Landmark Cars reports strong revenue growth, positive outlook despite GST transition

Landmark Cars Limited reported strong proforma revenue of INR 1,657 crores for Q2 FY '26, a 31% year-on-year growth from INR 1,268 crores in the corresponding quarter last year. New car proforma sales significantly contributed, rising 35% year-on-year to INR 1,403 crores across all OEM partners. Aftersales revenue also increased 11.2% year-on-year to INR 254 crores. Gross profit for the quarter stood at INR 196 crores, with a gross margin of 16.2% on reported revenue. EBITDA was INR 59 crores, with an EBITDA margin of 4.9%.

The company highlighted the GST rate revision on August 15, 2025, which temporarily pressured gross margins due to discounting and incentive schemes to liquidate inventory. Despite these measures, Landmark Cars expects gross profit percentages to increase by over 100 basis points in the balance of the year. The average selling price of new cars reached an all-time high of INR 23.16 lakhs in Q2 FY '26, supported by higher sales of premium cars.

Looking ahead, Landmark Cars is optimistic about sustained demand momentum, driven by new model lineups, OEM promotions, and the festive season. The company noted a 12% year-on-year growth in 4-wheeler registrations in October, the first full month post-new GST rates. Global OEMs are planning aggressive product offensives in India, which is expected to boost volumes and benefit Landmark Cars. The company anticipates acquiring strategic assets to fuel future growth.