TVS MOTOR COMPANY LTD.

TVS Motor Company is strengthening its European presence by unveiling four production-ready models at EICMA 2026 in Milan. These models, including the TVS Orbiter, TVS M1-S, TVS X, and TVS RTR 125, cater to electric mobility, premium urban transportation, and lightweight sports motorcycling segments. This expansion is supported by dedicated engineering facilities, a strengthened retail network across Italy, Spain, and Portugal, and aims to increase the contribution of international business to over 30% of overall revenue by 2030. The company also announced the appointment of Peyman Kargar as Director and CEO effective January 27, 2027.

TVS Motor Company reported a 29% increase in total sales for October 2026, reaching 700,134 units compared to 543,557 units in October 2025. Two-wheeler sales grew by 28% to 670,679 units, with domestic sales up 22% and electric vehicle (EV) sales surging by 120% to 71,382 units. International business sales saw a significant rise of 51% to 175,350 units. Three-wheeler sales also performed strongly, increasing by 60% to 29,455 units. This robust performance indicates strong market demand and successful product offerings across segments.

TVS Motor Company has launched the TVS Ronin Agonda, a new variant in its modern-retro motorcycle lineup, inspired by the custom-modification style of Agonda Beach. The motorcycle is priced at IDR 37,080,000 in Indonesia and features safety and comfort enhancements like Single Channel ABS, Rain and Urban Modes, Glide Through Technology (GTT), and a Slipper Clutch. This launch is a strategic move to expand TVS's portfolio in Indonesia, building on the positive reception of the Ronin series. The Agonda variant aims to appeal to modern-retro motorcycle enthusiasts and adventure riders.

TVS Motor Company's Board of Directors has approved a Composite Scheme of Arrangement to demerge its consumer finance and related business undertaking into a separate holding company. This move aims to unlock shareholder value by creating a focused platform for the financial services segment, providing greater strategic autonomy and capital allocation flexibility. Shareholders will receive an equal number of shares in the new entity, allowing participation in both mobility and financial services growth. The demerger follows the earlier consolidation of the Group's consumer finance businesses into a single operating platform. Additionally, TVS Motor Services, a wholly-owned subsidiary, will be merged with the company to streamline the corporate structure. The company also approved acquiring a controlling interest in STPL Trading and Services Private Limited, which is merging with TVS Credit Services.

TVS Motor Company reported its highest ever revenue for the second quarter of FY2026-27, reaching ₹17,103 Crores, a 44% increase from ₹11,905 Crores in Q2 FY2025-26. Profit After Tax (PAT) grew by 52% to ₹1,377 Crores. The company also achieved its highest ever sales volume, selling 1.9 million units, a 27% increase year-on-year. EBITDA rose by 47% to ₹2,219 Crores, with EBITDA margins improving to 13.0%. Key growth drivers included strong performance in motorcycles, scooters, and international business, with electric vehicle sales seeing a significant 133% jump.

TVS Motor Company Limited has approved the acquisition of the entire stake in STPL Trading and Services Private Limited (STPL) for ₹530.08 Crore. This strategic move, approved by the Board of Directors on October 28, 2026, will make STPL a wholly owned subsidiary of TVS Motor. STPL is a trading and services company that holds a 7.5% stake in Home Credit India Finance Private Limited. The acquisition is part of TVS Motor's business consolidation and restructuring initiatives. Upon completion, it is expected to result in an additional holding of approximately 2.4% in TVS Credit Services Limited post-merger of Home Credit with TVSCS. The transaction is considered a related party transaction but will be conducted at arm's length based on a valuation report. The acquisition is anticipated to be completed by December 31, 2026.

TVS Motor Company's Board has approved the acquisition of the entire stake in Harita ARC Limited for ₹25,000. This move is part of a composite scheme of arrangement involving the amalgamation of TVS Motor Services Limited with TVS Motor Company and the demerger of the company's consumer finance business into Harita ARC. Harita ARC, with a paid-up capital of ₹25,000 and nil turnover, will undertake the consumer finance and related business post-demerger. The transaction is considered a related party transaction, as Harita ARC was acquired from TVS Credit Services Limited, a material subsidiary, but is conducted on an arm's length basis. The acquisition is expected to be completed by October 28, 2026, and is subject to various regulatory and statutory approvals.

