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    TVS Motor Co.

    TVSMOTORNeutral
    Automobile and Auto Components·28 Jan 2026
    Management Summary

    TVS Motor delivered a blockbuster Q3 FY26 with record-breaking performance across all metrics. The company significantly outperformed the industry in both domestic and international markets. GST reduction, strong festive demand, and premiumization drove exceptional growth. EBITDA margin expanded 120bps YoY to 13.1%. Management remains highly confident about Q4 outlook and long-term 8-9% industry CAGR.

    Highlights

    8

    • Highest ever quarterly sales, revenue and profits

    • Revenue grew 37% YoY to INR 12,476 crores

    • Operating EBITDA grew 51% YoY to INR 1,634 crores at 13.1% margin

    • Total 2-wheeler ICE sales grew 25% vs industry growth of 17%

    • EV 2-wheeler sales grew 40% YoY crossing 1 lakh units

    • 3-wheeler sales more than doubled to 60,000 units

    • PBT grew 57% to INR 1,315 crores

    • TVS Credit book size at INR 29,678 crores, PBT grew 21%

    Key financials

    Metrics

    13

    Periods

    2

    Headline

    10
    • Revenue
      ₹12,476 Cr
      YoY+37%
    • Operating EBITDA
      ₹1,634 Cr
      YoY+51%
    • EBITDA Margin
      13.1%
    • PBT (before exceptional)
      ₹1,315 Cr
      YoY+57.0%
    • PAT
      ₹940 Cr
      YoY+52%

    9M

    3
    • Revenue
      ₹34,463 Cr
      YoY+29.0%
    • PBT
      ₹3,594 Cr
      YoY+43%
    • PAT
      ₹2,625 Cr
      YoY+41%

    Guidance & targets

    7
    CategoryTargetPriority
    Industry
    Q4 FY26 2W industry growth
    15%+
    		High
    Industry
    FY26 full year 2W industry growth
    ~9%
    		High
    Industry
    Long-term 2W industry CAGR
    8-9%
    		High
    Capex
    FY26 Capex
    ~1700 crores
    		High
    Investment
    FY26 Total Investments
    ~2900 crores
    		High
    EV
    Orbiter monthly production
    10000+ units/month
    		Medium
    Products
    Norton launch
    Products to hit market in 2026
    		High

    Risks & concerns

    5
    RiskSeverity

    Commodity inflation in precious metals, aluminum, copper, zinc

    Platinum, palladium, rhodium prices increased; BS-VI has higher content requirements — Analyst acknowledged

    medium

    EV magnet supply constraints

    Affected iQube and Orbiter production; now easing — Management acknowledged

    medium

    Norton investments dragging on profitability

    INR290 crores invested in Norton this quarter; brand building and pre-marketing costs — Analyst acknowledged

    medium

    Europe market challenges

    European market not growing; recovery timeline uncertain — Management acknowledged

    low

    Safeguard duties on steel

    Reintroduction of safeguard duties could add to input costs — Analyst acknowledged

    low

    Q&A highlights

    6

    “first half of next year is also going to be very good because the benefits will come into the industry”

    GST base effect ensures strong H1 FY27; long-term 8-9% CAGR reiterated

    asked by Gunjan (BoA)

    2 min read5 chapters

    Detailed Narrative

    01

    Record Quarter Driven by GST Tailwind and Premiumization

    TVS Motor delivered its highest ever quarterly performance with revenue of INR 12,476 crores (+37% YoY), EBITDA of INR 1,634 crores (+51% YoY) at 13.1% margin, and PBT of INR 1,315 crores (+57% YoY). The GST reduction in September 2025 catalyzed demand across segments. Scooters outperformed with the category approaching 40% share of total 2W industry. Premium and super-premium segments grew faster than the industry.

    02

    EV Business Scaling Despite Supply Hiccups

    EV 2-wheeler sales grew 40% YoY to cross 1 lakh units. However, magnet availability issues constrained production of iQube and the newly launched Orbiter. Management expects full EV supply recovery within a month. iQube production runs at 30-32K/month, Orbiter approaching 10K/month. EV 3-wheeler (TVS King EV) volumes at ~8,500 units/quarter. PLI benefits contribute 0.7% of revenue. EV is contribution-positive and improving quarterly.

    03

    International Markets Strong; Africa and LatAm Leading

    International revenue was INR 2,909 crores. Exports grew 35% vs industry 23%. Africa has recovered strongly after a bad prior year. LatAm continues to grow. Sri Lanka is back as a major scooter market with Jupiter as a key product. Europe remains weak and may take a few more quarters. Mexico tariff impact is minimal given low volumes and localization efforts.

    04

    TVS Credit Services and Subsidiary Investments

    TVS Credit book size at INR 29,678 crores (+9% YoY) with PBT of INR 390 crores (+21% YoY). Disbursed loans to 41 lakh new customers in 9M, total customer base ~2.3 crores. Investment guidance for FY26 revised up to INR 2,900 crores from INR 2,000 crores, driven by Norton (INR 290cr this quarter), TVS Credit (INR 200cr additional), ION PT TVS project (~INR 100cr).

    05

    Norton Approaching Commercial Launch

    Norton products unveiled at EICMA 2025 Milan — new Manx and Atlas families targeting super-premium luxury motorcycle segment. Products to hit markets in 2026. India launch also planned with differentiated strategy. Pre-marketing and EICMA costs of INR 60-70 crores incremental this quarter. This is described as a very important year for Norton.

    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.