Synopsis: Popular Vehicles and Services Ltd gained 7% after reporting strong Q3 FY26 performance, with total revenue up 40% YoY, new vehicle volumes surging 50%, CV revenue rising 57%, and EV and spares growing 69%.
This company is in the business of sale and service of automobiles, spare parts, finance and insurance commission is now in the spotlight after its new vehicle volume sales increased sharply by 50% YoY in Q3 and by 17% during 9MFY26.
With a market capitalisation of Rs. 843 cr, the shares of Popular Vehicles and Services Ltd are currently trading at Rs. 118.50 per share, gaining 7% in today’s market session, making a high of Rs. 119.95, up from its previous close of Rs. 112.45 per share.
Business Highlights
During Q3 FY26, the company delivered strong performance with total revenue from operations growing by around 40% YoY, while revenue for 9MFY26 increased by about 14%. Passenger vehicle (excluding luxury) revenues rose 35% in Q3 but showed a modest 6% growth over 9MFY26, whereas luxury PV declined 5% in Q3 but recorded a healthy 15% growth for the nine-month period.
Commercial vehicles performed robustly with 57% growth in Q3 and 26% growth in 9MFY26. EV and spare parts distribution also saw strong momentum, growing 69% in Q3 and 11% over 9MFY26. New vehicle volume sales increased sharply by 50% YoY in Q3 and by 17% during 9MFY26.
The company delivered a strong operating performance in Q3, supported by robust growth in new vehicle sales volumes across segments. The entry-level segment recorded over ~35% YoY growth, while the premium vehicle segment grew by more than ~30% YoY, aided by favorable GST reforms.
Performance in the passenger vehicle (PV) segment improved during the quarter, and with rising demand and ongoing capacity expansion, volume growth is expected to sustain going forward. Inventory days reduced to ~37 days from ~44 days in the previous year, reflecting healthy retail demand, particularly in the entry-level segment, and are now closer to the industry average.
However, as the company is in an expansion phase, debt levels remain higher compared to earlier periods. The impact of the new Labour Code and Ind AS implications arising from acquisitions is currently under assessment.
Network Expansion
During the period, the company expanded its network by commencing operations at new touchpoints, including a Tata Motors CV sales outlet in Mananthavady, Kerala, and three Ather sales outlets, along with one service centre in Bengaluru, Karnataka.
Additionally, the company acquired the AUDI dealership business of Olympus Motors Private Limited through an Asset Purchase Agreement effective December 31, 2025. This acquisition adds five AUDI touchpoints to the network, comprising a showroom and service centre in Hyderabad, a showroom and service centre in Visakhapatnam, and a service centre in Vijayawada.
Popular Vehicles & Services Limited is a part of the diversified Kuttukaran Group, is a leading multi-brand automobile dealership operating across Kerala, Tamil Nadu, and Karnataka. One of Maruti Suzuki’s earliest dealers in India, the company has since scaled its operations significantly.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
