TVSMOTOR

Q2 FY26 Summary & Strategic Outlook

Posts Record revenue, EV momentum, and global expansion drive growth 🔹 Strong Q2 Performance - Volumes grew 23% YoY; realisation improved 5%, leading to record revenue of ₹11,905 crore. - 2W exports surged 31%, contributing 24% to total revenue. - EV sales rose 7% QoQ, reinforcing leadership in the electric mobility space. 🔹 Profitability & Investments - EBITDA margin expanded to 12.7%, supported by operating leverage. - Higher R&D and marketing spends reflect strategic investments for future growth. 🔹 Favorable Policy Tailwinds - GST cut on two-wheelers (28% → 18%) expected to boost demand in H2 FY26. - Urban markets led recovery in H1FY26 (+3.6%); rural demand (+0.6%) expected to improve with better infrastructure and monsoon. 🔹 Product Portfolio Expansion - Launched four new models: - TVS Orbiter (2W EV) - TVS King Kargo HD (3W EV) - NTORQ 150 (scooter) - Apache RTX (motorcycle) - Norton premium motorcycle brand to debut in India by April 2026. 🔹 EV Segment Highlights - EV revenue rose to ₹1,269 crore in Q2 (vs ₹1,000 crore in Q1). - Holds 22% market share in electric 2Ws; 4.37% in electric 3Ws. - King Kargo HD aims to scale E3W presence; rare earth magnet supply remains a short-term challenge. 🔹 Export Growth Trajectory - Exports near 30% of volume; Africa and Latin America show strong momentum. - Expanding presence in Sri Lanka, Nepal, and Bangladesh to deepen Asian footprint. 🔹 Valuation & Investment View - Trades at 37.2x FY27e earnings—premium justified by strong execution, product innovation, and market share gains. - Continues to outperform peers, making it a compelling long-term portfolio candidate.