TVSMOTOR Q2 FY26 earnings call.
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Revenue
₹14,051 Cr
verified against source
Revenue YoY
29%
reported change
EBITDA
₹1,559 Cr
latest reported figure
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
TVS Motor delivered an exceptional Q2 FY26 with ₹11,950 crore revenue (+29% YoY) and ₹1,559 crore EBITDA (+40% YoY), marking the highest-ever quarterly performance across ICE, EV, and financial metrics. Operating margins expanded 100bps to 12.7%, driven by topline growth enabling cost optimization, favorable product mix, and selective price increases. The company posted PAT of ₹696 crore (+37%), with H1 FY26 revenue at ₹21,986 crore. Domestic ICE sales outpaced industry by 1300bps (21% vs 8%), while EV two-wheelers grew 7% to 80,000 units despite magnet supply constraints. Three-wheeler sales surged 41% to 53,000 units with EV market share crossing 11%. International business achieved a record 400,000 units. Multiple product launches (Orbiter EV, King Cargo HTV, Apache RTX, new Apache 4V) signal aggressive portfolio expansion. Management expects 8% industry growth in H2 with GST benefits providing multi-sector tailwind. Key risks: commodity inflation at 5.6%, EV supply constraints, and elevated marketing/R&D investments for future growth.
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Guidance to track
- Management expects the 2W industry to grow approximately 8% in H2 FY26, with GST rationalization providing multi-sector multiplier effect and festive season momentum sustaining into Q4.
- Company confident of continuing margin improvement from 11.7% to 12.7%, leveraging scale benefits, premium product mix, and sustained cost optimization initiatives.
- Annual investment maintained at approximately ₹2,000 crore for FY26, focusing on Norton ebikes, international expansion via Dubai office, and new product development.
- New flagship superbike to be unveiled in Italy with global launch in late FY26 or early FY27, with India debut by April 2026 featuring differentiated retail strategy and premium experience.
Risks flagged
- Commodity costs increased 5.6% in Q2, partially offset by price increases. Management acknowledges similar pressure may continue in Q3 though at potentially lower intensity than Q2's 6% spike.
- Magnet availability remains a critical supply bottleneck limiting EV production. Industry EV growth was restricted to 8% despite strong demand; TVS cites this as primary constraint on EV volume acceleration.
- One-time costs of ₹120 crore for packing/freight and ₹65 crore for marketing launches (Orbiter, King Cargo, Apache RTX) will normalize in subsequent quarters, creating operating leverage but also base effects.
- Analyst raised questions about mandatory ABS implementation timeline and portfolio impact. Management stated discussions are ongoing with government but deflected without providing specific response strategy or cost implications.
Key quotes
- When the top line comes, you can get better cost reduction. The real driver is top line growth resulting in overall cost optimization.
- We don't go to any number one, number two like that. I always believe that we have to be a prominent player. We have a lot of respect for our competitor. And the customer should get the best.
- We look at profitability in totality because we have to look at the portfolio... We always invest whatever is right for the company given our strategy for the future.
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