TVS Motor Company (532343) Q2 25/26 earnings summary

Executive summary

• Achieved record quarterly sales of 1.51 million units, up 23% year-over-year, and half-yearly sales of 2.78 million units, up 20% year-over-year.

• Highest ever quarterly operating revenue of ₹11,905 crore, a 29% increase from Q2 last year; half-year revenue at ₹21,986 crore, up 25% year-over-year.

• Operating EBITDA for the quarter grew 40% to ₹1,509 crore with margin improvement to 12.7%.

• Profit before tax (PBT) for the quarter rose 37% to ₹1,226 crore; half-year PBT up 36% to ₹2,279 crore.

• Strong growth in both ICE and EV segments, with new product launches and continued investment in R&D and marketing.

Financial highlights

• Standalone Q2 net profit after tax: ₹906.09 crore; EPS (basic/diluted): ₹19.07.

• Consolidated Q2 net profit after tax: ₹832.76 crore; EPS (basic/diluted): ₹16.74.

• Operating EBITDA margin improved by 100bps to 12.7% in Q2; half-year margin at 12.6% from 11.6% last year.

• Net profit margin for Q2: 7.6% standalone, 5.9% consolidated.

• TVS Credit disbursed loans to over 25 lakh new customers; book size at ₹27,807 crore; Q2 PBT up 28% YoY.

Outlook and guidance

• Expecting continued growth in Q3 and Q4, supported by GST rate reduction and positive industry momentum.

• ICE segment projected to grow 8% in the coming quarters; EV segment growth constrained by magnet availability.

• Continued focus on expanding EV offerings and urban mobility solutions, with emphasis on brand leadership and innovation.

• Confident of outperforming industry growth both domestically and internationally.