Landmark Cars Ltd Management Discussions

Management Discussion and Analysis Report

Global Economy

The global economy remained more resilient than expected through 2025, though uncertainty persisted throughout. According to the International Monetary Funds April 2026 World Economic Outlook, global output grew on the strength of technology-led investment, supportive financial conditions and the adaptability of businesses. Growth nonetheless stayed below prepandemic averages, held back by geopolitical tensions, elevated trade barriers, policy uncertainty and uneven regional momentum.

Global trade conditions remained uncertain during the year, particularly following changes in US tariff policy and the response of major trading partners. These developments complicated supply chains, weighed on business confidence and pushed companies to rework sourcing and production networks. For automotive retail, these shifts mattered through their bearing on vehicle availability, the timing of model launches and the landed cost of imported models.

Entering calendar 2026, the conflict in West Asia added a further layer of risk, lifting crude oil prices and freight costs and feeding through to inflation expectations, fuel costs and consumer sentiment. Against these pressures, the IMF projected global growth to moderate through calendar 2026, with inflationary risks still visible. Advanced economies continued to grow at a modest pace, while emerging market and developing economies, led by Asia, remained important contributors to global expansion.

OUTLOOK

Looking ahead, the global economy is expected to remain resilient but subdued, with growth moderating amid geopolitical tensions, elevated commodity prices and tighter financial conditions. Inflation is expected to stay in focus in the near term, elevating uncertainty related to central bank policy, consumer sentiment and business confidence. Outcomes will turn on the direction of trade policy, the duration of geopolitical conflicts, energy price movement and the sustainability of technology-led investment. Supply-chain reconfiguration and regional trade arrangements may continue to reshape competitive dynamics for open and trade-linked economies. Economies with strong domestic demand, prudent macroeconomic management and diversified trade relationships are better placed to absorb external shocks, and India sits among them.

Indian Economy

India remained the fastest-growing major economy during 2025-26, amid global headwinds marked by slowing global trade, elevated tariffs and renewed geopolitical tensions. As per the provisional estimates released by the Ministry of Statistics and Programme Implementation (MoSPI), real GDP grew 7.7% while nominal GDP expanded by 8.9%, based on a new series of national accounts with 2022-23 as the base year.

Growth was supported by resilient domestic demand, sustained investment activity and momentum in services. Public capital expenditure, improving capacity utilisation and private sector participation drove investment, while consumption drew on easing inflation, income-tax relief and lower indirect tax incidence across several product categories. Manufacturing and construction added to the expansion and services stayed the principal driver, led by finance, real estate, trade, transport and hospitality, while agriculture grew more moderately. Together, these factors supported macroeconomic stability, improved the investment climate and strengthened Indias medium-term growth prospects.

A key policy development during the year was the rationalisation of the Goods and Services Tax (GST) structure. The reform simplified the tax framework, lowered rates on several consumption categories and reduced the effective tax burden on select automobile segments. For the passenger vehicle industry, the change improved price visibility, reduced tax complexity and lifted affordability across parts of the market. Coming alongside the income-tax relief announced in the Union Budget 2025-26, it added to demand in the second half of the year.

Headline retail inflation moderated through the year, aided by lower food prices and easing price pressures across several categories. That opened room for monetary policy to turn towards growth. The RBI undertook a series of rate cuts to bring the policy rate down to 5.25% by December 2025 and maintained a neutral stance thereafter while supporting liquidity transmission. Lower rates impact vehicle demand directly through financing costs, while steady income growth and improving consumer sentiment strengthened the case for discretionary purchases in the second half.

Indias trade diplomacy advanced through the year even as tariff pressure persisted. India and the European Union concluded a landmark Free Trade Agreement in January 2026, subject to ratification before implementation.

The India-UK Comprehensive Economic and Trade Agreement, signed earlier, came into effect on July 15, 2026. India and the US also reached a framework for an interim trade agreement in February 2026, with both countries continuing discussions towards a broader bilateral trade agreement. Both widen market access at a time when global trade is fragmenting, and the European agreement in particular carries implications for the pricing and availability of imported models over the medium term. For automotive retail, the conditions that shaped the year came from demand, where easing rates, tax relief and rising incomes did the work.

GDP GROWTH PROJECTIONS

OUTLOOK

Indias economic outlook rests on strong domestic demand, continued public investment, ongoing reforms and a stable policy framework. Manufacturing competitiveness, services exports, digital infrastructure and a widening network of trade agreements support productivity over the longer term. The Union Budget 2026-27 assumed healthy nominal GDP growth and targeted further fiscal consolidation, balancing growth-supportive capital expenditure against macroeconomic prudence. Meanwhile, an expanding middle class and favourable demographics continue to shift household spending towards aspirational and experience-led categories including automobiles, retail, real/" estate, travel and lifestyle. Against this, global trade fragmentation, geopolitical tension, energy-price volatility and currency movement remain key monitorables, primarily through their effect on inflation, financing conditions and

t consumer sentiment.

