TVS Motor Company has announced a remarkable 56.8 per cent year-on-year surge in net profit for the first quarter of FY27, driven by record sales volumes and sustained robust demand across its domestic and international markets, including significant growth in electric vehicle sales.
Key Points
- TVS Motor Company's net profit surged by 56.8 per cent year-on-year to ₹1,036 crore in Q1FY27, with revenues rising 33.5 per cent to ₹16,295 crore.
- The company achieved its highest-ever quarterly sales, with overall two- and three-wheeler sales increasing 28 per cent to 1.63 million units.
- Domestic demand remains strong, supported by tax relief and improving affordability, while international sales also hit a record high, driven by Africa, Latin America, and Asia.
- TVS Motor is expanding manufacturing capacity for both internal combustion engine and electric vehicle (EV) segments, with EV two-wheeler sales up 86 per cent.
- Management expects the auto industry to maintain double-digit growth in Q2, with TVS Motor aiming to outperform the industry in both domestic and international markets.
India’s top two-wheeler maker TVS Motor Company on Tuesday said its net profit jumped 56.8 per cent year-on-year (Y-o-Y) to Rs 1,036 crore in the first quarter of 2026-27 (Q1FY27).
Revenues from operations rose 33.5 per cent Y-o-Y to Rs 16,295 crore.
The rise in profits is attributed to higher volumes in sales, an improved product mix, sustained cost reduction, and operating leverage, management said during the post-results earnings call.
The company also benefited from a fair valuation gain on investment during the quarter.
Sequentially, net profits rose by 1.7 per cent while revenues from operations by 8.3 per cent.
Strong Domestic and Export Performance
The results were announced during market hours.
The company’s share rose 5.5 per cent, ending the day’s trade at Rs 3,791.6 per share on the BSE.
K N Radhakrishnan, managing director and chief executive officer, said domestic demand remained strong, supported by rationalisation in goods and services tax, income-tax relief, and improving affordability, and expected the auto industry to maintain double-digit growth in the second quarter.
“We are confident that July, August and September will see the same momentum or slightly better than the first quarter,” he said, adding that the company expected to trump the industry’s growth in both domestic and international markets.
On exports, Radhakrishnan said the company recorded its highest ever quarterly international sales, driven primarily by strong demand in Africa, while Latin America and Asia also continued to perform well.
He said TVS Motor Company was expanding capacity to meet growing export demand and investing further in premium products and brand-building initiatives across overseas markets.
Record Sales and Capacity Expansion
The company reported its highest ever quarterly sales, with overall two- and three-wheeler sales rising 28 per cent Y-o-Y to 1.63 million units from 1.28 million units in the corresponding period last year.
Sales of motorcycles increased 19 per cent to 0.74 million units from 0.62 million units, while those of scooters grew 36 per cent to 0.68 million units from 0.50 million units.
The company said it was increasing manufacturing capacity across both the internal combustion engine and electric-vehicle (EV) segments.
The production capacity of electric scooters is being increased from about 40,000 units to over 50,000 units, while three-wheeler capacity is also being expanded.
The company’s international business recorded 33 per cent growth, with sales rising to 0.47 million units during the quarter from 0.35 million units a year earlier.
Growth in Electric Mobility and Future Outlook
Commenting on electric mobility, Radhakrishnan said in the two-wheeler industry, the share of EVs crossed 10.6 per cent in June, while electric three-wheelers accounted for more than 40 per cent of the segment.
He added that the company’s EV business was witnessing improving contribution margins quarter after quarter.
Electric two-wheeler sales surged 86 per cent year-on-year to 129,940 units, compared with 70,060 units in the first quarter of FY26.
Three-wheeler sales also posted strong growth, increasing 48 per cent to 66,697 units during the quarter from 44,978 units in the year-ago period.
TVS also said commodity prices remained volatile during the quarter due to geopolitical developments in West Asia, creating pressures on input costs and temporary supply-chain disruption in April.
The company said it mitigated part of the impact through price increases, cost-optimisation measures, and a favourable product mix, and would continue to monitor commodity prices.
The company said the dealer inventory continued to remain below 30 days and expected robust retail demand during the upcoming festival season.
