Landmark Cars Ltd (NSE: LANDMARK) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
Sanjay Thakker — Chairman and Executive Director
Aryaman Thakker — Executive Director
Surendra Agarwal — Chief Finance Officer
Analysts:
Unidentified Participant
Akhil Parekh — Analyst
Pritesh Chheda — Analyst
Arnav Sakhuja — Analyst
Lokesh Manik — Analyst
Nishant Shah — Analyst
Vaidik Bafna — Analyst
Bhargav Buddhadev — Analyst
Manish Bhandari — Analyst
Hitaindra Pradhan — Analyst
Dhiraj Kaswan — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to The Landmark Cars Limited Q1 FY26 earnings conference call hosted by BNK Securities. Before we begin, a brief disclaimer. 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 guarantee of future performance and involve risks 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 this conference call, please signal an operator by pressing Star then zero on a touchdown phone. With this, I now hand the conference over to Mr. Akhil Parikh from BNK Security. Thank you. And over to you sir.
Akhil Parekh — Analyst
Thanks, Amir. Good morning everyone. On behalf of BNK Security, I welcome you all to Landmark 26 conference call. From the management side we have the Chief, Mr. Sange Thakkar, Promoter, Chairman and Executive Director. Mr. Aryan Thakkar, Executive Director and Mr. Surendra Agarwal as Chief Financial Officer. Without taking much time, I’ll hand over the call to Sangha sir for his opening remarks post which we will open the floor for any questions. Over to you Sanjay sir.
Sanjay Thakker — Chairman and Executive Director
Thank you, Akhil. Much appreciated. On behalf of the company, I extend a sincere welcome to everyone who has joined the call today. As explained by Akhil, we have Aryaman and Surendra who are along with me for this call. The results and the presentations are uploaded on the stock exchanges and the company website. I hope everyone has had a chance to have a look at it. While the Indian passenger vehicle market grew only by 2.59% year on year in the first quarter on volume basis, Landmark cars achieved nearly 22% growth in revenue which was driven by by strong deliveries in new car sales segment.
This performance was backed by recent brand additions over the past couple of years which have significantly outperformed the industry. Our profit before tax and profit after tax have more than doubled over the same period last year. And if we consider the pre indas numbers, the underlying growth was even stronger. The auto industry globally is currently waiting for clarity on tariffs and bilateral trades. India has one of the highest tariffs in the world. It is likely that these tariffs will come down sooner or later. Landmark has several global brands within its portfolio and will stand to benefit when this were to happen.
India has taken central stage in many global OE’s future plans. Many have announced aggressive India plans in the past few months. Many more global OEs will announce them soon. In the last year, Landmark has transformed itself completely as far as the portfolio mix is concerned, we now represent fast growing brands in a meaningful way. BYD and MG together are nearly 20% of the company’s business now. With the possible improvement of relationship between India and China, this could grow rapidly in the times to come. Landmark has seen seamless execution of projects last year and near perfect operationalization of newly opened outlets thereafter.
We have focused on reducing costs continuously and the results are evident in an environment which is challenging. Landmark aims to significantly grow and show better results in the coming quarters and outperform the industry by a distance. I hand over to Aryaman for more granular details. Ariman thank you.
Aryaman Thakker — Executive Director
Let me first start with an update on our network expansion. During July which is in quarter two, we operationalized the Mercedes Benz showroom in Patna as well as the Workshop. It is the first luxury brand outlet in Bihar. We at Landmark Cars have again iterated our status as a partner of choice for our OEMs. We expect that this new outlet will further increase our market share in the flag. In July we operationalized the showroom and service center for MG select in Ahmedabad as well with deliveries and operations beginning in August1. A further outlet of MG select in. Kolkata and Workshop for Kia in Hyderabad are set to commence operations in the later part of Q2FY26. In quarter one. FY26 saw healthy performance from most of our OEM partners. Mercedes Benz India achieved its best ever quarterly sales in April to June of 2025 retailing 4238 vehicles which was a 10% year on year growth. This performance was driven by strong demand for both high end luxury models as well as the balanced model lineup. Sales of top end models like the S Class, the Maybach as well as the AMG portfolios rose approximately 20% in this time frame. Mercedes continues to be the leader for the leading luxury OEM in India and Landmark continues partners Mahindra outpaced the industry growth.
