TVS Motor Company Limited has informed the Exchange about Credit Rating
TVSMOTOR · price
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Awaiting price reaction for this filing.
India Ratings and Research has assigned an IND AAA rating with a Stable outlook to TVS Motor's proposed Non-Convertible Debentures (NCDs) of Rs. 500 crore, which are yet to be issued. This is the highest investment-grade rating, reflecting TVS Motor's strong market position as the third-largest two-wheeler maker in India, with a 17% revenue CAGR over FY20-FY25. The rating is supported by improving EBITDA margins (12.8% in 9MFY26), low net leverage below 1.0x, and strong interest coverage of 16.2x. Key risks noted include intense competition, macroeconomic headwinds, and continued losses in overseas subsidiaries.
The highest possible credit rating (AAA/Stable) signals strong financial health and low default risk, which should help TVS Motor raise debt at competitive rates. Shareholders can take this as a positive endorsement of the company's creditworthiness and operational strength.