Landmark Cars Q3 FY26: ₹1,345 Cr Sales, 35% PAT Jump — But 71x P/E For 3% ROE?

1. At a Glance – The Premium Showroom With Budget Returns

₹427 stock price. ₹1,767 Cr market cap. 24% revenue growth (TTM). 35.5% quarterly profit growth. And yet… ROE at 3.09%.

Ladies and gentlemen, meet Landmark Cars Ltd — India’s premium car dealer that sells Mercedes and Jeep, but delivers returns that look like a Maruti 800 from 1998.

Q3 FY26 (Dec 2025 quarter) numbers show:

• Revenue: ₹1,345 Cr
• PAT: ₹14 Cr
• EPS: ₹3.42
• Stock P/E: 71.2
• ROCE: 7.99%
• Debt: ₹831 Cr

The stock has corrected 24% in the last 3 months and 16.5% over one year.

So the big question is simple:

Are investors paying luxury-car valuation for a dealership that runs on wafer-thin margins? Or is this a scale game just warming up its engine?

Buckle up.

2. Introduction – Selling Mercedes, Earning Maruti Margins

Landmark Cars started in 1998. Today, it operates 135+ outlets across 13 states and 32 cities. It sells:

• Mercedes-Benz
• Honda
• Jeep
• Volkswagen
• Renault
• BYD
• MG
• Kia
• Mahindra
• Ashok Leyland (commercial vehicles)

This is not your neighborhood car dealer. This is a full-stack automotive retail machine.

They raised ₹552 Cr in IPO and listed in December 2022. Since then, they’ve been expanding aggressively — 23 new outlets in 9M FY25.

But here’s the twist.

Auto retail is a volume business with thin margins. You sell ₹1,000 worth of cars and keep maybe ₹50. After paying rent, staff, finance cost, and depreciation — what remains? Peanuts.

And yet the market is valuing this at 71 times earnings.

So is Landmark a growth story? Or a leverage story? Or a “we hope margins improve someday” story?

Let’s investigate like forensic accountants with a sense of humour.

3. Business Model – WTF Do They Even Do?

Imagine you walk into a Mercedes showroom.

You:

1. Buy a car.
2. Finance it.
3. Insure it.
4. Service it.
5. Buy accessories.
6. Sell it back after 5 years.

Landmark wants a cut at every step.

Revenue split: