TVS Motor profit jumps 54% to an all-time high
India’s third largest two-wheeler manufacturer TVS Motor Co. Ltd on Wednesday reported its best-ever financial performance for the financial year as the maker of Apache motorcycles and Ntorq scooters outpaced rivals in sales growth.
The company expects industry growth to lag again this fiscal year despite rising input costs and supply chain disruptions caused by the war in West Asia.
“We are confident about demand. The uncertainty is about timely supply of raw material,” KN Radhakrishnan, director and CEO of the company, said during an investor call.
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TVS Motor reported its best-ever financial performance in the financial year, with profits rising 54% to an all-time high of Rs 3,524 crore. Consolidated revenue also grew by more than a quarter to ₹15,053 crore, driven by a 25% increase in sales of scooters, motorcycles and three-wheelers.
TVS Motor saw strong sales growth across its product lines. Compared to the previous year, motorcycle sales increased by 24 percent, scooter sales by 27 percent, electric vehicle sales by 33 percent and three-wheeled vehicle sales by 63 percent.
TVS Motor aims to increase its production capacity by 1.5 million units in the current financial year, reaching a total annual capacity of approximately 8.3 million units. The company has earmarked capital expenditure of ₹3,500 crore for R&D and capacity expansion in 2026-27.
The CEO expressed confidence in the demand but noted uncertainty about the timely supply of raw materials. He also noted that inflationary pressures and supply chain disruptions like those seen during the COVID-19 pandemic are manageable.
TVS Motor expects the domestic two-wheeler industry to grow at a single-digit rate in 2026-27 and expects it to outperform the industry growth. The benefits from rationalization of the GST rate are expected to continue boosting demand.
It expects the domestic two-wheeler industry to grow at a single-digit rate in 2026-27, with TVS Motor likely to outperform. The benefits from the rationalization of the goods and services tax (GST) rate in September 2025 continue to boost demand, he said.
Meanwhile, inflationary pressures and supply chain disruptions caused by the war are similar to many disruptions seen in the recent past, including the Covid-19 pandemic, and the company is well equipped to deal with them, he said.
FY26 performance
The Chennai-based company sold around 5.9 million scooters, motorcycles and three-wheelers in India and abroad in 2025-26; This figure was the highest ever, up a quarter on the previous year.
In comparison, the Indian two-wheeler industry recorded domestic sales of 21.7 million in the financial year, with an annual growth of 11%, according to data from the Society of Indian Automobile Manufacturers (Siam). Market leader Hero MotoCorp Ltd and peer Bajaj Auto Ltd also recorded their best-ever sales in 2025-26.
Sharp sales growth boosts TVS Motor’s consolidated profitability ₹15,053 crore, more than a quarter more than the previous year. Profit increased by more than half ₹3,524 crore.
The consolidated financial statements include earnings from TVS’ domestic automotive business as well as its international subsidiaries and credit unit TVS Credit Services Ltd.
Earnings before interest, tax, depreciation and amortization (EBIT) increased by 26% annually ₹8,393 crore. However, EBITDA margin narrowed by 11 basis points to 14.97%. One basis point is 0.01%.
Sales performance across the company’s product lines was strong: 24% more motorcycles (2.7 million), 27% more scooters (2.4 million), 33% more electric vehicles (371,000) and 63% more three-wheelers (219,000) sold than in the previous year.
FY27 plans
The CEO said that the company aims to increase its production capacity by 1.5 million units in the current financial year, bringing its total annual capacity to approximately 8.3 million units.
It will continue its research and development (R&D) and capacity expansion investments with capital expenditure guidance. ₹3,500 crore for 2026-27.
He said that on the export front, demand from Africa is strong, while the Asian market is catching up after the recent disruptions in Sri Lanka and Bangladesh. The company was investing in Latin America, its third largest export target, to increase its export share.
“The demand for us is so high that we cannot meet the demand today,” Radhakrishnan said about the company’s presence in Africa.
