Landmark Cars Q1 FY27 Earnings Call — Analysis (NSE: LANDMARK)
Landmark Cars delivered its best-ever Q1 FY27 with pro forma revenue growing over 22% YoY and profit after tax nearly doubling, driven by operating leverage and EV sales reaching 30% of vehicle sales value.
Result quality: stable — Steady quarter. Management sentiment: neutral.
The take
Q1FY27 Revenue from Operations ₹1,302.36 Cr ( +>22% YoY ) .
Results
Q1FY27 revenue ₹1,302.36 Cr (>22% YoY); PAT ₹14.55 Cr (nearly doubled YoY); EBITDA margin flat at 5.8%; new vehicle sales margin improved to 2.3%; EV share at 30% of vehicle sales by value.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from Operations | ₹1,302.36 Cr | +>22% | yoy · Q1FY27 · vs Q1FY26 |
| Profit After Tax | ₹14.55 Cr | +~100% | yoy · Q1FY27 · nearly doubled vs Q1FY26 |
| EBITDA Margin | 5.8% | +flat | yoy · Q1FY27 · similar to last two years |
| New Vehicle Sales Margin | 2.3% | +improved | sequential · Q1FY27 · from ~2% in FY26 |
| EV Share of Vehicle Sales (by value) | 30% | +na | point_in_time · Q1FY27 · as of Q1FY27 |
| Mercedes Average Selling Price | ₹79 lakh | +₹6 lakh | qoq · Q1FY27 · from ₹73 lakh in Q4FY26 |
Guidance
FY27 capex maintained at ~₹50 Cr; lease/rental cost guided at ~₹100 Cr; demand trajectory normalized and positive; cost ratios expected to decline further; aftersales upside expected as new-brand workshops ramp up.
Key themes
EV penetration and aftersales resilience
Operational commentary
- EV penetration reached 30% of vehicle sales by value, far above industry; internal data shows EV aftersales revenue per vehicle higher than ICE due to higher usage and repair costs, dispelling cannibalization fears.
- Signed MoU with ChargeZone to create a recurring revenue stream from customer EV charging; Landmark will earn a commission share, and customers receive wallet credit — an industry-first retailer-charging network partnership.
- Inaugurated a 50,000 sq. ft. state-of-the-art workshop in Mumbai (Jogeshwari) for Mercedes-Benz, BYD, and Jeep, consolidating smaller facilities to improve margins and control.
- Received LOI for additional MG showroom in Ahmedabad, taking MG network to 17 outlets; a new MG SUV launching in August expected to significantly boost volumes.
- BYD supply predicted to significantly improve through FY27; two new BYD outlets in Pune became operational in July; hybrid models and Denza luxury brand expected to launch in India.
- Mahindra sales momentum strong; new Mahindra workshop opening soon in Hyderabad to capture aftersales growth.
- Kia Sorento launch in September; Honda City Facelift and ZRV launched; CV market robust through Ashok Leyland.
- Sharp cost focus maintained; management expects employee and other expenses as % of revenue to decline further.
- Net debt reduction underway with strong operating cash flow (₹60 Cr in Q1); capex on track at ~₹50 Cr for FY27.
Analyst Q&A
Q. What are the unit economics and revenue share from the ChargeZone partnership?
I don't want to disclose the commercials on a public forum right now because it's a unique first-of-its-kind thing and we want to keep it exclusive before somebody else tries to copy it.
Q. What levers will drive further improvement in new vehicle sales margins?
A combination of market operating price, price hikes, supply-demand balance, and target achievements; the trajectory should continue upward.
Q. Can the gross profit breakup for aftersales and new car sales be disclosed quarterly to help understand mix fluctuations?
We will take it back and see what we can do.
Q. Is it fair to assume EBITDA margin on pro forma new car sales normalizes at around 1.5% from Q2 onwards?
Yes, Q2 will be a normalized quarter; I do not expect any disruption like last year's GST changes.
Research and educational content only. Not investment advice.