It recorded over a 22% year on year growth in Q1 FY26. Its models continue to enjoy a high demand with long waiting periods. Our outlets in both Hyderabad and Kolkata are stabilizing as expected at an OEM level. BYD enjoys a strong demand across its model range with its consistent healthy demand. BYD has become a meaningful contributor to our brand portfolio and we remain bullish on the future of the brand in India. We recently started our outlet for MG select in Ahmedabad. MG select is a new age luxury brand and has launched with two models in India currently, the Cyber Stir which is priced at approximately 75 lakh rupees and the MGM 9 MPV positioned at 69.9 lakhs.
Both these models have received a positive response with reasonably long waiting periods already. With deliveries expected to begin from August, MG select will contribute positively to Landmark’s top line and profitability starting from quarter two. Also, the premium positioning of these models will help uplift our average selling price and we expect MG select to be a good long term story which will help expand the premium luxury market in India. Renault has recently announced its plans to launch five new products in India over the next two years. This includes models like the new Duster as well as revamping the balance model lineup as well.
This will turn around Renault’s performance in India. Let me share that Landmark remains the only partner for Renault in the Mumbai region. As mentioned previously, our focus on renegotiating contracts for consumables as well as focus on finance and insurance with better terms with banks have been executed. The benefits of these agreements will start reflecting in the coming few quarters. I now hand it over to our CFO Surendra Agarwal to take us through financial highlights.
Surendra Agarwal — Chief Finance Officer
Thank you, thank you Aryaman Good morning everyone. I would now like to present the financial highlight for the quarter of FY26. The total performance revenue for the quarter stood at. 14. 15 crore compared to Rupees 11. 64 crore in the same period last year reflecting a year on year growth of 21.6%. Of this the new car performer sale contribute approximate rupees11.81 crore across all OEM partners while after sale revenue was rupees 235 crore. Gross profit for the quarter was rupees 184 crore versus rupees 161 corrode in Q1FY25 reflecting a growth of 14.8%. The GP margin in Q1FY26 stood at 17.4%. The rate of growth in new car sales has been much faster than the growth in after sales segment thus impacting the GP margin on year on year basis.
Once the new workshops reach full operational capacity and start generating more after sale revenue it is likely to improve the GP margin. The EBITDA for Q1FY26 was recorded at rupees 66 crore with the EBITDA margin of 6.2% on a reported revenue basis. At Landmark we have believed that both sales and after sale need to contribute the company and that is Happening. We expect the after sale business growth pick up from H2 onwards when the newer workshop start contributing more. In after sales surveys, the total number of services stood at 94,000 in Q1.26 with a growth of 10.5% on year.
On year basis for Q1FY26, the average revenue per vehicle service was rupees 25,000. Even though the ASP of after sale have gone down marginally which is due to product mix increasing of newer brands, the gross profit and EBITDA margin remain constant. For after sale business. We will see the impact of reduced borrowing cost due to the reduction in repo rates. From this quarter onwards, profit after tax stood at rupees seven crore versus three crore in the same quarter last year representing 114% year on year growth. Cash pat for the quarter stand at rupees 22 crore.
With that I open the floor for Q and A.
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 and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen will wait for a moment while the question queue assembles. The first question comes from the line of Pritesh from Lucky Investments. Please go ahead.
Pritesh Chheda
Yeah, hello sir. My question is first with respect to the service revenues, so what we see now that the new car sales growth rate is fairly strong for us. What is the lag between this and the service revenue growth rate to pick up? Because the service revenue is still 8% growth. So that’s question one. Second question. If I look at your revenue growth this quarter and try to look at new brands led growth and the legacy brand led growth, the split up is even. Is it fair to assume that this new car say new brand led growth which is like some 10 to 12% easily contributing to the overall growth number since the brands have set in, we can assume a further acceleration in this growth launches within MG and other brands.
Because MG seems to have not done well between last year and this year. So the third question is basically some comment on mg. These are my three questions.
Sanjay Thakker
Yeah, thanks Pritesh for your questions. Let me first answer the after sales question and this is an important question so I’ll take a little time. So many of the questions of the next participants may also be answered simultaneously. After sales also like sales is a seasonal business. Now why is it a little seasonal? Because the cars which are sold, they come for A service at an interval of say 12 months. The quarter that has gone by April, May, June quarter is the softest quarter in our trade. It contributes around 20, 21% of the overall year which is what we have seen historically.
And pace of service also is more or less in that zone. Also, as you will see, the contribution of the new cars to the overall Turnover is nearly 20% while the service is only 10%. The reasons are small, small, but several. Our Kia workshops for example, we did not have a Kia workshop in Hyderabad till July of this year and it has started now. So last quarter and our Kia operations without a workshop in Hyderabad, our Mahindra workshop actually was awarded and this is again a very satisfactory situation for us. It was awarded as the fastest break even by Mahindra and Mahindra in Hyderabad.