Indian Automotive Market Overview

Indias automotive retail sector delivered a record performance in 2025-26. According to the Federation of Automobile Dealers Associations (FADA), total vehicle retail across categories reached an all-time high.

The year could be categorised into two phases. The first five months remained measured, with consumers holding back on pre-GST 2.0 uncertainty, selective financing constraints and uneven conversions. GST 2.0 took effect in September 2025 and improved affordability across mass-segment two-wheelers, small cars, three-wheelers and select commercial categories. The festive convergence of Navratri and Diwali in October then delivered record monthly retail of over 40 Lac units. Double-digit growth held through the closing months, which placed the recovery beyond a seasonal effect.

Passenger vehicle retail crossed 47 Lac units for the first time, supported by a strong new-model pipeline, steady urbanisation and a sustained shift towards SUVs and alternative powertrains. Commercial vehicles crossed 10.6 Lac units, carried by infrastructure-linked freight demand and a strong medium commercial vehicle segment. Buyer preferences shifted alongside volume, with CNG and EVs gaining share across categories as customers weighed affordability, operating economics and total cost of ownership.

OUTLOOK

The industry enters 2026-27 on firm footing, buoyed by the full-year effect of GST rationalisation, improved credit access and a rich pipeline of new-model launches. Dealer sentiment remains constructive, with FADAs survey indicating that nearly three-fourths of dealers expect growth in the coming year.

At the same time, the outlook is tempered by near-term uncertainties, including geopolitical conflict in West Asia and its impact on supply chains and fuel prices, together with softening demand in specific segments. With Indias vehicle penetration still among the lowest globally and a rapidly expanding middle class, the sector remains well positioned for long-term expansion.

Indian Passenger Vehicle Industry

In 2025-26, the Indian PV industry recorded its highest-ever retail sales of approximately 47 Lac units, reflecting year-on-year growth of about 13%, on the back of widening product portfolios, rising consumer aspirations, deepening urbanisation beyond major metros into Tier-II cities, improved affordability following the GST rationalisation and a supportive interest-rate environment. Within the industry, premium and luxury PVs continued to gain ground over entry-level cars, driven by rising affluence and a growing preference for higher-end variants.

The shift towards utility vehicles continued through the year, and they now account for a significant share of PV sales. Buyers moved towards larger, feature-rich models for their comfort, versatility and safety, while sharper awareness of safety and tightening regulatory norms pushed manufacturers to fit improved safety technologies and offer higher NCAP-rated variants across the range.

OUTLOOK

The Indian PV industry is expected to sustain its growth momentum in 2026-27, supported by the full-year benefit of GST rationalisation, improving affordability, stable financing conditions and a healthy pipeline of new model launches. Demand is likely to remain led by utility vehicles, premium variants and alternative powertrains, as customers increasingly prioritise safety, features, technology and lower operating costs.

Dealer sentiment remains constructive, with FADA indicating that nearly three-fourths of dealers expect growth during the year. Early 2026-27 retail trends have remained encouraging, with passenger vehicle sales growing strongly in April and June 2026. However, the outlook remains watchful due to geopolitical tensions, fuel price volatility, currency movement, supply-chain constraints and selective softness in entry-level demand. Overall, low vehicle penetration, rising incomes and premiumisation remain structural drivers.

Indian Luxury Car Market

The Indian luxury car market had a more measured year, with growth easing even as the broader passenger vehicle market remained strong. Industry estimates put luxury vehicle sales priced above Rs.50 Lacs at roughly 52,000 units in calendar year 2025, on modest year-on- year growth. Demand was held back by volatile equity markets, geopolitical uncertainty, rupee depreciation and a natural moderation after the strong post-pandemic rebound. In 2026, Mercedes-Benz retained market leadership, followed by BMW and Jaguar Land Rover, while Mercedes-Benz, BMW and Audi together continued to account for a significant share of luxury volumes. Demand held up better in top-end and higher-value portfolios despite the subdued headline, which points to premiumisation continuing within the segment.

Customers moved towards vehicles offering greater comfort, safety, technology and road presence, and luxury SUVs sat at the centre of that shift on their versatility and their appeal to younger, upwardly mobile buyers. Electrification gained ground in the segment on a favourable GST rate on EVs and rising interest in lower running costs, advanced features and differentiated ownership experiences. Select brands drove that growth, BMW in particular, and customer acceptance broadened accordingly. Luxury cars still represent a small share of Indias overall passenger vehicle market, which leaves long-term headroom for growth.

