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    Siemens

    SIEMENSNeutral
    Capital Goods·28 Jan 2026
    Management Summary

    TVS Motor delivered exceptional Q3 FY26 results with record revenue, volumes, and profitability driven by strong domestic and international performance across ICE and EV segments. Management expressed strong confidence in Q4 growth momentum and industry outlook.

    Highlights

    5
    • Highest ever quarterly performance - volume up 27%, revenue up 37% to ₹12,476 crores

    • Operating EBITDA surged 51% to ₹1,634 crores with margin improvement to 13.1%

    • PBT before exceptional items grew 56% to ₹1,315 crores

    • Strong performance across all segments - 2W ICE domestic +21%, international +35%, EV +40%

    • 3-wheeler sales doubled to 60,000 units vs 29,000 units last year

    Key financials

    Metrics

    7

    Periods

    2

    Headline

    5
    • Operating Revenue
      ₹12,476 Cr
      YoY+37%
    • Operating EBITDA
      ₹1,634 Cr
      YoY+51%
    • Operating EBITDA Margin
      13.1%
      YoY+120%
    • PBT before exceptional items
      ₹1,315 Cr
      YoY+57.0%
    • PAT
      ₹940 Cr
      YoY+52%

    9M

    2
    • Revenue
      ₹34,463 Cr
      YoY+29.0%
    • PBT
      ₹3,594 Cr
      YoY+43%

    Segment breakdown

    ₹2,909 Cr Revenue
    ₹1,183 Cr Revenue
    List

    Guidance & targets

    5
    CategoryTargetPriority
    Industry Growth
    Q4 2-wheeler industry growth
    15%+
    High
    Industry Growth
    FY26 industry growth
    9%
    High
    Long-term Growth
    2-wheeler industry CAGR
    8-9%
    High
    Capital Allocation
    Capex
    ₹1,700 crores
    High
    Capital Allocation
    Total Investments
    ₹2,900 crores
    High

    Risks & concerns

    3
    RiskSeverity

    Commodity price inflation across metals

    Increases in aluminum, copper, zinc, platinum, palladium, rhodium. Total impact estimated at 0.4%, managed through scale, mix, and selective price increasesOther acknowledged

    medium

    EV magnet availability constraints

    Previous quarter challenges in EV production due to magnet shortage now easing, expected full resolution in 1 monthOther acknowledged

    low

    Mexico market duty impact

    New duties in Mexico market have minimal impact due to low volumes and local content strategyOther acknowledged

    low

    Q&A highlights

    4

    “with the kind of infrastructure getting built in India with the road connectivity, rural, urban, semi-urban getting better... I'm very confident that Q4 also, you will see the benefit because GST got implemented”

    Strong structural drivers for sustained industry growth

    asked by Gunjan (BoA)

    1 min read4 chapters

    Detailed Narrative

    01

    Record Financial Performance Driven by Volume and Mix

    TVS Motor achieved its highest ever quarterly performance with revenue of ₹12,476 crores (37% YoY growth) and operating EBITDA of ₹1,634 crores (51% growth). EBITDA margin expanded to 13.1% from 11.9% last year, with 120 bps improvement driven by scale benefits, improved product mix toward premium products, and cost optimization initiatives.

    02

    Strong Momentum Across All Vehicle Segments

    Domestic 2-wheeler ICE sales grew 21% vs industry 16%, international sales surged 35% vs industry 23%. EV segment delivered 40% growth crossing 1 lakh units. 3-wheeler business doubled to 60,000 units. Scooter category particularly strong, approaching 40% share of total 2-wheeler industry when ICE and EV combined.

    03

    Strategic Investments in Growth Engines

    Norton motorcycle brand ready for 2026 commercial launch with super-premium products unveiled at EICMA. TVS Credit Services delivered 21% PBT growth with 2.3 crore customers and ₹29,678 crores book size. Total investment guidance raised to ₹2,900 crores including Norton (₹290 crores), TVS Credit (₹200 crores incremental), and ION project (₹100 crores).

    04

    Positive Industry Outlook and Market Position

    Post-GST benefits driving strong Q3-Q4 momentum with Q4 industry growth expected 15%+. Management confident about 8-9% long-term CAGR supported by infrastructure development, road connectivity improvements, and mobility needs. TVS consistently outperforming industry growth across domestic and international markets.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.