We achieved the fastest break even for any workshop and they awarded a special award to us. So your question was that when will the growth come back? Our expectation is that we will reach the double digit growth in the next half of the year and try going towards the 13, 14% growth that we have seen for the last 10 years, which is the 10 year CAGR by end of the year. So we will get back to that pace. I don’t think we see that much of a challenge. It is going more or less as planned.
It’s a mathematical business and it will get there. The other thing was about the growth in sales now and as I think Surendra mentioned in his speech, we have been firm believers that sales and after sales both need to contribute towards the profitability of the company. It is not only after sales. After sales is clearly, I think everybody has understood that this is an annuity type of a business. It keeps on growing every year. But we believe that sales also, because it has insurance, finance, accessories, a lot of other peripheral income streams that that also needs to contribute.
You will see that in this quarter around one third of our EBITDA has come from sales. It is improving and we believe that this will improve further in the times to come. The growth in RMN has listed down a few brands. The good part about having a kind of a portfolio approach is that at any given time some brands will do well. New launches will help. So we will see the growth momentum. Continue. In the coming quarters. Our expectation is that the growth momentum will continue. We believe that the MG has done well in absolute numbers. They are one of the fastest growing brands that we have seen and they have grown at around 26% in the first quarter, year on year, which is amongst the Fastest growing. My figures are showing me that they have grown at 26% which is possibly amongst the fastest in the industry this year and we have kind of grown simultaneously. If you were to only look at our market share from an OE’s perspective, it may not be such a good number to see on a quarter on quarter basis because we have reduced.
This is based on wholesale. What has happened is that we have reduced in many of the OE’s the stock that we had on the 1st of April and what we have on the 30th of June, there has been a reduction in stock which is good for our balance sheet. So that way that’s the answer I have to say. Pritesh. Anything else?
Pritesh Chheda
Yeah, so just a clarification. So in the new brand, when you do the calculation, when you say that the new brand contribution to sales has moved from 13% in FY25 to 19% it means that the new brands are growing at a 50% run rate and it does the start. Is it fair to extrapolate this incrementally also and acceleration further?
Sanjay Thakker
Yeah, so the growth rate as I see it’s slightly difficult to kind of put a hardcoded number on it. The growth, what we have seen, we are hoping to continue for the balanced part of the year.
Pritesh Chheda
Okay, thank you very much. Thank you.
operator
Thank you. The next question comes from the line of Arnav Sakuja from Ambed. Please go ahead.
Arnav Sakhuja
Hi, thanks for taking my question. So I just wanted to know how has been the response for Tesla in India since they recently launched their Model Y and do we expect that it will provide any threat to our current product portfolio, especially the EV portfolio that we have?
Aryaman Thakker
Hi, yeah, this is Arya Manil. I’ll just quickly answer that. Of course there was a good amount of media hype and buzz surrounding the launch, I think on a on ground level because that first showroom has opened in Mumbai and we do have some of our EV brands like BYD also operating in the region. So far we have not had any sort of impact on our sales and this is at least what our data says, that it has been low single digit customers that we have at least experienced who have switched over to the brand in the time since they have launched.
So so far we have not seen any sort of meaningful impact on our EV portfolio brands.
Sanjay Thakker
One of the journalists actually said important, very interesting thing. He said that the, as it stands now, India seems to be more interested in Tesla than Tesla in India.
Arnav Sakhuja
Okay, thanks. Sure. So my next question is with regards to Mercedes. So basically as you were mentioning in your opening comments, Mercedes had a very strong quarter on a year on year basis this Q1 FY26. But does it indicate a wider growth in the luxury and ultra luxury cars like in this quarter? Like for example did Mercedes competitors like BMW and Audi, did they also show such strong growth levels or was it restricted to Mercedes?
Sanjay Thakker
So my. I’ll check the numbers which are. So I think JLR as well as BMW both have grown and but the growth in luxury cars we expect that it is generally around 3x right now. That is the way we are looking at it of the normal passenger cars that is how we believe it will happen. So first quarter is a short period. We still have a whole year to go so let’s hope that it kind of continues. But BMW and JLR both have good. I think Audi may have degrown.
Arnav Sakhuja
Okay, but would they have grown at somewhat civil similar levels as Mercedes or slower level?
