TVS Motor Company‘s standalone net profit rose 31% year-on-year to ₹998 crore in the fourth quarter, driven by record quarterly revenue and its highest-ever quarterly sales volumes across vehicle categories.
The record sales performance has also prompted the Chennai-based automaker to chart out an aggressive capacity expansion plan to support future growth. “Immediately, we are looking at increasing the capacity by another 1.5 million. We have to add significant capacity in the next 12 months,” TVS Motor CEO KN Radhakrishnan said during the company’s Q4 and FY26 earnings call.
Roadmap to Future Growth
The expansion plan comes after the company’s annual sales touched a record 5.9 million units in FY26, up from 4.7 million units in the previous fiscal. The company wants to take its total capacity to 8.3 million from about 7 million units in FY26. “Possibly for FY28 and FY29, we are also thinking about what kind of capacity additions we need to add,” Radhakrishnan said.
Standalone revenue from operations climbed to an all-time high of ₹12,808 crore in Q4FY26, surpassing Bloomberg estimates of ₹12,680 crore. However, standalone net profit missed estimates of ₹1,011 crore. TVS Motor recorded its highest-ever quarterly sales of 1.56 million units in Q4FY26.
Rising commodity prices due to the ongoing Gulf war also pushed total expenses by 35% to ₹11,433 crore during the quarter, while raw material costs surged 31% to ₹8,926 crore.
Battling Headwinds
Radhakrishnan acknowledged the challenges in commodity prices including steel, aluminium, crude oil, derivatives and pressures on input cost. He said the company has taken several measures including cost reduction initiatives, improving product mix and selective price hikes. “35% of this (commodity) price increase we were able to offset by increasing prices,” he said.
TVS Motor expects the two-wheeler industry to grow in single digits in FY27 after the industry reported 26% growth to reach a record 21.71 million units in FY26, driven by GST rate cut. “There are some challenges in terms of the prices going up especially on gases and inflation going up a little bit going up,” he noted.
Operating EBITDA rose 43% year-on-year to ₹1,679 crore during Q4FY26, ahead of Bloomberg estimates of ₹1,630 crore. The company said the full-year Production Linked Incentive benefit for FY25 was recognised in Q4FY25 and the operating EBITDA for the corresponding quarter was normalised to ensure comparability with Q4FY26. Operating EBITDA margin stood at 13.1% in the quarter ended March 2026 against the normalised margin of 12.5% in the year-ago period.
For FY26, the company reported its highest-ever standalone revenue of ₹47,270 crore, up 30% from ₹36,251 crore in FY25, while full-year net profit rose 37% to ₹3,615 crore. TVS Motor’s board declared an interim dividend of ₹12 per equity share (1,200%), with an ₹570 crore payout for the financial year ended March 31, 2026.
TVS Motor also appointed Ravindran Shanmugam as an additional director and non-executive independent director for a five-year term effective May 13. Shanmugam is the co-founder and executive chairman of Singapore-based AI-enabled interior design and renovation platform Mablle.