Landmark Cars Ltd (NSE: LANDMARK) Q3 2026 Earnings Call dated Feb. 11, 2026
Corporate Participants:
Sanjay Thakker — Chairman and Executive Director
Aryaman Thakker — Executive Director
Surendra Agarwal — Chief Financial Officer
Analysts:
Unidentified Participant
Rahul Dani — Analyst
Bhargav Buddhadev — Analyst
Pritesh Chheda — Analyst
Akhil Parekh — Analyst
Ajox Frederick — Analyst
Jyoti Singh — Analyst
Vaishnavi Guru — Analyst
Subhanu Bangal — Analyst
Arnav Sakhuja — Analyst
Vijay Pandey — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Landmark Cast Q3FY26 earnings call hosted by Monarch Net Worth Capital Limited. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star Pin zero on your touchtone phone.
Please note that this conference is being recorded. I now hand the conference over to Mr. Rahul Dhani from Munar Net Worth Capital Limited. Thank you. And over to you sir.
Rahul Dani — Analyst
Yeah, thank you. Good morning everyone. On behalf of Monarch Network Capital, I welcome you. I welcome you all to Landmark Cars Q3FY26 earnings call. From the management side we have Mr. Sanjay Thakkar, Promoter, Chairman and Executive Director, Mr. Ariman Thakkar, Executive Director, Surinder Agarwal, CFO and SGA Dire Advisors. We will start the call with opening remarks from the management and then Q and A. Thank you. And over to you sir.
Sanjay Thakker — Chairman and Executive Director
On behalf of the company, I extend a sincere welcome to everybody who has joined us today on this call. As explained by Rahul, we have Aryaman Thakkar, Executive Director and Surendra Agarwal, CFO who are with me on this call. The results and the presentations are uploaded on the stock exchanges and on the company website. I hope everybody has had a chance to look at it. I am pleased to share that this quarter was our strongest so far with revenue, gross profit and EBITDA all at record levels. With that context, I now step back and look at the broader industry environment.
Because what we have seen in the last few months are some structural shifts in the Indian passenger vehicle market following the GST reforms. The conclusions of the India EU FTA along with the interim US Trade deal marks a slew of policy milestones which are expected to support and strengthen the Indian automotive industry over the long term. From the EU FTA perspective, multiple of our OEMs such as Mercedes Benz, Renault, Volkswagen and Stellant Test brands are well poised to benefit for those OEMs. The FTA not only improves the long term pricing flexibility but also enables the introduction of slick models into India on a measured basis, allowing them to test the market response and build demand ahead of wider launches.
With some of these changes. While some of these changes may be phased out and calibered over the time, this is expected to expand the addressable market in the premium and luxury segment and support a healthier, more sustained growth Runway for both our OEM partners as well as Landmark. As per current year’s data, over 50% of landmark volume is coming from these OEMs who are likely to benefit in one way or another due to these path breaking FTAs. In the last 18 months Landmark has set up large capacities. The new outlets have now stabilized. We have demonstrated our capacity to rapidly and profitably grow when the opportunity arises.
The auto retail business is a cash generating, predictable business when run properly. In the first nine months the company has generated over 265 crores of net cash flow from operating activities. With the modified landscape, the company has several exciting opportunities that it is exploring. We at Landmark are committed to build on a solid platform that we are now standing on with this. I’ll hand it over to Aryaman for his comments.
Aryaman Thakker — Executive Director
Thank you. Let me start by giving a brief update of our OEM partners. Mercedes Benz continues to perform very well in India with a clear focus on value over volumes and increasing the contribution to the top end vehicles. They continue to be the largest luxury brand in India. The decision to locally produce the Maybach GLS and expand the product lineup with 12 new model introductions is indicative of their confidence in the premium demand environment of the country. The brand will soon launch the new V Class and the CLA sedan. Globally, Mercedes will be launching over 40 new products starting this year.
BYD delivered a robust growth, recording close to 80% volume growth in calendar year 2025. This growth was achieved in spite of low supplies in November and December. Few supplies have started from the end of January, though we expect it to fully regularize only from April. With most models now in the process of being homologated in India, we expect BYD to build further on this volume in the coming financial year. Mahindra has started 2026 with two big product launches. The brand saw strong booking Momentum for the XEV9s and the XUV7XO which together recorded over 93,000 bookings just in a few hours.
This reflected strong acceptance for the brand and demand for its products. We expect this brand to continue their momentum over the next few years. Renault has seen renewed traction led by the relaunch of the all new Duster, which is the first of multiple new launches over the next few years. The deliveries will begin from April and we expect the brand’s contribution to gradually improve. MG continues to perform well and is positioned for even stronger growth this year. Supported by multiple product launches, the MG select brand contributed positively to the business performance and has seen good acceptance in the premium segment.
