TVS Motor Q2FY26 Profit Surges 42% to ₹833 Crore Amid Record Sales and Margin Gains
TVS Motor Company delivered an impressive performance in Q2FY26, reporting a 42% jump in consolidated net profit to ₹833 crore compared to ₹588 crore in the year-ago quarter. The robust results were driven by healthy two-wheeler and scooter sales, steady export growth, and operational efficiency improvements.
Financial Highlights – Q2FY26
| Metric | Q2FY26 | Q2FY25 |
|---|---|---|
| Consolidated Net Profit (₹ crore) | 833 | 588 |
| Revenue from Operations (₹ crore) | 14,051 | 11,197 |
| EBITDA Margin | 12.7% | 11.7% |
| Total Vehicle Sales (units) | 15.07 lakh | 12.28 lakh |
| EV Sales (units) | 0.80 lakh | 0.75 lakh |
Performance Summary
For the half-year ended FY26, consolidated revenue grew 22% to ₹26,261 crore, while profits surged 39% to ₹1,475 crore. On a standalone basis, net profit stood at ₹906 crore, up from ₹662 crore a year earlier. Revenue from standalone operations rose to ₹11,905 crore compared with ₹9,228 crore in the same period last year.
The management highlighted that TVS achieved its highest-ever quarterly sales, EBITDA, and profit in Q2FY26 despite challenges in raw material availability. The company expects further improvement in demand and product mix in the coming quarters, targeting an 8% growth in its internal combustion engine (ICE) portfolio during Q3 and Q4.
Growth Drivers and Segment Highlights
- Strong festival season sales lifted total two-wheeler and scooter volumes by 23% YoY.
- EBITDA rose 40% to ₹1,509 crore, reflecting margin expansion of 100 basis points to 12.7%.
- Electric Vehicle (EV) sales climbed 7%, reaching a record 0.80 lakh units during the quarter.
- Exports contributed 25% of total revenue, underscoring TVS’s international expansion efforts.
- Investments worth ₹552 crore were deployed in subsidiaries, particularly in the UK-based Norton Motorcycles and operations in Dubai.
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Management Commentary
K.N. Radhakrishnan, Director and CEO of TVS Motor Company, attributed the performance to operational agility and focused cost control. He added that the company’s growth momentum is sustainable, with upcoming launches such as the Norton motorcycle lineup in April 2026 expected to enhance brand presence in the premium segment.
“We see a positive multiplier effect in the coming quarters. Our EV growth has been encouraging despite supply challenges, and export volumes are gaining traction,” Radhakrishnan said. He also emphasized that the company took calibrated price hikes and optimized product mix to protect margins.
SWOT Snapshot — TVS Motor Company
| Strengths | Weaknesses |
|---|---|
| Strong domestic and export mix, leadership in scooters, growing EV presence. | Dependence on two-wheeler segment, exposure to raw material price volatility. |
| Opportunities | Threats |
| Expanding EV and premium motorcycle portfolio; overseas market penetration. | Intense competition from domestic peers and new EV entrants; regulatory changes. |
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, believes that TVS Motor’s strong Q2 performance highlights its ability to balance growth across EV and ICE portfolios while maintaining profitability. With expanding margins, strong exports, and product diversification, TVS remains well-positioned for sustained medium-term growth. Discover more insights and stock analysis at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries
- Will TVS Motor continue its profit growth in FY26?
- How is TVS performing in the electric vehicle segment?
- What are the key growth drivers for TVS exports and premium models?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
