Landmark Cars reports a sharp rise in quarterly profit to ₹14.5 crore driven by increased vehicle sales, stable service revenue, and a strategic shift towards agency-led sales, as new model launches bolster future outlook.
Landmark Cars delivered a sharp rise in profit for the quarter ended June, helped by stronger vehicle sales and steady growth in service revenue as the premium auto retailer continued to benefit from its shift towards agency-led sales. The company said consolidated net profit climbed to ₹14.5 crore from ₹7.3 crore a year earlier, while revenue from operations rose 22.47% to ₹1,733 crore.
Vehicle sales, including agency sales and pre-owned vehicles, increased 24.15% to ₹1,465 crore. Landmark also said Mercedes-Benz accounted for 38% of quarterly revenue, underlining the importance of the luxury brand to its business mix. The agency model allows customers to place orders directly with Mercedes-Benz India, with Landmark earning a commission on each sale through its dealerships.
The company’s after-sales business also expanded, with revenue from servicing, spare parts and related operations rising 14.04% to ₹268 crore. Landmark said average service revenue per car increased to ₹27,172 and pointed to internal analysis suggesting that higher electric vehicle penetration has not hurt after-sales income across two brands that offer both internal combustion and electric models.
Operating profit, measured as EBITDA, rose 13.7% to ₹75.2 crore, although the margin narrowed to 4.34% from 4.67% a year earlier. The results come after a period of recovery in the stock, with shares rising in July and again in August, though they remain well below their peak. Business Standard and Livemint also reported that recent model launches, including the Mercedes-Benz CLA, MG Majestor and the new Renault Duster, helped support sales momentum, while Landmark expects more launches from Mercedes-Benz, BYD, MG, Mahindra & Mahindra, Honda and Kia to aid the coming quarters.
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