Strong revenue growth masks paper-thin 1.1% net margin; execution risk looms

Delivered +22.7% YoY revenue (₹1302.4 Cr), consistent with claim

PAT +97.5% YoY (₹14.5 Cr); aligns with 'nearly doubled'

OPM 5.5%, NPM 1.1% — net margin is alarmingly thin despite revenue growth

Not in delivered results; unverifiable from P&L

Not quantified in delivered results; presentation claim only

Aftersales service growth 14% claimed; consistent with stated historic rate

Prior FY26 call: 'year of consolidation'; current reaffirms same tone. No numeric target for FY27 PAT/revenue raised or cut.

Claimed 30% of Q1 sales by value are EVs, up significantly from prior year; positions for structural margin benefit if aftersales scales

Now focusing on 'bays' not outlet count; 50K sqft Mumbai workshop consolidation + Hyderabad Mahindra facility; signals shift from expansion to optimization

Industry-first EV charging revenue share; management withholding economics but positioning as recurring revenue stream (multi-year deals)

Management explicitly said not to focus on gross margin; pivot to EBITDA/PAT/cash. Reason: brand mix and sales/aftersales composition vary by OEM.

Margins per se in % won't increase; absolute numbers will (we get % of hiked amount). Margins tracked as percentage share.

Luxury market itself is growing (50K to 60K units). New offerings expand market, not cannibalize. Mercedes has own launches.

In talks with some OEs (new entrants, expansion, takeovers); won't rush. Platform stabilized post rapid expansion.

Market pricing, demand-supply balance, price hikes (one-time benefit), target achievements improving. Trajectory should continue upward.

VUCA world we live in. Trajectory taking us there; need world to hold steady without shocks.

Workshops are different sizes (5K to 1 lakh sqft). Adding capacity via consolidation, not new outlets. May report 'bays' instead of outlet count.

Hoping. Needs both volume growth and capacity. Significant upside once both kick in. Ramp-up sooner rather than later.

Upside in after-sales for 19% bracket brands significant. Selling more is good; absolute money matters > margin %.

Will hover around there. Q1/Q2 get annual bonuses (not in results). Charging revenue adds pure profit. Cautious view; not saying higher but not lower.

ChargeZone works with all major OEMs already (16K+ charging points). We onboard customers to existing network; no capex. Helps us convert sales too.

Location and brand wise. Landmark has fungible assets; can shift capacity between brands. Optimize before adding more. Don't have off-the-cuff number.

Stopped classifying outlets as new; all treated as regular now. Nature of business = 2-3 new outlets at any time.

Yes, normalized quarter expected. No disruption like last year's traumatic Q2.

Seasonality. Q1 is slowest quarter (April-June); Q4 is biggest (Jan-Mar). 40-60 split. YoY growth is the metric; up big YoY.

Borrowing costs stable. Cash generation ongoing. Capex ~₹50 Cr on track. Cash will repay working capital loans.

Similar. Warranty excluded (battery change = high cost). Not saying higher in future; cautious. Not expecting lower near-term.

Each brand has own model (margin, cost). Sales vs aftersales mix differs (A=16%, B=5-7% aftersales). Focusing on EBITDA/PAT/cash instead.

Cost focus must continue. Can go lower as revenue grows. Need time to quantify on separate call. Walked the talk before.

I'll take this back. Will see what we can do.

Yes, it is right.

Price ~3% (ballpark). Rest ~19% from volume. May stand corrected but shouldn't be far off.

Lease amortization ₹19 Cr. Lease + interest = ₹27 Cr. Rental equivalent ~₹25 Cr. FY27 full year ~₹100 Cr.

Last year 0.95%. Will be around that only. EBITDA % maintaining 5.8%.

Prior guidance reaffirmed. Expected normalized demand post-Q2. GST 2.0 providing industry tailwind.

Current Q1 EBITDA ~5.8% consolidated. New car sales margins expected to trend 1.5% (below consolidated due to segment mix).

Hedged statement; acknowledged volatility from annual bonuses and new revenue streams (ChargeZone). Not a firm commitment.

Q1 spent less than proportionate share. Management holding capex flat; cash will repay working capital loans.

New 50K sqft Mumbai workshop + Hyderabad facility opening; significant capex deployed into assets with unproven demand. Aftersales volume growth only 4.8% YoY; gap between sales ramp and service utilization unclear.

High-growth brands (BYD, MG, Mahindra) have lower initial margins and aftersales penetration (19% vs 38% for sales). Each brand has own cost structure. Gross margin metric de-emphasized by management suggesting opacity.

Q1-Q2 represent 40% of annual revenue; Q3-Q4 are 60%. June quarter is slowest in Indian auto industry. Q2 FY26 saw GST-related disruptions. Q2 FY27 expected to normalize but downside if demand falters.

Audi planning aggressive expansion (8% to 16% market share); Mercedes focus on top-end vehicles. Mercedes price hikes offset by raw material cost inflation, not accretive to % margins. Luxury market at 50K units; new entrants may expand but also bring pricing pressure.

Industry-first EV charging revenue share with ChargeZone. Economics withheld from public forum; unproven at scale. Depends on EV customer adoption and charging frequency. Recurring revenue benefit unclear.