TVS Motor Company has announced strong financial results for Q2 FY27, with profit after tax growing by 52% to INR 1,377 crores on a 44% revenue increase to INR 17,103 crores. The company also revealed a strategic decision by its Board to approve a scheme of demerger for its consumer finance and related businesses into a separate entity to unlock shareholder value. This move aims to provide greater strategic autonomy and focused growth for both the mobility and financial services segments.
TVS Motor Reports Strong Q2 FY27 Performance
TVS Motor Company Limited has announced robust financial results for the second quarter ended September 30, 2026 (Q2 FY27). The company reported a significant 44% growth in revenue, reaching INR 17,103 crores, up from INR 11,905 crores in the corresponding quarter of the previous year. Profit after tax witnessed a substantial increase of 52%, growing to INR 1,377 crores from INR 904 crores year-on-year.
EBITDA for the quarter grew by 47% to INR 2,219 crores, and PBT rose by 52% to INR 1,865 crores. This performance was driven by healthy sales volumes, which grew by 27% to 1.9 million units. The company noted strong domestic ICE 2-wheeler sales growth of 16% and international ICE 2-wheeler sales growth of 33%, outperforming industry growth in both segments. EV sales also showed remarkable growth, with domestic 2-wheeler EV sales up by 129% and 3-wheeler EV sales by 65%.
Strategic Demerger to Unlock Shareholder Value
In a significant strategic move, the Board of Directors of TVS Motor has approved a scheme of demerger for its consumer finance and related business undertaking. This demerger is expected to unlock significant shareholder value by creating a focused platform for the group’s financial services businesses. The move aims to provide greater strategic autonomy, sharper capital allocation, and enhanced flexibility to pursue sector-specific opportunities. Shareholders will participate in the future growth of both the mobility and financial services businesses. The demerged entity will be listed separately, mirroring the shareholding of TVS Motor.
H1 FY27 Performance Highlights
For the first half of FY27, TVS Motor reported a 41% increase in operating revenue to INR 30,999 crores. Profit before tax grew by 52% to INR 3,454 crores, and profit after tax increased by 52% to INR 2,551 crores. The company also achieved its highest ever international business sales in H1 FY27, with 5.39 lakh units, a 35% year-on-year growth, driven by sustained demand across key markets.
Product Launches and Market Expansion
The company has been active in expanding its product portfolio and market presence. New launches in international markets include TVS Orbiter and TVS NTORQ 150 in Nepal, and TVS King EV Max and TVS Orbiter in Sri Lanka. Apache series motorcycles have also been launched in Sri Lanka, Kenya, and Egypt. TVS iQube has crossed the 1 million customer milestone globally. The company is also focusing on enhancing its EV offerings and expanding its distribution network both domestically and internationally.
Industry Outlook and Future Prospects
TVS Motor remains optimistic about the industry outlook, expecting continued growth in the 2-wheeler and 3-wheeler segments, with a particular focus on EV adoption. The company believes its strong brands and capacity expansion plans will enable it to outperform the industry. Investments are planned for new product development, technology, and capacity enhancement to support future growth and maintain market leadership.
Source: BSE
