TVS Motor Company Q2 FY27 results: net profit up 46.4% to ₹1,219 crore, revenue up 38.6%

How did TVS Motor Company perform in Q2 FY27?

TVS Motor Company’s consolidated Q2 FY27 revenue was ₹19,474 crore, compared with ₹14,051 crore in Q2 FY26 and ₹16,296 crore in Q1 FY27. EBITDA was ₹2,726 crore, up from ₹2,122 crore a year earlier and ₹2,357 crore in the previous quarter. EBITDA margin was 14.0%, lower than 15.1% in Q2 FY26 and 14.5% in Q1 FY27.

Consolidated profit before tax was ₹1,796 crore, against ₹1,236 crore in Q2 FY26 and ₹1,560 crore in Q1 FY27. Net profit was ₹1,219 crore, compared with ₹832.76 crore a year earlier and ₹1,058 crore in the previous quarter. Basic EPS was ₹25.14, against ₹16.74 in Q2 FY26 and ₹21.46 in Q1 FY27. The profit attributable to owners was ₹1,195 crore.

On a standalone basis, Q2 FY27 revenue was ₹17,103.41 crore and profit before tax was ₹906.09 crore. The standalone profit after tax was ₹1,377.15 crore, as given in the results data.

What changed in TVS Motor Company's costs and profit?

Total expenses rose 38.9% from ₹12,802 crore in Q2 FY26 to ₹17,777 crore in Q2 FY27. Cost of materials increased by ₹3,975 crore to ₹12,681 crore, employee cost by ₹363.68 crore to ₹1,449 crore, finance costs by ₹117.27 crore to ₹669.66 crore, depreciation by ₹37.81 crore to ₹358.23 crore and other expenses by ₹442.63 crore to ₹2,560 crore.

Other income moved from a loss of ₹14 crore in Q2 FY26 to ₹97.99 crore in Q2 FY27, a difference of ₹111.99 crore. Profit before tax rose by ₹560.05 crore to ₹1,796 crore, while tax increased by ₹181.16 crore to ₹571.69 crore. There was no exceptional item in either quarter.

Against Q1 FY27, total expenses were higher by ₹2,883 crore, led by cost of materials, which rose by ₹2,411 crore, and other expenses, which rose by ₹406.02 crore. Other income fell by ₹60.21 crore to ₹97.99 crore, while tax rose by ₹84.11 crore to ₹571.69 crore. Net profit increased by ₹161.84 crore to ₹1,219 crore.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹35,769.96 crore, compared with ₹26,261.27 crore in H1 FY26. Total income was ₹36,026.15 crore against ₹26,286.93 crore, while profit before tax increased to ₹3,355.1 crore from ₹2,223.66 crore.

H1 FY27 net profit was ₹2,277.06 crore, compared with ₹1,475.62 crore in H1 FY26, while basic EPS rose to ₹46.60 from ₹29.58. Revenue increased by ₹9,508.69 crore and total income by ₹9,739.22 crore over the year-ago period.

What do the balance sheet and cash flow show?

At 30 September 2026, consolidated total assets were ₹66,870.69 crore, compared with ₹56,500.62 crore at 31 March 2026. Total equity rose to ₹12,295.43 crore from ₹10,712.86 crore, while borrowings increased to ₹37,886.5 crore from ₹31,623.93 crore. Cash and cash equivalents were ₹4,968.36 crore against ₹3,926.45 crore.

Inventories increased to ₹3,030.64 crore from ₹2,459.2 crore, trade receivables to ₹3,072.37 crore from ₹2,654.13 crore, and trade payables to ₹12,319.38 crore from ₹9,834.28 crore. H1 FY27 operating cash flow was ₹358.15 crore, compared with ₹1,390.1 crore in H1 FY26, while investing cash flow was negative ₹4,531.27 crore against negative ₹1,580.58 crore.

Financing cash flow for H1 FY27 was ₹5,215.03 crore, compared with ₹795.33 crore in H1 FY26. Capital expenditure was ₹2,303.16 crore in H1 FY27, against ₹1,572.42 crore in H1 FY26.

How has TVS Motor Company done over the last 8 quarters?

