India’s third-largest two-wheeler manufacturer, TVS Motor Co. Ltd, on Wednesday reported its best-ever financial performance for a fiscal year as the maker of Apache motorcycles and Ntorq scooters outpaced rivals in sales growth.
The company expects to outpace industry growth again this fiscal year, despite rising input costs and supply-chain disruptions caused by the war in West Asia.
“We are confident about the demand. The uncertainty is on timely raw material availability,” K.N. Radhakrishnan, its director and chief executive, said during an investor call.
He expects the domestic two-wheeler industry to grow at a single-digit rate in 2026-27, with TVS Motor likely to outperform. Benefits from the goods and services tax (GST) rate rationalization in September 2025 were continuing to drive demand, he said.
Meanwhile, the war-induced inflationary pressures and the supply-chain disruptions were similar to the many disruptions seen in the recent past, including the covid-19 pandemic, and the company was equipped to deal with them, he said.
FY26 performance
The Chennai-based company sold nearly 5.9 million scooters, motorcycles and three-wheelers in India and overseas in 2025-26, up by a quarter from the year ago, and its highest-ever.
In comparison, the Indian two-wheeler industry recorded 21.7 million domestic sales with 11% year-on-year growth during the fiscal year, according to data from the Society of Indian Automobile Manufacturers (Siam). The market leader Hero MotoCorp Ltd and peer Bajaj Auto Ltd also logged their best-ever sales in 2025-26.
The sharp sales growth propelled TVS Motor’s consolidated top line to ₹15,053 crore, over a quarter more than the preceding year. Profit grew by more than half to ₹3,524 crore.
The consolidated financials include the earnings of TVS’ domestic automotive business, as well as its international subsidiaries and its lending unit, TVS Credit Services Ltd.
Earnings before interest, tax, depreciation and amortization (Ebitda) grew by 26% on-year to ₹8,393 crore. Ebitda margin, however, narrowed by 11 basis points to 14.97%. One basis point is 0.01%.
Sales performance was robust across the company’s product lines: it sold 24% more motorcycles (2.7 million), 27% more scooters (2.4 million), 33% more electric vehicles (371,000), and 63% more three-wheelers (219,000) than the previous year.
FY27 plans
It is aiming to raise its production capacity by 1.5 million units in the current fiscal year, bringing its total annual capacity to around 8.3 million units, the CEO said.
It will continue its investments in research and development (R&D) and capacity expansion, with a capital expenditure guidance of ₹3,500 crore for 2026-27.
On the exports front, demand from Africa was robust, while the Asian market was also catching up after the recent disruptions in Sri Lanka and Bangladesh, he said. The company was betting on Latin America, its third-largest export destination, to increase its export share.
“The demand is so high for us that we are not able to meet the demand today,” Radhakrishnan said about the company’s presence in Africa.