Jeep has recently outlined a refreshed strategic direction with plans to introduce new models in India from 2027 signaling a renewed focus on the market. These developments are positive and indicate that the brand is steadily working towards establishing a more sustainable footing in the country. Post the GST cuts, we have seen a robust demand for the Ashok Leyland commercial vehicle business and we expect that this will continue. Our after sales business also delivered a record quarter with highest revenue and year on year growth outperforming recent trends Our newer workshops are progressively ramping up and we expect them to get us to historic growth rates going forward.
We have remained disciplined on costs, keeping employee and operating expenses within our targeted threshold even as volumes improved. At the same time, our focus on working capital efficiency continues with inventory levels well below industry averages during the quarter we also expanded our network with the addition of new outlet for Mercedes Benz in Bhopal and Mahendra and Mahendra in Hyderabad. The coming quarter will be supported by a healthy pipeline of new model launches like the Mercedes Benz V Class, the Mercedes cla, the VW Tayron, MG Magester and the Renault Duster. Deliveries will ramp up for recently introduced products such as the Mahindra 7XO, the XUV9S as well as the Kia Seltos.
Looking ahead, we expect demand to stay supported by positive sentiment, ongoing product launches and disciplined inventory management. While there may be near term challenges, the medium to long term opportunity, especially in the premium luxury and electric vehicle space remains compelling. With a diversified OEM portfolio, a growing after sales annuity and a strong balance between growth and discipline, we believe Landmark Cars is well positioned to navigate the current environment and meaningfully participate in the next phase of industry growth. With that overview of the operating environment and the product pipeline, I will now hand it over to Surendra Agarwal to take us through the financial highlights.
Surendra Agarwal — Chief Financial Officer
Thank you, thank you Ariman and good morning everyone. Let me now take you through the financial highlight for the quarter and the nine month end date 31st December 2025. We continue to be the highest contributor in terms of terms of volume for multiple OEM and this translates into meaningful number for our all OEM partner. Talking about our Q3FY26 performance, total performer revenue for the quarter stood at 1851 crore on 1851 crore on a high base of 1659 crore in the same quarter last year representing a year on year growth of 11%. With this performer, revenue for new car sales grew by 10.6% year on year to Rupees15.72 crore while after sale revenue stood at Rupees279 crore reflecting a growth of 13.1% year on year.
Our reported revenue for the quarter was Rupees13.45 crore making a year on year growth of 12.6%. Gross profit for the quarter stood at Rupees 220 crore reflecting a sequential improvement of 13.6%. The gross margin came at 16.4% during the quarter. Employee cost and other operating expenses were capped below the target 4% of pro forma revenue. The company remained committed to its stated plan of cost optimization. EBITDA for the quarter stood at Rs. 79 crore reflecting a year on year growth of 13.3% with an EBITDA margin of 5.9%. On reported revenue. Appreciation for the quarter was rupees 38 crore and the interest cost for the quarter stood at rupees 20 crore.
During the quarter the company also recognized an exceptional item of Rupees two crore on account of implementation of new labor codes paid for the quarter rupees 14 crore while cash paid for the quarter at rupees 34 crore with margin 1.1% and 2.5% respectively. This is the highest in the last seven quarter. Total comprehensive income on reported basis Is stood at rupees 15.2 crore moving to the nine month performance of FY26. Total performer revenue stood at rupees 4924 crore compared to rupees 4100 crore in. The same period last year reflecting a. Year on year growth of 20.1%. With this performa, revenue for new car sale was rupees 4156 crore registering a growth of 21.9% while after sale revenue stood at rupees 768 crore reflecting a year on year growth of 10.9%. Reported revenue for the nine months was rupees 3618 crore with a gross profit of rupees 601 crore translating into gross margin of rupees of percentage 16.6%. EBITDA for the period at rupees 204 crore with an EBITDA margin of 5.6% PAT. Before net India’s impact stood at rupees 26 crore. For the new car sold we saw an average selling price increase from 20.69 month FY25 to 21.6 lakh 9 month FY26.
On a nine month basis the number of service increased by 11% reaching to 2,93,000. This is while the workshop are still at a ramp of trace. As of 31st December 2025, the company generated net operating cash flow of approximately Rupees 265 crore. Reflecting improved working capital discipline. We continue to prioritize cash generation in our operation. With this we now open the floor for question and answer session.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star n1 on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Bhargav Buddhadev from Ambit Asset Management. Please go ahead.
Bhargav Buddhadev
Yeah, good morning team and congratulations on a very good performance. My first question is that if you look at your new workshops, almost 20% of your workshops have opened just about 18 months ago. So is it fair to say that maybe next year the revenue growth from after sales should actually be much faster and higher as compared to the new car sales? That’s my first question.