Sanjay Thakker
It could be at similar levels. I don’t have the numbers that they don’t publish these numbers very on a monthly basis as you know they. So it’s a. I don’t have the data unfortunately with me today. And just one last question.
Arnav Sakhuja
So with regards to the new MG select segment that we entered into the MG M9 and MG stylist. So how is the market reaction for these two models?
Aryaman Thakker
Yeah. I think the market reaction as well as the customer as well as the media reaction has been reasonably positive. I think it’s a new age segment. And they are trying to tap into. Slightly what they call as the value or the accessible luxury price point. So I think the price point to what they offer has been well accepted by the market. It’s still early days of these products has just started this week but we do expect the response so far and the waiting periods that we are showing so far are quite positive and we think that this will be a good long term bet in the Indian luxury space.
Arnav Sakhuja
Okay, thanks for answering my questions and congrats on a strong selling results.
operator
Thank you. The next question comes from the line of Lokesh Manik from Vellum Capital. Please go ahead.
Lokesh Manik
Yes, hi, good morning Sanjay Sri. So just couple of questions. One is on pre owned vehicles. If you can share some developments on that side with you know some numbers for this quarter and the second one is on financing and insurance numbers on that front as well for this quarter it was not mentioned in the presentation. So as it inched from 1% is it still at 1%?
Sanjay Thakker
Lokesh, the first question about finance and Insurance? No, it has not moved from 1%. It is in and around that the sales has moved up. It will gradually move up as RMN said, with better penetration, better margins and all that. This quarter has not been anything which is significantly different than some of the other quarters. But it is improving on the POC front. This is something we need to kind of crack but in a better way. Our focus in the last maybe 9 to 12 months had been to operationalize and stabilize the 25 new outlets that we had done.
We left everything else for the future and basically focused on getting that done and which is where we have reached. I think we are happy with the situation that we find ourselves in and the pre owned car business will again get onto the center stage of our happening. We would also I think from after 2/4 stop reporting the new and old kind of a thing because I don’t think it will be required after that December, maybe after that we won’t have this done and the focus will turn to the things that need to be done.
Like the pre owned cars.
Lokesh Manik
Right sir, just for clarification, finance and income would have grown in line with the new car sales growth.
Sanjay Thakker
That is right. That is right.
Lokesh Manik
Great. Great. That’s it from my side. Thank you so much.
Sanjay Thakker
Thanks Lokesh.
operator
Thank you. The next question comes from the line of Nishant Shah from J Curve Capital. Please go ahead.
Nishant Shah
Hi sir. Congratulations on the result and thank you for your time. Just a very basic question I wanted. To understand what really is the moat. For our after sales service or if. You could kind of like try and. Quantify what percentage of the cars that we sell end up having after sales only with us like as far as I understand like whenever we buy a car you end up somehow or the other receiving calls from a lot of other workshops for annual maintenance or like you know, any kind of like service requests. So how do you ensure like a higher wallet share in after sales from the cars that we sell?
Sanjay Thakker
Yeah, Nishant, this is a good fundamental question that you are asking. So unlike the global environment, India doesn’t have any local garages which are a meaningful play as far as the after sales business is concerned. Neither are there any insurance backed garages where the cars get repaired. So the after sales revenue is basically broken up into periodic and general maintenance and accident repair. The accident repairs give around 45% of our after sales revenue comes from accident repair. Now that also should be kind of understood. Now the mode what you are saying, the cars come with a warranty of three to four years depending on what car you are talking about.
And during that time, customer is expected to service his vehicles only at the authorized dealerships. After that, people like us sell extended warranties. Some of them like us have a white labeled extended warranty product. So this is also something which happens. So during the period of the extended warranty, which may extend up to seven years from the time the car was bought, the car comes to our workshop for service. Your question was also that you receive many times the calls from different workshops. Now, as far as Landmark is concerned, in many of the brands that we represent, in most of the geographies that we operate, we are as of now their only partners.
So there is a natural inflow that happens because we would be the only authorized workshop in that region. Now the other answer is that because we provide superior services, most of our workshops are rated nearly five star. As far as the customer satisfaction is concerned, I believe that the customers migrate in from other workshops wherever there are competing workshops rather than moving out. So it is a very unique proposition that India has to offer as far as the after sales business is concerned currently. And it is like a annuity business that you need to kind of Lugrad.
Nishant Shah
Understood. So what would be the like the. Attachment rate for extended warranties beyond the. First three years or four years of free warranty?
