News ArticleTVS Motor Company Posts Record Q2 FY27 Sales and Profit; Approves Consumer Finance Business Demerger
Sales volume rises 27% to 1.9 million units and profit after tax grows 52% to INR1,377 crores in Q2 FY27, with strong domestic and international growth across segments
TVS Motor Company achieved record sales volume of 1.9 million units and revenue of INR17,103 crores in Q2 FY27, alongside a 52% profit after tax increase. The Board approved a demerger of its consumer finance business to unlock shareholder value and provide strategic focus. Domestic and international two-wheeler and three-wheeler sales outpaced industry growth, with significant expansion in electric vehicles.
TVS Motor Company Limited
Earnings Call Transcript
TVS Motor Company reported its highest ever sales volume of 1.9 million units and revenue of INR17,103 crores for the quarter ended September 2026, marking significant growth across all key financial metrics. The Board approved a scheme to demerge the consumer finance and related businesses to enhance strategic focus and shareholder value.
The company’s Q2 FY27 sales volume increased by 27% from 1.5 million units to 1.9 million units, revenue grew by 44% from INR11,905 crores to INR17,103 crores, EBITDA rose by 47% to INR2,219 crores, profit before tax increased by 52% to INR1,865 crores, and profit after tax grew by 52% to INR1,377 crores compared to the same period last year.
Domestic two-wheeler internal combustion engine (ICE) sales rose 16%, exceeding the industry's 10% growth, while international two-wheeler ICE sales grew 33% against 27% industry growth. Domestic electric vehicle (EV) two-wheeler sales surged by 129%, and three-wheeler sales increased by 47% with strong EV penetration reaching around 44% in Q2 and nearly 48% in September.
The first half of FY27 showed operating revenue growth of 41% to INR30,999 crores and profit before tax growth of 52% to INR3,454 crores. International business sales reached a record 5.39 lakh units, a 35% year-on-year increase, with expansion into new markets and product launches including EV two and three-wheelers in various countries.
The Board approved a scheme to demerge the consumer finance and related business from TVS Motor to provide strategic autonomy, focused capital allocation, and unlock shareholder value, allowing distinct growth opportunities for both mobility and financial services divisions.
Multiple new products were introduced internationally during Q2, such as TVS Orbiter and TVS NTORQ 150 in Nepal, TVS King EV Max in Sri Lanka, and electric and performance models in Kenya, Egypt, and Indonesia, underlining the company’s focus on expanding product portfolio and market reach.
Highlights
- Q2 FY27 sales volume rose 27% to 1.9 million units, revenue increased 44% to INR17,103 crores.
- Profit after tax grew 52% to INR1,377 crores versus Q2 FY26.
- Domestic two-wheeler ICE sales grew 16%, international two-wheeler ICE up 33%.
- Domestic two-wheeler EV sales surged 129%, surpassing industry growth of 84%.
- Three-wheeler sales grew 47%, with EV penetration near 48% in September.
- First half FY27 revenue increased 41% to INR30,999 crores; PBT increased 52%. International sales grew 35% to 5.39 lakh units in H1 FY27.
Key Data Snapshot
What happened
- TVS Motor Company recorded its highest ever quarterly sales volume and revenue in Q2 FY27.
- Sales volume increased 27% to 1.9 million units and revenue grew 44% to INR17,103 crores compared to Q2 FY26.
- Profit after tax rose 52% to INR1,377 crores and EBITDA margin improved to 13%.
- The Board approved a demerger of the consumer finance and related business to create focused platforms and unlock shareholder value.
- Strong growth was seen in domestic and international two-wheeler and three-wheeler sales, including electric vehicle segments.
Key details
- Domestic two-wheeler ICE sales grew 16%, outperforming the industry 10% growth.
- International two-wheeler ICE sales grew 33%, exceeding the 27% industry growth.
- Domestic two-wheeler EV sales increased by 129%, surpassing the industry's 84% growth.
- Three-wheeler sales increased by 47% compared to Q2 last year, with EV penetration reaching nearly 48% in September 2026.
- First half FY27 revenue was INR30,999 crores, up 41%, and profit before tax reached INR3,454 crores, up 52%.
Transaction details
- The Board of Directors approved the scheme to demerge TVS Motor’s consumer finance and related business.
- The demerger aims at providing strategic autonomy, sharper capital allocation, and flexibility for growth in both mobility and financial services sectors.
- Shareholders will participate in the future growth of both separated businesses.
Operational performance
- International business sales achieved a record 5.39 lakh units in H1 FY27, increasing 35% year-on-year.
- New product launches in international markets included EV two and three-wheelers and high-performance motorcycle variants.
- Domestic 3-wheeler ICE plus EV sales grew 65% in Q2 FY27 with increasing EV adoption in the commercial segment.
- The company continues to expand distribution and product portfolio internationally, focusing on emerging export markets.
Highlights
- Q2 FY27 sales volume rose 27% to 1.9 million units, revenue increased 44% to INR17,103 crores.
- Profit after tax grew 52% to INR1,377 crores versus Q2 FY26.
- Domestic two-wheeler ICE sales grew 16%, international two-wheeler ICE up 33%.
- Domestic two-wheeler EV sales surged 129%, surpassing industry growth of 84%.
- Three-wheeler sales grew 47%, with EV penetration near 48% in September.
- First half FY27 revenue increased 41% to INR30,999 crores; PBT increased 52%. International sales grew 35% to 5.39 lakh units in H1 FY27.
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
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