Sanjay Thakker
Yeah, you want me to answer that now or you want to ask the second question? And we answer both together.
Bhargav Buddhadev
And the second question is that in your presentation also you highlighted the benefits of usda. So is it fair to say that this FTA will benefit primarily expensive cars which are CDU and not ckd? So which means that there will not be any fall in demand per se. So people will not wait for the U FTA to happen and then buy Mercedes or maybe say a Volkswagen. So demand will continue to still exist next year given that majority of the cars are CKD and hence the benefit of the FTA may not be applicable to those.
So is that a fair understanding? Because the fear is that the demand may get postponed to after the fta. Those are my two questions.
Sanjay Thakker
Okay, so let’s answer it in the sequence that you have asked. Yes, our workshops for new brands and some newly opened locations are in a ramp up phase and every month we are seeing better performance from them as the car part increases and our service revenue is also increasing. So what is happening is that the mix of our sales and service will get in favor more in favor of the off service which will lead to a higher gross Profit in those brands currently, if I may broadly say, our mature brands have approximately 15% or thereabouts of contribution coming from after sales in that business.
In the newer brands it is still just around 9%, 10%. So once this increases and is that it will. So the growth will happen. But to kind of say that it will be a significant year on year growth, it is a little premature. Of course we are back on our growth trajectory and we’ll be kind of doing our math. Now it will depend the after sales growth also depends on the sales of the new cars that we do in that year. So it’s a little complex mechanism, but the growth is clearly back on the second question on the EU fda.
Now a lot of things have been written about it, a lot of things have not been written about it. So the discussions have been on the fully built units where the duties are going to be falling meaningfully as soon as this implementation happens. Now the implementation may happen a year from now or a little longer based on how when the parliament EU approves this though I am made to understand that the intent on both sides is really very, very heavy. Around 98, 92% of the vehicles that we sell, say in Mercedes Benz, I believe are the CKD vehicles where the price drop may not be anything meaningful and the currency fluctuations may kind of mitigate any kind of drop in the CKD things.
The CBU is something that will see a big drop. So I do not expect any kind of postponement or anything because the CKD operation is what is heavy in Mercedes Benz. Now what is exciting and which is less reported in the press is that the within the import category, I believe There are subcategories €15,000 to say €30,000, €30,000 to €50,000. And there are categories within that one can import a certain number of vehicles. Now this opens up avenue for vehicles that were not initially imported by brands like a Volkswagen or a Jeep or a Renault.
Now that will come at a significantly lower duty. Those were not in consideration at all. Now that may not be on the overall industry perspective a very meaningful number because the numbers would be maybe 20, 30,000 vehicles that may come initially under this, but it will have a meaningful impact on landmark because we are the largest partners for these brands and it will open up a new kind of a business which doesn’t exist. The duties on parts also will fall over a period of time. The cost of ownership will go down. So it has a lot of long term benefits.
Also Bhargav, what we are seeing is that after the EU FTA has been signed, we have had senior level visits from practically all European manufacturers into India. We have had meetings with them, is really visible on what the possibilities suddenly are. So let’s see. Time will tell. Things look good. Thanks.
Bhargav Buddhadev
Great. Sir, thank you very much for your answers and all the very best.
Sanjay Thakker
Yeah.
operator
Thank you. The next question is from the line of Pritesh from Lucky Investment. Please go ahead.
Pritesh Chheda
Yeah, sir, just I have one question on Mercedes and portfolio brand. So you know there the performance of that brand when you look at the nine month number and the segmental mix and all that you’ve given has grown fairly less than the company growth. And we know the, we know the brand state of that and on the other side obviously you added a lot of costs and a lot of other brands. So it’s imperative that Even Mercedes being 40% of the revenue has to move start using the needle. So what’s your assessment based on the product portfolio, based on your conversations with them? And they have lost some share in India.
So what do you think about this particular brand in the next 24 months based on the launches that they have pipeline that you would have seen? So some comments there and what growth do you see in this particular piece of the portfolio?
Sanjay Thakker
Yes, thanks Pritesh. Mercedes is our crown jewel. Clearly. Now the thing is that the Mercedes brand and as explained in their investor presentations, it has grown in value terms, they have lost market share in volume terms. But that has been the global strategy so far. Now let’s see how the strategy plays out. Now as Ariman spoke about in his speech, there are 40 new models which are getting launched globally, which has never happened in the history of Mercedes Benz. They will not all come into India this year, but the industry works on kind of spurts that you get when the new models are launched and then you get into a kind of a steady growth.
