TVS Motor Co Ltd delivered exceptional financial results for Q2 FY27, achieving its highest-ever revenue, EBITDA and PBT in company history. The company reported revenue growth of 44% year-over-year to ₹17,103 crore and profit after tax surge of 52% to ₹1,377 crore, significantly outperforming industry benchmarks across all segments. According to the latest earnings call transcript, EBITDA margin improved by 30 basis points to 13%, driven by top-line growth, favorable product mix, and effective cost reduction initiatives. TVS shares closed with a 3.74% gain on Wednesday, outperforming the Nifty Auto's 1.45% gain, reflecting strong market confidence in the results.
The company's electric two-wheeler sales jumped 133% year-on-year to 1.86 lakh units in Q2 FY27, compared with 80,009 units a year earlier, marking a significant milestone in India's electric mobility transition. Overall two- and three-wheeler sales increased 27% to 1.9 million units, with growth extending across the portfolio. Motorcycle sales rose 28% to 9 lakh units and scooter sales increased 29% to 8 lakh units. The international business demonstrated strong momentum with volumes growing 35% to 5 lakh units, while three-wheeler sales climbed 47% to 78,475 units. This EV surge comes amid broader industry trends, with data from the Federation of Automobile Dealers Associations (FADA) showing that the combined share of CNG, hybrid and electric cars overtook petrol for the first time in August, reaching 41.95% of sales.
K.N. Radhakrishnan, who has served as CEO at TVS Motor for over two decades, is set to step down in January 2027, when Peyman Kargar, the company's international business head, will take over the role. Radhakrishnan will remain on the board as a non-executive director. During the post-results earnings call, Radhakrishnan expressed optimism about future demand, stating that "the outlook is still positive" despite some challenges from GST base effects. He expects "good single digit growth" in both two-wheelers and three-wheelers based on overall economic activity and GDP growth.
The company is implementing significant capacity expansion plans to meet growing demand across key segments. TVS Motor announced plans to increase EV capacity to 80,000 units per month and expand overall two-wheeler capacity to over 8 million units. Additionally, the company announced a demerger of its consumer finance business to unlock shareholder value and provide strategic autonomy, with shareholders receiving mirror-image shares in the new entity. This strategic move is expected to enhance operational focus and unlock value for investors.
The company's exceptional Q2 FY27 performance, combined with strategic capacity expansion plans and the consumer finance demerger, positions TVS Motor for continued growth momentum. The strong derivatives market activity with open interest surging 14.8% to 56,207 contracts and the company's market cap of ₹1,96,524.54 crores make it attractive for institutional and retail investors. However, the recent downgrade to Hold rating suggests some caution around valuation and growth prospects, while the company's ₹39,701.26 lakhs in combined derivatives turnover reflects active investor interest in the stock.
