Landmark Cars’ March Quarter: Revenue in Overdrive, Profit in the Slow Lane!

Landmark Cars Ltd, one of India’s leading automotive retail chains, has reported its consolidated financial results for the March 2025 quarter, revealing a mixed performance marked by strong revenue growth but a notable dip in profitability.

 

Key Highlights:

 

Revenue Accelerates: Landmark Cars posted consolidated revenue from operations of ₹10.91 billion (₹1,091 crore) for the March quarter, marking a robust 17.3% year-on-year growth as the company benefited from new model launches and expanding dealership operations.

 

Profit Under Pressure: Despite the revenue surge, consolidated net profit for the quarter stood at ₹14.2 million (₹1.42 crore), reflecting a significant decline compared to the previous year. This drop is attributed to higher operating costs and margin pressures from rapid expansion and new store stabilizations.

 

Vehicle Sales Drive Topline: Vehicle sales, including agency sales, climbed 21.1% to ₹1,257 crore, buoyed by the successful introduction of models like the Mahindra BE6, XEV 9E, and BYD Sealion 7.

 

Stock Market Reaction: The company’s shares responded positively to the revenue update, rallying up to 5.8% intraday, though investor sentiment remains cautious due to the profit decline.

 

Dividend Announcement: Landmark Cars’ board has recommended a final dividend of ₹1.5 per equity share for FY25, underscoring its commitment to shareholder returns even amid margin challenges.

 

Outlook: Management is now focused on consolidating recent expansions and improving operational efficiency to restore profitability in the coming quarters.

 

Landmark Cars’ latest results paint a picture of a company in growth mode, balancing aggressive expansion with the need to shore up margins and deliver sustainable profits.

 

Sources: Autocar Professional, Business Standard, Moneycontrol