Landmark Cars Accelerates Sales by 11.22% in Q1 FY25, But Profitability Takes a Steep Dive

Landmark Cars, a prominent player in the automotive retail sector, has released its standalone financial results for the quarter ending June 2025, painting a picture of robust top-line growth coupled with significant challenges to its profitability. The company reported a commendable 11.22% year-over-year increase in net sales, reaching Rs 141.17 crore compared to Rs 126.93 crore in the corresponding quarter of June 2024.

This upward trajectory in sales underscores the company's ability to drive revenue in a dynamic market.

However, the narrative shifts dramatically when examining the profit figures. Landmark Cars' standalone net profit for the June 2025 quarter plummeted by an alarming 82.52%, settling at Rs 1.70 crore.

This is a sharp decline from the Rs 9.73 crore profit recorded in the same quarter last year. The significant drop in net profit raises questions about the company's operational efficiency and cost management strategies during a period of expanding sales.

Further scrutiny of the financial statement reveals that Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also faced headwinds.

The EBITDA for the quarter stood at Rs 8.16 crore, marking a decrease of 15.69% from Rs 9.68 crore in the June 2024 quarter. This decline in EBITDA, despite rising sales, suggests an increase in operational costs relative to revenue or a shift in sales mix towards lower-margin products.

The company's Earnings Per Share (EPS) mirrored the profit downturn, coming in at Rs 0.44 for Q1 FY25.

This is a substantial drop from the Rs 2.50 reported in the June 2024 quarter, directly reflecting the reduced net profit available to shareholders. These results indicate a mixed performance for Landmark Cars, demonstrating strong market demand for its offerings but highlighting pressure on its bottom line.

Investors and analysts will likely be keen to understand the underlying factors contributing to the profitability squeeze and the company's plans to address these challenges in the upcoming quarters.