TVS Motor profit jumps 65% as operating margin slips to 13.46%
Revenue grew +33.46% year on year, but faster expense growth cut margin; other income contributed 10.14% of pre-tax profit.
Filed 21 Jul 2026, 14:09 IST · TVS Motor Company Ltd (TVSMOTOR)
Key takeaways
- Consolidated net profit rose +64.52% year on year, while operating margin narrowed 2.37 percentage points to 13.46%.
- Expenses grew +37.22% year on year against revenue growth of +33.46%, marking a second consecutive quarter of operating-margin decline.
- The stock rose +5.62% on results day, above the 3.14% median absolute move after TVS Motor's last eight results.
Price around the results
Profit growth outpaced operating profit
TVS Motor's consolidated net profit increased +64.52% year on year, while operating profit grew only +13.48%. The gap reflects a lower tax rate, down 2.57 percentage points, and other income equal to 10.14% of pre-tax profit. Interest expense also rose +9.37%.
Costs pushed operating margin lower
Revenue increased +33.46% year on year, but expenses grew faster at +37.22%, narrowing operating margin by 2.37 percentage points. Sequentially, revenue rose +8.26% but expenses increased +10.58%, cutting margin by a further 1.82 percentage points. Operating margin has now declined for two consecutive quarters, from 18.13% in Q3FY26 to 15.28% in Q4FY26 and 13.46% in Q1FY27.
Margin trailed the reporting peer group
TVS Motor's 13.46% operating margin was 2.68 percentage points below the 16.14% median for the 22 Consumer Discretionary peers that had reported the quarter. This places the company's margin below the sector comparison despite its year-on-year revenue growth of +33.46%.
Results-day rise was larger than its usual move
The stock gained +5.62% on the results date, with trading volume at 2.26 times the reference level. That was above the 3.14% median absolute move across the last eight results reactions, when the stock rose after five results and fell after three.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹16,296 cr | ₹15,053 cr | +8.26% | +33.46% |
| Other income | ₹158 cr | ₹7 cr | +2278.95% | +298.89% |
| Expenses | ₹14,102 cr | ₹12,753 cr | +10.58% | +37.22% |
| Operating profit | ₹2,193 cr | ₹2,300 cr | -4.61% | +13.48% |
| Operating margin (%) | 13.46% | 15.28% | — | — |
| Interest | ₹602 cr | ₹566 cr | +6.42% | +9.37% |
| Depreciation | ₹354 cr | ₹315 cr | +12.55% | +12.44% |
| Profit before tax | ₹1,560 cr | ₹1,313 cr | +18.76% | +57.83% |
| Tax | ₹488 cr | ₹479 cr | +1.88% | +45.84% |
| Net profit | ₹1,058 cr | ₹820 cr | +29.05% | +64.52% |
| EPS (₹) | ₹21.46 | ₹16.24 | +32.14% | +67.13% |
Operating margin of 13.46% compares with a Consumer Discretionary sector median of 16.14% across 22 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +5.62% | +5.83% |
| Next session | +8.84% | — |
Volume on the results session was 2.26× its 20-day average.
What to watch
- Whether operating margin recovers from 13.46% after its second consecutive quarterly decline.
- Whether expense growth moves below the +33.46% year-on-year revenue growth rate.
- Whether other income remains near 10.14% of pre-tax profit.