TVS Motor Company has indicated that it may explore a possible separation of its financial services arm, TVS Credit, in a move aimed at strengthening the business and unlocking shareholder value, Chairman Sudarshan Venu said at the company’s Annual General Meeting (AGM).
Sudarshan said the company could, “at an appropriate time, in stages, guided by long-term strategic considerations, evaluate alternatives including a possible separation of the financial services business to further strengthen and unlock shareholder value.”
The statement marks one of the clearest indications yet that the Chennai-based automaker is evaluating strategic options for TVS Credit, which has grown into a significant financial services platform within the wider TVS Group.
Financial services business gains scale
TVS Credit delivered a strong performance during FY26, with disbursements rising 26% and assets under management crossing ₹30,000 crore. The company now serves more than 2.4 million customers across two-wheelers, consumer durables, tractors and other financing segments.
Sudarshan said TVS Credit, rated AA+ by all three major rating agencies, has evolved into an important pillar of the broader TVS ecosystem following sustained investments by the group over the years.
Record year for TVS Motor
TVS Motor reported its best-ever financial and operational performance in FY26, registering sales of 5.89 million vehicles, up 24% from the previous year.
The company posted record revenue of ₹47,270 crore and achieved its highest-ever EBITDA of ₹6,079 crore.
“Our customers’ trust and our team’s unwavering focus on customer centricity, quality and innovation have enabled us to deliver these record numbers,” Sudarshan said.
Global business gathers momentum
International operations continued to emerge as a major growth engine, contributing more than a quarter of the company’s revenue. Overseas sales crossed 1.59 million units, with TVS Motor now present in over 90 countries.
The company sees Africa, Latin America and Asia as long-term growth markets while simultaneously expanding into Europe.
According to Sudarshan, Africa represents a particularly attractive opportunity owing to its young population and rising mobility requirements, with TVS already enjoying strong brand recognition across the continent.
EV business maintains growth
TVS Motor’s electric mobility business also continued to expand, with electric two-wheeler sales growing 33% to more than 3.71 lakh units during the year.
Growth was supported by the expanded TVS iQube portfolio and the launch of the Orbiter electric scooter.
The company has built a nationwide EV ecosystem comprising more than 1,000 electric vehicle dealerships and access to over 5,000 public charging points.
Premium motorcycles drive value
The premium motorcycle and scooter portfolio remained another important growth driver.
New launches, including the TVS Apache RTX 300 and TVS NTORQ 150, received encouraging customer response. The Apache RTX 300 also won the Indian Motorcycle of the Year 2026 award.
TVS is also accelerating the revival of its iconic British brand Norton, with production of the all-new Manx R and Atlas underway. The Manx and Atlas GT models are scheduled for launches across the UK, France, Italy, Spain, India and the US during the current year.
To strengthen its premium retail presence, the company has introduced the TVS Paddock dealership network.
Technology and AI remain strategic priorities
TVS Motor invested more than ₹1,250 crore in research and development during FY26, supported by over 2,000 engineers working on connected technologies, electrification and next-generation mobility solutions.
The company has also established a design and engineering hub in Bologna, Italy, through Engines Engineering.
Sudarshan said TVS sees generative AI as a significant opportunity and is investing in the technology to enhance customer experience and business operations.
Sustainability and outlook
He said 97% of the energy consumed across its Indian operations now comes from renewable sources, helping avoid more than 76,000 tonnes of carbon emissions during the year.
Despite geopolitical uncertainties, supply chain disruptions and volatile energy costs, the company remains optimistic about growth prospects.
Sudarshan said India’s economy is expected to expand by 6.4-6.5% in FY27, while the opening up of global trade opportunities and sustained demand for two-wheelers are expected to support the company’s growth trajectory.
Reflecting its record performance, TVS Motor’s Board approved an interim dividend of ₹12 per share, representing a 20% increase over the previous year, and also allotted ₹1,900 crore worth of bonus preference shares maturing later this year.