Popular Vehicles expands reach with strategic acquisitions, strong Q2 growth

Popular Vehicles and Services Limited successfully acquired R.K.S. Motors Private Limited, an authorized Maruti Suzuki dealership in Telangana, for approximately INR90 crores (excluding inventory), effective October 15, 2025. This acquisition adds 19 locations and 1,039 employees, strengthening its Maruti Suzuki presence. Additionally, the company completed the acquisition of BharatBenz's dealership, Globe CV Private Limited in Punjab, for approximately INR12 crores, making Prabal Motors the exclusive BharatBenz dealer in Punjab.

For Q2 FY'26, total income stood at INR1,534.6 crores, a 16.6% quarter-on-quarter increase. Despite challenges like a GST rate revision impacting Q2 sales and a cyberattack affecting JLR, the company achieved its strongest quarterly volume performance in 6-8 quarters. EBITDA for Q2 FY'26 was INR49.4 crores, up 29.1% quarter-on-quarter, with an EBITDA margin of 3.2%. An exceptional gain of INR15.3 crores was recorded from divestments.

The company projects 6% organic growth in its passenger car business for FY'26, with an additional 6-7% inorganic growth from acquisitions, aiming for double-digit volume growth. It anticipates a service volume growth of 2-3% (excluding acquisitions) and expects EBITDA margins to reach 4.2-4.3% for the fiscal year. They also plan to reduce inventory levels and see discounts decrease due to increased demand.