COMPETENT AUTOMOBILES CO.LTD. (COMPEAU) share price
₹369.00 on BSE as of 2026-10-08. +0.15% on the day. market cap ₹222 Cr. P/E 9.1. 52-week range ₹328.55 to ₹414.15. Automobile and Auto Components.
Competent Automobiles FY26: ₹2,239 Crore of Maruti Sales, ₹23 Crore Left Over
At a glance
Competent Automobiles sells new Maruti Suzuki cars and then services them. In the year to March 2026 it moved ₹2,239 crore of those cars through its showrooms. It kept ₹22.7 crore of that as net profit, the figure left after every cost. That is about one rupee of profit for every hundred rupees of cars sold. The manufacturer designs the car and sets its price. The dealer earns the slice between the wholesale price and the retail one.
Revenue rose about 5% on the previous year. Net profit stood almost still, moving from ₹22.56 crore to ₹22.72 crore. Operating profit, which is trading profit before interest and tax, edged from ₹83 crore to ₹84 crore. Interest of ₹31.4 crore took roughly 37% of that operating profit. Three one-off charges landed in the same twelve months under exceptional items, the lines a company separates from ordinary trading. They were a labour-code charge, a flooded stockyard and a showroom fire. Flood, fire and new labour law in one year is unusual company for a single set of accounts.
The market pays about ₹9 for every ₹1 of yearly profit here. The industry figure is about ₹10.20 for the same rupee of profit. The whole company is valued at ₹228 crore. That sits below six-tenths of its stated book value, which is what the accounts say is left for shareholders after debts. A dealership turning over ₹2,239 crore to earn ₹23 crore runs on volume rather than margin. Its outlets trade under Maruti Suzuki's mass-market Arena and premium Nexa formats.
Introduction
Competent Automobiles Company Ltd was incorporated in 1985 by Raj Chopra and raised public money in 1996. Four decades on, it does what it started out doing. It is an authorised dealer for Maruti Suzuki across Delhi, Haryana and Himachal Pradesh. An authorised dealer buys the manufacturer's cars, sells them under the manufacturer's badge and services them afterwards. The company runs both of the formats Maruti sells through: mass-market Arena showrooms and premium Nexa ones.
The relationship with Maruti is the whole enterprise. CRISIL, a credit-rating agency, set out the shape of it in a rationale published in July 2025. On CRISIL's account the group ran 43 showrooms and workshops across Delhi, Haryana, Himachal, Noida and Kashmir. The agency also recorded revenue growth of about 20% a year over the three years to March 2025. The outlet count rose across that period and the service footprint widened with it. The economics of each individual sale did not change.
The corporate map widened again in the year to March 2026. A wholly owned subsidiary, Competent Kashmir Automobiles Private Limited, was incorporated in February 2024. A wholly owned subsidiary is a separate company whose shares the parent holds in full. It was operational by March 2025 and extends the group into Jammu and Kashmir. The figures used here are standalone, meaning the parent's own books without the subsidiary folded in. On those books the Kashmir company appears as an unsecured loan rather than as revenue. An unsecured loan is money lent with no asset pledged against it.
The boardroom changed in the same year. Whole-time director Kanwal Krishan Mehta died on 20 September 2025. Shareholders approved Kamal Kant Kumar as executive director with effect from 14 November 2025. His pay was set at ₹10 lakh a month. Both items are recorded facts, noted here and moved past.
Business model
The company sells a Maruti and then services it for the next decade. Those two halves of the business are very different sizes. Segment figures for the year to March 2026, on the standalone books, put them side by side.
The Showroom segment buys vehicles from Maruti and sells them on. It booked ₹2,080.63 crore of revenue and ₹32.74 crore of segment profit before finance costs. That phrase means what the activity earned before any interest on borrowings. The Service and Spares segment did ₹158.47 crore of revenue. It produced ₹20.99 crore of segment profit on that much smaller base. So roughly 7% of revenue carried nearly 40% of pre-finance segment profit.
That split is the open secret of the car dealership trade. Selling the car is a volume business on wafer margins the manufacturer dictates. Fixing the car is where the money sits: labour, spares and servicing. The showroom floor is the loss-leader that fills the workshop bay behind it. A loss-leader is something sold at little or no profit to win the work that follows it.
What the company must spend follows from the same arrangement. Stock has to be paid for before any buyer walks in, so a very large pile of inventory is financed. Inventory here means the cars standing on the showroom floor and in the yard. Interest on that borrowing came to ₹31.4 crore over the year. Showrooms, workshops and staff carry their own fixed costs whatever the month's sales do.
The Arena and Nexa badges cover models from the Alto and WagonR up through the Baleno and XL6. Which model leaves the floor matters less to the workshop than the servicing that follows it. Each car sold adds a service relationship that runs on for years. Servicing work continues long after the sale itself has been booked.
Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for COMPETENT AUTOMOBILES CO.LTD..
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