Sanjay Thakker
I would think around 40%, 35 to 40% is what we and many of the brands that we focus on. But the what we believe is that the cars come to our workshop every year. Some amount of car cars do drop in first three, four years is upwards of say 93, 95%. And after that it keeps on gradually going down up to around seven years, eight years is what we kind of look at the cars coming in.
Nishant Shah
Understood. All right, thank you. I’ll come back in the queue for more questions.
operator
Thank you. The next question comes from the line of Vedic from Monarch Network Capital Ltd. Please go ahead.
Vaidik Bafna
Good morning sir and congratulations on good set of numbers. Sir, I just have one doubt regarding our other income which has come so it has increased drastically. So what has driven this other income and what would be a steady state of other income which which we should build on for the full year.
Surendra Agarwal
So wedding it is not increased drastically. If you look at the total year income, it is in line with that. It’s mainly consist of the interest income which we put the FD against the bank guarantee which used to take and then the miscellaneous income which is like a old provision, write back, etc. So it is in the line some quarter, it may some slightly up or some quarters, it may slightly down.
Vaidik Bafna
For the full year. How much should we build?
Surendra Agarwal
So full year, Last full year it. Was roughly around 14 crore and we expect similar or maybe better number than the full year.
Vaidik Bafna
Okay, got it? Yeah. Thank you sir.
operator
Thank you. The next question comes from the line of Bhavya from Tamohara investment managers. Please go ahead.
Unidentified Participant
Hi sir, I had a question on the after sales for EVs so I want to understand how is the average service realization per vehicle compared to ICE models and how should we think about service visit frequency for EVs maybe annually. So if you can broadly explain this.
Sanjay Thakker
These are early days for us to kind of stick our neck out and give a very definitive number. The experience that we have had with say a BYD which is a pure EV brand in case of MG for example. It’s a mixed thing that we keep on selling. The accidents, what we have seen are More frequent in EVs is what we are seeing. As I had said that the around 45% of our after sales business comes from body and paint accident repairs. So this is slightly more in EVs because they run more, they accelerate more and the damage whenever it happens has a disproportionate amount of claim attached to it.
So that is what we are seeing. The report of Goldman which I’m still referring to and we are trying to plot our findings along with it, which came from China two years back I think was saying that the revenue generated by EVs is approximately 86% of the regular ICE cars. As far as the revenue generation is concerned in after sales it is still a little early to kind of call it maybe another six months and we will have a better data point to give you.
Unidentified Participant
Okay, thank you.
operator
Thank you. The next question comes from the line of Bhargav from Ambit Asset Management. Please go ahead.
Bhargav Buddhadev
Yeah, good morning team and congratulations on a strong performance. So my first question is that if you look at the EBITDA margins in the after sales business On a YY basis, there has been a significant improvement from 16.5 to 18.2 given the seasonality. Whereas the revenue per vehicle in after sales has seen a decline. So what explains this EBIT amount of improvement?
Sanjay Thakker
So bhargav as for. I’ll answer the second part first. The marginal drop in the average service cost is kind of expected because the product mix when we service non Mercedes vehicles it will drop. So that I am really not too concerned about the. Because the margins, whether we service this or that is more or less similar. So that Is the first part. The second is that the after sales businesses, a lot of the workshops have started to get in a mature state or near break even or profitable stage. We had a lot of workshops last year which we were paying the the rent, the salaries, electricity bills, etc.
Where they were not generating any revenue or very small revenue. Keep on kind of maturing. The profitability of workshops will start showing. We believe that this has further use in the after sales business where many of the workshops are are nearing break even and all that they should make significantly more money and the ROCE that they should generate should be upwards of 30%. Many of the workshops are still not there but they are on their way.
Bhargav Buddhadev
What would be the EBITDA margin for your most profitable workshops? Is it possible to highlight?
Sanjay Thakker
We will. We have still not gone into that kind of granularity because we believe that it will finally even out. But I think the long term average has been where we are currently between 18 and 18 and a half. 19%. That’s the range.
Bhargav Buddhadev
Sir, if I look at your loss in the new car outlet it has dropped to about 7 crores versus 12 crores in the fourth quarter. Is it fair to say that this year as we end we should be closer to break even in new car outlets?
Sanjay Thakker
So the new car outlet definition Bharjav is that as soon as a location completes 12 months we are moving them into what we call existing outlets. So it is not a like to like comparison that we are talking about. But I mean the hope is that it will go by textbook and after 12 months they at least start breaking even. You will see that even in these things the EBITDA break even or profitability has happened in the most recent of the outlets. One of the locations which I also pointed out was operating without even a workshop.