India and the European Union concluded a Free Trade Agreement in January 2026, subject to legal vetting and ratification before implementation. Under the proposed framework, India is expected to progressively reduce import duties on European cars within a defined annual quota, while retaining safeguards for the mass-market segment and encouraging local manufacturing. EVs are expected to remain outside the tariff reductions for an initial period. Over time, the agreement could expand consumer choice, improve access to premium European models and support the development of Indias luxury automotive market, though localisation by global manufacturers remains central to long-term competitiveness.

RISING AFFLUENCE AND URBANISATION

Growing disposable incomes and an expanding middle class continue to make car ownership more attainable and aspirational. With over a third of Indias population living in urban areas and public transport under mounting pressure, demand for personal mobility is rising steadily, particularly in premium and higher-value segments.

SHIFTING CONSUMER PREFERENCES TOWARDS SUVs AND MPVs

Demand is shifting towards SUVs and MPVs, driven by a preference for spacious, feature-rich and tech-enabled vehicles. Utility vehicles have become the principal growth engine of the industry, accounting for the majority of PV sales during the year, against around a fifth a decade earlier.

(Source: https://www.autocarpro.in/)

INNOVATION AND NEW MODEL MOMENTUM

The steady rollout of new models carrying advanced design, safety and connectivity is energising consumer interest and intensifying competition. Global manufacturers have announced aggressive India-focused product plans and localisation commitments, which make product innovation a key differentiator in purchasing decisions.

Tax RATIONALISATION and improved AFFORDABILITY

GST 2.0 took effect in September 2025, lowered effective tax rates, abolished the compensation cess and materially improved vehicle affordability. Together with the income-tax relief in the Union Budget 2025-26 and a lower interest-rate environment, the reform drove demand, particularly in the festive second half of the year.

TRADE AGREEMENTS AND MARKET ACCESS

The conclusion of the India-EU FTA, the India-UK CETA and the interim India-US trade framework are expected to improve long-term pricing flexibility, enable the introduction of select premium models on a calibrated basis. It is also expected to expand the addressable premium and luxury market, while reinforcing local manufacturing over time.

EXPORT GROWTH

Indias record PV exports to Latin America, Africa and developed markets continue to cement its role as a global automotive manufacturing hub. Backed by major OEM investments in export capacity and India-focused development for right-hand-drive markets, the countrys global footprint continues to expand.

Indian Electric Vehicle Industry

Indias electric vehicle market continued to gain ground in 2025-26, reflecting a steady shift in customer preferences towards alternative powertrains. According to FADA, total EV retail stood at 24.52 Lac units during the year, registering strong year-on-year growth. EV share improved across major vehicle categories, with PV EV penetration rising to 4.25%, two-wheeler EV share at 6.54% and CV EV share nearly doubling to 1.83%. In three-wheelers, EV adoption remained particularly strong, accounting for over 60% of segment retail.

The transition was carried by improving model availability, rising awareness of operating economics and growing customer focus on total cost of ownership. In passenger vehicles, both EVs and CNG vehicles gained share. FADAs March 2026 data showed PV EV share improving further, with customer acceptance strengthening towards the end of the year. Adoption patterns varied across segments, though the direction of travel towards cleaner mobility held throughout.

OUTLOOK

Indias EV market is expected to keep growing as infrastructure scales up and cost barriers decline, moving the segment from early adoption towards mass-market acceptance. The deepening presence of established and new-energy brands is broadening consumer choice. As charging networks expand and battery costs fall, electric mobility is set to capture a rising share of the PV market over the medium term. The exclusion of EVs from the initial phase of the India-EU FTA tariff reductions is expected to preserve support for the domestic EV manufacturing ecosystem during this critical build-out phase.

Automobile Dealership Industry in India

Indias automobile dealership network continued to play a critical role in the automotive value chain during 2025-26, extending beyond vehicle retail to include financing facilitation, insurance, after-sales service, spares, accessories and used vehicles. The year tested the networks operational discipline, as consumer caution and pre-GST 2.0 uncertainty kept retail activity muted from April to August, before a sharper upturn from September onwards. GST rationalisation improved affordability and sentiment, while dealers and OEMs focused on better inventory alignment, with passenger vehicle stock levels normalising by year end.

According to FADA, total vehicle retail reached an all-time high of approximately 2.97 Crore units in 2025-26, registering 13.30% year-on-year growth.

The performance rested on the sectors structural strength, improving affordability and the dealership networks ability to manage demand recovery, inventory and customer engagement through a period of significant policy transition.

