TVS Motor Q4 net profit soars 67.5% to ₹648.16 crore on strong demand

The company's revenue from operations increased by 16.09 per cent Y-o-Y to ₹11,542 crore in the fourth quarter

The consolidated net profit of TVS Motor increased by 67.5 per cent year-on-year (Y-o-Y) in the fourth quarter of financial year 2024-25 (Q4FY25) to ₹648.16 crore due to "stable demand and steady progress across our core businesses". The company's revenue from operations rose by 16.09 per cent Y-o-Y to ₹11,542 crore in the quarter.

 

For the entire FY25, TVS Motor's revenue from operations rose by 13.7 per cent Y-o-Y to ₹44,089 crore. Net profit for FY25 also increased by 32.57 per cent Y-o-Y to ₹2,235.56 crore.

 

During the post-results investor concall, TVS Motor Company Chief Executive Officer (CEO) K N Radhakrishnan said: "We expect the first quarter (Q1FY26) to see moderate growth domestically due to the base effect... However, we anticipate a positive sentiment and an uptake in the consecutive months (Q2 and Q3 of FY26)," he said.

 

Radhakrishnan mentioned that the overall growth momentum in the domestic market in FY26 is likely to be similar to that of FY25.

 

He expressed optimism for the first quarter of FY26 too. "With the marriage season kicking off well and many marriage dates in May and June, we remain optimistic about the coming months. Additionally, we are expecting a normal monsoon, which will further boost rural development and the economy," he added.

 

On a sequential basis, in Q4FY25, the revenue from operations rose by 4.59 per cent and the consolidated net profit increased by 14.51 per cent.

 

Amid the US imposing tariffs on automobile and auto component imports from various countries, including India, Radhakrishnan stated: "We expect upward movement (in exports) this year. While there are challenges in how the geopolitical landscape is unfolding, the need for momentum remains strong, and we remain positive. However, we always exercise caution as there are many factors that need close monitoring."

 

"With our strong range of brands, the company is confident of growing ahead of the industry both in domestic and international markets," he added.

 

In FY25, the company's motorcycle sales grew by 10 per cent, reaching 2.195 million units. The company's scooter sales also grew by 21 per cent to 1.904 million units.

 

Similarly, the sale of electric vehicles (EVs) also grew by 44 per cent, selling 279,000 units in FY25 as against 194,000 units in FY24. However, three-wheeler sales for FY25 declined by 7.53 per cent to 135,000 units. 

 

Radhakrishnan said: “This quarter, we delivered a good performance, driven by stable demand, and steady progress across our core businesses. Our focus on operational efficiency and new product introductions has started yielding results, setting a strong foundation for the coming quarters."

 

Commenting on the future pipeline, Radhakrishnan stated: "Our focus on EVs continues to show promising results, as the adoption is being supported by government initiatives like the PM E-drive and PLI (production-linked incentive), making them more affordable for consumers. Next quarter, we will launch EV products that are currently in their final stages. We are also expanding our network and scaling up production in the coming quarters."

 

The company revealed that the PLI scheme has been a major enabler for them, contributing to a better margin in Q4, with reported Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin at 14 per cent, including the full-year's PLI benefit. “Looking specifically at Q4, our Ebitda margin stands at 12.5 per cent, which is in line with last year’s Q4. Going forward, as we localise further and scale up our production of EVs and three-wheelers, we expect PLI benefits to continue. This will enhance our profitability as we expand our product offerings to meet growing consumer demand," he mentioned.

 

The company said that on a standalone basis, it reported its highest-ever revenue for FY25, reaching ₹36,251 crore, up 14 per cent against ₹31,776 in FY24. The company sold 4.744 million units of two- and three-wheelers in FY25.

 

On Monday, the company’s stock rose by 2.48 per cent to ₹2,803.55 a piece on the BSE.