TVS Motor Q2 FY27: Record Sales, Profit, and Demerger of Consumer Finance Business
TVS Motor reported record Q2 FY27 results with sales volume up 27% to 1.9 million units and revenue up 44% to ₹17,103 crore. Profit after tax surged 52% to ₹1,377 crore. The company's Board approved a demerger of its consumer finance business into a separate entity. Two-wheeler EV sales grew 129%.
The record financial performance combined with the significant strategic decision to demerge the consumer finance business will likely have a substantial impact on the company's valuation and future growth prospects.
The company reported record sales, revenue, and profits, significantly outperforming industry growth in key segments. The strategic demerger of the consumer finance business is expected to unlock shareholder value, further contributing to a positive outlook.
TVS Motor Company Limited announced its financial results for the quarter ended September 30, 2026, reporting its highest-ever sales volume, revenue, and profits. Sales volume grew by 27% to 1.9 million units, while revenue surged by 44% to ₹17,103 crore. EBITDA increased by 47% to ₹2,219 crore, and Profit Before Tax (PBT) grew by 52% to ₹1,865 crore. Profit After Tax (PAT) also saw a 52% jump, reaching ₹1,377 crore.
In a significant strategic move, the Board of Directors approved a scheme of demerger for the consumer finance and related business undertaking from TVS Motor. This aims to unlock shareholder value by creating a focused platform for these businesses, offering greater strategic autonomy and sharper capital allocation. Shareholders will participate in the growth of both mobility and financial services.
The company outperformed the industry across various segments. Two-wheeler ICE domestic sales grew by 20% against an industry growth of 14%, while international ICE sales grew by 33% against 27%. The electric two-wheeler segment saw a remarkable 129% growth, significantly outpacing the industry's 84% growth. Three-wheeler sales also grew by 47%, exceeding the industry's 26% growth.
For the first half of the fiscal year (H1 FY27), operating revenue grew by 41% to approximately ₹30,999 crore, with PBT and PAT both increasing by 52% to ₹3,454 crore and ₹2,551 crore, respectively. International business sales reached a record high of 5.39 lakh units, a 35% year-on-year growth, driven by strong demand in Africa, LATAM, and Asia.
New product launches in international markets, including Nepal, Sri Lanka, Kenya, Egypt, and Indonesia, were highlighted. The company also noted milestones such as TVS Jupiter crossing 9 million units and TVS iQube reaching 1 million units. The demerger of the consumer finance business is expected to take 8-10 months to complete, subject to regulatory and shareholder approvals.
TVS Credit reported a 22% growth in its book size to ₹33,818 crore and a 19% increase in PBT to ₹330 crore for the quarter. The company expressed confidence in maintaining revenue growth and improving margins, despite cost pressures, by focusing on product mix, cost reduction, and strategic investments in brands and technology.
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TVS Motor Company Limited filed this with the NSE as a statutory disclosure, categorised under other corporate actions. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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