TVS Motor Q2 Results: Profit up 37%, But Stock Falls 2.5%

The results for TVS Motor Company for July to September (Q2 FY26) were strong, helped partly by the recent GST rate cut for two-wheelers, which is expected to boost demand across the industry. Yet, despite the strong numbers, the stock closed 2.5% lower. This suggests that while results were positive, the market may have already priced in much of the upside.

Revenue and profit at all-time highs

• Revenue: ₹11,905 crore, up 29% year on year .
• Operating EBITDA: ₹1,509 crore, up 40%. Margin improved to 12.7% from 11.7% .
• Profit Before Tax: ₹1,226 crore, up 37%. This includes a ₹31 crore fair-value loss on investments. Last year had a ₹23 crore gain.

Sales volumes

TVS sold 15.07 lakh units in the quarter, up 23% year on year .

Sources: Sales mix and growth by category, including EV units and exports .

Product mix that explains the growth

Scooters led growth, helped by urban demand. EVs are now a visible part of the scooter portfolio at 0.80 lakh units, growing 7% year on year. Mopeds were broadly flat at 1.42 lakh units versus 1.39 lakh last year, so the overall volume acceleration came mainly from scooters and motorcycles .

Margins Reflect Better Efficiency

The expansion in EBITDA margin to 12.7% (a margin expansion of 100pbs) shows TVS’s improved cost efficiency and product mix.The company has managed to grow profits faster than sales, a sign of operational discipline and pricing power.

However, near-term concerns around EV component availability and global demand could keep investors cautious, which partly explains the muted stock reaction

What to watch

The company flagged a supply constraint in magnets used for EVs. Management expects this challenge to continue in the short to medium term, which may keep EV growth steady rather than rapid.

Market Reaction

Despite these record numbers, TVS Motor’s share price closed 2.5% lower on 28th October, as the results were released before market hours ended.
This suggests that the market had largely anticipated the strong performance, and investors may be booking profits after a solid run-up in the stock.

Bottom Line

TVS Motor’s Q2 FY26 performance was exceptional on every operational metric, record revenue, record profit, and margin expansion. Yet, the market response shows that in the current environment, even record-breaking numbers need to surprise investors to move the needle.

The fundamentals remain strong, and with continued traction in scooters, EVs, and exports, TVS Motor is well-positioned for sustained growth, even if the stock took a temporary pause today.

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