs 1,755.44 crore at 31 March 2026.

Popular Vehicles used Rs 178.66 crore in operating activities in the six months to September, against Rs 11.42 crore used in the prior-year period. Working-capital movements included a Rs 302.27 crore inventory increase and a Rs 44.63 crore increase in trade receivables. Financing activities generated Rs 225.77 crore, including Rs 226.54 crore of net short-term borrowings, while investing activities used Rs 84.71 crore, including Rs 29.05 crore for business acquisition.

Conclusion

Popular Vehicles delivered higher revenue across passenger cars, luxury vehicles and commercial vehicles in the September 2026 quarter, lifting pre-tax profit before exceptional items from a Rs 3.63 crore loss to Rs 4.27 crore profit. The Rs 2.20 crore reported profit also exceeded the Rs 0.57 crore reported a year earlier, although the earlier result benefited from a Rs 15.29 crore gain on subsidiary disinvestment.

The filing does not disclose a revenue target or a scheduled operating event. A disclosed unresolved matter is the finalisation of Central and State rules and government clarifications under the Labour Codes, which Popular Vehicles said it continues to monitor after recording a Rs 8.70 crore incremental standalone impact in the year ended 31 March 2026.