TVS Motor Achieves Record Quarterly Revenue Fueled by Strong EV Growth and Exports

TVS Motor Company has announced a record-breaking second quarter of FY26, reporting its highest-ever quarterly revenue of Rs 11,905 crore. This performance was propelled by a strong 23 percent increase in volumes and a 5 percent rise in realization, indicating improved pricing power.

Key growth drivers include a substantial 31 percent surge in two-wheeler exports, which now constitute 24 percent of the company's total revenue. The company is witnessing healthy growth in markets like Africa and Latin America. Simultaneously, its electric vehicle (EV) segment continues its upward trajectory, with EV sales growing by 7 percent and contributing Rs 1,269 crore to revenue. TVS Motor has established a solid 22 percent market share in the electric two-wheeler (E2W) segment and is actively expanding its presence in electric three-wheelers (E3W).

Profitability has also seen improvement, with the EBITDA margin expanding to 12.7 percent, attributed to better operating leverage. Despite increased strategic investments in Research & Development and marketing for new product launches, the company's operational efficiency is evident.

TVS Motor expanded its product portfolio by launching four new models in the quarter, including the TVS Orbiter (EV), TVS King Kargo HD (3W EV), NTORQ 150 scooter, and Apache RTX motorcycle. The company also announced plans to introduce its premium motorcycle brand, Norton, in India by April 2026.

Outlook: The recent reduction in GST on two-wheelers from 28 percent to 18 percent is anticipated to further stimulate demand in the coming quarters. With improving consumer sentiment and a recovery in urban markets, TVS Motor is well-positioned to capitalize on these trends. Rural demand is also expected to pick up.

Impact: This robust quarterly performance, combined with strategic product launches and favorable government policies like the GST cut, significantly strengthens TVS Motor's market position. It is likely to boost investor confidence, potentially leading to positive stock performance and reinforcing its status as a leading player in the automotive sector, especially in the growing EV space. Rating: 8/10

Difficult Terms: EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation): A measure of a company's operating performance before accounting for non-operating expenses like interest, taxes, depreciation, and amortization. Operating Leverage: The degree to which a company's costs are fixed versus variable. Higher operating leverage means a small change in revenue can lead to a larger change in profit. Realisation: The average price at which a product is sold. ICE (Internal Combustion Engine): Traditional engines that burn fuel to produce power, as opposed to electric motors. E2W (Electric Two-Wheeler): A two-wheeled vehicle powered by an electric motor. E3W (Electric Three-Wheeler): A three-wheeled vehicle powered by an electric motor. Rare earth magnet: Magnets made from rare earth elements, crucial for efficient electric motors and wind turbines, but their supply can be constrained.