Auto dealer sees 1% revenue growth amid segment variations, acquires 27 Maruti Suzuki touchpoints in strategic expansion.
17 Oct 2025 | 2316 Views | By Shristi Ohri
Popular Vehicles and Services Limited (PVSL) reported modest revenue growth of approximately 1% for the second quarter ended September 30, 2025, with performance varying significantly across different vehicle segments.
The Kochi-based automotive dealer experienced contrasting trends in its portfolio, with the luxury car segment growing by 14% and commercial ...
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Popular Vehicles and Services Limited (PVSL) reported modest revenue growth of approximately 1% for the second quarter ended September 30, 2025, with performance varying significantly across different vehicle segments.
The Kochi-based automotive dealer experienced contrasting trends in its portfolio, with the luxury car segment growing by 14% and commercial vehicles expanding by 19% year-on-year. However, the passenger vehicle segment, excluding luxury cars, declined by 11% compared to the same period last year. Electric vehicles and spare parts distribution segments grew by 3%.
Total vehicle sales volumes increased by 2% during Q2FY26 compared to the corresponding quarter of the previous fiscal year.
The company attributed the decline in passenger vehicle sales to a GST-related announcement that prompted customers to defer purchases between August 17 and September 17, despite strong order books during the Onam festival period. This resulted in demand shifting to the last 10 days of September, impacting quarterly figures.
On a sequential basis, the company demonstrated strong momentum with new vehicle sales volumes growing 37% quarter-on-quarter and total revenue from operations increasing 17% compared to Q1FY26.
In a significant expansion move, Popular Vehicles acquired the business of R.K.S. Motor Private Limited through a slump sale effective October 15, 2025. The acquisition comprises 27 authorized Maruti Suzuki touchpoints across various categories including Arena, Nexa, True Value, Service, Bodyshop, Commercial, Driving Schools, and Stockyards in Telangana state.
The company also expanded its physical presence by opening new facilities during the quarter, including Nexa showrooms in Thodupuzha and Perumbavoor in Kerala, a Tata Motors commercial vehicle service center in Calicut, spare parts retail outlets in Kollam and Pathanamthitta, Bharat Benz 3S facilities in Punjab, and multiple Ather Electric outlets across Karnataka, Maharashtra, and Tamil Nadu.
Popular Mega Motors (India) Private Limited, the company's wholly-owned subsidiary, received multiple awards from Tata Motors for the South India region in H1 FY26, including recognition for highest ACE PRO sales, customer service excellence, and highest small commercial vehicle electric vehicle sales.
The company completed the disinvestment of Vision Motors Private Limited (Honda) and Kuttukaran Green Private Limited (Piaggio) during the quarter. Honda and Piaggio volumes and revenue were included only until August 2025.
Looking ahead, Popular Vehicles expressed optimism about the festive season performance, reporting robust growth in both Kerala and Chennai markets with significant increases in bookings and retail sales. The company expects strong momentum to continue through November and December, driving volume growth in Q3.
The company maintained stable debtor days at 14 days and anticipates a sharp decline in inventory levels due to strong retail demand and limited wholesale inflows by the end of October.
For the half-year period H1FY26, the company reported 1% revenue growth, with the luxury segment growing 25% and commercial vehicles up 11%, while passenger vehicles declined 9% year-on-year.
The financial results for Q2FY26 are subject to review by auditors. Popular Vehicles is listed on BSE (Scrip Code: 544144) and NSE (Code: PVSL).