TVS Motor Co Ltd (BOM:532343) Q3 2026 Earnings Call Highlights: Record Sales and Profit Surge ...

This article first appeared on GuruFocus .

• Revenue:INR12,476 crore, up 37% from INR9,097 crore in Q3 last year.

• Sales Volume Growth:27% increase in sales volume.

• Operating EBITDA:INR1,634 crore, a growth of 51% from INR1,081 crore in Q3 last year.

• Operating EBITDA Margin:Improved by 120 basis points to 13.1% from 11.9% in Q3 last year.

• PBT Before Exceptional Items:INR1,315 crore, a growth of 57% from INR837 crore in Q3 last year.

• Profit After Tax:INR940 crore, up from INR618 crore in Q3 last year.

• Domestic Two-Wheeler ICE Sales Growth:21% increase compared to Q3 last year.

• International Sales Growth:35% increase compared to Q3 last year.

• EV Two-Wheeler Sales:40% growth, reaching 1,06,000 units from 76,000 units in Q3 last year.

• Three-Wheeler Sales:More than doubled to 60,000 units from 29,000 units in Q3 last year.

• TVS Credit Disbursement:Loans to over 41 lakh new customers, total customer base nearly INR2.3 crore.

• TVS Credit Book Size:INR29,678 crore, a 9% growth over last year Q3.

• TVS Credit PBT Before Exceptional Items:INR390 crore, a growth of 21% from INR321 crore last year.

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Release Date: January 28, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• TVS Motor Co Ltd ( BOM:532343 ) achieved its highest ever quarterly sales, revenue, and profits in Q3 FY26.

• The company's sales volume grew by 27%, revenue by 37%, operating EBITDA by 51%, and operating PBT by 56% compared to the previous year.

• Domestic ICE two-wheeler sales grew by 21%, outperforming the industry growth of 16%.

• International sales increased by 35%, surpassing the industry growth of 23%.

• EV two-wheeler sales grew by 40%, with over 1 lakh units sold this year.

Negative Points

• The company faced challenges with magnet availability affecting EV production, though this is expected to improve.

• Europe continues to face growth challenges, with no immediate improvement expected.

• Commodity inflation, particularly in precious metals like platinum and palladium, poses a cost challenge.

• There are concerns about the impact of new duties in Mexico, though the current exposure is low.

• The entry-level segment of motorcycles is not growing as much as other categories.

Q & A Highlights

Q: What is the outlook for the two-wheeler industry growth in the medium term? A: Kunnath Radhakrishnan, CEO, mentioned that due to GST benefits, the industry is expected to see growth upwards of 15% in Q4. For the year as a whole, a 9% growth is anticipated, with a strong exit rate supporting future growth. He is confident about the industry's long-term CAGR of 8% to 9%, driven by infrastructure improvements and mobility needs.