TVS Motor Company reported its highest-ever quarterly and annual financial performance for FY26, driven by robust growth across motorcycles, scooters, electric vehicles and three-wheelers.
The Chennai-based two and three-wheeler manufacturer posted a net profit of ₹998 crore for the March quarter of FY26, marking a 31% increase over ₹761 crore reported in the corresponding quarter last fiscal. Quarterly revenue surged 34% to a record ₹12,808 crore compared with ₹9,550 crore in the year-ago period.
The strong revenue and profit growth was aided by higher vehicle sales across segments, improved product mix, strong demand for scooters and electric vehicles, growth in international business and better operating efficiencies.
Margins improve despite PLI base effect
Operating EBITDA margin for the quarter stood at 13.1%, improving by 60 basis points year-on-year over the normalised EBITDA margin of 12.5% in Q4 FY25.
The company clarified that Q4 FY25 included recognition of the full-year Production Linked Incentive (PLI) benefit, which had boosted both revenue and margins during the base quarter. Excluding the earlier-quarter PLI impact, normalised revenue for Q4 FY26 grew 36% year-on-year.
The improved margins in FY26 were supported by scale benefits, richer product mix and operating leverage arising from higher sales volumes.
Scooter and EV demand powers quarterly sales
Overall two-wheeler and three-wheeler sales, including exports, rose 28% to 15.60 lakh units during the March 2026 quarter compared with 12.16 lakh units in the corresponding quarter last year.
Motorcycle sales increased 23% to 6.93 lakh units from 5.64 lakh units, while scooter sales jumped 32% to 6.60 lakh units compared with 5.02 lakh units a year ago.
Electric vehicle sales emerged as a major growth driver, surging 51% to 1.15 lakh units against 0.76 lakh units in the March 2025 quarter.
Three-wheeler sales also recorded strong momentum, rising 65% to 0.60 lakh units from 0.37 lakh units in the year-ago quarter.
FY26 performance sets new benchmark
For the full financial year FY26, TVS Motor reported its highest-ever revenue of ₹47,270 crore, up 30% from ₹36,251 crore in FY25.
Annual net profit climbed 37% to ₹3,615 crore compared with ₹2,634 crore in the previous fiscal.
The company’s operating EBITDA margin improved 60 basis points to 12.9% for the year, while operating profit before tax rose 40% to ₹4,975 crore from ₹3,563 crore last year.
The company’s strong annual performance was driven by sustained growth in domestic and export markets, rising EV adoption, higher scooter demand and continued expansion across premium motorcycle and three-wheeler categories.
Annual sales maintain strong growth trajectory
During FY26, total two-wheeler and three-wheeler sales grew 24% to 58.89 lakh units compared with 47.44 lakh units in FY25.
Motorcycle sales rose 24% to 27.13 lakh units from 21.95 lakh units, while scooter sales increased 27% to 24.13 lakh units against 19.04 lakh units in the previous year.
Electric vehicle sales grew 33% to 3.71 lakh units compared with 2.79 lakh units in FY25. TVS Motor said it now has over 9 lakh EV customers.
Three-wheeler sales registered one of the strongest growth rates, rising 63% to 2.19 lakh units from 1.35 lakh units in the previous fiscal.
Dividend and shareholder reward
During FY26, the company’s board declared an interim dividend of ₹12 per equity share, translating into a 1,200% payout and involving a total outgo of ₹570 crore.
The company also allotted four fully paid bonus Non-Convertible Redeemable Preference Shares (NCRPS) with a face value of ₹10 each for every equity share held, amounting to ₹1,900 crore, with maturity scheduled on September 1, 2026.