Popular Vehicles and Services Ltd
NSE:PVSL
Popular Vehicles and Services Ltd
Their fixation with cars go way back..what began as a family run automobile spare part store seventy years back, is now a multi-dimensional business enterprise with a network of over 200 units spread throughout the country. The company is headquartered in Cochin, Kerala and currently employs 8,736 full-time employees. The company went IPO on 2024-03-19. The firm also sales spare parts accessories, finance and insurance commission. The firm primarily operates as a Maruti Suzuki vehicle dealer in Kerala and Tamil Nadu. The firm's subsidiaries include Popular Mega Motors (India) Private Limited, Vision Motors Private Limited, Popular Auto Dealers Private Limited, Popular Auto Works Private Limited and Avita Insurance Broking LLP.
Their fixation with cars go way back..what began as a family run automobile spare part store seventy years back, is now a multi-dimensional business enterprise with a network of over 200 units spread throughout the country. The company is headquartered in Cochin, Kerala and currently employs 8,736 full-time employees. The company went IPO on 2024-03-19. The firm also sales spare parts accessories, finance and insurance commission. The firm primarily operates as a Maruti Suzuki vehicle dealer in Kerala and Tamil Nadu. The firm's subsidiaries include Popular Mega Motors (India) Private Limited, Vision Motors Private Limited, Popular Auto Dealers Private Limited, Popular Auto Works Private Limited and Avita Insurance Broking LLP.
Strongest Quarter: Q3 FY '26 marked the company's best quarter in 1.5 years, driven by a sharp recovery in demand and improved customer sentiment following GST reforms.
Volume Growth: New vehicle volumes rose 44% year-on-year and 23% quarter-on-quarter, with especially strong growth in entry-level, premium, and commercial vehicle segments.
Margin Outlook: EBITDA margin for Q3 FY '26 was 3.3%; management guides for overall FY '26 EBITDA margin of 3.5% and targets a return to 5% in FY '27.
Cost Pressures: Employee costs remain high, but management is focused on cost control, working capital discipline, and restructuring—including back office centralization.
Inventory & Debt: Inventory days reduced to 21 (overall) and 18–19 (new vehicles); debt stands at INR 550–655 crores, expected to remain stable.
Service Business: Service revenue grew only 1% YoY due to lagged impact from earlier weak vehicle sales, but higher ASP partly offset lower volumes. Double-digit service growth expected in FY '27.
Acquisitions & Expansion: Recent acquisitions in Telangana and Punjab and new Audi partnership drive diversification; revenue benefits expected from FY '27.
Guidance Raised: FY '26 is now expected to close with mid-teens growth versus initial single-digit outlook; high double-digit top-line growth and profitability improvement targeted in FY '27.
