Popular Vehicles reports loss in FY25 amidst revenue decline

Popular Vehicles and Services Limited reported a consolidated net loss of ₹104.63 million for the fiscal year ended March 31, 2025, a significant shift from the ₹760.77 million profit recorded in the previous year. Consolidated revenue from operations also saw a modest decline of 1.32%, totaling ₹55,412.29 million, down from ₹56,155.28 million in FY24. This contraction was primarily attributed to higher discounting in the new vehicle segment, elevated inventory levels, and rising operating costs. EBITDA fell to ₹175 crore from ₹288 crore in FY24, with margins decreasing from 5.1% to 3.2%.

The company's new vehicle sales volume for passenger vehicles, excluding luxury models, experienced a decline of approximately 5%, while commercial vehicle volumes decreased by 9%. Despite these challenges, operating cash flow nearly doubled to ₹151 crore from ₹80 crore in FY24, indicating effective working capital management. The luxury vehicle portfolio, however, saw a robust 39% growth, and the service and spares businesses remained relatively stable, providing crucial margin support.

Looking ahead, Popular Vehicles aims to reposition itself for growth by focusing on geographic diversification, increasing contributions from high-margin businesses, and expanding its presence in the EV and luxury segments. The company secured Letters of Intent (LOIs) for four new Ather dealerships and a JLR facility in Nagpur, with a 3S facility in Bangalore expected to be operational by Q1 FY26.