GROWTH DRIVERS

Multi-Channel Income Base

Dealerships are reducing their dependence on new vehicle sales by expanding into allied revenue pools such as servicing, insurance, finance facilitation, accessories and pre-owned vehicles. These businesses carry better margins and create recurring customer engagement, which moves dealerships towards integrated mobility partnerships and reduces exposure to fluctuations in new-vehicle demand.

Digital Lead Conversion and OEM Partnerships

OEMs are using digital platforms to identify customer intent and route enquiries to dealer partners. Dealerships with stronger response systems, faster conversion and superior customer experience are better placed to receive quality leads. Digital readiness, process discipline and service standards are now important drivers of showroom traffic and revenue growth.

Inventory Discipline and Capital Efficiency

Efficient inventory planning and working-capital control remain central to dealership performance. Dealers with faster stock rotation, disciplined funding practices and closer OEM coordination are better placed to reduce interest costs and protect margins. During the year, the GST transition created temporary pressure as older tax-impacted inventory had to clear, though channel financing support and sharper inventory management stabilised stock levels by year-end.

EV Capability and Policy Alignment

Rising EV adoption is creating opportunities for dealers building charging readiness, trained service teams and stronger customer education. At the same time, lower GST on spare parts has improved the affordability of genuine components and strengthened the competitiveness of authorised service networks against unorganised repair channels. Evolving emission, safety and technology regulations are expected to support replacement demand and vehicle upgrades over time.

Indian Pre-Owned Passenger Vehicle Industry

Indias pre-owned passenger vehicle market continues to evolve from a budget-led option into a mainstream mobility choice, supported by rising aspirations, shorter ownership cycles, better financing access and growing trust in organised and digital platforms. Recent industry estimates put the used-car market at around USD 35 Billion with a near doubling projected by 2030-31 and annual transactions reaching 9-10 Million vehicles. Buyers are using the pre-owned route to access larger, feature-rich vehicles at lower ownership costs. GST-led improvement in new-car affordability has narrowed the price gap in select segments, which creates near-term pressure on used-car realisations.

> Mainstreaming of Pre-Owned Cars

Used cars are now seen as a smart mobility choice, giving customers access to larger, feature-rich and premium models at lower ownership costs.

Shift towards Organised Channels

> Buyers are moving towards organised and digital platforms that offer inspection, documentation support, financing, warranty and after-sales services, which improves trust and transparency.

> Rising Finance Penetration

Wider availability of used-car loans is opening the segment, particularly for first-time buyers, younger customers and consumers in smaller cities.

Premiumisation of Demand

> Consumers are choosing used SUVs, sedans and higher-end models, reflecting rising aspirations, shorter ownership cycles and better availability of well-maintained vehicles.

Expansion Beyond Metros

> Demand is growing across Tier II and Tier III markets, supported by rising incomes, digital discovery, financing access and wider acceptance of pre-owned vehicles as practical and aspirational purchases.

Indian Car Care Products

Indias car care products segment continued to evolve steadily during the year as vehicle ownership rose and consumers placed greater emphasis on personalisation, aesthetics and long-term maintenance. Traditionally dominated by basic cleaning solutions, the market has broadened to include a range of specialised interior and exterior products. With rising awareness around vehicle hygiene, surface protection and resale value, car owners are investing in DIY and premium care products, a trend reinforced by the expanding vehicle parc and growing digital reach.

According to IMARC Group, the market stood at USD 437.7 Million in 2025 and is projected to reach USD 569.6 Million by 2034, at a CAGR of 2.88%. Demand is also driven by e-commerce growth and growing consumer preference for premium cleaners, waxes, coatings and detailing solutions.

Industry Trends

Premiumisation of Car Care

Consumers are moving beyond basic cleaning and polishing towards specialised products such as waxes, ceramic coatings, paint protection films, graphene coatings and advanced detailing solutions. This follows rising awareness of vehicle appearance, resale value and long-term protection.

Rising Vehicle Ownership and Aftermarket Demand

As Indias vehicle parc expands, demand for maintenance, upkeep and appearance products is rising. Car care products are now a more important part of the broader automotive aftermarket.

Shift Towards Protection-Led Spending

Customers are viewing car care as preventive maintenance rather than discretionary spend.

Products and services that protect paint, interiors and surfaces are gaining ground as owners look to extend vehicle life and preserve resale value.

Growth of Organised Detailing Networks

The industry is shifting from fragmented local service providers to organised detailing studios and branded service formats. Standardised service quality, trained technicians and professional operating models are improving customer trust.

Digital and E-commerce-Led Access

Online channels are making car care products more accessible to customers across metros and smaller cities. Wider product discovery, doorstep delivery and DIY product availability are supporting category growth.