So Mercedes is in that phase. The volumes will grow this year. But the numbers, it is difficult to kind of put any number from my side as to what numbers will happen. Things look pretty decent to us sitting here and we are exploring possibilities with the eu, FDA and what will happen. So things only look good from here.
Pritesh Chheda
So when do these model launches start? And for CY26, how many models one can assume to come from Australia?
Sanjay Thakker
Well, 12 new models are kind of minor and major. Model 12 have been kind of announced by the company and they are, that will start from next month.
Pritesh Chheda
These are upgrades or these are completely new models.
Sanjay Thakker
It’s a mix of both.
Pritesh Chheda
And does it plug the gap versus, you know, the other competitor when there was a product gap between us. And then on the SUV portfolio and the EV portfolio does it all plugs, all those gaps, perceptible gaps.
Sanjay Thakker
We’ll find out some things. I’m not at liberty to kind of talk on this, but what I can say is that things look pretty okay and it remains to be a very profitable and a good brand for us.
Pritesh Chheda
Okay, done, sir. And the other part is on the expansion side. We had said that, you know, we went through a large expansion into three years and we stopped our operation and we incrementally will only look at tactical expansion, if any. Are we on that course or is there a change in that thought process?
Sanjay Thakker
As of now we have done rapid expansion and for us also to kind of prove to ourselves that we can very rapidly go back to our profitability and other matrixes is important. Now we are on its path. When we said that we will get into a 4% cost, a lot of people doubted that. We put our neck out and said that this is what it is and we went ahead and did it. Now we are on our way to getting Our EBITDA margin increased 1% this quarter on quarter. So this is something which we have been able to and this is not even that all the locations are fully kind of mature.
So this is something which is for us also to understand that we are able to do it. We are in a position to at will, if I may sound a little pompous, but we are at will. We are able, we will be able to expand and grow our very with organic and inorganic thing. So growth in the Last year, for example, in the calendar year we grew at 20% I believe as against industry growth of 10%. Now that growth in my mind is not a fear. We can grow as and when we want. We have demonstrated that and we will press the accelerator when the need arises.
Nothing that looks like some big ticket or big expansions in the pipeline.
Pritesh Chheda
Lastly, what will be your budget plan for growth and margin expansion next year by 27?
Sanjay Thakker
I didn’t understand Pritesh.
Pritesh Chheda
What will be your internal or what would be your outlook for growth and margin expansion basis points next year that is expected?
Sanjay Thakker
We will maybe answer this question in the next next quarter. Let the year come. We are in midst of getting the new models and the business plans of lot of OEs. The business model works where we are in Talks with all OEs for the next year. Let that happen. Maybe next year, next quarter will answer this question.
Pritesh Chheda
Thank you very much. And all the best. Thank you.
Sanjay Thakker
Thanks.
operator
Thank you. The next question is in the line of Akhil Parekh from BNK Securities. Please go ahead.
Akhil Parekh
Yeah, thanks for the opportunity and many congratulations on the good set of numbers. So my question is on the after sales part of the business with the EU FTA coming in, do we see an improved visibility for after sales service Once the FTA kind of rectifies, will we see more parts or components getting sold for the European OEMs and whether the that component as a percentage of car sales will kind of go up? Basically that’s our first question.
Sanjay Thakker
Yeah, Akhil. So this details are still awaited because there is no written document that we have, I have personally seen. I don’t know whether it has even been published. So whatever we have is from interviews and kind of press notes that we have heard. I don’t think that these spare parts per se will sell more just because the prices will fall. It will help in the cost of ownership and it will help the new car sales in the medium and long term when the parts, spare parts and the repair cost comes down.
Akhil Parekh
Okay, okay. But like an organized, organized can happen, right? Given that the prices may fall and we might see major traction from authentic parts.
Sanjay Thakker
That is true. That is true.
Akhil Parekh
So second on the gross margin front, right. Last quarter you had alluded that we’ll see a hundred years of improvement in second half of the gross margin level if I remember correctly. But it’s still flattish on a yy basis at 60% on net reported revenue basis. So is it to do with the Mercedes sales relatively weaker as compared to our overall growth and hence the GM improvement is not there. And how should one look at the gross margin or rather EBITDA margin in subsequent quarters?
Sanjay Thakker
So there has been a marginal, I think a 20bp improvement in the gross profit. And this gross profit has everything to do with the mix of sales and after sales. So once the after sales grows or the sales for example doesn’t grow as much, then the percentage margin mathematically increases. What we have been able to substitute that is with the significant jump in the EBITDA margin on a sequential basis. Now I think that is what we are also focusing on to generate a net profit and an EBITDA margin. Many a times we look at gross profit so that EBITDA and net profit also comes.
We have been able to deliver on that count.
