Any current/future new fundraising through debt or equity?

TVS Motors plans to raise funds through Non-Convertible Debentures (NCDs) as mandated by SEBI, which requires 25% of incremental borrowings to be via capital market funding. The actual quantum of NCD funding will depend on market conditions and company requirements. There is no specific mention of imminent equity fundraising or IPO plans for TVS Credit Services; IPO discussions have not occurred at the Board level yet. Investment run-rate is around INR 2,000 crores annually, including areas like Norton product launches, e-bike ventures, and digital initiatives, but this is for operationa

Any current/future capex/capital investment/strategic investment?

TVS Motors plans capex of approximately INR 1,600 to INR 1,700 crores for FY 2026, mainly toward new products. Annual investment run rate around INR 2,000 to 2,200 crores expected to continue for the next 3 to 5 years. Investments are allocated across multiple segments including Norton, e-bikes, electric vehicles, software, electronics, digital initiatives, and marketing/brand-building. Continuing product launches (e.g., Norton bikes) will require investments in manufacturing, product development, and marketing. Strategic investments include increasing stake in TVS Supply Chain (expected to re

Future growth expectations in sales/revenue/volumes?

TVS Motors expects to continue growing ahead of the industry in both domestic and international markets for ICE and EV segments. Q2 is anticipated for strong growth led by the festive season. Domestic ICE sales saw an 8% growth in Q1; international two-wheeler sales grew by 40%, outperforming industry growth. EV two-wheeler sales grew by 35% in Q1, indicating positive growth momentum despite short-term challenges. Three-wheeler sales grew by 46% in Q1. Rural demand is expected to improve in Q2 with positive monsoon and irrigation conditions. Scooterization trend continues in urban and rural ar

Future growth expectations in earnings/operating earnings/profits/EPS?

TVS Motors reported strong Q1 FY26 with revenue of INR10,081 crores (+20%), operating EBITDA of INR1,263 crores (+32%), and profit growth of 35%. Operating EBITDA margin improved to 12.5%, up 100bps from last year. Management confident of continuing to grow ahead of the industry in domestic ICE, EV, and three-wheelers. Focus on premiumization, sustained material cost reduction, and scaling benefits expected to support margin expansion. Ongoing investments (~INR2,000 crores annually) in new technology, EV, and Norton brand aimed at long-term growth. Expect gradual recovery and profita

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TVS Motor Company LtdQ2 FY25Automobiles

TVS Motor Company Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹3,424P/E: 54.0Market Cap: ₹1.6L CrSector: Automobiles

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→TVS Motors expects to continue growing ahead of the industry in both domestic and international markets for ICE and EV segments.
→Q2 is anticipated for strong growth led by the festive season.
→Domestic ICE sales saw an 8% growth in Q1; international two-wheeler sales grew by 40%, outperforming industry growth.
→EV two-wheeler sales grew by 35% in Q1, indicating positive growth momentum despite short-term challenges.
→Three-wheeler sales grew by 46% in Q1.
→Rural demand is expected to improve in Q2 with positive monsoon and irrigation conditions.
→Scooterization trend continues in urban and rural areas, supporting volume growth.
→International markets like Africa and LATAM show recovery and growth potential.
→TVS plans to leverage strong product ranges, premiumization, and new launches including Norton bikes and EV models to sustain growth.
→Overall, confident in growing revenue and volumes with continuous EBITDA improvement.

Margin guidance

Category 3

→TVS Motors reported strong Q1 FY26 with revenue of INR10,081 crores (+20%), operating EBITDA of INR1,263 crores (+32%), and profit growth of 35%.
→Operating EBITDA margin improved to 12.5%, up 100bps from last year.
→Management confident of continuing to grow ahead of the industry in domestic ICE, EV, and three-wheelers.
→Focus on premiumization, sustained material cost reduction, and scaling benefits expected to support margin expansion.
→Ongoing investments (~INR2,000 crores annually) in new technology, EV, and Norton brand aimed at long-term growth.
→Expect gradual recovery and profitability in e-bike ventures.
→Export markets like Africa are stabilizing and expected to contribute to growth.
→Management remains focused on product innovation and customer delight for sustained top-line and margin growth.
→Overall, TVS Motors is confident of continuous top-line growth, margin improvement, and EBITDA expansion going forward.

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Fundraise plans

→TVS Motors plans to raise funds through Non-Convertible Debentures (NCDs) as mandated by SEBI, which requires 25% of incremental borrowings to be via capital market funding.
→The actual quantum of NCD funding will depend on market conditions and company requirements.
→There is no specific mention of imminent equity fundraising or IPO plans for TVS Credit Services; IPO discussions have not occurred at the Board level yet.
→Investment run-rate is around INR 2,000 crores annually, including areas like Norton product launches, e-bike ventures, and digital initiatives, but this is for operational and growth investments, not necessarily fundraising.
→No clear timeline is provided for new fundraising through equity or debt beyond the current NCD plans.

Order book

The transcript provided does not explicitly mention the current or expected order book or pending orders for TVS Motors Limited. However, some related insights include: - TVS Motors reported strong sales growth with a 17% volume increase and 20% revenue growth in Q1 FY'26. - Electric two-wheeler sales grew by 35% to 70,000 units, and three-wheelers grew by 46% to 45,000 units. - Supply chain issues, particularly with rare earth magnets, have caused short-term setbacks impacting production. - The company is working on alternatives to improve resilience in supply. - Capacity is reportedly not a bottleneck, with supply chain lead times around 12 weeks enabling capacity expansions if needed. - Market demand, including rural and export markets (like Africa), is expected to strengthen in upcoming quarters. - The company maintains a systematic product launch and investment plan, expected to support steady order inflows. No specific quantitative order book or pending orders details provided.

Capex plans

Yes

→TVS Motors plans capex of approximately INR 1,600 to INR 1,700 crores for FY 2026, mainly toward new products.
→Annual investment run rate around INR 2,000 to 2,200 crores expected to continue for the next 3 to 5 years.
→Investments are allocated across multiple segments including Norton, e-bikes, electric vehicles, software, electronics, digital initiatives, and marketing/brand-building.
→Continuing product launches (e.g., Norton bikes) will require investments in manufacturing, product development, and marketing.
→Strategic investments include increasing stake in TVS Supply Chain (expected to reach 6-7%) and holdings in entities such as Norton, TVS Digital, Celerity, Killwatt, Zapata, and ION Mobility.
→Focus on building supply chain resilience with initiatives on HRE-free, ferrite-based, and magnet-free alternatives for EVs.
→No specific IPO plans yet for TVS Credit Services, though the company is performing well.

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