So there is all reason to believe that we will kind of have no loss situation in practically all the new locations. Let’s keep our fingers crossed. That’s what we are all working towards.
Bhargav Buddhadev
And lastly sir, if I look at the contribution of Mercedes in after sales and new cars, it is very similar as about 38%.
Sanjay Thakker
Full year. Barga dropped around 5% from the whole of last year.
Bhargav Buddhadev
Yes sir. But if I just want to compare the Honda, Renault and Jeep, their share in after sales is much higher versus new car and understandably so because they are struggling in terms of new car sales. But with M and M doing well, can we assume that going forward the contribution in new car sales and after sales will be also similar to how the.
Sanjay Thakker
See Mercedes paragraph has happened after a long period of time of association with them. So it’s Mercedes business is a very steady state business for us which then grows with the market. It is very early days for us in say a Mahindra or a Kia where the new car sales it will depend on the overall pie also. So difficult to kind of put a number. But you brought out a very interesting and nice point saying that even brands like a Honda or a Jeep or a Renault have a higher contribution in after sales. Now this is the beauty of this business that you don’t really need continuous new cars to kind of support you in a business when say in a case like Honda.
We are still significantly profitable as a company of Honda business even without selling any meaningful number of cars. Now this has been happening for last two, three years. I’m hoping that the Honda new car sales will start picking up from maybe one and a half years time when the new models come in. But till that time you have that buffer zone which is there. But the contribution of Mahindra and Kia and MG will obviously tick up as the the workshops become mature.
Bhargav Buddhadev
Thank you very much and all the very best.
Sanjay Thakker
Thanks B.
operator
Thank you. The next question comes from the line of Manish Bandari from Vellum Capital. Please go ahead.
Manish Bhandari
Hello.
operator
Yes, please go ahead.
Manish Bhandari
Yeah. Hi. Hi. Good morning Mr. Thakur and everyone at team. So I have a few questions. One, do you compute the market share gains in the services business versus the competitors?
Sanjay Thakker
This data is really not available. The OEs do not share us that data readily. So I do not as of now we wish we had but we do not have any source of getting that information from co dealers wherever they are.
Manish Bhandari
Sure. So my second question Mr. Trucker was related to the consolidation in the industry. You have done few purchases across India. So is there a way to accelerate this? And assuming that your analysis would suggest that you would get a 14 to 16% IRR on the business what you acquire. So can this be a debt funded or some kind of structure could be made where you can exploit the consolidation in the industry?
Sanjay Thakker
Yeah. So Manishi, the 25% of what we are is by way of mergers and acquisitions. The last year was a very important year for us where we kind of took 25 new outlets, organic and inorganic and have operationalized it. If you are asking the answer to your question is that can this be done? Theoretically yes, of course it can be done. Will it happen immediately? We need to kind of plan out. So the point is that the consolidation in the industry is likely to Happen at what pace? We will have to kind of define that pace as the market leader.
But it can theoretically happen and we have kind of initially shown right now that we are able to digest growth and make it profitable. I think the way to kind of do it is to do it in a profitable way. Consolidation per se will obviously happen, but we also don’t want to lose the focus on profitability and we can talk at a separate time on a kind of a structure and all that which we can see.
Manish Bhandari
So my another question is related to the byd. I understand that there are many dealers of BYD across India and looking at your early mover advantage with Mercedes and few other brands are you not able to capture a bigger share of the dealership with byd? And second thing is related to the number of cars BYD can sell in India looking at the homoglycerin test and everything. So if you can show some light that what is the potential opportunity and it’s such a wonderful brand across the world. So what is the opportunity for us, how many cars to sell and what other dealership we can look at in terms of expansion with byd?
Sanjay Thakker
Yeah. So first about the homologation and all that. So BYD currently sells four models in India. The Emacs 7, the Atto 3, the Sea lion and the Seal and all are doing pretty well. The numbers are the way it is trending. It will be around three times of what happened in the calendar year 2024. That’s the trend now. And this is happening mind you, without any kind of marketing. I have not seen any marketing for BYD cars. It’s word of mouth which the superior cars are selling. So this can grow significantly big. And the first point that you have mentioned is something which is obviously being worked upon on the sidelines.
We are also as aware and mindful of what the opportunity is. Beyond that I can’t really say on this call and we are obviously their largest partner and a partner of choice for them. So we are hoping that a similar kind of a story will play out as it has happened for Mercedes Benz.