TVS Motor Company's Board of Directors has approved a composite scheme of arrangement involving the acquisition of Harita ARC Limited (TVSM WOS) for ₹25,000. The scheme also includes the amalgamation of TVS Motor Services Limited with TVS Motor Company and the demerger of a specific undertaking into Harita ARC Limited. Harita ARC Limited will issue shares to TVS Motor Company shareholders post-demerger. The acquisition of TVSM WOS, a related party transaction, is on an arm's length basis and is intended to house the consumer finance business post-demerger. The scheme is subject to various regulatory and shareholder approvals.

TVS Motor Company Ltd's Board of Directors met on October 28, 2026, approving the unaudited standalone and consolidated financial results for the quarter ended September 30, 2026. The board also approved a composite scheme of arrangement involving the amalgamation of TVS Motor Services Limited with the company and the demerger of an undertaking into Harita ARC Limited. Additionally, TVS Motor approved the acquisition of STPL Trading and Services Private Limited for ₹530.08 Cr, making STPL a wholly-owned subsidiary.

TVS Motor posted its highest-ever quarterly revenue and profit this quarter. Consolidated revenue came in at ₹19,474.44 Cr (+38.6% YoY, +19.5% QoQ) and consolidated PAT attributable to owners at ₹1,194.51 Cr (+50.2% YoY, +17.2% QoQ). On a standalone basis — the figures the company's own press release headlines — revenue was ₹17,103.41 Cr (+43.7% YoY) and PAT ₹1,377.15 Cr (+52.4% YoY against a restated ₹903.64 Cr base). Neither period carries exceptional items, so reported and adjusted growth are the same. The print was volume-led: two/three-wheeler sales hit a record 1.9 million units (+27% YoY), scooters grew 29%, three-wheelers 47%, and EV sales surged 133% YoY to 186,186 units. Standalone EBITDA margin expanded 30bps YoY to 13.0% on scale and mix, but finance cost jumped 166% YoY to ₹123.85 Cr (debt-funded capex, including a ₹1,000 Cr NCD placed in August) and depreciation rose 28%, so PBT growth tracked revenue growth rather than outpacing it. At the consolidated level the margin story inverts: operating margin compressed 40bps YoY to 11.3% because the 18 unreviewed international/EV subsidiaries (Norton, the EBike group and others) posted a combined ₹383.11 Cr net loss for the quarter — the reason group PBT (₹1,791 Cr) sits below standalone PBT (₹1,865 Cr) even though consolidated revenue is larger. Against our pre-result preview, which set on-plan PAT expectations of ₹1,650–1,800 Cr off Q1's ₹1,174 Cr standalone base (implying 40–50% sequential growth), actual standalone PAT grew only 17.3% QoQ to ₹1,377 Cr — a clear miss on the profit bar even as revenue beat the previewed ₹14,800–15,500 Cr range comfortably on both standalone and consolidated readings. Management's press release frames the quarter purely in 'highest ever' terms and does not address the sequential shortfall. Measured against the prior concall's own guidance — double-digit FY27 industry growth with the company outperforming, Q2 growth to match or exceed Q1, continued EV momentum, and margin gains from scale/mix/cost reduction — the quarter broadly delivers: standalone YoY revenue growth accelerated to 43.7% from Q1's ~38%, EV momentum continued, though the realised margin gain (30bps) was modest next to the guided scale/mix/cost framing. The board used results day to also approve a Composite Scheme demerging TVS Motor Services into Harita ARC and a ₹530.08 Cr acquisition of STPL Trading and Services, alongside confirming the earlier-flagged CEO transition to Peyman Kargar effective January 27, 2027. H1 FY27 standalone revenue is already ₹30,999 Cr (+41% YoY), running well ahead of the pace implied by full-year Street revenue consensus of roughly ₹54,210 Cr. The two swing factors into Q3 are whether the consolidated margin drag from loss-making EV/international units narrows, and whether the sharply higher finance-cost base (now 2.9x net debt/equity on a consolidated basis) stays contained as capex continues.