TVS Motor Company Limited

TVS Motor Company achieved its highest-ever sales of 4.7 million units in FY25. The company reported a record operating revenue of ₹36,251 crores, marking a 14% year-over-year growth from ₹31,776 crores in the previous fiscal year. Operating EBITDA reached an all-time high of ₹4,454 crores, a 27% increase from ₹3,514 crores, with the EBITDA margin improving by 120 basis points to 12.3% for the full year. Profit after tax also saw a significant 30% rise to ₹2,711 crores.

For the fourth quarter of FY25, TVS Motor Company's operating revenue grew by 17% year-over-year to ₹9,550 crores. The company posted an operating EBITDA of ₹1,333 crores, up from ₹926 crores in Q4 FY24. The reported EBITDA margin for Q4 FY25 was 14%, which included the full-year Production-Linked Incentive (PLI) benefits. Excluding these benefits, the underlying Q4 EBITDA margin stood at 12.5%, an improvement from 11.3% in the prior year's fourth quarter.

The EV two-wheeler segment demonstrated strong growth, with sales increasing by 44% to 2.8 lakh units in FY25 and by 54% to 76,000 units in Q4 FY25. EV revenues for FY25 reached ₹3,364 crores, with ₹889 crores in Q4 FY25. TVS introduced new iQube variants with 2.2kW, 3.4kW, and 5.1kW battery options and launched the TVS EV King Max three-wheeler. Management expects EV penetration in the L5 category to grow to 35% and is strategically timing product launches to maximize returns.

Domestic ICE two-wheeler sales grew by 9% in FY25, outperforming the industry growth of 7%. International two-wheeler sales saw a 23% increase in FY25 against an industry growth of 21%. Exports to the LATAM region experienced higher growth, while African markets, though mixed, are expected to see upward revisions. The company anticipates domestic market growth momentum to be similar to last year, with a positive outlook for rural sentiment and retail finance in the coming quarters^⏳.

TVS Motor Company's CAPEX for FY25 was approximately ₹1,800 crores, primarily allocated to new product development, technology, and capacity expansion for both ICE and EV segments. Investments were also made in subsidiaries such as Norton, Moto, TVS Digital, and SEMG (e-cycles). TVS Credit Services reported a PBT of ₹1,027 crores in FY25, a 35% increase, and its book size reached ₹26,647 crores, demonstrating strong growth and asset quality with a GNPA of 2.8% in the March quarter.

The company is confident in growing ahead of the industry in both domestic and international markets, across ICE and EV segments. Management expects continued improvement in profitability, driven by leveraging overall growth, scale benefits, better product mix, and sustained cost reduction initiatives. The flow-through of PLI benefits is also expected to continue, supporting the company's financial performance and EV transition strategy. Norton products are anticipated to be available by the end of FY26.