Manish Bhandari
Thank you. And last question related to the pre owned car you have spoken about on a few occasions related to the the inventory, what you need to own and maybe the diminishing value in the business when many competitors are thriving in this business in a similar compliant way. I would say that. So is there a way where we can build our pre owned business which was a case you build out a year back about the excitement around the pre owned car business because it Improves the throughput and it gives you a service income in the catchment area.
Sanjay Thakker
Manishi, I couldn’t agree with you more. The pre owned car business remains to be a mountain for us to climb and we will climb it. It is just. It was a matter of timing. We had to kind of prioritize what we had to do. We had to kind of get the mojo and the momentum back in our existing business, stabilize them. We had a brand portfolio which we thought was good enough, which wasn’t and we have now added the brands which are performing. So we have kind of done what we had to do for our core business and everything in and around which had to be built will be built.
And yes, there has been a delay in executing the pre owned car business. But it’s not that it is out of our mind. It is just that we have tried to sequence it out.
Manish Bhandari
Thank you. Thanks a lot.
operator
Yeah, thank you. The next question comes from the line of Hitendra Pradhan from Maximal Capital. Please go ahead.
Hitaindra Pradhan
Hello sir. Hope I’m audible. My first question is with regards to the comment that you made earlier. So you talked about the, you talked about the servicing business and how 45% comes from your, you know, the accident repairs and all. So like if I you know segregate into two basically you know, the normal warranty based servicing and accident based, you know, servicing. So what are the trends that you are seeing? Like you know, accident part should be more secure, right?
Sanjay Thakker
Secure. I don’t understand, what would that mean?
Hitaindra Pradhan
It will be more secure. Like you know when there is a slowdown, auto slowdown or anything, you know, that component should be, shouldn’t be you know, going down that much. It should be secure.
Sanjay Thakker
There is, there is. In fact there are several theories I have heard during my 26, 27. One of them is that if there is an economic slowdown then the car, the people don’t change their cars that frequently so they need to maintain them well. Now this is also some theory. It is untested and there is no scientific data to support it. But my people tell me on the ground that if there is a slowdown people use their cars more often and change less frequently so that servicing aspect can also become bigger in a slowdown.
Hitaindra Pradhan
Second question is for Surendra sir. What would be the you know, pre index EBITDA for you know, the after sales and the new vehicles.
Surendra Agarwal
Just a minute, I’ll give you. So pre index EBITDA is 403, the 40.3 crore. We have the slide number 13 in our presentation which gives the complete reconciliation of India.
Hitaindra Pradhan
Right. But. But what would be the like you know, contribution of the after sales versus the new car sales.
Surendra Agarwal
So roughly if we look at after. Sale and the new car sale is. A 1/3, 2/3 is the EBITDA contribution.
Pritesh Chheda
Okay.
operator
Thank you. The next question comes from the line of Dheeraj from RRR Investment. Please go ahead.
Dhiraj Kaswan
Set of results from reducing from head. So my first question is this year as we seen in the presentation that we are not going to open any more outlets as we had planned in the past two years. So we are going to have a lot of cash perform operations this year is what I’m estimating based on that. We did great numbers Last year also 152cr and this year we are not going to take the blow of extra inventory change in inventory that we have to put in all the new outlets that we like constructed last year.
So like what are the plans of.
Sanjay Thakker
Sorry your voice broke my friend. Dheeraj, what is the question here?
Dhiraj Kaswan
We are going to have a lot of cash flow from operations this year. Like last year Also we did 150cr and this year we are giving more sales and this year we are not going to have the effect of change in inventory that happens because of when we open new outlets. We have to like put a lot of cars in the new showroom. So we are not going to have that also. So I think we will do around 200 to 250cr of test from operations this year. So what are our plans of using those funds? We are not opening a lot of outlets this year also.
Sanjay Thakker
Yeah, I won’t put a number what you have put. We are as of now not kind of putting in any number on that matrix. Now as far as opening of new outlets is concerned, we have said that we will not have this same size of expansion what we did last year. One or two keeps on happening here and there. Nothing that big. What happened last year. All our expansion in the past have been funded through our internal accruals. And so we will keep. We have a very easy way of deploying this money for the time being because we believe that India has a lot of juice to offer.
We have on our presentation given a kind of an ambition statement saying that we want to be around 1.5% of the Indian auto market which is there. So we are still some way. So the growth will happen and we will need to keep money for that when we either have to set up or acquire dealerships at the right time at the right price. So that’s what happens. In the interim we can reduce our inventory and pay off our working capital debt and save on interest. So that is there. We have a dividend declaration policy which is also there and we are consistently following that.
