ET Intelligence Group: TVS Motor Company enters FY26 on a strong footing, driven by rising electric vehicle (EV) adoption, premium product launches, and recovering exports. With EVs contributing about 9% to revenue and further expansion planned, the company aims to outpace industry growth. Continued investments in technology and global markets support its long-term ambitions, though high valuations may limit near-term upside.
On a year-on-year basis, TVS Motor's revenue from operations rose 17% to ₹9,550.4 crore in the March 2025 quarter. Net profit grew at a faster rate of 76% to ₹852.1 crore, buoyed by the fact that benefits under the production-linked incentive (PLI) scheme for the full year were recognised in the fourth quarter. After adjusting for that, net profit growth-though lower-was still in double digits. "Adjusted net profit grew 42% year-on-year to ₹690 crore," stated Motilal Oswal Financial Services (MOFSL) in a report. TVS has also applied for PLI benefits for its three-wheeler EV segment and expects approval shortly.
Sales volume increased 14.5% year-on-year but remained nearly flat sequentially at 12,16,286 units. After declining to ₹900 crore in the September 2024 quarter from ₹960 crore in the June 2024 quarter, earnings before interest, taxes, depreciation, and amortisation (Ebitda) rose consistently in subsequent quarters to ₹1,333 crore in the March 2025 quarter. Similarly, the Ebitda margin improved to 12% from 11% in the September 2023 quarter, excluding the PLI benefits.
TVS expects the domestic two-wheeler industry to grow around 8% in FY26, mirroring FY25 trends. Growth is expected to be driven by a favourable marriage season, positive monsoon forecasts, and improved rural sentiment.
Export revenue for the quarter rose 17.3% year-on-year to ₹2,390 crore, aided by a revival in Sri Lanka and robust demand in Latin America. While the African market remains sluggish, the management expects a recovery in FY26. However, headwinds persist in the Middle East.
For FY25, investments in subsidiaries amounted to around ₹2,100 crore. TVS expects similar levels of investment in the current fiscal, focusing on TVS Credit, its e-bike subsidiary, and Norton Motorcycles-the UK-based subsidiary, which is likely to launch new products by the end of FY26.
On a year-on-year basis, TVS Motor's revenue from operations rose 17% to ₹9,550.4 crore in the March 2025 quarter. Net profit grew at a faster rate of 76% to ₹852.1 crore, buoyed by the fact that benefits under the production-linked incentive (PLI) scheme for the full year were recognised in the fourth quarter. After adjusting for that, net profit growth-though lower-was still in double digits. "Adjusted net profit grew 42% year-on-year to ₹690 crore," stated Motilal Oswal Financial Services (MOFSL) in a report. TVS has also applied for PLI benefits for its three-wheeler EV segment and expects approval shortly.
Sales volume increased 14.5% year-on-year but remained nearly flat sequentially at 12,16,286 units. After declining to ₹900 crore in the September 2024 quarter from ₹960 crore in the June 2024 quarter, earnings before interest, taxes, depreciation, and amortisation (Ebitda) rose consistently in subsequent quarters to ₹1,333 crore in the March 2025 quarter. Similarly, the Ebitda margin improved to 12% from 11% in the September 2023 quarter, excluding the PLI benefits.
TVS expects the domestic two-wheeler industry to grow around 8% in FY26, mirroring FY25 trends. Growth is expected to be driven by a favourable marriage season, positive monsoon forecasts, and improved rural sentiment.
Export revenue for the quarter rose 17.3% year-on-year to ₹2,390 crore, aided by a revival in Sri Lanka and robust demand in Latin America. While the African market remains sluggish, the management expects a recovery in FY26. However, headwinds persist in the Middle East.
For FY25, investments in subsidiaries amounted to around ₹2,100 crore. TVS expects similar levels of investment in the current fiscal, focusing on TVS Credit, its e-bike subsidiary, and Norton Motorcycles-the UK-based subsidiary, which is likely to launch new products by the end of FY26.
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