TVS Motor Company Ltd on Monday reported a consolidated net profit of Rs 1,194.51 crore in Q2FY27 against Rs 795.48 crore, a rise of 50%, driven by increase in sales of two-wheeler and three-wheeler. The overall two and three-wheeler sales grew by 27% at 1.9 million units as against 1.5mMillion units registered in the quarter ended September 2025.
Motorcycles sales during the quarter under review grew by 28% recording 0.9 million units as against 0.7 million units in the quarter ended September 2025. Scooters sales during the quarter under review grew by 29% at 0.8 million units as against 0.6 million units in the quarter ended September 2025. International Business reported a growth of 35% with sales of 0.5 million units in Q2 2026-27 as against 0.4 million units in the second quarter of 2025-26, the company said in a statement on Wednesday.
Two-wheeler electric vehicles grew by 133% registering sales of 186,186 units in the second quarter of 2026-27 as against 80,009 units during second quarter of 2025-26. Three-wheelers sales for the quarter under review grew by 47% to 78,475 units in the second quarter ended September 2026 as against 53,449 units in the quarter ended September 2025, the statement said.
Director & CEO KN Radhakrishnan said during the analyst call on wednesday that the scooter share, which ICE and EV, has gone to 41% for the company. The ICE vehicles have 32-33% market, whereas EV has the remaining. He also said that the Ronin motorcycle has exceeded the expectation of the company and it is confident that the vehicle will go beyond 15,000 units. Radhakrishnan expects scooter’s share to go beyond 50% in the next couple of years.
The Board of TVS Motor Company, part of the TVS VENU Group, on Wednesday also approved the demerger of its consumer finance and related business undertaking into a separate holding company, Harita ARC Ltd. It also approved the merger of wholly owned subsidiary TVS Motor Services Ltd with TVS Motor. As part of the composite scheme of arrangement, the Chennai-based company's consumer finance and related activities, including lending, investments, leasing and associated support services, will be transferred to Harita ARC.
Shareholders of the company will receive an equal number of shares in the resulting company as in TVS Motor, enabling them to participate in the future growth of both the mobility and consumer finance businesses. The turnover of the new consumer finance entity was Rs 3,921 crore during the first six months of FY27, out of the company's total turnover of Rs 35,770 crore. The scheme provides for a 1:1 share entitlement ratio, meaning that for every one fully paid-up equity share of TVS Motor Company held on the record date, the eligible shareholder will receive one fully paid-up equity share of Harita ARC Ltd, with a face value of ₹1 each.
As part of demerger, the company has approved the acquisition of Harita ARC Ltd from TVS Credit Services Ltd for Rs 25,000 crore in cash. Through this, Harita will become a wholly-owned subsidiary of TVS Motor, which will have the consumer finance business after the demerger. Currently, TVS Group’s non-banking financial company TVS Credit, along with Home Credit India, serves more than 45 million customers across 100,000 touchpoints.
Last July, TVS Holdings' arm Home Credit India Finance acquired a 100% stake in education finance company Varthana Finance for Rs 967 crore in an all-cash deal. Early this year, TVS Motor also acquired a minority stake in Jana Small Finance Bank.
Sudarshan Venu, Chairman, TVS Motor Company, said: "The businesses being demerged have developed strong capabilities, customer relationships and platforms that position them well for the future. We believe this new structure will create additional value for stakeholders while providing these businesses with greater strategic autonomy.
The demerger, which is subject to requisite statutory, regulatory, shareholder and other approvals as may be applicable, will allow the Group to pursue opportunities across consumer finance and related sectors and allocate capital in line with their growth priorities. It positions them to realise the full potential of their assets and capabilities while enabling TVS Motor Company to remain focused on strengthening its leadership in mobility globally."
In addition, the Board has also approved, acquiring controlling interest in STPL Trading and Services Private Limited, which is in the process of merging with TVS Credit Services. The STPL Trading will effectively get an additional 2.4% holding in TVS Credit Services post the consummation of merger.
