Popular Vehicles and Services Ltd Q1 FY26 Results

FY26 began with several uncertainties for the domestic passenger vehicle segment. We saw a marginal volume uptick in April; however, May and June remained subdued. Q1 is generally a soft quarter for us. That said, revenue improved by ~2% over last year, supported by strong performance in our luxury and EV portfolio. On a quarterly basis, being a seasonally slow quarter, both volumes and revenue declined. However, we managed to improve operating margins through effective cost-control measures, which also helped reduce losses compared to Q4FY25. Even in this challenging market, we are continuing to execute our growth strategies, as we believe this is merely a prolonged slowdown and the long-term India growth story remains intact. With the Indian economy expected to grow at a healthy pace and consumption likely to improve, we anticipate a demand recovery— particularly in the compact car segment. To make our business more resilient, we are continuously investing in expanding our footprint, deepening our presence in existing markets, focusing on cost-control initiatives, undertaking selective divestments, and channeling resources toward high-growth opportunities. We believe that as industry growth picks up, the investments made, and internal measures implemented over the last 12-15 months will enable us to deliver stronger performance going forward.