TVS Motor on Monday exceeded analysts’ estimates across all earnings metrics for the January-March quarter, driven by strong growth in electric vehicles, two-wheelers, and three-wheelers sales in both domestic and export markets.
The Chennai-based company reported a 76% year-on-year jump in net profit for Q4FY25 at Rs 852 crore. Revenue from operations grew 17% year-on-year to Rs 9,550 crore for the quarter ending March 2025. Analysts polled by Bloomberg had estimated standalone revenue at Rs 9,283 crore and net profit at Rs 731 crore. Two-wheeler and three-wheeler sales, including exports, grew 14%, totalling 12.16 lakh units in Q4FY25.
TVS Motor posted its highest-ever revenue for a financial year at Rs 36,251 crore in FY25, marking a 14% YoY growth. Net profit for the year stood at Rs 2,711 crore, up from Rs 2,083 crore in FY24.
Operating Ebitda for Q4FY25 stood at 12.5%, while for FY25, it improved by 120 bps to 12.3%. The company recorded the highest-ever operating Ebitda of Rs 4,454 crore, up from Rs 3,514 crore in FY24.
“Ebitda margin growth was primarily driven by robust revenue growth and sustained cost reduction initiatives,” said KN Radhakrishnan, Director and CEO, addressing the Q4FY25 earnings call.
For the full year, TVS Motors’ two- and three-wheeler sales grew 13%, totalling 47.44 lakh units. Motorcycles accounted for 21.95 lakh units, scooters for 19.04 lakh units, and three-wheelers totalled 1.35 lakh units.
Radhakrishnan mentioned that the scooter category’s share in the overall two-wheeler industry is nearing 38% and is expected to rise further due to convenience factors and the widespread adoption of EV scooters.
Overall retail sales of vehicles grew by 7% in FY25. Radhakrishnan indicated that domestic market growth momentum for FY26 will mirror last year’s, though the first quarter may see only a moderate growth. He said that the GDP growth projection of 6.5%, bolstered by consumption and improvements in the agricultural service sector, along with the RBI’s 50-basis-point rate cuts in the last three months, will drive demand.
“This (rate cut) translates into lower EMIs for consumers, which will enhance the affordability of two-wheelers across the board,” he said, adding that the increase in the income tax slab to Rs 12 lakh will also boost consumer sentiment. He also noted that the normal monsoon projection signals strong rural demand.
TVS Motor’s electric vehicles, including the iQube model of e-scooters, grew 44%, reaching 2.79 lakh units in FY25. Radhakrishnan said the company expects more PLI revenue to come in the coming quarters with the launch of additional EV products in both the electric two- and three-wheeler segments.
“Some of our EV products are in the final stage, and we’ll see them in the coming quarter,” he said.
The company generated Rs 3,364 crore in revenue from EV sales in FY25, with Rs 889 crore coming in the quarter. Shares of TVS Motor closed 1.47% higher on the NSE at Rs 2,778.20.