Popular Vehicles and Services’ Revenue Takes a U-Turn—Can the Company Accelerate Recovery?

Popular Vehicles and Services Ltd, a top automotive dealership, recorded a fall in overall revenue for FY25, with a year-on-year decline of around 1%. The performance of the company in Q4 FY25 was softer, with overall revenue declining by around 3% from the corresponding quarter last year.

 

The revenue fall was mainly due to muted demand across the automobile industry due to external reasons like general elections, weather conditions, and inflation. Volumes declined overall by approximately 4% in Q3 FY25, while new vehicle sales declined 5.2% year to date during the first nine months. Even with these difficulties, the company observed a switch in demand in favor of increased-value SUVs and luxury cars, which countered the effect of softer volumes on revenue.

 

Profitability was also impacted, with higher discounts and inventory levels driving higher interest costs. The company had a loss during the quarter but is hopeful for a turnaround starting FY26 by focusing on geometric growth through geographical expansion, focus on luxury vehicles, and cost savings.

 

Source: Popular Vehicles and Services Ltd