Popular Vehicles Q1 FY27 earnings call: Revenue & Margins

Future Growth Expectations of Popular Vehicles and Services Limited: - **Passenger Vehicles (PV):** - New vehicle volumes expected to grow by 6-7% from Q2 onwards. - Service volumes to increase steadily, with improved running repairs campaigns. - ASP (Average Selling Price) to continue growth, positively impacting service revenues. - EBITDA margin for PV expected to inch upwards from current 4%. - **Commercial Vehicles (CV):** - Healthy organic growth at ~21% (revenues), 34% (new vehicles), and 5% (service volumes) observed. - Some slowdown in the tipper segment due to construction slowdown; other CV segments remain strong. - Anticipated resilience in demand despite regional challenges. - **Electric Vehicles (EV):** - Strong growth with new vehicle volumes up 153% YoY and service volume up 60% YoY. - EV penetration remains muted except for 2-wheelers; 4-wheeler EV growth expected to be insignificant short-term. - Supply constraints (e.g., Ather and JLR) limiting stock. - **Acquisitions and Overall:** - Acquired businesses expected to stabilize and scale, hitting positive PAT by Q2/Q3 FY27.

Relevant insights include: - Inquiries are growing approximately 17-20% compared to last year. - Bookings have shown a higher growth at about 20-22% year-on-year. - Major markets like Keralam expect higher demand post Onam festival (after August 17). - Supply constraints exist on EVs (Ather around 5-day stock, JLR constrained) and spare parts, potentially impacting order fulfillment.