TVS Motor Company‘s standalone net profit rose 52% year-on-year to Rs 940 crore in the third quarter of FY26, aided by its highest-ever quarterly sales volumes across vehicle categories in both domestic and export markets.
Revenue from operations jumped 37% year-on-year to a record Rs 12,476 crore. Standalone revenue exceeded Bloomberg analyst estimate of Rs 12,113 crore, while profit after tax came in marginally below the projection of Rs 950 crore.
Overall two-wheeler and three-wheeler sales, including international operations, grew 27%, with the company reporting its highest-ever quarterly sales of 1.54 million units in the third quarter. Motorcycle sales climbed 31% to 726,000 units, while scooter sales rose 25% to 614,000 units. Moped sales were marginally higher at 144,000 units compared with 134,000 units in the third quarter of FY25.
Overall sales up 35%, revenue tops Rs 2900 crore
TVS Motor’s two-wheeler sales under its international business grew 35% to 366,000 units. International operations contributed revenue of over Rs 2,900 crore, while spares accounted for Rs 1,183 crore during the quarter.
TVS Motor Director and CEO K N Radhakrishnan attributed the record sales to multiple factors, including the goods and services tax (GST) rate cut, which is playing out across two-wheelers and other vehicle categories. The two-wheeler industry volumes grew 20% year-on-year in the third quarter, with rural markets expanding 19% and urban markets growing 21%. Radhakrishnan said the industry is expected to grow 15% in the fourth quarter, while the company will grow at a faster pace than the industry.
“I am very confident that in Q4 also you will see the benefits because GST was implemented only in the last week of September. You will see the benefits will come to the industry till the first half of next year,” he said in an earnings call.
In the electric vehicle segment, sales grew 40% to 106,000 units in the third quarter, compared with 76,000 units in the year-ago period.
“On the EV side, we had a setback because of the magnet availability. Now it is recovering and hopefully by another month you will see full supplies of EV also into the market,” Radhakrishnan said.
Ebitda jumps 51%, margin improves to 13.1%
TVS Motor’s operating revenue before interest, tax, depreciation and amortisation (Ebitda) expanded 51% year-on-year to Rs 1,634 crore, beating Bloomberg’s estimate of Rs 1,540 crore. Ebitda margin improved by 70 basis points to 13.1% during the quarter.
On commodity price inflation, Radhakrishnan said there has been an increase in aluminium, copper, zinc, platinum, palladium and rhodium prices. “We want to mitigate that with a combination of scale, cost reduction initiatives and product mix. We are very focused on not increasing the prices,” he said.
On a consolidated basis, net profit rose 46% to Rs 891.26 crore in the third quarter, while revenue from operations increased 34% year-on-year to Rs 14,756 crore. TVS Credit disbursed loans to over 4.1 million new customers, with a total book size of Rs 29,678 crore. Radhakrishnan said the company will close the year with capital expenditure of around Rs 1,700 crore towards capacity expansion and overall investments of around Rs 2,900 crore, including investments in subsidiary TVS Credit as well as product development and marketing for the Norton motorcycle brand, which is set to be launched in India this year.
Shares of TVS Motor closed 5% higher at Rs 3,735.10 on the NSE on Wednesday.