TVS Motor's Q2 FY26 profit jumps 37% owing to demand by GST cuts, and exports

TVS Motor Company reported a strong second-quarter performance with profits up 37 per cent year-on-year, powered by festive season demand, solid exports, and the impact of a recent tax reduction on motorcycles. The homegrown manufacturer of the TVS Jupiter and Apache series posted a net profit of ₹906 crore for the July–September period.

While this marked significant growth from the previous year, it was marginally lower than the analysts’ consensus estimate of ₹924 crore, as per LSEG data. Following the announcement, the company’s shares closed 2.14 per cent lower at ₹3,562 on Tuesday.

Revenue outpaces estimates

The company’s operating revenue climbed 29 per cent to ₹11,905 crore, outperforming market projections of ₹11,545 crore. Strong scooter and motorcycle sales drove this momentum, helping the company lift its EBITDA margin to 12.7 per cent, compared to 11.7 per cent in the same period last year.

Also watch: Here are the specifications of the new TVS Apache RTX 300. Watch!

Record two-wheeler sales and export boost

TVS achieved its highest-ever quarterly two-wheeler sales, delivering around 15 lakh units, a 23 per cent year-on-year rise. Exports played a key role, surging 31 per cent and making up 26 per cent of total sales.

The performance was further aided by India’s recent tax cut on sub-350cc motorcycles, which reduced GST from 28 per cent to 18 per cent, stimulating rural and entry-level urban demand.

EV growth meets supply hurdles

TVS also saw a 7 per cent rise in electric vehicle sales during the quarter. However, the company flagged ongoing supply issues related to rare earth magnets, a critical component for EV motors.

With China controlling nearly 90 per cent of global magnet production and tightening exports earlier this year, the automaker said it continues to explore alternative technologies that reduce dependence on rare earth materials.

Industry outlook

Despite the margin gains and strong festive momentum, TVS expects near-term challenges from supply bottlenecks. Rival firms such as Hero MotoCorp and Bajaj Auto are yet to announce their quarterly numbers, which are likely to provide a clearer picture of the two-wheeler market’s festive recovery.

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