Landmark Cars Stock: Can Mercedes, BYD India, and the EV Boom Accelerate Growth?

Synopsis: Landmark Cars delivered a record FY26, driven by strong luxury vehicle demand, rising EV adoption, and a rapidly growing after-sales business. With Mercedes-Benz witnessing robust demand, BYD expanding its India presence, and EVs contributing over 21% of sales, the company appears well positioned to capitalize on India’s evolving automotive landscape. 

India’s passenger vehicle industry is undergoing a structural transformation fuelled by premiumisation, electrification, and new product launches from global automakers. Landmark Cars has emerged as a key beneficiary of these trends through its diversified portfolio spanning Mercedes-Benz, BYD, MG Motor, Mahindra & Mahindra, Honda, Kia, Renault, and Jeep. 

As EV penetration accelerates and luxury demand remains resilient, the company is entering a consolidation phase after years of expansion. Investors are now evaluating whether these industry tailwinds can translate into sustained profitability and long-term growth. With a market cap of Rs 1,800 crore, the shares of Landmark Cars Ltd are trading at Rs 444 and are trading at a PE of 47 compared to their industry’s PE of 12. 

A Record Year for Growth

FY26 saw Landmark Cars start from a solid operating base and ended the year on a high note with record levels of revenue, gross profit, and EBITDA. In spite of being an intensely competitive business, the company managed to outperform the passenger vehicle market overall. 

Whereas the Indian passenger vehicle market saw an increase of 13% over the year with total sales of 47 lakh units, Landmark Cars reported top-line growth of 20% over last year’s levels. The management noted that the performance was driven by the company’s diverse range of brands, the rising proportion of premium cars, and the increasing scale of the after-sales operations. 

The company has spent the past two years significantly ramping up the number of dealerships, extending its geographic reach, and forming more OEM partnerships. As these investments are largely behind the company, the management feels that the company has entered a phase of asset optimisation and improved profitability being the key sources of value generation. FY26 saw the company achieve another milestone by crossing the Rs 1,000 crore mark in after-sales revenues.

Why EVs Are Central to the Story

One of the key themes that came up in the management discussion was the use of electric vehicles in the model used by Landmark Cars. The current percentage of penetration of EVs in the passenger vehicles in India is at 5%, but in the case of Landmark Cars, the figure stands at over 21%. 

This wide gap indicates a positioning strategy in an industry that is poised to experience massive growth in the coming years. Management was positive that the rise in fuel costs, improved charging facilities and increased availability of products would contribute to a faster adoption of EVs in the country. 

Unlike many dealership groups that are still reliant on internal combustion engine vehicles, Landmark has created a portfolio comprising companies which are at the forefront of developing electric vehicles, such as BYD, MG Motor, and Mahindra & Mahindra. It seems that this strategy is already bearing fruit, as customers’ acceptance of electric vehicles increases.

Mercedes-Benz Demand Remains Strong

One of the most important components of Landmark’s automobile portfolio has been Mercedes-Benz, which is one of the top-selling luxury brands in India. In the quarter, Mercedes launched the all-new V-Class with a price tag of around Rs 1.4 crore and the electric CLA with a price tag of around Rs 55 lakh. 

As per management, both of the launches have seen immense customer interest, leading to wait times of several months. Deliveries of these cars have already started and are expected to help drive future sales growth. 

The luxury category seems resilient despite macroeconomic headwinds, as evident from an improvement in the average selling price of the Mercedes range by Landmark to Rs 73 lakh in Q4 FY26 from Rs 69 lakh in the previous quarter. High-end cars still contribute about 20% of the Mercedes sales, indicating continued interest in luxury cars. 

The management also indicated that the launch of the new S-Class, which is expected to become the first-ever plug-in hybrid launch of Mercedes in India, would help boost the product range further. Apart from this, Mercedes has planned to launch 40 products across the globe in the next few years, most of which are expected to come to India.

BYD’s India Expansion Gains Momentum

In the entire list of EV opportunities at Landmark, BYD is the most interesting opportunity for the company. There was a lot of optimism expressed by the management about the prospects of BYD going forward in India. 

Post supply issues faced by the company in FY26, the company reported that supplies of the vehicles started coming in in April. Three BYD models have been homologated in India. They include Sealion 7, Atto 3, and eMAX. Additionally, the company stated that hybrid vehicles will be launched in India by BYD later this year. 

Landmark expects BYD to significantly ramp up volume in FY27 due to reduction in supply issues and introduction of new models. In order to take advantage of the opportunity, the company is ramping up BYD business through the setting up of additional sales and service outlets in Pune, which will become operational in July. 