Business Review

Landmark Cars Limited (‘Landmark Cars, ‘Landmark, or ‘The Company) is Indias leading multi-brand, multi-location automobile retail platform, with a strong presence in the premium and luxury passenger vehicle segments. Established in 1998, the Company has built a diversified portfolio of leading OEM brands, including Mercedes-Benz, BYD, MG Motor, Mahindra & Mahindra, Kia, Honda, Renault, Volkswagen, Jeep, Citroen and Ashok Leyland.

The Companys multi-brand portfolio addresses a wide range of customer preferences across premium, luxury, EV and commercial categories and reduces concentration risk across individual OEMs, geographies and vehicle segments. The business extends beyond new vehicle sales into after-sales service, spares, accessories, finance and insurance facilitation, pre-owned vehicles and allied customer lifecycle offerings. That integration builds long-term customer relationships while strengthening recurring revenue streams.

Landmark follows an omni-channel operating model that combines its physical showroom and workshop network with digital engagement platforms, so customers can discover, evaluate and engage with the Company through their preferred channels.

The Company continues to invest in technology-led process improvement, including Al-enabled calling in its call centres, to improve lead management, sharpen operating efficiency, reduce costs and strengthen the customer experience.

As of March 31,2026, Landmark operated 140 outlets across 29 cities in 12 states, comprising 76 sales showrooms and 64 workshops, and served a customer base of over 5,50,000. Over its recent growth phase, the Company expanded its portfolio to 11 brands, with newly added franchises contributing approximately 20% of proforma revenue during the year. After 18 months of accelerated network expansion, 2025-26 was a year of consolidation, stabilising operations, improving throughput and lifting returns from the newly added assets.

The Company rationalised select underperforming locations, including its Volkswagen operations in Delhi-NCR, comprising one showroom and workshop, with effect from March 31,2026. Landmark continues to operate as Volkswagens dealer in the profitable Gujarat market, holding to selective presence, operating discipline and profitable scale. During the year, the Board approved a scheme of amalgamation of the Companys wholly-owned subsidiary, Landmark (East) Private Limited, with the Company, subject to requisite approvals. The proposed amalgamation is expected to support operational simplification and cost efficiency.

The Companys growth strategy is anchored in capital efficiency, consolidation and deeper customer engagement. Landmark operates with an asset-light approach, combining organic expansion and well-executed acquisitions. Approximately one-fourth of its presence has been built through acquisitions, enabling faster market access, portfolio expansion and improved scale in selected geographies.

The Indian passenger vehicle market continues to offer significant long-term growth potential, supported by low vehicle penetration, rising aspirations, premiumisation and increasing formalisation of automotive retail. In larger developed markets, leading auto retailers account for a higher share of industry volumes. With a diversified OEM portfolio, wider service footprint, growing EV presence and continued consolidation opportunities, the Company is well positioned to increase its market share over the long term while maintaining its focus on profitable and disciplined expansion.

Operational Performance

New Vehicle Sales

The New Vehicle Sales and Allied Business remained the largest contributor to Landmarks revenue in 2025-26. The segment recorded proforma revenue of approximately Rs.56,679 Million, accounting for a substantial share of the Companys total proforma revenue of approximately Rs.67,187 Million. Revenue grew by approximately 19% year-on-year on a proforma basis, outpacing broader passenger vehicle industry growth. Growth came from the expanded brand portfolio, stronger throughput from recently commissioned outlets and improving scale across newer franchises.

The year was shaped by the GST transition. Ahead of the revised rate structure, customers deferred purchases in anticipation of lower prices, while the abolition of the compensation cess created temporary ambiguity around accumulated cess credits at the dealer level. The Company ran selective one-time discounting and incentive schemes on new and demonstration vehicles, particularly to clear cess- impacted inventory. These measures supported customer conversion and inventory liquidation, at the cost of temporary margin compression during the affected quarter.

Post transition, demand recovered sharply, aided by improved affordability, festive demand and conversion of deferred bookings. Deliveries were strong through the second half and realisations normalised gradually. The Companys brand portfolio, comprising longstanding partnerships such as Mercedes-Benz,

Honda, Citroen, Jeep, Volkswagen, Renault, BYD and Ashok Leyland, along with newer additions including Kia, MG Motor and Mahindra & Mahindra, continued to provide diversification across price points, customer segments and geographies.

Newer brands contributed an increasing share of new vehicle revenue during the year as outlets commissioned in the preceding period began to mature. As scale improved, these franchises narrowed the profitability gap with more established businesses. Premiumisation remained visible in the product mix, with the average selling price of new vehicles rising to approximately Rs.21.96 Lacs in 2025-26 from Rs.20.79 Lacs in the previous year.

This reflected continued customer preference for higher-end variants and feature-rich vehicles. Within the luxury portfolio, the average selling price for Mercedes-Benz reached a record level, reinforcing the shift towards higher-value purchases.

