TVSMOTOR

Posts Highest-Ever Revenue, Momentum Seen Continuing

. reported a record Q3FY26 performance, with consolidated net profit rising 46% YoY to ₹891 crore, its highest ever. Revenue surged 33% YoY to ₹14,745 crore, supported by strong domestic demand, premiumization, and robust exports. The company expects momentum to continue into Q4, aided by rising EV sales and new international launches under its Norton brand. Sales and Segment Performance - Total two-wheeler sales: 1.48 million units, up 25% YoY. - Domestic demand remained strong, with premium motorcycles and scooters gaining share. - Exports rose 35% YoY to 366,000 units, a key driver of profit growth. - EV sales grew 40% YoY to 106,000 units, a record for the company. Financial Performance - Revenue: ₹14,745 crore, up 33% YoY, highest ever. - Net profit: ₹891 crore, up 46% YoY, driven by volume growth and exports. - TVS shares rose 4.7% post-results, outperforming Nifty Auto’s 0.7% gain. Strategic Outlook and Initiatives - CEO K.N. Radhakrishnan emphasized confidence in outperforming industry growth in Q4. - Focus on international expansion, with new Norton models planned for global markets. - EV supply chain challenges (rare earth magnets) largely resolved, improving availability. - Company continues to prioritize premiumization and innovation across product lines. Industry Context - Two-wheeler industry posted record Q3 sales of 5.70 million units, up 17% YoY, per SIAM data. - GST cuts and festive demand boosted sector-wide momentum. - Retail registrations crossed 20 million units in 2025, underscoring strong consumer appetite. Risks and Cost Pressures - Rising input costs (aluminium, copper, platinum) could pressure margins. - TVS plans small price hikes (0.2–0.3%) to mitigate cost inflation. - Sustained demand and premium mix expected to offset near-term cost headwinds.