TVS Motor Company delivered a stellar performance in the third quarter of FY26, reporting a 52% year-on-year rise in profit after tax (PAT) to ₹940 crore, driven by robust volume growth, improving operating leverage and strong export demand. The Chennai-based two- and three-wheeler major also reported its highest-ever quarterly sales volumes, underlining sustained demand across domestic and international markets.
Financial Performance Highlights (Q3FY26)
Operating revenue surged 37% YoY to ₹12,476 crore, compared with ₹9,097 crore in Q3FY25
Operating EBITDA rose 51% YoY to ₹1,634 crore, up from ₹1,081 crore
EBITDA margin improved to 13.1%, the highest for the company, versus 12.4% last year
Profit before tax (PBT) (before exceptional items) increased 57% YoY to ₹1,315 crore
The sharp improvement in margins reflects better product mix, operating efficiencies and scale benefits from higher volumes.
Sales Performance: Record Volumes Across Segments
TVS Motor achieved record quarterly sales of 15.44 lakh units, marking a 27% YoY growth, supported by strong traction in motorcycles, scooters, exports and three-wheelers. Motorcycle sales grew 31% YoY to 7.26 lakh units, driven by strong demand for premium and commuter models while scooter volumes rose 25% YoY to 6.14 lakh units, aided by consistent urban demand. Two-wheeler exports jumped 35% YoY to 3.66 lakh units, reflecting recovery in key global markets and improved supply chains. Three-wheeler sales more than doubled, rising 106% YoY to 0.60 lakh units, supported by revival in last-mile mobility and e-commerce-led demand. EV sales increased 40% YoY to a record 1.06 lakh units, highlighting growing acceptance of TVS’s electric portfolio.
Analysts view that strong volume growth and product demand has put the company on the growth trajectory. Higher sales across motorcycles, scooters and three-wheelers helped TVS leverage fixed costs and improve profitability. Demand remained broad-based across urban and rural markets. TVS Motor’s EV segment continued to scale up, contributing meaningfully to overall volumes. Higher EV penetration also supports long-term margin expansion as the portfolio matures. A sharp rebound in international sales, especially in two-wheelers, boosted overall revenue growth and reduced dependence on domestic demand cycles.
Higher capacity utilisation, improved supply chain efficiency and a favourable product mix helped the company achieve its highest-ever quarterly EBITDA margin of 13.1%. The more-than-doubling of three-wheeler sales reflects recovery in commercial mobility, particularly in passenger and cargo applications. TVS Motor’s Q3FY26 performance underlines its strong execution, diversified product portfolio and growing presence in electric mobility and exports. With sustained demand, improving margins and a scalable EV business, the company is well-positioned for continued growth in the coming quarters, they opine.