Akhil Parekh
Third and last question, like after sales survey you had said that it will go back to 14% plus and we are kind of closer to that number from a Growth perspective should that continue and improve from here on as the newer brands or the OEMs have now stabilized. So kind of 15, 16 plus growth rate in after sales service can be expected and hence the EBITDA margins which we saw in our previous peak cycle in FY23, which was at close to 7%. That that’s a possibility if, if things fall in place in FY27.
Sanjay Thakker
Yes, the answer is it is possible. And that’s all what we are working towards. I. I don’t want to kind of put a number which around me, but if you are asking a theoretical question and I am saying yes, it can happen.
Akhil Parekh
Okay. Okay. So that’s all for my set and best wishes for coming.
Sanjay Thakker
Yeah, thank. You.
operator
Thank you. The next question is from the line of Ajax, Frederick H from Sundaram Mutual Fund. Please go ahead.
Ajox Frederick
Hi sir. Thanks for the opportunity. So again on the aftermarkets we used to be at around. I mean the way I look at it is as a percentage of slightly deferred sales. So on a rolling basis about 23, 24% of growing 12 months to take a quarter or a half year lag. Now we are sitting at only 1% primarily because of new showrooms being open now. Steady state. If I look back, the growth can be much stronger going a year ahead. It can be even touching 18, 20% when we get back to our steady state based on the current revenues, whatever we are doing. Is that too optimistic or we can, we can still hit that 18 kind of growth in let’s say one month now based on what we’re doing right now.
Sanjay Thakker
Yeah, sorry, I didn’t get the percentages that you just mentioned.
Ajox Frederick
You said after. Yeah, yeah. The percentage is a percentage of sale of aftermarket business to the historical 12 months perform our revenue. So basically whatever we are doing right now. Yeah, yeah. It’s a basis of whatever we are doing and projecting to the next subsequent time frames where the aftermarkets will come.
Sanjay Thakker
Yeah, so currently it is at around 15%. I think that’s where we are.
Ajox Frederick
And historically wherever we saw, let’s say. Last year before the ramp up had.
Sanjay Thakker
Happened, Surendra is just checking these numbers. They are not with me immediately. So just to kind of tell you is that once we build up a car park then the business is a kind of an annuity type of a business that happens. So that is something that we are, we have, we are in the process of doing and that’s something which will play out in the future. It was very, very long back. It was around 20% plus. Around. Okay. In the year 21, the COVID years when the sales was down.
Ajox Frederick
Okay.
Sanjay Thakker
So what had happened is that’s where the after sales percentage went up because the sales was not there.
Ajox Frederick
Got it, Got it. The steady state. This number will be also close to 18% in your math.
Sanjay Thakker
We somehow have not been tracking the way you are and answer that. But because we have been like our tenure, CAGR has been say 14% growth.
Ajox Frederick
Okay, okay.
Sanjay Thakker
That’s how we have been tracking. But this is also a good way of looking at things. Let me look at it as a percentage of overall revenue. That’s also a fair point. Let me give me some answer on this.
Ajox Frederick
No problem. And so secondly, other than Mercedes, are. There any you mentioned, right. There are other baskets which are CBU’s which can open up in Mercedes similar to that. Are there other OEs which can also come in because of the FDA?
Sanjay Thakker
Yes, my friend. So a lot of them. All the European manufacturers, Volkswagen already has been importing some of the other vehicles. But higher duty and consequently also selling less. They were also constrained by a two and a half thousand unit cap on those cars. Now that cap will go away. So that will open up an avenue. Clearly Stellantis brands, which is Citron and Jeep and their other brands can also get it from Europe. Renault which is a European brand and the Duster which is going to be a success, they can get some imported vehicles. So it has opened up a lot of new avenues.
Ajox Frederick
Okay, so that’s wonderful. Congrats and all the best.
Sanjay Thakker
Yeah, thank you.
operator
Thank you. The next question is in the line of Vijay Pandey from Nava. Please go ahead.
Unidentified Participant
All right. Thank you sir for taking my question. A couple of questions. In terms of unit economics for unit showroom economics and unit workshop economics, what is our expectation in terms of nominal run rate for the sales and for both showroom as well as workshop? Because if I calculated for first quarter, especially the workshops, they have been declining as compared to what we saw last year. So could we. Probably. So if you can explain that will be pretty helpful to understand why it’s happening.
Sanjay Thakker
So see, each workshop in our case, one store is not like every other store. Every store, every brand is different. A workshop for example, you mentioned Vijay. Now workshops are of different shapes and sizes. We have workshop which is a five day workshop and we have a workshop which is a 55 day workshop. I am just giving you kind of a stark contrast to what we already do. So it is difficult to compare a five day workshop with a lower productivity with a 55 bay workshop. So it is a little very simplistic to kind of look at unit economics by that basis.
