Detailed Narrative
Record FY26 Performance
TVS Motor Company achieved its highest-ever sales volume, revenue, and profit in FY26. Sales volume grew 24% to 5.9 million units, while revenue increased 30% to INR 47,270 crores from INR 36,251 crores. Operating PBT saw a 40% growth to INR 4,975 crores from INR 3,563 crores, and EBITDA rose 37% to INR 6,079 crores from INR 4,450 crores, with the margin improving by 60 basis points to 12.9%.
Strong Q4 FY26 Results
The company recorded its highest-ever quarterly revenue of INR 12,808 crores in Q4 FY26, representing a 36% YoY growth. Operating EBITDA for the quarter was INR 1,679 crores, up 43.2% from INR 1,172 crores in the previous year, with an EBITDA margin of 13.1%. PBT for Q4 grew 59.6% to INR 1,358 crores from INR 851 crores.
Segmental Volume Growth
In FY26, 2-wheeler ICE sales grew 19% (vs. 10% industry), international 2-wheeler ICE sales grew 31% (vs. 23% industry), and EV 2-wheeler sales grew 33% to 3.7 lakh units. 3-wheeler sales surged 63% to 220,000 units. Q4 also saw robust growth, with domestic 2-wheeler ICE up 26%, international 2-wheeler up 23%, EV 2-wheeler up 51% to 115,000 units, and 3-wheeler up 65% to 60,000 units.
TVS Credit Services Performance
TVS Credit Services achieved a record PBT of INR 1,248 crores in FY26, a 21.5% increase from INR 1,027 crores last year. Its book size grew 14.9% to INR 30,631 crores from INR 26,647 crores. The company maintained its focus on risk-calibrated growth, leading to improved portfolio quality and reduced total credit cost and GNPA. Q4 PBT for TVS Credit was INR 348 crores, up 15.2% from INR 302 crores.
Capacity Expansion and FY27 Capex Plans
TVS Motor plans to increase its capacity by another 1.5 million units, aiming for a total of 8.3 million units, with work already initiated in the last quarter of FY26. For FY27, the total capex for TVS Motor is projected to be around INR 3,500 crores, including approximately INR 2,000 crores for product development and new products, and over INR 1,000 crores for 2-wheeler and 3-wheeler capacity expansion.
International Business and New Products
International business sales reached 15.8 lakh units in FY26, a 33% YoY growth. The company is focusing on the LatAm region for further leveraging, alongside strong performance in Africa and Asia. New products like Orbiter V1 (1.8 kW and 3.1 kW battery options) and TVS King Kargo Heavy Duty CNG have been launched. Norton products, including Manx, Manx R, Atlas, and Atlas GT, are getting ready for launch in Q2 FY27 in Europe and India.
Challenges and Mitigation Strategies
Management acknowledged headwinds from geopolitical issues, commodity price inflation (expected 3-5%), input costs, and supply chain disruptions. The company has taken initiatives to strengthen cost reduction, improve product mix, and implement price increases, offsetting 35% of the commodity price hikes. They are closely monitoring the situation and expect supply chain issues related to raw materials and labor to resolve within a couple of weeks.
EV Segment Performance and Outlook
EV 2-wheeler sales grew 33% in FY26 to 3.7 lakh units and 51% in Q4 to 115,000 units. The company's iQube and Orbiter brands are performing well, with monthly EV sales moving from around 40,000 to a target of 50,000 units soon. A joint development agreement with Hyundai Motor Company for an electric 3-wheeler aims to redefine mobility in this category, leveraging both companies' strengths in design, R&D, and electric platforms.