Popular Vehicles and Services Limited — PPTs, 29-05-2025: Investor Presentation

1. Financial Highlights:

Popular Vehicles’ revenue declined 1.3% to ₹5,541 Cr, weighed down by weak demand and festive sales. EBITDA fell sharply by 39% to ₹175 Cr, dragging margins down to 3.2%. Profit before tax turned negative at -₹9 Cr from ₹97.7 Cr, reflecting elevated discounts and inventory corrections. New vehicle volumes dropped 5.5% to 44,087 units, while ASP rose 2.9% to ₹9.15 lakh. Pre-owned and service volumes were relatively steady with slight dips, though service income grew by 3.3%. Inventory remained high at ₹580 Cr but improved from prior levels. Net debt stood at ₹421 Cr, with a comfortable 0.6x net debt-to-equity ratio. Capex was ₹54.6 Cr, mainly for network expansion.

2. Strategic Initiatives & Growth Drivers:

₹70 Cr from divestments will be redirected to core business acceleration. Priorities for FY26 include boosting luxury and electric vehicle segments, enhancing service-led growth, and tightening operational controls. Network expansion continues in Maharashtra, Kerala, Karnataka, and Tamil Nadu, featuring Ather EV experience centers and NEXA studios. Emphasis on high-margin services, spare parts distribution, and premium product offerings aims to bolster profitability and customer loyalty.

3. Business Developments:

Divestment of two subsidiaries was approved with execution planned by mid-2025. EV footprint expanded via new Ather Experience and service centers along with Karnataka’s first Maruti Suzuki 3S facility. Popular Autoworks (JLR dealer) gained multiple service awards highlighting operational excellence. CRISIL reaffirmed ‘A/Stable’ and ‘A1’ credit ratings on ₹468 Cr banking facilities.

4. Market Position & Competitive Advantage:

Operating 450+ outlets across 4 states, Popular Vehicles maintains a strong position in passenger, commercial, and electric vehicles. Deep OEM ties ensure a broad product mix and strong customer lifecycle engagement. Diversification across pre-owned, services, and spare parts underpins stable revenues and margin gains. The growing premium and EV segments further differentiate the company.

5. Investor Implications:

Despite subdued FY25 results, focused divestments and reinvestments provide a platform for renewed growth potential. Expansion in luxury and EV segments combined with operational improvements support medium-term upside. Investors should track execution on network growth, inventory control, and margin recovery, balancing these against demand uncertainties in a shifting market environment.