TVS Motor Company Limited Earnings Summary — Q1 FY2027
TVS Motor Achieves Record Quarterly Profit, Surpassing ₹1,000 Crore with 67% YoY Gain
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 7 consecutive quarters.
- Revenue of ₹16,296 Cr is 33.5% higher year-on-year.
- Revenue has compounded at 24.6% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹1,019 Cr is 67.1% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 53.8% annualised across the period.
- Operating margin stands at 14.4% in Q1 FY2027.
- Operating margin compressed by 39 bps year-on-year.
- Over the last two years operating margin has expanded by 51 bps.
- PBT margin is 9.5%.
- Expenses grew 34.1% against revenue growth of 33.5%.
- Operating profit of ₹2,343 Cr is 30.0% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 78/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 16,296 | 15,053 | 14,756 | 14,051 | 12,210 | 11,542 | 11,035 | 11,302 | 10,314 | 9,942 |
| Expenses | Improving | 13,952 | 12,881 | 12,488 | 11,941 | 10,407 | 9,638 | 9,402 | 9,678 | 8,884 | 8,487 |
| Operating Profit | Improving | 2,343 | 2,172 | 2,267 | 2,110 | 1,803 | 1,904 | 1,633 | 1,624 | 1,431 | 1,455 |
| Operating Margin | Stable | 14.4% | 14.4% | 15.4% | 15.0% | 14.8% | 16.5% | 14.8% | 14.4% | 13.9% | 14.6% |
| Other Income | Volatile | 158 | 7 | -60 | -14 | 40 | -57 | 70 | 32 | 48 | -34 |
| Interest | Stable | 602 | 566 | 561 | 552 | 551 | 551 | 536 | 509 | 500 | 511 |
| Depreciation | Improving | 354 | 315 | 323 | 320 | 315 | 292 | 258 | 259 | 241 | 263 |
| Profit Before Tax | Improving | 1,545 | 1,298 | 1,323 | 1,223 | 977 | 1,004 | 908 | 888 | 738 | 647 |
| Tax | Improving | 488 | 479 | 432 | 391 | 334 | 306 | 299 | 299 | 253 | 235 |
| Net Profit | Strong Uptrend | 1,019 | 772 | 841 | 795 | 610 | 648 | 566 | 560 | 461 | 387 |
| Net Margin | Improving | 6.3% | 5.1% | 5.7% | 5.7% | 5.0% | 5.6% | 5.1% | 5.0% | 4.5% | 3.9% |
Key Takeaways
- Consolidated revenue saw a robust 33.5% YoY growth to ₹16,295 Cr, supported by strong volume growth across both internal combustion and electric portfolios.
- Net profit attributable to owners crossed the ₹1,000 Cr threshold for the first time in a quarter, reaching ₹1,019.43 Cr, marking a significant 67% YoY increase.
- The automotive segment continues to gain scale, with standalone sales volumes increasing by 27.7% YoY to 16.3 lakh units compared to 12.8 lakh units last year.
- Financial services under TVS Credit remained a major contributor, with segment revenue of ₹2,068.41 Cr and a profit before tax and interest of ₹431.57 Cr.
- Operating margins improved marginally to 11.4%, reflecting effective cost management and higher volumes despite rising material costs.
- Board approved a fresh fundraise of up to ₹1,000 Cr through NCDs or Commercial Papers to support ongoing growth and working capital needs.
Management Guidance
Management is focused on maintaining operational resilience and premiumization across its 'moped-to-premium' portfolio while aggressively indexing toward the EV transition through products like iQube.
Sentiment Shift
Improving
Sequential and year-on-year improvements in both top-line and bottom-line growth, combined with margin expansion in a challenging macro environment, indicate strengthening execution.
Outlook
The company maintains a high-growth outlook driven by market share gains in Electric Vehicles and continued strength in the premium 'Apache' and 'Paddock' series; however, massive consolidated debt and interest costs remain primary risks to monitor.
From the Annual Report (Key Quotes)
“The Board of Directors approved the proposal of raising funds... through the issuance of Non-Convertible Debentures and/or Commercial Papers... up to a sum of Rs. 1,000 Cr.”
“The financials for Q1 2025-26 have been restated in accordance with Ind AS 103 - Business combinations following the amalgamation of Sundaram Auto Components Limited.”
“TVS Motor Company has demonstrated remarkable operational resilience and scale, evolving from a traditional two-wheeler manufacturer into a diversified global mobility player.”
Official Quarterly Documents
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This summary is AI-generated from TVS Motor Company Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.