Inventory management remained a key area of focus during the year. Following GST-led liquidation, inventory days moved closer to the Companys target range. Towards the close of the year, the Company ran a calibrated inventory build-up to benefit from impending OEM price increases and to maintain product availability amid supply-chain uncertainty.

The approach held to disciplined working-capital management, availability-led sales planning and profitable growth.

New car sales Proforma Revenue Mix (Brands)

The Companys proforma revenue remained well-diversified across its brand portfolio. Mercedes-Benz continued to be the largest contributor, at approximately 40% of proforma revenue, while the collective contribution of the newer brands (Kia, Mahindra & Mahindra and MG Motor) rose to around 20% over the year, reflecting the Companys deliberate portfolio transformation. The indicative brand-wise mix is set out below, with the current-year composition to be confirmed on finalisation of audited segmental data.

After-Sales and Car Care

Landmarks After-Sales and Car Care division delivered a milestone year in 2025-26, with reported revenue Rs.10,508 Million on year-on-year growth of about 12%, past the Rs.10,000 Million mark for the first time. The segment continued to serve as a stable, high-margin, annuity-like counterbalance to the cyclicality of new-vehicle sales, on 3,87,075 service jobs during the year. Average revenue per vehicle service rose to approximately Rs.27,148 for the year and reached Rs.30,072 in the fourth quarter against Rs.27,420 in the corresponding quarter of the prior year, supported by a richer service mix, higher parts and accessories sales, OEM performance bonuses and periodic price revisions.

Recent investments in new service workshops for brands such as Kia, Mahindra & Mahindra and MG Motor expanded the Companys service footprint during the year.

These workshops are still ramping up and operated below the throughput of mature facilities. Management expects margins to return towards historical levels as the car pare builds and the newer workshops mature. During the year, the Company opened workshops including a Mercedes-Benz facility in Patna, Kia facility in Hyderabad etc and continued to invest in additional after-sales capacity. GST on spare parts fell to 18% from 28%, which improved the competitiveness of authorised workshops against unorganised garages.

The After-Sales business continues to be a cornerstone of Landmarks operating model, providing a steady, high-margin revenue stream while strengthening customer retention and brand loyalty. It remains central to the Companys objective of returning to its historical mid-teens compound growth in this segment over the medium term.

Pre-Owned Vehicle Sales

The Pre-Owned Vehicle Sales business contributed a modest share of revenue in 2025-26, reflecting the Companys deliberately measured approach to the segment. Rather than building significant self-owned inventory, the focus remained on maintaining pricing discipline and protecting margins amid changing market dynamics.

During the year, improved new-car affordability following GST changes narrowed the price gap between new and used vehicles, while frequent Etti OEM discounting added further volatility to used-vehicle valuations. In this environment, the Company consciously moderated near-term activity and prioritised operational discipline over volume growth. The pre-owned vehicle business nevertheless Rs. remains an important long-term growth pillar, with Rs. expansion to be pursued as market conditions Rs. become more stable and favourable.

Finance and Insurance

The Finance and Insurance segment continued to evolve as a complementary revenue stream supporting the Companys integrated retail platform, contributing a modest but growing share of total proforma revenue. During the year, the business drew greater strategic focus and strengthened the team with senior industry professionals. Drawing on its expanding customer base and growing transaction volumes, the Company renegotiated commission structures and service terms with key financial and insurance partners.

These revised terms, which reflect the Companys greater scale, are expected to support improved profitability in the periods ahead. Direct contribution remains modest, though the segment plays an important role in improving the customer experience and strengthening operating synergies across the retail network.

Financial Performance Review

(All figures in Million unless stated otherwise)

Particulars	2025-26	2024-25	Change (%)
Proforma Revenue ( Million)	67,187	56,261	19.4
Revenue from Operations ( Million)	48,962	40,255	21.6
Total Income ( Million)	49,144	40,388	21.7
EBITDA ( Million)	2,830	2,349	20.5
EBITDA Margin (%)*	5.8	5.8	-
Profit Before Tax (PBT) ( Million)	504	253	99.4
PBT Margin (%)*	1.0	0.6	-
Profit After Tax (PAT) ( Million)	381	173	119.7
PAT Margin (%)*	0.8	0.4	-
Earnings Per Share, Basic ()	9.0	3.9	134.0
Return on Capital Employed (ROCE) (%)	8.1	6.2	-
Return on Equity (ROE) (%)	6.7	3.2	-

Key Financial Ratios

Ratio	2025-26	2024-25
Current Ratio (times)	1.1	1.1
Adjusted Net Debt-Equity Ratio (times)	1.0	1.1
Debt Service Coverage Ratio (times)	1.9	1.9
Return on Equity/Net Worth (%)	6.7	3.2
Inventory Turnover Ratio (times)	6.2	5.5
Trade Receivables Turnover (days)	12.6	14.2
Trade Payables Turnover (days)	9.6	10.5
Net Capital Turnover Ratio (times)	4.1	3.7
Net Profit Ratio (%)	0.8	0.4
ROCE (%)	8.1	6.2

Landmarks RoE and RoCE improved during the year, supported by stronger operating profitability, better utilisation of its expanded dealership network and tighter cost control. New dealerships and workshops opened in the previous year matured and began contributing more meaningfully to revenue, improving asset utilisation and operating leverage.

