TVS Motor profit jumps 52% in second quarter as sales hit record

Key Facts

Revenue from operations rose 44% to 17,103 crore rupees from 11,905 crore rupees a year earlier. The company recorded its highest quarterly sales, with total two- and three-wheeler sales increasing 27% to 1.9 million units, compared with 1.5 million units in the corresponding quarter of the previous financial year. The results showed growth across vehicle categories and international markets, alongside a jump in electric vehicle sales. The announcement came on 28 October 2026, beating market estimates for profit, revenue and EBITDA, while the stock rose after the results.

Operating EBITDA was 2,219 crore rupees, up 47% from 1,507 crore rupees a year earlier, according to NDTV Profit. The EBITDA margin widened to 13% from 12.7%, an increase of 30 basis points year on year. Operating profit exceeded the CNBC-TV18 poll estimate of 2,200 crore rupees, while net profit also beat the estimate of 1,370 crore rupees. Revenue was 17,103 crore rupees, above the estimate of 16,790 crore rupees. However, the reported margin was below the poll estimate of 13.2%, despite improving from its level in the year-earlier period.

Volume growth extended across the main two-wheeler categories, with motorcycle sales rising 28% to 858,000 units in the second quarter of financial year 2026-2027, according to NDTV Profit. Scooter sales increased 29% to 825,000 units, while moped sales rose 12% to 157,000 units. In three-wheelers, TVS Motor recorded annual growth of 47% to 78,475 units, compared with 53,449 units in the corresponding quarter of the previous financial year, according to the company statement. The figures show that record growth in total sales spanned more than one category, with growth rates varying among them. Combined two- and three-wheeler sales helped lift the quarterly total to a record.

In overseas markets, the company's two- and three-wheeler sales rose 35% to about 500,000 units, from about 400,000 units a year earlier, according to NDTV Profit. Two-wheeler electric vehicle sales also surged 133% to 186,186 units from 80,009 units in the corresponding period. Reuters reported that sales in the electric vehicle segment, including the iQube and Orbiter scooters, reached 186,186 units after growing 133%. Growth in exports and electric vehicles broadens the sources of sales gains alongside domestic market performance, according to figures cited by the sources. The available evidence did not provide a breakdown of electric vehicle sales by model or market.

For the six months ended September 2026, standalone revenue from operations rose 41% to 30,999 crore rupees, from 21,986 crore rupees in the corresponding period a year earlier, according to NDTV Profit. Standalone profit after tax increased 52% to 2,551 crore rupees, compared with 1,679 crore rupees. The first-half results show revenue and profit continuing to grow over a longer period than the quarter alone. On demand, Reuters reported that tax cuts enacted in the previous year supported demand, despite manufacturers, including TVS, raising prices to counter higher commodity costs. The report said companies raised prices in response to those costs, without that preventing the demand growth recorded in the quarter.

Alongside the results, the company's board approved a plan to spin off its consumer finance business into a separately listed entity, according to a Reuters report. Under the plan, shareholders will receive one share in the new finance company for each share they own in TVS Motor. The business to be spun off includes lending, leasing and investments, and generated revenue of 39.21 billion rupees in the six months ended 30 September 2026. The company said the restructuring would give the financial business greater independence in strategy and capital allocation. It added that the separation would allow TVS Motor to focus on its mobility business, while the arrangement aims to establish a separate financing business.

TVS Motor shares rose 3.7% on 28 October following the results and the financial business spin-off plan, according to a Reuters report. CNBC-TV18 reported that the stock climbed as much as 4% after the results were announced the same day. The company was scheduled to hold a call to discuss its second-quarter financial performance on 28 October 2026, according to a TVS Motor notice. An earlier NDTV Profit report said investors would watch for sustained momentum in two-wheeler sales after the festive season. It also said they would monitor whether higher volumes translate into sustained retail demand and whether export demand continues to provide support.