Amba Auto Sales and Services Limited is engaged in the automobile dealership and consumer electronics retail business. It operates as an authorized dealer of Bajaj Auto Limited, selling two-wheelers, three-wheelers (petrol, CNG, and EV) and also earns revenue from after-sales services, spare parts, repairs, financing, and insurance facilitation. Additionally, it sells consumer electronics like TVs, refrigerators, and appliances through its retail network.

The company’s key OEM partners (clients) include Bajaj Auto Limited and LG Electronics India Ltd. It operates multiple showrooms, service centres (18 centres), and storage facilities in Bengaluru, supporting vehicle sales, servicing, and spare parts distribution. These facilities ensure end-to-end customer lifecycle management, including sales, maintenance, and repairs.

The company offers a diversified product portfolio including motorcycles, EV scooters (Chetak), auto-rickshaws, spare parts, and electronics. These products cater to different stages of the customer lifecycle—from purchase to maintenance and replacement. Revenue is driven by both vehicle sales and high-margin after-sales services, ensuring recurring income.

The company has expanded through continuous showroom additions and dealership expansion, including Bajaj, KTM, and LG showrooms. It is also focusing on EV segment expansion and network strengthening, supported by capital expenditure plans and IPO proceeds to scale operations and infrastructure.

Employee & Banker

December 31, 2025, the company had 112, full time employees. banker to the company is Saraswat Co-operative Bank Limited.

Management & Growth Outlook

The company is promoted by Mr. Pradeep Kumar Lohia, Mr. Rakesh Kumar Lohia, and Mr. Vikash Kumar Lohia, who have long-standing experience in dealership operations. Management has built strong relationships with OEMs like Bajaj Auto, which is a key growth driver. banker to the company is Saraswat Co-operative Bank Limited.

Their vision focuses on:

• Expanding dealership network and service centres
• Increasing focus on electric vehicles (EVs) and new product categories
• Strengthening after-sales service (high-margin segment)

For funding expansion and capex, the company plans to:

• Utilize IPO proceeds
• Continue leveraging debt and internal accruals
• Maintain relationships with financial institutions for working capital

The long-term goal is to increase market share in automobile retail and diversify revenue streams through electronics and services.

Industry Overview

The company operates in the automobile dealership and consumer electronics retail industry.

Automobile Industry

• India’s EV two-wheeler market grew 21.2% YoY (FY24–FY25) reaching 11.49 lakh units
• Growth drivers:
  • Government incentives (FAME-II)
  • Rising fuel prices
  • Shift toward EV adoption

Industry Characteristics

• High growth driven by urbanisation and rising income levels
• Increasing demand for EVs, digital retail, and after-sales services
• Strong competition from large dealership chains

Key Players

• Popular Vehicles & Services Ltd
• Kalyani Motors (Bajaj dealer)

Consumer Electronics Industry

• Growing due to lifestyle upgrades and digital adoption
• Organized retail chains expanding in Tier 1 and Tier 2 cities

Outlook

• Automobile sector expected to grow steadily with EV penetration
• Dealership business growth linked to OEM performance and consumer demand
• High growth potential but low margins in sales, higher margins in services

Key Risk Factors

1. Dependence on OEMs (Bajaj Auto & LG)
   The company heavily depends on a limited number of OEMs for products. Any change in dealership agreements or performance requirements may directly impact revenue and operations.
2. Low Margin Dealership Business
   Automobile dealership operates on thin margins, making profitability highly dependent on volumes and after-sales services. Any slowdown in sales can significantly impact earnings.
3. High Competition in Industry
   The dealership industry faces strong competition from established players with large networks, making customer acquisition and retention challenging.
4. Capital Intensive Business
   The business requires significant investment in showrooms, inventory, service centres, and working capital, increasing financial risk and debt dependency.
5. Technology & EV Transition Risk
   Rapid shift towards electric vehicles and digital platforms requires continuous investment in technology and employee training, increasing operational costs.
6. Economic Sensitivity
   Demand for vehicles and electronics is linked to economic conditions and consumer spending, making the business cyclical in nature.
7. Operational Risk in Service Network
   Maintaining quality service across multiple centres requires skilled manpower and infrastructure; failure may affect brand reputation and repeat business.

Key Strengths, Moat & Opportunities

1. Strong OEM Relationship (Bajaj Auto)
   The company has a long-standing relationship of over two decades with Bajaj Auto, ensuring product availability, brand trust, and stable business flow.
2. Diversified Revenue Streams
   Revenue comes from vehicle sales, after-sales service, spare parts, financing, insurance, and electronics retail, reducing dependence on a single segment.
3. High-Margin After-Sales Business
   After-sales services like repairs, maintenance, and spare parts generate higher margins and provide recurring revenue.
4. Wide Product Portfolio
   The company offers EVs, motorcycles, three-wheelers, and electronics, catering to a broad customer base and multiple income segments.
5. Established Network & Presence
   With multiple showrooms and 18 service centres, the company has strong local presence and accessibility, improving customer reach and retention.
6. Growth in EV Segment
   Rising demand for electric vehicles (Chetak EV, etc.) presents a strong growth opportunity as India transitions towards sustainable mobility.