TVS Motor Company Reports Strong Q2 FY26 Earnings with 41.9% Profit Growth and 25.4% Revenue Jump

TVS Motor Company has posted robust financial performance for the second quarter of the fiscal year 2025-26 (Q2 FY26).

**Financial Performance** The company reported a consolidated net profit of Rs 795.48 crore, marking a substantial year-on-year growth of 41.9% compared to Rs 560.49 crore in the corresponding quarter of FY25. Consolidated revenue also saw a significant increase of 25.4%, reaching Rs 14,051 crore in Q2 FY26, up from Rs 11,197 crore in Q2 FY25.

**Record EBITDA and Margins** TVS Motor achieved its highest-ever Operating EBITDA at Rs 1,509 crore, representing a 40% growth from Rs 1,080 crore in the previous year's second quarter. The operating EBITDA margin improved by 100 basis points to 12.7% in Q2 FY26, from 11.7% in Q2 FY25, indicating enhanced operational efficiency and profitability.

**Sales Growth** Total sales volume, including two-wheeler, three-wheeler, and international business, grew by 23% year-on-year to 15.07 lakh units in Q2 FY26, compared to 12.28 lakh units in Q2 FY25. Furthermore, electric vehicle (EV) sales grew by 7% to 0.80 lakh units, setting a new quarterly record for the company. In Q2 FY25, EV sales stood at 0.75 lakh units.

**Impact** This strong financial performance is expected to positively influence investor sentiment and TVS Motor Company's stock. The consistent growth in both traditional and electric vehicle segments underscores the company's strong market position and operational execution. The record EBITDA and improved margins suggest effective cost management and pricing strategies.

**Rating**: 8/10

**Difficult Terms**: * **YoY**: Year-on-Year. This means comparing the performance of the current period (Q2 FY26) with the performance of the same period in the previous year (Q2 FY25). * **Consolidated Net Profit**: This is the total profit of a company, including all its subsidiaries, after deducting all expenses, interest, and taxes. * **Consolidated Revenue**: This refers to the total income generated from all operations of the parent company and its subsidiaries combined. * **Operating EBITDA**: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is a measure of a company's operating performance. 'Operating EBITDA' usually refers to EBITDA adjusted for certain non-operating or extraordinary items, focusing on the profitability from core business activities. * **Basis Points**: A unit used in finance to denote a small change in percentage. One basis point is equal to 0.01% (1/100th of a percentage point). So, 100 basis points equal 1 percentage point. * **EV**: Electric Vehicle. A vehicle that is propelled by one or more electric motors, using energy stored in rechargeable batteries.