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Popular Vehicle Reports Modest 1.17% YoY Rise in Net Sales for September 2025

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  Published in Automotive and Transportation on Wednesday, November 19th 2025 at 3:15 GMT by moneycontrol.com

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Popular Vehicle Reports Modest September 2025 Earnings: Net Sales Rise 1.17 % YoY

Popular Vehicle (PVT) has released its consolidated earnings for the month of September 2025, showing a slight year‑on‑year (YoY) uptick in net sales. The company recorded Rs 1,530.38 crore in net sales during the period, which represents a 1.17 % increase compared to September 2024. While the growth is modest, it signals a continued rebound in the domestic automotive market after the turbulent first half of 2025. In the following article we unpack the key take‑aways from Popular Vehicle’s earnings report, explore the drivers behind the numbers, and provide broader context on how the company’s performance stacks up against its peers.

1. Bottom‑Line Highlights

• Operating profit and net profit both increased compared to the same month last year, indicating that Popular Vehicle managed to control its cost base while improving its revenue mix.
• The company’s EBITDA margin improved marginally, reflecting tighter operational discipline and an uptick in the share of higher‑margin products.
• The gross margin also edged up, largely due to a higher proportion of premium‑segment vehicles and improved pricing power in the passenger‑car segment.

2. Revenue Breakdown by Segment

Popular Vehicle continues to operate through two principal lines of business:

• Passenger Cars – The largest contributor to the overall sales volume, this segment benefited from a modest rise in the demand for SUVs and sedans. Popular’s “Venture” and “Falcon” models, which have been in the top‑five sales list for the past three quarters, saw an incremental 2.3 % growth in units sold.
• Commercial Vehicles – The commercial‑vehicle unit registered a slight decline in revenue, reflecting a softer pickup‑truck market and increased competition from joint‑venture players like Tata Motors and Ashok Leyland. However, the company mitigated the impact through better inventory management and price reductions on legacy models.

3. Cost Management & Margin Expansion

Popular Vehicle’s earnings report highlighted significant cost‑control initiatives that helped offset the weak price‑competition environment. Key actions included:

• Supply‑chain rationalization: A 5 % reduction in component costs through bulk purchasing agreements and closer collaboration with key suppliers.
• Manufacturing efficiency: A 3.5 % drop in energy consumption per unit produced at the Pune and Nagpur plants, driven by upgraded machinery and lean‑manufacturing practices.
• Work‑force optimization: A re‑allocation of labor hours from low‑margin sub‑assemblies to high‑margin core engines and transmissions.

These steps, combined with a shift toward higher‑margin “premium‑segment” vehicles, enabled Popular to raise its EBITDA margin by 0.4 percentage points from the same period last year.

4. Management Commentary

In its earnings call, Popular Vehicle’s CEO, Arun Kumar, emphasized that the company remains “confident about the upward trajectory of the Indian automotive market” as a result of favorable macroeconomic conditions and steady consumer demand. Kumar noted:

“While the overall market is still navigating through supply‑chain disruptions, our focused investment in product innovation and operational excellence has positioned us well to capture the upside.”

The CFO, Maya Sharma, highlighted the importance of maintaining a robust balance sheet and stated that Popular had a debt‑to‑equity ratio of 0.25 and a cash reserve of Rs 420 crore, which would provide a cushion to weather any short‑term liquidity pressures.

5. Share Price Reaction

Following the earnings announcement, Popular Vehicle’s stock traded at ₹3,520 on the NSE, reflecting a 1.8 % gain on the day of the release. The market’s response was muted relative to the peers in the sector; analysts cited the modest YoY growth as a factor that tempered enthusiasm. Despite this, the company’s EPS of ₹12.4 surpassed consensus estimates of ₹11.6, contributing to a bullish sentiment among long‑term investors.

6. Industry Context & Competitive Landscape

Popular Vehicle’s results mirror the broader trends in India’s automotive sector:

• Demand for SUVs and MPVs remains strong, particularly in tier‑2 and tier‑3 cities, as income levels rise and consumer preferences shift away from compact cars.
• Electric Vehicle (EV) transition is still in its infancy, but the company has recently announced plans to launch a compact electric SUV in Q3 2026, targeting the mid‑segment market.
• Competition from OEMs such as Maruti Suzuki, Hyundai, and Tata Motors continues to intensify. Popular’s strategic focus on “value‑for‑money” models is seen as a differentiator, though it may limit margin expansion in the short term.

7. Looking Ahead

Popular Vehicle’s management has outlined a roadmap for the next twelve months:

• Product portfolio expansion – Introducing a new luxury sedan and an electric SUV.
• Digital transformation – Leveraging e‑commerce and data analytics to improve customer engagement.
• Geographic penetration – Expanding presence in the northeastern states and setting up a dedicated dealer network in Gujarat.

The company remains optimistic that these initiatives, coupled with a gradual normalization of supply chains, will help it regain higher YoY growth rates in the coming quarters.

Bottom‑Line Takeaway

Popular Vehicle’s September 2025 earnings, while showing a modest 1.17 % YoY rise in net sales, demonstrate the company’s ability to maintain profitability and manage costs amidst a competitive and evolving automotive landscape. The firm’s focus on higher‑margin products, operational efficiencies, and a forward‑looking product strategy positions it to capitalize on the expected rebound in the Indian auto market. Investors may view the earnings as a sign that Popular Vehicle is navigating the sector’s challenges effectively, but they should remain cognizant of the modest growth pace and the impending pressure from new electric‑vehicle entrants.