And we can set up your call with Surendra to kind of explain this better at a later date because it may require a deeper discussion.
Unidentified Participant
Okay. Okay. Thank you. Sure. Wanted to check in terms of employee expenses and our depreciation. So both have come down sequentially. So how should we look? Employee expenses as percentage of sales and DNA.
Surendra Agarwal
Expenses will remain within the 4% as we committed. And depreciation will remain 38 crore with the India’s impact that will continue with the same which I had given in my earlier quarter is also that depreciation would be around for the yearly basis. It will be around 150 crore for the year with the indexing and expense of employee expenses will remain within 4%.
Unidentified Participant
Okay. Okay. Employee expenses will depend within show person.
Surendra Agarwal
Yeah.
Sanjay Thakker
We had basically said that last quarter was in a way an aberration where we had to spend more money to liquidate a lot of stuff and all that. So many things were happening. Many stores were on a ramp up basis. We are on a steady state right now.
Unidentified Participant
It is trending at around 6%. For this quarter it was 5 and a half percent. So. So.
Sanjay Thakker
So Vijay, you are looking that on. The reported turnover. Because we are tracking. All this line item on the Performa revenue. Okay. Okay.
Unidentified Participant
Yeah. Okay sir. Thank you.
operator
Thank you. The next question is from the line of PAD from Vellum Capital Advisors. Please go ahead.
Unidentified Participant
Hi. So I had a couple of questions. The first one is what is driving the other income line item.
Sanjay Thakker
So part the other in other income. Line item is consists of the multiple item. It is some rights back some of the location which we have closed down. So the lease gain is also reflected in the other line, other income line item and the interest cost. So we had given some. We have some bank guarantee against that. We have given the fd. So the interest income on those lines.
Unidentified Participant
The second question is what has been the index impact on depreciation for RU assets and on interest for these liabilities for this quarter.
Surendra Agarwal
Yeah, I’ll give you. I’ll give you. You want that for the quarter?
Sanjay Thakker
Yes, for the quarter. So the amortization for the quarter which is part of the depreciation is 20 cr. And interest on lease liability is around 8 crores. It’s 7.7 crore.
Unidentified Participant
Okay. Got. Thanks.
Sanjay Thakker
Yeah. Yeah. Okay.
operator
Thank you. The next question is from the line of Jyoti Singh from Arihan Capital Markets Ltd. Please go ahead.
operator
Thank you. For the opportunity. Just wanted to understand few things. One is on the new brand that is contributing 20% of revenue. So these are margin accretive or diluted for us. And also on the earlier question on the workshop side, so that generate around 30% plus ROC. So what is blended group ROC? Post stabilization of the new outlet and another on the inventory days that has reduced to 31 and versus industry what we are expecting going forward.
And Also on the UN US FDA could benefit 50 plus portfolio. And what is quantified earning sensitiveness? If you can explain.
Jyoti Singh
It’s a very complex question. Questions three, four of them that you asked Jyoti. I can’t answer. On the quantification of the E.U. u.S. FDA. Currently we will. We haven’t seen the fine print and we don’t know when it will be implemented exactly. So it will be difficult to kind of put a number to it at this stage. It is a little premature. The announcements have been made, but we don’t have the details. And the implementation date, the inventory day. Inventory days. At our end we are. We have been publishing this for a very long time and we have tried to always maintain it much lower than the industry standard with a disciplined approach.
Now our desire, we are at say 31 days currently. Our desire would be to even bring it down. The less you have, the more money you make. So hopefully the demand stays and this should further reduce every quarter. Difficult to put a number to it, but we are in a good zone currently. We had said that 30 is acceptable number. Anything beyond below that is very good. So we are at that threshold already.
Jyoti Singh
Okay. And so on the new brand that contribute 20% of revenue. So any, any margin accretive or dilated for this.
Sanjay Thakker
So yes, they are clearly, clearly not as profitable as the old brands. Some of them have already turned profitable, some are on their way. So it’s a matter of a few more quarters and they will get to a much better zone than they are. We report we gave this breakup of new and old for nearly a year. Then it everything more or less has become a year old. But yes, they are not contributing as much as the other brands as yet. But they will in the time to come.
Jyoti Singh
Okay, sir, on the workshop side like you mentioned earlier. So what will be the blended group ROC post stabilization of the new.
Sanjay Thakker
Please, maybe give us some more time. We’ll discuss this later.
operator
Thank you. Thank you. The next question is from the line of Vaishnavi Guru from Craving Alpha Wealth Fund. Please go ahead.
