The company’s strategic scale-up in FY25 came with a predictable trade-off, as the 23 newly added outlets still in their gestation period, reported a loss at the Profit Before Tax (PBT) level.
13 Aug 2025 | 2157 Views | By Shahkar Abidi and Ketan Thakkar
Landmark Cars Limited, a BSE-listed vehicle dealership chain reported a healthy net cash flow from operating activities at Rs.152 crore amidst rapid expansion and substantial investment with addition to 23 new outlets in the fiscal year 2025, the company informed in an investor presentation. The net cash flow in FY24 stood at Rs 40.8 ...
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Landmark Cars Limited, a BSE-listed vehicle dealership chain reported a healthy net cash flow from operating activities at Rs.152 crore amidst rapid expansion and substantial investment with addition to 23 new outlets in the fiscal year 2025, the company informed in an investor presentation. The net cash flow in FY24 stood at Rs 40.8 crore.
The company's strategic decision to scale up in FY25, however, came with a predictable trade-off. The newly added 23 outlets, still in their gestation period, reported a loss at the Profit Before Tax (PBT) level. This was largely attributable to the front-loading of costs associated with setting up new dealerships, a common challenge in retail expansion. In stark contrast, the performance of the existing outlets remained consistent at the PBT level, mirroring their strong showing in FY24. This bifurcation highlights the ongoing process of stabilizing operations and allowing new ventures to mature.
A granular look at the performance of existing versus new outlets in Q1FY26 reveals the underlying trends: Newly opened outlets typically require around four quarters to reach their full potential. Encouragingly, the new outlets turned EBITDA positive for the first time in Q1FY26, a crucial milestone in their ramp-up phase. As time progresses, their contribution to both revenue and EBITDA is steadily increasing.
However, the gross profit margin for these nascent outlets remains lower than that of existing ones, primarily due to a proportionally smaller initial contribution from after-sales services. Additionally, due to full-scale fixed costs, their operating margins are not yet on par with the established outlets. As an example of ongoing expansion, two KIA workshops in Hyderabad commenced operations in July 2025, slightly later than planned for Q1, and are expected to contribute positively in the coming periods.
The first quarter of fiscal year 2026 (Q1FY26) provides a clearer picture of this dynamic. Overall, Landmark Cars posted robust consolidated numbers, with Proforma Revenues climbing 21.6% year-on-year to Rs. 1415.2 crore, and Reported Revenues rising 27.6% to Rs. 1061.7 crore. Gross Profit increased by 14.8% to Rs. 184.4 crore , while Reported EBITDA saw an impressive 32.9% surge to Rs. 66.2 crore. Profit Before Tax (Pre Ind AS) more than doubled, jumping 108.6% to Rs. 9.9 crore, and reported Profit After Tax saw a similar leap of 113.8% to Rs. 7.4 crore. Cash Profit After Tax also demonstrated a healthy increase of 17.8% to Rs. 22.2 crore.
Landmark Cars, established in 1998, has grown to become India's first multi-brand, multi-location auto retailer, focusing on premium and luxury segments. With approximately 5,000 employees and a customer base of around 500,000, the company operates across 12 states and 29 cities, boasting a total of 138+3 upcoming outlets, including 73+1 upcoming sales showrooms and 65+2 upcoming workshops. Its extensive portfolio includes long-standing partnerships with prestigious brands such as Mercedes-Benz, Volkswagen, and Honda, alongside newer yet rapidly growing associations with BYD, MG, Mahindra, and KIA, among others.