Shares of Popular Vehicles and Services Ltd surged over 10% in early trade on April 20 after the company reported a strong business update for the March quarter, reflecting robust growth across key segments.
The stock was trading at ₹109.34, up 10.16% from its previous close of ₹99.26, after hitting an intraday high of ₹113.85, supported by positive investor sentiment following the update.
According to the company’s quarterly business highlights, total revenue from operations grew approximately 69% year-on-year in Q4FY26, indicating strong demand momentum and improved execution across segments. Growth was led by commercial vehicles (CV), which surged 134% YoY during the quarter, while the electric vehicle and spare parts distribution segment posted a 39% YoY rise.
Passenger vehicle (PV) performance also remained healthy, with PV (excluding luxury) growing 25% YoY, while luxury PV segment recorded a 37% increase, though the company noted some impact from a cyber-attack at the OEM level affecting luxury segment volumes.
On the volumes front, new vehicle sales rose 44% year-on-year in Q4FY26, highlighting strong traction in demand across categories. For the full year FY26, revenue growth stood at approximately 15%, while vehicle volumes increased 21%, reflecting sustained momentum beyond just the quarter.
The company highlighted that growth during the year was supported by improved market sentiment and GST-related reforms announced earlier, while operational efficiency also improved, with inventory days reducing significantly to around 29 days from about 41 days a year ago.
However, the update also flagged certain pressures, including supply constraints in the PV (excluding luxury) segment from a key OEM in Kerala and a mid-single digit decline in the service segment on a year-on-year basis, partially offset by higher realisations.
Expansion and acquisition-led growth remained a key theme during the year, though it resulted in relatively higher debt levels and some impact on profitability due to accounting adjustments linked to recent acquisitions.
The company also continued to expand its network footprint, adding new service and sales touchpoints across Kerala, Karnataka, and Maharashtra, while its subsidiary received multiple awards at a regional OEM meet, reflecting strong operational performance.