TVS Credit Services posted a 19% rise in Q2 net profit to ₹243 crore, with its Assets under Management (AUM) hitting ₹33,818 crore. The NBFC’s performance was supported by strong demand in rural and semi-urban markets, particularly for two-wheelers and consumer durables. The company added 14 lakh new customers this quarter as it continues to invest in AI-driven risk management to navigate a competitive lending landscape.
TVS Credit Services has reported a resilient performance for the second quarter of the 2027 fiscal year. The non-banking financial company (NBFC) recorded a net profit of ₹243 crore, a 19% increase compared to the same period in the previous year. This growth was backed by a 14% rise in total income, which touched ₹2,029 crore for the quarter. The company’s financial trajectory highlights a steady recovery and expansion in the retail lending space, which is a significant component of the broader TVS group’s operations.
The NBFC saw its Assets under Management (AUM) climb to ₹33,818 crore, marking a 22% annual growth. This expansion is largely attributed to the robust demand in rural and semi-urban geographies. As the company continues to penetrate these regions, the two-wheeler financing segment has emerged as a key engine for growth. The rising adoption of electric vehicles, which is supported by the group’s manufacturing reach, has provided a stable lending pipeline. Additionally, steady demand for consumer durables has helped the firm maintain its momentum.
To support this growth, TVS Credit has scaled its infrastructure, reaching a network of over 65,100 physical touchpoints. While the physical presence helps in market penetration, the company is concurrently shifting its focus toward digital integration. It is increasing investment in artificial intelligence and data analytics to refine its risk assessment models. This technological push is a vital strategy for NBFCs operating in a competitive environment where maintaining asset quality is as important as achieving loan volume growth.
For the first half of the current fiscal year, the company has accumulated a net profit of ₹452 crore on a total income of ₹3,948 crore. With a customer base now exceeding 2.7 crore individuals, the scale of operations is significant. The company added 14 lakh new customers in the recent quarter alone, reflecting its strategy to capture a larger share of the retail credit market.
The broader NBFC sector in India is currently navigating a period of heightened regulatory scrutiny regarding unsecured loans and credit quality. For lenders like TVS Credit, the key monitorable remains the balance between aggressive loan disbursements and the ability to maintain strong asset quality. Investors and sector analysts will likely focus on the company's ability to keep credit costs under control as it continues to grow its loan book in the semi-urban and rural retail segments.