TVS Motor Company (532343) Q3 25/26 earnings summary

Executive summary

• Achieved record quarterly sales of 1.54 million units in Q3 FY26, up 27% year-over-year, with operating revenue at ₹12,476 crore (up 37% YoY) and operating EBITDA at ₹1,634 crore (margin 13.1%).

• Net profit after tax for the quarter was ₹940 crore (up from ₹618 crore YoY), with earnings per share at ₹19.79 (up from ₹13.02 YoY).

• Electric vehicle sales surged 40% year-over-year, reaching 106,000 units in the quarter.

• TVS Credit disbursed loans to over 4.1 million new customers, with a book size of ₹29,678 crore, up 9% year-over-year.

• Premiumization and global expansion advanced with new product launches, awards, and European market entry.

Financial highlights

• Q3 operating revenue: ₹12,476 crore (up 27%-37% YoY); Q3 operating EBITDA: ₹1,634 crore (up 51% YoY); EBITDA margin: 13.1% (up 120 bps YoY).

• Q3 PBT before exceptional items: ₹1,315 crore (up 57% YoY); exceptional item of ₹41 crore for labor code changes.

• Q3 PAT: ₹940 crore (up from ₹618 crore YoY); nine-month PAT: ₹2,625 crore (up from ₹1,858 crore YoY).

• Nine-month operating revenue: ₹34,463 crore (up 29% YoY); nine-month operating EBITDA: ₹4,406 crore (margin 12.8%).

• Earnings per share for the quarter at ₹19.79, up from ₹13.02 year-over-year.

Outlook and guidance

• Q4 industry growth expected above 15%, with full-year industry growth around 9% due to a weak first half.

• Positive outlook for Q4 and FY27, with long-term two-wheeler industry CAGR expected at 8%-9%.

• EV penetration in two- and three-wheelers at 30%-32% in Q3, expected to rise further.

• International markets, especially Africa, LatAm, and Asia, expected to maintain growth momentum.

• Company monitoring regulatory changes, including new labor codes and environmental rules.