TVS Motor Company (532343) Q2 25/26 earnings summary

Executive summary

• Achieved record quarterly sales of 1.51 million units, up 23% year-over-year, and half-yearly sales of 2.78 million units, up 20% year-over-year.

• Highest ever quarterly operating revenue of ₹11,905 crore, a 29% increase from Q2 last year, and half-year revenue at ₹21,986 crore, up 25%.

• Operating EBITDA for the quarter grew 40% to ₹1,509 crore with margin improvement to 12.7%.

• Profit before tax (PBT) for the quarter rose 37% to ₹1,226 crore; profit after tax (PAT) up 37% to ₹906 crore; half-year PBT up 36% to ₹2,279 crore.

• EV sales reached a record 80,000 units in Q2, up from 75,000 units year-over-year.

Financial highlights

• Standalone Q2 net profit after tax: ₹906.09 crore; EPS (basic/diluted): ₹19.07.

• Consolidated Q2 net profit after tax: ₹832.76 crore; EPS (basic/diluted): ₹16.74.

• Operating EBITDA margin improved by 100bps to 12.7% in Q2; half-year margin at 12.6% from 11.6% last year.

• Net profit margin for Q2: 7.6% standalone, 5.9% consolidated.

• Fair valuation loss on investments of ₹31 crore in Q2, compared to a gain of ₹23 crore last year.

Outlook and guidance

• Expecting continued growth in Q3 and Q4, supported by GST rate reduction and positive industry momentum.

• Magnet availability remains a challenge for EV production in the short to medium term.

• New product launches in EV and premium scooter segments expected to drive future growth.

• Confident in outperforming industry growth both domestically and internationally.