TVS Motor Company (532343) Q3 25/26 earnings summary

Executive summary

• Achieved record quarterly sales of 1.54 million units in Q3 FY26, up 27% year-over-year, with nine-month sales at 4.33 million units, up 23% year-over-year.

• Quarterly operating revenue reached ₹12,476 crore, up 37% year-over-year; nine-month revenue at ₹34,463 crore, up 29% year-over-year.

• Operating EBITDA for Q3 was ₹1,634 crore (margin 13.1%), up 51% year-over-year; nine-month EBITDA at ₹4,406 crore (margin 12.8%).

• PBT before exceptional items grew 57% to ₹1,315 crore for the quarter; PAT for Q3 was ₹940 crore, up from ₹618 crore YoY; nine-month PAT at ₹2,625 crore, up from ₹1,858 crore.

• Electric vehicle sales surged 40% year-over-year to 106,000 units in Q3; nine-month EV sales at 256,000 units, up from 203,000 YoY.

Financial highlights

• Q3 operating revenue: ₹12,476 crore (up from ₹9,097 crore YoY); Q3 operating EBITDA: ₹1,634 crore (margin 13.1%).

• Q3 PBT before exceptional items: ₹1,315 crore (up 57% YoY); exceptional item of ₹41 crore for labor code changes.

• Q3 PAT: ₹940 crore (up from ₹618 crore YoY); EPS for the quarter at ₹19.79, up from ₹13.02 YoY.

• Nine-month operating revenue: ₹34,463 crore (up 29% YoY); nine-month PAT: ₹2,625 crore (up from ₹1,858 crore YoY).

• International business revenue: ₹2,909 crore; spare parts revenue: ₹1,183 crore for the quarter.

Outlook and guidance

• Q4 industry growth expected above 15%, with full-year industry growth around 9% due to a weak first half.

• Positive outlook for Q4 and FY27, with long-term two-wheeler industry CAGR expected at 8%-9%.

• EV penetration expected to rise, with improved supply and strong demand for iQube and Jupiter models.

• International markets, especially Africa, LatAm, and Asia, expected to maintain growth momentum.

• Management is monitoring regulatory changes, including new labor codes and environmental rules.