Management is hopeful that the investment will help the company gain market share in the BYD dealership network. One of the fastest-growing electric vehicle makers in the world, the expansion of BYD in India could prove to be an important growth engine for Landmark Cars going forward.

Benefiting From India’s EV Shift

BYD isn’t the only new energy vehicle maker which Landmark has exposure to. Through partnerships with MG Motor and Mahindra & Mahindra, Landmark Cars has been able to create exposure to several new energy vehicle makers. 

The MG Windsor has become the best-selling electric car in India for FY26, while MG plans to introduce 3 new products in FY27 across the EV, hybrid, and ICE segments. In a similar vein, Mahindra has continued to experience high levels of demand across its range of vehicles, and it’s working on building after-sales infrastructure. 

Management at Landmark continually stressed that the move towards electric vehicles isn’t cyclical but structural. Even though penetration of EVs in the industry is low currently, Landmark Cars thinks that there might be a large wave of growth in the coming years as people adopt electric vehicles. 

What’s critical about this point is the fact that Landmark’s original equipment makers have all committed to making electric vehicles an important part of their future product offerings.

After-Sales Business Crosses Rs 1,000 Crore

Whereas investors concentrate on vehicle sales, the after-sales services have become one of the most valuable profit sources in the case of Landmark. For the first time in the company’s history, in FY26, the income generated by after-sales exceeded the Rs 1,000 crore mark with a value of Rs 1,051 crore. 

Management noted that the above results allow Landmark to join the exclusive list of businesses, which managed to develop such after-sales services. The significance of the above segment is explained by the nature of revenues, which can be characterised as stable and repeated. 

In contrast to vehicle sales, which depend on the current economic situation and preferences of consumers, servicing, maintenance, spare parts, and accidents produce a constant inflow. The average revenue per vehicle service was equal to Rs 27,148 in FY26 and Rs 30,072 in Q4. 

It was achieved due to a combination of more valuable repairs, OEM incentives, an increase in the prices of spare parts, and optimal utilisation of assets. Importantly, management does not expect any negative impact of the penetration of EVs on the after-sales services segment. Although the maintenance activities of EVs become less necessary, their repair is much more costly because of expensive batteries and special equipment.

Consolidation Before the Next Leap

One of the distinguishing features of the management’s outlook was its preference for consolidation over an expansion strategy. During the last 18-24 months, Landmark Cars made major investments into the development of their dealerships, workshops, and branding partners. 

Having most of the infrastructure created, the company is now looking to capitalise on its assets and extract more profit from them. According to the management, FY27 will be a year of consolidation during which the main goal will be the improvement of the margins, reduction of costs, and increased return on investment. 

The company stated that the capital spending during FY27 is likely to stay at the historical average and not grow as high as during the period of the expansion. A lot of effort is currently going to the improvement of the efficiency of operations, cost control, and use of technologies. 

Landmark Cars have already started using the artificial intelligence solutions in their call centres and plan to expand the usage of AI into many areas of business operation. Management has reiterated multiple times that the focus will continue to stay on profitable growth and not on any growth.

Can FY27 Be a Breakout Year?

In terms of future developments, a few factors seem to be coming into play for Landmark Cars in a positive manner. The demand for their products in almost all OEM partnerships continues to remain solid even though some hikes in prices have been initiated by manufacturers. 

Mercedes-Benz continues to see high demand in the luxury category; BYD is moving into a phase where products will become available in higher quantities; MG Motor will launch new products, Mahindra’s success story continues, and Honda plans a big turnaround through products. 

On the other hand, the firm has already expended a lot of money towards expansion, and now it will be concentrating on earning returns from these investments. FY26 saw record-high revenue of Rs 4,896 crore, highest-ever EBITDA of Rs 283 crore, PAT of Rs 38 crore, and PAT growth of 120% YoY. 

Cash flow generation was robust at about Rs 267 crore, which helped the firm decrease its debt levels while continuing growth initiatives. Management feels that the Indian passenger vehicle market is one of the most exciting opportunities in the world in the long term.

If EV adoption accelerates as expected, Mercedes continues to deliver strong demand, BYD successfully scales its Indian operations, and newly expanded facilities reach optimal utilisation, Landmark Cars could be well positioned to deliver another phase of profitable growth. 

For investors, the key question is whether the company can convert these multiple industry tailwinds into sustained earnings expansion. Based on management commentary, the foundations for that possibility appear stronger than ever. 

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Landmark Cars Stock: Can Mercedes, BYD India, and the EV Boom Accelerate Growth? appeared first on Trade Brains.