Landmark Cars revenue up 22% as new model deliveries fuel rally

Landmark Cars shares surged as much as 13% after the Indian automotive retailer posted record first-quarter revenue, fueled by the launch of key models and improved supply chains. Total revenue from operations reached Rs 1,733 crore in the June quarter, a 22.47% increase from Rs 1,415 crore a year earlier.

The core vehicle sales business generated Rs 1,465 crore, a 24.15% year-on-year increase from Rs 1,180 crore. This growth was tied to the commencement of deliveries for the Mercedes-Benz CLA, MG Majestor, and the new Renault Duster. The company also benefited from improved supply conditions for electric vehicle manufacturer BYD.

After-sales services and spare parts contributed Rs 268 crore, up 14.04%. Management attributed this to the ramp-up and stabilization of newly opened workshops. The company is actively expanding this network to capture recurring, higher-margin service revenue that typically sustains dealership profitability.

The quarterly update serves as a clear inflection point for a stock that has struggled to find momentum. Over the trailing three-year period, Landmark Cars shares had fallen nearly 25%, including a 12% drop over the last two years. The latest operational data has sharply reversed that trajectory, driving a 31.23% gain over the past month.

This recent surge pushes the six-month return to 23.90% and the three-month gain to 26.07%. Despite the rally, the one-year return remains a modest 3.91%, highlighting how concentrated the recent re-rating has been. The market's aggressive response indicates investors are rewarding the resolution of previous supply chain bottlenecks.

The combination of a loaded new model pipeline and a maturing after-sales network addresses primary valuation overhangs for auto retailers. If management sustains this service revenue growth alongside BYD supply normalization, the current stock re-rating could endure.