TVS Motor revenue jumps 38.60%, but margin falls for third straight quarter
Expenses grew faster than revenue and interest rose +21.23% YoY, while net profit still climbed +46.43%.
Filed 28 Oct 2026, 15:01 IST · TVS Motor Company Ltd (TVSMOTOR)
Key takeaways
- Consolidated revenue rose +38.60% YoY to Rs 19,474.44 cr, but expenses grew +40.41%, pulling operating margin down 1.10 percentage points to 14.0%.
- Net profit rose +46.43% YoY to Rs 1,219.45 cr without a tax-rate benefit, as the tax rate was unchanged at 31.92%.
- Operating margin fell for a third straight quarter to 14.0%, though it remained 0.98 percentage points above the 13.02% median of 84 reporting Consumer Discretionary peers.
Price around the results
Revenue growth accelerated, with profit rising faster than sales
TVS Motor's consolidated revenue increased +38.60% YoY and +19.51% QoQ to Rs 19,474.44 cr. Net profit grew +46.43% YoY and +15.30% QoQ, helped by operating profit growth of +28.42% YoY and +15.61% QoQ. The sequential increase came despite other income falling -35.00%.
Faster cost growth and higher interest narrowed the margin
Expenses grew +40.41% YoY and +20.17% QoQ, ahead of revenue growth in both comparisons, reducing operating margin by 1.10 percentage points YoY and 0.47 percentage points QoQ. Interest expense rose +21.23% YoY and +11.21% QoQ, adding pressure below operating profit. Other income of Rs 93.53 cr contributed 5.22% of pre-tax profit, while the tax rate was unchanged YoY and increased 0.37 percentage points QoQ to 31.92%.
Margin is above peers but has declined for three quarters
Operating margin has fallen from 15.39% in Q3FY26 to 14.53% in Q4FY26, 14.47% in Q1FY27 and 14.0% in Q2FY27, marking a third straight quarterly decline. Even so, TVS Motor's 14.0% margin was 0.98 percentage points above the 13.02% median among 84 Consumer Discretionary peers that had reported.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹19,474 cr | ₹16,296 cr | +19.51% | +38.60% |
| Other income | ₹94 cr | ₹144 cr | -35.00% | — |
| Expenses | ₹16,749 cr | ₹13,938 cr | +20.17% | +40.41% |
| Operating profit | ₹2,726 cr | ₹2,357 cr | +15.61% | +28.42% |
| Operating margin (%) | 14.00% | 14.47% | — | — |
| Interest | ₹670 cr | ₹602 cr | +11.21% | +21.23% |
| Depreciation | ₹358 cr | ₹354 cr | +1.19% | +11.80% |
| Profit before tax | ₹1,791 cr | ₹1,545 cr | +15.92% | +46.42% |
| Tax | ₹572 cr | ₹488 cr | +17.25% | +46.39% |
| Net profit | ₹1,219 cr | ₹1,058 cr | +15.30% | +46.43% |
| EPS (₹) | ₹25.14 | ₹21.46 | +17.15% | +50.18% |
Operating margin of 14.00% compares with a Consumer Discretionary sector median of 13.02% across 84 peers that have reported Q2FY27.
What to watch
- Whether expenses continue to grow faster than revenue after +20.17% versus +19.51% QoQ.
- Whether operating margin stabilises above 14.0% after three consecutive quarterly declines.
- Whether interest growth moderates from +21.23% YoY and other income remains 5.22% of pre-tax profit.