Revenue increased in each of the last eight quarters on a year-on-year basis and rose to ₹19,474.44 crore in Q2 FY27, the highest level in the reported trend. Net profit also increased year-on-year in each of the last eight quarters, reaching ₹1,219.45 crore in Q2 FY27. The lowest revenue in the series was ₹11,134.63 crore in Q3 FY25.

EBITDA margin peaked at 16.6% in Q4 FY25 and was 14.0% in Q2 FY27, the lowest margin in the reported series. Net profit was lowest at ₹609.35 crore in Q3 FY25. Revenue and profit have moved upward recently, while the margin direction has been lower since Q4 FY25.

Which businesses drove the quarter?

The Automotive segment reported revenue of ₹17,529.54 crore and EBIT of ₹1,593.79 crore in Q2 FY27, with an EBIT margin of 9.1%. The filing data does not provide the segment’s Q2 FY26 revenue, EBIT or growth rates, so a year-on-year comparison cannot be stated from the supplied figures.

The Financial segment reported revenue of ₹2,052.07 crore and EBIT of ₹351.15 crore in Q2 FY27, with an EBIT margin of 17.1%. The supplied filing data does not include the segment’s Q2 FY26 revenue or EBIT, and therefore does not provide year-on-year segment growth figures.

What else did the company announce?

On 28 October 2026, the board approved the acquisition of the entire stake of Harita ARC Limited, referred to as TVSM WOS, for ₹25,000. The acquisition was completed on 28 October 2026. Harita ARC is intended to carry on the consumer finance and related business after the proposed demerger, and its turnover was nil at the time of the filing.

The board also approved a composite scheme involving the amalgamation of TVS Motor Services Limited with TVS Motor Company Ltd and the demerger of the consumer finance and related business undertaking into Harita ARC. Harita ARC is to issue shares to TVS Motor shareholders in proportion to their existing shareholding, subject to statutory, regulatory, stock-exchange, NCLT and shareholder approvals.

The board approved the acquisition of the entire stake of STPL Trading and Services Private Limited for ₹530.08 crore. STPL holds 7.5% shares in Home Credit India Finance Private Limited, and the transaction is expected to be completed on or before 31 December 2026. The acquisition would make STPL a wholly owned subsidiary of TVS Motor Company Ltd.

What did TVS Motor Company's management say?

Management said the domestic two- and three-wheeler internal-combustion engine industry was expected to record good single-digit growth in Q3 FY27 as the prior-year festive-season base rises. It also said TVS Motor expected to outperform the industry in domestic and international two- and three-wheeler markets through Q3 and Q4, while EV growth and adoption were expected to continue despite a higher comparison base.

Management said EV production capacity was 60,000-65,000 units and was being expanded toward about 80,000 units. It said two-wheeler production capacity was expected to cross more than 8 million units, three-wheeler capacity was expected to approach 0.4 million units and Ronin volumes were expected to exceed 15,000 units. No formal revenue or EBITDA guidance was provided.

Management said margins were expected to keep improving as material-cost inflation moderates. It said further material-cost increases were unlikely in Q3 and Q4, with some softening possible in Q4, and that small Q3 price increases had already been taken. The demerger was expected to take another 8-10 months, with a July 2027 appointed date, and remained subject to shareholder, regulatory and NCLT approvals.

How did TVS Motor Company shares react?

TVS Motor’s shares rose 3.2% within five minutes of the filing appearing and 2.5% within 15 minutes. By the reaction-day close, the stock was up 3.7% from its pre-results close of ₹4,087.0, compared with a 1.0% rise for the other 2/3 Wheelers stocks and a 0.2% fall for the Nifty 100.

By the next day’s close, the stock was up 4.7% from its pre-results close, while the industry median was down 0.7% and the Nifty 100 was up 0.9%. The stock’s move was 5.4 percentage points above the industry median. By the fifth session, it was up 5.3% from the pre-results close, versus a 1.9% rise for the industry median.

Earlier results-day reactions were mixed: the stock rose 5.7% on 21 July 2026, fell 1.0% on 13 May 2026, rose 4.3% on 28 January 2026, fell 2.3% on 28 October 2025 and rose 0.8% on 31 July 2025. Earlier moves also included a 5.1% rise on 28 January 2025 and a 3.4% fall on 23 October 2024.