TVS Motor Company hosted a conference call on July 31, 2025. In the conference call, the company was represented by: Mr K N Radhakrishnan – Director and Chief Executive Officer, and Mr K Gopala Desikan – Chief Financial Officer.

Key takeaways of the call

In Q1 FY26, the company registered its highest quarterly sales. The overall two-wheeler and three-wheeler sales including exports grew by 17% registering sales of 12.77 Lakh units as against 10.87 Lakh units registered in the quarter ended June 2024.

Motorcycle sales grew by 21% registering sales of 6.21 Lakh units in the quarter ended June 2025 as against 5.14 Lakh units in quarter ended June 2024. Scooter sales grew by 19% to 4.99 Lakh units as against 4.18 Lakh units in the corresponding quarter last year. Three-wheeler sales grew 46% to 0.45 Lakh units as against 0.31 Lakh units in Q1 FY25.

In Q1 FY26, Electric Scooter sales grew 35% YoY to 0.70 lakh units. Mopeds sales de-grew 9.6% YoY to 1.12 lakh units.

Rural demand was slightly better than urban demand in Q1 FY26.

EBITDA margin improved on a YoY basis driven by cost reduction initiatives. The company has also taken small price increases to offset some rise in raw material cost.

The company expects moderate growth in Q2 FY26, supported by the RBI’s policy rate cut and a healthy monsoon boosting consumption. In the short term, challenges persist regarding the availability of rare magnets; however, management remains confident in successfully navigating these issues.

The company is exploring multiple alternatives, including diversifying sourcing across different countries, evaluating local procurement options, and investigating potential substitutes through R&D.

Despite challenges in the EV segment, management is optimistic about growing faster than the industry in both domestic and international markets.

Two-wheeler international sales increased by 40% YoY in Q1 FY26.

On the export front, the two-wheeler business is anticipated to maintain positive momentum with growth expected in the Africa market along with increased volumes in the Middle East, ASEAN, Africa and LATAM.

Although there are some challenges in Bangladesh, Nepal is performing well.

During the quarter, TVS Credit disbursed loans to 16 lakh new customers, bringing the total customer base to 2 crore.

The board has approved the proposal of raising funds up to a sum of Rs 500 crore by way of issuance of Non-Convertible Debentures on a private placement basis in one or more tranches/ series, over a period.

During the quarter, the company launched Jupiter 125 dual color variant, New Apache RTR 160 with Dual Channel ABS, and New Apache RR310.

In terms of global launches, the company launched TVS iQube in Indonesia, and displayed new Norton Motorcycle during India-UK FTA.

Company guided capex of about Rs 1600 crore in FY26.