On Wednesday, shares of Landmark Cars surged by more than 5% following a robust revenue announcement for the fourth quarter of FY25. The small-cap stock experienced a notable increase, peaking at ₹440.45 on the Bombay Stock Exchange (BSE), reflecting investor optimism.
Impressive Revenue Growth in Q4 FY25
Landmark Cars, a prominent player in the premium automobile retail sector, disclosed a total revenue of ₹1,525 crore for the quarter ending in March 2025. This figure marks a significant year-on-year increase of 17.31%, up from ₹1,300 crore during the same quarter the previous year.
- Quarterly Revenue: ₹1,525 crore
- Year-Over-Year Growth: 17.31%
For the complete fiscal year concluding in March 2025, the company reported a 20.86% rise in revenue from operations, totaling ₹5,626 crore, compared to ₹4,655 crore in FY24. This impressive growth was highlighted in a provisional business update shared with stock exchanges on April 15.
Key Drivers Behind the Growth
The surge in revenue can largely be attributed to a significant boost in vehicle sales. In Q4 FY25, vehicle sales soared by 21.10% year-over-year, generating ₹1,257 crore. For the entire fiscal year, vehicle sales reached ₹4,572 crore, reflecting a year-on-year growth rate of 23.94%.
- Q4 Vehicle Sales: ₹1,257 crore
- FY25 Vehicle Sales: ₹4,572 crore
Additionally, the company experienced a 10.81% growth in after-sales services and spare parts, totaling ₹246 crore in Q4 FY25, up from ₹222 crore the previous year. The annual revenue from this segment also saw a healthy increase of 10.47% to ₹939 crore.
Challenges in Pre-Owned Vehicle Sales
Conversely, pre-owned vehicle sales encountered a sharp decline, dropping 45% year-over-year to ₹22 crore in Q4 FY25. This segment also faced a 40.54% decrease compared to the previous quarter.
Future Outlook and Expansion Plans
Looking ahead, Landmark Cars is concentrating on stabilizing its newly opened outlets after a rapid expansion throughout FY25. Deliveries for several new models, including the Mahindra BE6, XEV 9E, and BYD Sealion 7, commenced at the end of March 2025.
- New Workshops: 9 opened in FY25
- Upcoming Operations: Mercedes-Benz Patna and Kia Hyderabad workshops set to launch in Q1 FY26
Landmark Cars operates as a retailer for various automotive brands, including Mercedes-Benz, under an agency model that allows the company to earn a commission on each sale.
Stock Performance Overview
In terms of stock performance, Landmark Cars has seen a 5% increase over the past month; however, the small-cap stock has faced challenges with a 31% decline year-to-date. Over the last six months, shares have decreased by 35%, and there has been a 44% drop over the past year.
As of 10:40 AM, Landmark Cars shares were trading 2.85% higher at ₹428.05 per share on the BSE.
In summary, while Landmark Cars has demonstrated strong revenue growth and strategic expansions, challenges in the pre-owned vehicle segment and overall stock performance remain areas of focus for investors and analysts alike.
