TVS Motor Soars 76% in Q4 Net Profit, Surging to Rs 852 Crore

TVS Motor Sets New Financial Records with Robust Growth in Electric Vehicles and Two-Wheelers

In a remarkable financial performance, TVS Motor Company has outshined market expectations for the January-March quarter. The leading manufacturer reported impressive growth in electric vehicles, two-wheelers, and three-wheelers, both in domestic and international markets, marking a pivotal moment in the company’s history.

Record-Breaking Revenue and Profit

For the fiscal year 2025, TVS Motor recorded an all-time high revenue of ₹36,251 crore, reflecting a 14% year-on-year increase. The net profit surged to ₹2,711 crore, a notable rise from ₹2,083 crore in FY24. This growth trajectory underscores the company’s commitment to innovation and market expansion.

Revenue for FY25: ₹36,251 crore
Net Profit: ₹2,711 crore (up from ₹2,083 crore in FY24)
Operating EBITDA: 12.5% for Q4 FY25, with an annual increase of 120 basis points to 12.3%

Impressive Earnings and Cost Management

During the earnings call, KN Radhakrishnan, Director and CEO, emphasized that the growth in EBITDA margins was primarily fueled by significant revenue increases and ongoing cost management strategies. The company’s operational EBITDA reached an impressive ₹4,454 crore, compared to ₹3,514 crore in the previous fiscal year.

Strong Sales in Two-Wheelers and Three-Wheelers

TVS Motor’s sales for two- and three-wheelers rose by 13%, amounting to 47.44 lakh units sold in FY25. The breakdown included:

Motorcycles: 21.95 lakh units
Scooters: 19.04 lakh units
Three-wheelers: 1.35 lakh units

Radhakrishnan pointed out that scooters are gaining traction, now accounting for nearly 38% of the two-wheeler market, a trend likely to continue as electric scooter adoption rises.

Positive Outlook for the Domestic Market

Looking ahead, Radhakrishnan expects the growth momentum in the domestic market for FY26 to remain strong, although the initial quarter might show moderate gains. With a GDP growth forecast of 6.5%, fueled by consumer spending and advancements in agriculture, demand for two-wheelers is set to thrive.

Consumer Benefits: Recent 50-basis-point rate cuts by the RBI are expected to lower EMI costs for consumers, enhancing two-wheeler affordability.
Income Tax Adjustments: An increase in the income tax threshold to ₹12 lakh is anticipated to further boost consumer sentiment.

Electric Vehicle Sales Surge

TVS Motor’s commitment to electric mobility is evident, with its EV sales, including the popular iQube e-scooter, soaring by 44% to 2.79 lakh units in FY25. Radhakrishnan mentioned that the company anticipates significant revenue from the Production Linked Incentive (PLI) scheme as more electric two- and three-wheeler products are set to launch.

EV Revenue in FY25: ₹3,364 crore
Quarterly EV Revenue: ₹889 crore

With new EV products nearing completion, Radhakrishnan assures that exciting developments are on the horizon for TVS Motor.

In closing, shares of TVS Motor saw a rise of 1.47%, closing at ₹2,778.20 on the NSE, reflecting investor confidence in the company’s robust performance and strategic direction.