TVS Motor Company Enters FY26 on a Strong Footing
TVS Motor Company, the Prime News Network, is entering the fiscal year 2026 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.
Revenue and Profit Growth
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 recognition of benefits under the production-linked incentive (PLI) scheme for the full year 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 in a report.
Sales and EBITDA
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.
Domestic and International Growth
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.
Investments and Future Plans
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.
Reference : https://economictimes.indiatimes.com/markets/stocks/news/tvs-motor-enters-fy26-on-strong-footing-driven-by-rising-ev-adoption-premium-product-launches/articleshow/120781087.cms