The contribution from higher-margin after-sales services, along with higher vehicle sales, supported EBIT growth. Consequently, RoE increased significantly from 3.2% to 6.7%, and RoCE improved from 6.2% to 8.1%, reflecting more efficient use of shareholders equity and capital employed.

*EBITDA, PBT and PAT percentages are based on revenue from operations

Profit and Margins

In 2025-26, Landmark achieved its highest-ever proforma revenue of approximately Rs.67,187 Million, against Rs.56,261 Million in 2024-25. Reported revenue from operations increased to Rs.48,962 Million, while total income grew to Rs.49,144 Million. Growth came from new vehicle sales, higher contribution from the expanded brand portfolio, improving throughput from newer outlets and continued value realisation across the business.

Transition-related factors weighed on profitability. EBITDA stood at Rs.2,830 Million compared with Rs.2,349 Million in the previous year. Margins were compressed by one-time discounting and demonstration-car liquidation undertaken around the GST transition. In addition, the revenue mix remained skewed towards faster-growing new vehicle sales, while newer workshops and after-sales operations continued to ramp up. Depreciation and finance costs also reflected the full-year impact of the expanded network.

Profit before tax increased to Rs.504 Million from Rs.253 Million in 2024-25. PAT rose to Rs.381 Million from Rs.173 Million, while basic earnings per share improved to 9.0 from Rs.3.9. ROCE improved to 8.1% from 6.2%, reflecting better utilisation of capital and the benefits of scale across the network.

Margin improvement ahead is expected to come from continued cost optimisation, higher contribution from matured outlets, improved workshop throughput, better realisations from renegotiated arrangements with insurance partners and vendors, and a growing after-sales mix. With a sharper focus on operational efficiency, capital discipline and consolidation of the expanded network, the Company is positioned to improve profitability and return metrics over the medium term.

Opportunities and Threats

" Opportunities

• Indias automobile dealership industry remains fragmented, with organised retailers accounting for a relatively small share of overall industry volumes compared with developed markets.

This leaves headroom for the Company to scale through selective organic expansion and acquisition-led growth.

• Outlets added during the recent expansion phase are expected to contribute more substantially as they mature. This provides operating leverage, while the after-sales business, which crossed

Rs.10,000 Million in annual revenue, offers a recurring and higher-margin revenue stream as the vehicle pare of newer brands expands.

• Recent trade agreements, including the India-EU FTA, the India-UK CETAand the interim

India-US framework, may support improved pricing flexibility and enable the introduction of select premium and imported models over the medium term, particularly for brands where Landmark has a strong presence.

• India-focused product strategies and localisation plans by key OEM partners across premium, mainstream and new-energy segments, together with rising EV adoption, let the Company address evolving customer preferences through its diversified brand portfolio.

• Continued premiumisation of consumer demand and continued growth in allied revenue streams such as finance, insurance, accessories and pre-owned vehicles support higher revenue per customer, deeper lifecycle engagement and a stronger margin profile.

Threats

• Macroeconomic and geopolitical uncertainties, including developments in West Asia, currency movement, fuel-price volatility and supply-chain disruption, may affect consumer sentiment, discretionary purchases and the availability of vehicles and parts.

• Changes in regulation and policy, including taxation, emission standards, safety requirements and the pending legal matter relating to GST compensation cess credits may influence cost structures, pricing and near-term profitability.

• Dependence on select OEM partners may expose the Company to changes in OEM strategy, vehicle allocation, margin structures, brand performance and dealership terms.

• Newly added outlets and workshops typically require a gestation period before reaching optimal productivity and any delay in their ramp-up may affect consolidated margins and return ratios.

