TVS Motor Company (532343) Q1 25/26 earnings summary

Executive summary

• Achieved record quarterly sales of 1.28 million units (12.77 lakh), up 17% year-over-year for Q1 FY26.

• Highest ever operating revenue at INR 10,081 crore, a 20% increase compared to Q1 FY25.

• Operating EBITDA grew 32% to INR 1,263 crore, with margin improving to 12.5%.

• Profit before tax rose 35% to INR 1,053 crore; profit after tax increased 35% to INR 779 crore.

• Outperformed industry growth in domestic and international markets, with strong performance in two-wheelers, EVs, and three-wheelers.

Financial highlights

• Operating revenue: INR 10,081 crore (Q1 FY26) vs INR 8,376 crore (Q1 FY25), up 20%.

• Operating EBITDA: INR 1,263 crore, up 32% year-over-year; EBITDA margin improved to 12.5% from 11.5%.

• Profit before tax: INR 1,053 crore, up 35%; profit after tax: INR 779 crore, up 35%.

• EV revenue for the quarter was around INR 1,000 crore, with 70,000 EV units sold.

• Exports for the quarter were INR 2,487 crore; spare parts revenue was INR 987 crore.

Outlook and guidance

• Expecting moderate growth in domestic ICE business, with rural growth anticipated to improve due to favorable monsoon and early sowing.

• Positive outlook for Q2, driven by festive season and improved retail financing conditions.

• Confident in continued growth in both domestic and international markets, with a focus on premiumization and new product launches.

• Ongoing investments in Norton and e-bike businesses, with new product launches planned for India and Europe.

• Board approved fund raising to support future growth and capital needs.