Vaishnavi Guru
Thank you for taking my question, sir. My first Question is on negotiation interest. Sorry to interrupt. Can you please speak a little louder?
Sanjay Thakker
Hello.
Surendra Agarwal
Yeah, hello.
operator
We have lost the line for Vaishnavi. So we’ll take the next question from Shubhanu Bangal from Three Head Capital. Please go ahead.
Subhanu Bangal
Good morning, sir. Obviously SP will reduce after ASP reduce the brand value of the brand will be can affect maybe effect. Is my understanding correct?
Sanjay Thakker
Can you please repeat.
Subhanu Bangal
After EU deal with India the band value of the car may be effect because ASP will be reduced.
Sanjay Thakker
So ASP will be reduced only on imported cars. Not on locally built cars. So locally built cars. 92% of what we sell right now. Now.
Subhanu Bangal
Okay. Okay.
operator
Sorry to interrupt. Sorry to interrupt. Mr. Bangle, please rejoin the queue for more questions. Thank you. A reminder to all the participants. If you wish to ask a question please press star and 1. The next question is from the line of Vedic Bafna from Monast Net Worth Capital limited. Please go ahead.
Unidentified Participant
Congratulations sir, on good set of numbers. Sir, I have two questions. Firstly sir, on a nine month basis what would be our capex number?
Sanjay Thakker
Okay, so our capex number on nine month basis is 50 crore.
Unidentified Participant
Vedic 50 crores. Okay sir. And sir, secondly, can you give us an outlook on our margins side on the gross and as well as the OPM side. In FY24 we had achieved 19 and a half percent gross margin and 6.6% on EBITDA levels. So by when can we reach that level?
Sanjay Thakker
So EBITDA we are already at what, 5.9 and we want 6.6 of what we had reached at our peak. That’s what we are talking about. It’s a. I don’t want to give a guidance on this. We are on a path for better numbers from now on.
Unidentified Participant
So sir, in FY27 would be surpass our FY25 gross and EBITDA level.
Sanjay Thakker
Let me make up my budgets and answer this question next quarter. But what I’m saying is that things only look much better than where we stood. Our net profit is highest in last seven quarters. And every day is a better day.
Unidentified Participant
Okay, sir. And sir, on the after sales side. Earlier we used to grow at. Earlier we used to grow at a much faster pace. So now since now all the workshops have been in place and are about to mature. So can we expect a 15% revenue growth in that division?
Sanjay Thakker
See, the point is that we have been growing last 10 years at 14% CAGR. So I really don’t know whether. 13, 14, 15. It’s a very fine kind of a thing. I Understand where you are coming from because that 1% will have a big improvement in everything. But I wouldn’t want to the number right now.
Unidentified Participant
Okay sir, that’s it from mine. Thank you sir.
operator
Thank you. Before we take the next question, a reminder to all the participants that you may press star N1 to ask a question. The next question is from the line of Arnav Sakuja from Ambit Capital. Please go ahead.
Arnav Sakhuja
Hi, thanks for taking my question. So recently Jetor announced that they are likely to launch in India through the JV route with JSW Group. So I mean, in your opinion, do you expect that there are many more Chinese OEMs to follow suit and also launch in India through the JV route through which they can do local assembly? And if so, what will be the impact on the Indian automotive landscape?
Sanjay Thakker
Yeah, so yes, we also know about the general JV which is happening. There have been some other, it’s very early days to kind of comment on any impact on it. It’s an evolving kind of a thing. So maybe in the next few quarters we will know who are the new players and how they would like to kind of come and all that. Right now as things stand, their investments are not allowed unless it’s possibly a JV route and all that early days. Arnaud, right now I won’t have any smart answer to give.
Arnav Sakhuja
Right, fair enough. So my next question is with regards to the mid size SUV segment. So I think currently in India that’s probably one of the fastest growing segment, that 50 to 20 lakh rupee price range and you know there’s so many models, Jeep, Compass, Kia, Seltos, etc, etc. So I mean just to understand that landscape a bit better in this segment, what are some key features that customers look out for and what are some distinguishing factors that some brands are able to offer that others are not.
Aryaman Thakker
So I think you are right. Tarnav, I think that has been one of the fastest growing segments and it is quite a competitive segment. Also most of the brands we represent have a very strong presence with the KIAs and MGs as well as now the Duster, also Duster entering it and Mahindra who has kind of been leading from the front in this segment. So I think what we have seen is that that segment has been impacted quite a bit from the premiumization trend that the industry has been witnessing for the last couple of years. And in terms of features, I think the few things that I think the customers are now understanding and valuing more, one of course is the safety of the products where now we’ve seen that most of these manufacturers have also started focusing on the global NCAP and the India nCap ratings, the four star five star safety ratings.