Risk Management

Risk	Risk Description	Risk Mitigation
ECONOMIC AND GEOPOLITICAL RISK	Macroeconomic volatility, inflationary pressure, currency movement, geopolitical tensions or higher interest rates may affect discretionary automobile purchases and disrupt supply, which would weigh on revenue performance.	Operating with an asset-light model, maintaining a brand portfolio across price points and segments, and preserving a strong balance sheet with lower debt to manage demand and supply-side volatility.
OEM CONCENTRATION RISK	Dependence on select OEM partners may expose the Company to changes in OEM strategy, margin structures, vehicle allocation or dealership terms.	Strengthening relationships with existing OEM partners while expanding into new and high-growth brands, supported by strong dealer performance and continued strategic relevance.
INVENTORY AND WORKING CAPITAL RISK	Inefficient inventory planning or credit cycles may block capital and affect liquidity, particularly across multi-brand operations and during regulatory transitions.	Maintaining disciplined inventory planning, tighter receivables control, OEM-supported channel financing and favourable commercial terms to support efficient working-capital management.
REGULATORY AND TAXATION RISK	Changes in taxation, GST provisions, including the pending GST compensation cess matter, emission standards, EV regulations or compliance requirements, may affect costs and operations.	Tracking regulatory developments closely, coordinating with OEMs and industry bodies, and adopting prudent provisioning and compliance practices to respond effectively.
SUPPLY CHAIN RISK	Disruptions in vehicle or spare-parts availability arising from global shortages, geopolitical events or OEM-level constraints may affect sales and after-sales performance.	Maintaining close OEM coordination, calibrated inventory buffers and flexible service operations to manage supply fluctuations.
TECHNOLOGY AND DIGITAL RISK	Failure to keep pace with digital transformation, including AI-led customer engagement, or disruptions in digital platforms may affect customer experience and operating efficiency.	Investing in end-to-end digitisation across the customer lifecycle, AI-led process improvements, internal capability building and technology partnerships to improve platform stability and scale.
REPUTATIONAL RISK	Adverse customer experiences, service-related concerns or negative perception on social media may affect consumer trust and sales performance.	Ensuring consistent customer service, strengthening post-sale engagement and enabling proactive communication across customer touchpoints to protect brand credibility.
LIQUIDITY RISK	Slower vehicle sales or delays in collections may affect the Companys ability to meet short-term obligations.	Maintaining healthy cash balances, strong operating cash flows, disciplined working-capital practices and established credit lines with financial institutions.
CYBERSECURITY RISK	Rising digitisation may raise exposure to cyberattacks, data breaches or system downtime.	Implementing cybersecurity protocols, periodic audits, employee-awareness initiatives and real-time monitoring of digital systems and customer data.

Human Relations

Landmark recognises its people as a vital pillar of long-term success and remains committed to nurturing a culture of performance, integrity and continuous development. As of March 31,2026, the Company employed approximately 5,120 individuals across its network of showrooms, workshops and corporate offices, a talent pool built around the Companys customer-first approach.

The Company continues to invest in structured learning and development programmes focused on technical skills, customer experience and leadership capabilities, with particular emphasis on onboarding new talent for expanding operations and on integrating acquired teams into a unified organisational culture. As the Company entered a phase of consolidation, the emphasis shifted towards strengthening productivity, capability and ownership across the stabilised network, while holding employee and operating costs within its internal threshold.

In 2025-26, Landmark enhanced its focus on employee engagement, internal communication and building a culture that encourages initiative and accountability.

Regular feedback mechanisms, digital HR platforms and performance-linked initiatives strengthen accountability and motivation at all levels. Industrial relations remained cordial throughout the year.

Internal Control Systems and their Adequacy

The Company continues to maintain a strong internal control framework, commensurate with the scale, multi-brand and multi-location nature of its operations, aimed at safeguarding assets, ensuring accurate financial reporting and improving operational efficiency. These controls are designed to ensure proper authorisation and recording of transactions, adherence to applicable accounting standards and compliance with statutory and regulatory requirements. During the year, the framework was extended to accommodate the newly commissioned outlets and workshops, the adoption of Al-enabled processes.

To uphold their effectiveness, the internal control systems are periodically reviewed, updated and tested. Independent internal auditors conduct risk-based audits across key functions and geographies throughout the year, and their observations and recommendations are reported to the Audit Committee of the Board, enabling timely corrective action wherever necessary. The internal control mechanisms play a critical role in the Companys broader governance and compliance framework, supporting informed decision-making, reinforcing operational discipline and ensuring the reliability of the Companys financial disclosures.

Forward-looking

Statements

This Report may contain certain statements that are forward-looking in nature, within the meaning of applicable securities laws and regulations. These statements reflect the Companys current expectations, estimates and projections, and are subject to a number of risks and uncertainties. Actual results, performance or achievements may differ materially from those expressed or implied in such statements.

Key factors that could influence outcomes include, but are not limited to, economic conditions in India and overseas, changes in regulatory policies, tax laws and other statutory provisions, developments in the competitive environment, geopolitical events, currency and commodity-price movements, and other unforeseen circumstances. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.