So nothing that comes to mind which makes me give any different answers.
Dhiraj Kaswan
Okay, so I mean our position, our financial position is going to be great this year as we are not. Our cash flow from investing is going to be low. We have, we are not opening a lot of outlets and we are ramping up our old, old outlets which were mostly loss making till now.
Sanjay Thakker
Not really loss making. Wherever the loss making outlets have been there we have continuously tried to rationalize them. Either shut them down or to have a fungible thing where we are co locating with one or the other brand. So it is a process what we need to do and we keep on doing continuously.
Dhiraj Kaswan
As we saw this quarter, there’s a lot of migraine around expansion but we haven’t seen that in this quarter.
operator
Veera Sir, I request you to join the queue for a follow up question please. Thank you. The next question comes from the line of Puneet from Zaveri and company. Please go ahead.
Unidentified Participant
Hi, I hope I’m audible. Thanks so much for the opportunity. So largely you spoke about BYD and you mentioned the multiple partners. Do you have any kind of, if you can share with us any kind of conversations with the team and what’s the plan for expansion going forward? You already are at eight outlets. So in the medium term, three to four years, where do you expect this to go?
Sanjay Thakker
No, sorry Puneet, this is something I would not like to share on the call at this point. It is important, important thing which will unfolding.
Unidentified Participant
And would you also currently having a workshop also for BYD in India?
Sanjay Thakker
Yeah, yeah, we have it. We are partners with them in the NCR and Greater Mumbai region. We have it at both, both ends.
Unidentified Participant
And is there a similar agreement that you have for MG select as well? Because that as well you mentioned that the average selling price is quite higher sometimes to the existing models and rightly so. So for these models as well. Do you have any, anything that you can share on growth aspirations for MG select as a brand as well as in terms of service and workshop. What’s the plan of setting those up?
Sanjay Thakker
So in MG select we are setting up workshops. We are in two places where we are starting our sales operations in the next one week which is Ahmedabad and Calcutta and both ends the workshops will be set up. So my feeling is that the initial maybe two years or so the profitability will come from sales and not so much as after sales because there is not any car part of that. The workshop requirement will be pretty small to begin with. As far as MG select is concerned, the models of MG select are seeing great attraction and I’ll not be surprised if we find a situation that once we see cars on road they will be.
There is a huge waiting list for people to come and you expect us.
Unidentified Participant
To go to eight to 10 showrooms in the medium term over the next two, three years. And we select specifically.
Sanjay Thakker
Again, difficult to kind of give a forward looking thing for the brand because the brand also will have to kind of see how things are and we don’t have any kind of visibility to give a scientific answer to this.
Unidentified Participant
Early days and just one final question from my side. You mentioned that last year the investments that have gone in stores as well as setting up workshops will yield results this year and that’s visible in quarter one numbers as well. But in terms of new store expansion for this year, are you penciling in or giving a number? How many are you targeting? Because while you mentioned in the presentation that there will be some rationalization of new store openings because the question is largely coming for what will lead the growth essentially next year if the new store openings is slightly limited, will it come from the existing ones or the ones which are scaling up over the last 12 to 15 months?
Sanjay Thakker
Yeah, so many things will happen. What has happened is that we have partnered with the fast growing brands and they will kind of play out our. What we have also done as a strategy is that we in the brands, we buy out our local level competition wherever it is possible. Case in example was that Kia. Again very early days where we entered, we bought out our local level competitor in one of the towns that we have been operating. So our growth for next year is what this year obviously everybody now understands that we are going to be there.
We have understood the template. Now the point is that we will build in so that we significantly outpace the industry and we will have a strategy in and around it the first quarter. It is difficult for me to kind of lay out what that strategy is. Some of it may not be such a great idea to to discuss on the call.
Unidentified Participant
Understood. Got that point. Thanks so much for the opportunity.
Sanjay Thakker
Yeah, thank you.
operator
Thank you ladies and gentlemen. We’ll take this as the last question for today. I will now hand the conference over to Mrs. Sanjay Thakkar for closing comments.
Sanjay Thakker
Yeah, thank you for hosting us bnk. As we go through the year we look at it with a lot of positive feelings. That lot of things are falling into place as far as Landmark is concerned. And the entire team I thank for pulling their weight in difficult times. Everybody contributed to make things happen. And the ship has turned around is what we believe. And the better days are ahead. Thank you.
operator
Thank you on behalf of BNK Securities. That concludes this conference. Thank you all for joining us. And you may now disconnect your lines.