The customers are also choosing to go with the top end variants which are loaded with the best infotainment. The sunroof heads up display all of those those things and SUVs. One of the main reasons is that it kind of caters to most needs and the Indian driving conditions. So that in itself has kind of been one of the key reasons why it’s been ruling the customer’s mind space right now.
Arnav Sakhuja
Sure. Thanks a lot. Thanks for answering my questions and congrats on a strong set of numbers.
operator
Thank you. A reminder to all the participants, if you wish to ask a question please press star N1. The next question is from the line of Vijay Pandey from Nuama. Please go ahead.
Vijay Pandey
Sir. Thank you for the follow up. So we have added around 20 new touch points over last two quarters. Just want to understand where these new touch points, new schedules and workshops are in terms of the peak revenue cycle. So how much time will it take for them to read from here on.
Sanjay Thakker
To some some error in the numbers. Last two quarters we have not added 20 outlets. It it is in the last whole year or one and maybe five quarters is what we are talking about. In the last two quarters very few, three, four outlets have been added at best.
Vijay Pandey
Okay. Because I think in the first quarter it was mentioned that 65 showrooms and 57 workshops so that came around 122. Now it’s 140. So.
Sanjay Thakker
No, no. I don’t know. Maybe we’ll offline talk to you.
Vijay Pandey
We’ll take it offline.
Sanjay Thakker
Yeah. Yeah.
operator
Thank you. Ladies and gentlemen, we will take the last question from Nilesh Toshi from Prosperity and due to time constraint we would request to kindly limit yourself to two questions only. Please go ahead.
Unidentified Participant
Thanks for the opportunity. Sanjay bhai, am I audible?
Sanjay Thakker
Yes Nilesh, you are.
Unidentified Participant
Thank you. Thank you. Sanjay. Sanjay, my question is related to the revenue growth and GP margin. Sir, are we growing at a OEM growth rate or below the OEM growth rate? Because I am tracking the volume data from the Vaan portal and my understanding suggests that landmark growth rate is little bit below the OEM growth rate number one. Number two is the question is related to GP margin. Sir, our GP grew by 0.2% or 20 basis point and our guidance to grow by 1% by quarter four. 26 number one and then then quarter two which is the the company might have offered the high discount in quarter two to recover the sales to buy because the GST was implemented or the reintroduced gst.
There was some changes in the GST law and but in quarter three all OEM has witnessed the higher demand. So I think the landmark has to offer the lower discount compared to quarter quarter two. So our GP should should grow higher than the point where two gauges point. And moreover the contribution of the after sale which contra which contribute the higher, which offer the higher GP margin and higher EBITDA margin is higher. So our GP margin must be much more than the 20 basis point. Please answer my question.
Sanjay Thakker
The first question, which is a new question is an interesting thing. No, I do not think that we are growing less than the OEs. One will have to kind of look at the blended number of everything. In fact what is happen we, what we do on our second page of our presentation or the first page of our presentation we give the contribution, our contribution to that particular OE sale in India. Now if I am correct, we are either stable or more on a sequential basis on how we have grown. So we continue to inch up in our contribution to that OE’s numbers.
So the confusion Nilesh bhai happens many a times because people sometimes track wholesale numbers, sometimes we track the Vahan numbers. So there are two, three multiple points from which now one can look at the same scenario. So I do not think there is any change in what is happening. There is no worse. We are not worse off in any kind of a thing as far as our own OEs are concerned. And the question of GP I have answered earlier also that finally the focus to get the GP is to get a better EBITDA and to get better net profit, which is what we are focusing on.
The mix is something which is the predominant thing in a GP sales versus after sales. Just let me explain a little more. The after sales business comes with a 40% gross profit and the sales at a single digit. So the blended is what we are talking about. Whether we talk about 16 or 17 or 18. Now the contribution mathematically of after sales has to be going up much more for the GP to grow to that level. We are committed to going back where we are and you will see the results going right? But it is a basically a mix which we should kind of see.
I think the gentleman from Sundaram Mutual Fund he asked this question that what is the of the overall turnover? How much is your after sales?
Unidentified Participant
Okay, thank you, thank you, thank you Sanjay and all the best expecting the better growth in the coming quarters.
Unidentified Participant
Yeah. Thank you.
operator
Thank you. I would now like to hand the conference over to the management for closing comments.
Sanjay Thakker
Yeah, I think the question answers were all very kind of enlightening. And my closing comments are all there in the questions that are there. We stand at a threshold of greater profitability and bigger opportunities. And good luck to everybody.
Surendra Agarwal
Thank you.
operator
Thank you very much on behalf of Monarch Net Worth Capital Limited. That concludes this conference. Thank you all for joining us today. And you may now disconnect your lines.