TVS Motor Q1 Profit, Revenue at Record Highs on 28% Volume Growth; EV Sales Surge 86%
TVS Motor Company, which makes two-wheelers and three-wheelers for personal transport, delivery, and public mobility, reported its highest-ever quarterly revenue of ₹13,896 crore and net profit of ₹1,174 crore for the quarter ended June 2026. The company sold 1.63 million vehicles, a 28% jump from a year earlier, powered by strong demand for scooters, electric vehicles, and international markets. Despite a sharp rise in commodity costs, the company expanded its EBITDA margin by 30 basis points to 12.8%, underscoring its ability to balance pricing, cost control, and a premium product mix.
Record Financial Performance
TVS Motor’s standalone revenue grew 38% year-on-year to ₹13,896 crore, while profit after tax (PAT) surged 51% to ₹1,174 crore . The quarter’s PAT included a fair-valuation gain of ₹150 crore on investments, compared with ₹28 crore in the same quarter last year . Even excluding this, the underlying profit growth remained robust.
The company’s quarterly performance has been on a steady upward trajectory:
Revenue in Q1 FY27 was the highest ever, and the 38% growth was the strongest in at least two years. EBITDA rose 41% to ₹1,779 crore, with the margin improving to 12.8% from 12.5% in Q1 FY26 .
Segment Sales: Broad-Based Growth, EV Shines
Total two- and three-wheeler sales reached 1.63 million units, up 28% . Every segment contributed:
- Motorcycles: 0.74 million units, up 19%
- Scooters: 0.68 million units, up 36%
- Mopeds: 0.143 million units, up 27%
- Three-wheelers: 66,697 units, up 48%
- Electric two-wheelers: 129,940 units, up 86%
The electric vehicle (EV) segment crossed 1 million cumulative customers, and the iQube scooter alone surpassed 1 million units in production . Management had previously indicated that EV capacity was being scaled up from around 30,000–32,000 units per month to 50,000, and the Q1 run-rate of over 43,000 units per month signals that the company is on track to meet that goal .
Managing Commodity Headwinds
The company flagged a sharp increase in commodity prices during the quarter due to global uncertainties, which pushed up input costs . However, it partially offset the impact through price adjustments and focused cost-optimisation initiatives, benefiting from higher scale.
This approach echoes the strategy outlined by management in the May 2026 earnings call, where CEO K.N. Radhakrishnan described commodity inflation of 3–5% of revenue and said the company had been able to pass on about 35% of the cost increase through price hikes, while the rest was absorbed through scale benefits, product-mix improvement, and sustained cost reduction . The Q1 margin expansion suggests that the playbook is working, even as the commodity environment remains challenging.
International Business Momentum
International sales grew 33% to 0.47 million units, another record . The company has been consistently outperforming the industry in exports, with full-year FY26 international volumes reaching 1.58 million units – a 33% increase . Africa, Asia, and Latin America remain key growth regions, and TVS recently entered Zambia . In the May 2026 call, management expressed confidence that the international momentum would continue, supported by new product introductions like the TVS Orbiter and the establishment of a strategic office in Dubai .
Strategic Initiatives and Outlook
The quarter saw several product and brand milestones: the launch of the TVS iQube S with a 4.7 kWh battery, the rollout of the first Norton Atlas at its Hosur plant, and the TVS King Kargo HD winning an award at the ET AutoTech Awards 2026 . The company’s chairman emeritus, Venu Srinivasan, received the CII President’s Award for Lifetime Achievement .
Looking ahead, TVS Motor has guided for ₹3,500 crore in capital expenditure for FY2027, including ₹1,000 crore for capacity expansion and close to ₹2,000 crore for R&D and product development . Management remains cautiously optimistic about domestic demand, expecting a good single-digit industry growth, while geopolitical tensions and commodity prices will be monitored closely .
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