Popular Vehicles & Services acquisitions diversify revenue

In FY26, Popular Vehicles & Services’ three 2025 dealership acquisitions contributed about Rs 321 crore across partial-year periods, while Keralam’s revenue share fell to 53.4% from 72.1% in FY23. The transactions added BHARATBENZ, Maruti Suzuki and Audi businesses in Punjab, Telangana and Andhra Pradesh.

What did PVSL acquire in Punjab, Telangana and Andhra Pradesh?

PVSL acquired three dealership businesses between August and December 2025, adding operations across three original equipment manufacturers, or OEMs. In August 2025, it acquired Globe CV Pvt. Ltd.’s BHARATBENZ business in Punjab through a slump sale for about Rs 12 crore, excluding inventory value. Globe CV had one showroom, eight service centres and one sales outlet.

In October 2025, PVSL acquired R.K.S. Motor Pvt. Ltd.’s Maruti Suzuki business in Telangana through a slump sale with consideration not exceeding Rs 93 crore, also excluding inventory value. The acquired network included five showrooms, 12 service centres, one sales outlet and one pre-owned car, or POC, showroom or sales outlet.

In December 2025, PVSL entered an asset purchase agreement for Olympus Motors Private Limited’s Audi operations in Telangana and Andhra Pradesh for cash consideration of Rs 9.75 crore. Olympus had two showrooms and three service centres. The presentation says Audi operations commenced on 1 January 2026, making its stated FY26 contribution a three-month figure rather than a full-year result.

How much revenue did PVSL’s acquired businesses contribute in FY26?

PVSL reported about Rs 321 crore of FY26 revenue contribution from the three acquired businesses, but the reported periods ranged from three to eight months. Globe CV contributed about Rs 150 crore over eight months, R.K.S. Motor contributed about Rs 151 crore over six months, and Olympus contributed Rs 20 crore over three months.

The targets’ combined FY25 turnover was about Rs 863 crore to Rs 893 crore, based on Olympus’s reported range. Their FY26 contribution was lower at about Rs 321 crore because the presentation reports partial post-acquisition periods, not comparable full-year results. The stated Rs 12 crore, up-to-Rs 93 crore and Rs 9.75 crore consideration values exclude inventory value.

How did PVSL’s operating network expand after the acquisitions?

PVSL’s network increased to 215 showrooms and sales outlets and 178 service centres as of 30 September 2026, from 195 and 159 respectively in September 2025. The reported changes were a net addition of 20 sales touchpoints, 19 service centres and one state, taking its presence to seven states.

Punjab had two commercial-vehicle showrooms or sales outlets and eight commercial-vehicle service centres at 30 September 2026. Telangana had 10 passenger-vehicle showrooms or sales outlets and 14 passenger-vehicle service centres, while Andhra Pradesh had one passenger-vehicle showroom or sales outlet and two passenger-vehicle service centres. The presentation does not provide a site-by-site reconciliation between the acquired networks and these later state totals.

Keralam remained PVSL’s largest operating base at the September 2026 date, with 96 passenger-vehicle, 34 commercial-vehicle and 10 electric-vehicle showrooms or sales outlets. It also had 71 passenger-vehicle, 23 commercial-vehicle and nine electric-vehicle service centres. The acquisitions therefore broadened the state network while Keralam retained the largest outlet concentration.

How much has PVSL reduced its Keralam revenue concentration?

PVSL reduced Keralam’s revenue contribution by 18.7 percentage points, to 53.4% in FY26 from 72.1% in FY23. Non-Keralam contribution rose to about 47% in FY26 from 28% in FY23. PVSL says it achieved its target of reducing Keralam’s contribution below 50% in H1FY27, although the presentation does not disclose the exact H1FY27 share.

The FY26 state mix included Tamil Nadu at 25.2%, Karnataka at 10.9%, Maharashtra at 5.3%, Telangana at 2.7%, Punjab at 2.3% and Andhra Pradesh at 0.1%. In FY23, the disclosed state mix was Keralam at 72.1%, Tamil Nadu at 22.3% and Karnataka at 5.6%, showing that the FY26 mix included contributions from four additional states.

OEM mix changed alongside the geographic expansion. Maruti Suzuki India Limited’s contribution declined to 46.7% in FY26 from 51.2% in FY23, while BHARATBENZ increased to 15.7% from 7.9% and Tata Motors commercial vehicles rose to 8.6% from 3.8%. Audi accounted for 0.3% in FY26, whereas the FY23 table did not list Audi.

What is PVSL’s plan for integrating and expanding dealerships?

PVSL says its inorganic strategy is to take over or merge underperforming dealerships with OEM consent and acquire single-location dealerships that can be integrated into existing operations. Management says the model is intended to use its management expertise, manufacturer relationships and operating scale. The August-to-December 2025 transactions added one BHARATBENZ network, one Maruti Suzuki network and one Audi network under this approach.

The company’s organic plan includes pursuing OEM opportunities in newer states and locations, opening outlets in underserved areas in consultation with OEMs, and increasing semi-urban and rural penetration through sales outlets and booking offices. As of 30 September 2026, PVSL operated driving schools in seven Keralam locations and three Telangana locations, alongside POC operations in 27 Keralam locations, one Telangana location, two Tamil Nadu locations and one Karnataka location.

Management also plans to scale Yanik, the ZPAREX digital platform, for spare parts and accessories e-commerce. Yanik commenced commercial operations on 5 October 2026. Other disclosed measures include expanding authorised service centres, selling service contracts, improving parts inventory management and distributing to independent workshops and fleet operators.

Conclusion

The three 2025 acquisitions added new OEM operations and produced about Rs 321 crore of FY26 revenue across partial reporting periods. Their contribution coincided with a broader change in revenue mix: Keralam’s share declined from 72.1% in FY23 to 53.4% in FY26, while non-Keralam revenue rose to about 47%.

The next disclosed milestones are the continued integration of acquired dealerships, further OEM-led expansion into new locations and the scaling of Yanik after its 5 October 2026 commercial launch. PVSL has also said Keralam’s share fell below 50% in H1FY27; the exact share and the acquired businesses’ contribution over full-year periods remain matters to watch.