TVS Holdings’ Profit Up by 40.3% in June Quarter

Chennai, July 31 (IST) – TVS Holdings Ltd (NSE: TVSHLTD, BSE: 520056) posted a 40.3% year-on-year rise in consolidated net profit to ₹675.36 crore in Q1FY26, supported by broad-based operational strength across segments. The board also approved raising ₹250 crore via Non-Convertible Debentures (NCDs) through private placement.

The profit surge was backed by double-digit revenue growth and expanding margins across both automotive and financial services segments. Higher volumes, improved asset quality, and better operating leverage contributed to earnings momentum, while strategic investments in finance and e-mobility strengthened future growth visibility.

As of market close on July 31, 2025, TVS Holdings ended at ₹11,600, down by 0.25%. The stock moved in green earlier, hitting an intraday high of ₹11,845, before settling lower. VWAP stood at ₹11,518.67 on ₹16.21 crore turnover.

Standalone Performance Snapshot

Standalone revenue fell sharply to ₹55.07 crore in Q1FY26 from ₹294.72 crore in Q4FY25, reflecting the absence of exceptional income booked in the previous quarter. Net profit also declined to ₹12.90 crore from ₹241.58 crore, while EPS dropped to ₹6.38 from ₹119.40.

Despite the sequential decline, the company maintained year-on-year stability, with revenue marginally lower than ₹136.37 crore in Q1FY25 and net profit slightly up from ₹12.82 crore. The flat YoY performance highlights a normalised quarter with no extraordinary items impacting earnings.

Consolidated Financial Highlights

TVS Holdings reported consolidated net profit of ₹675.36 crore in Q1FY26, rising 40.3% year-on-year and 4.9% sequentially. Total income stood at ₹12,753.64 crore, up 22.8% YoY and 8% QoQ, while profit before tax reached ₹1,018.58 crore. EPS rose sharply to ₹165.85, reflecting strong earnings growth.

Chairman Venu Srinivasan said the Q1 performance highlights strong execution in core automotive and financial services segments. The company continues to focus on capital efficiency and profitable expansion, reinforcing its operating discipline and growth strategy across key verticals.

Segment Performance Breakdown

Total segmental revenue rose to ₹12,794.69 crore, with ₹41.05 crore in inter-segment eliminations.

Automotive Vehicles & Parts

The Automotive Vehicles & Parts segment generated revenue of ₹10,554.43 crore in Q1FY26, up from ₹8,840.04 crore a year earlier. Segment profit before interest and tax rose to ₹812.48 crore, compared to ₹611.72 crore YoY, driven by higher volumes and improved operating leverage.

Financial Services

The Financial Services segment reported revenue of ₹2,240.26 crore, growing from ₹1,652.99 crore in the same period last year. Segment profit before interest stood at ₹394.64 crore, nearly doubling from ₹206.98 crore, supported by strong credit demand and better asset quality.

Financial Strength and Ratios

TVS Holdings reported improved financial strength in Q1FY26, with consolidated net debt-to-equity dropping to 5.62 from 7.70 a year earlier. Net worth rose to ₹4,030.22 crore from ₹2,809.37 crore, indicating capital buildup. Net profit margin also expanded to 5.30% from 4.59%, reflecting better operating leverage.

On a standalone basis, the net debt-to-equity ratio increased to 0.57 from 0.39, suggesting higher leverage at the entity level. However, overall financial stability improved due to stronger profitability and a healthier balance sheet at the consolidated level, supporting sustained business growth.

Board Approves ₹250 Cr NCD Fundraising

The board of TVS Holdings has approved the issuance of Non-Convertible Debentures worth up to ₹250 crore, to be raised in one or more tranches via private placement for general corporate purposes and refinancing needs.

Strategic and Corporate Developments

During the quarter, TVS Holdings invested ₹121.57 crore in Home Credit India Finance Pvt Ltd, reinforcing its presence in the financial services space. It also completed the merger of three European subsidiaries into TVS EBike Company AG, expanding its e-mobility operations. The company confirmed no deviations in the utilisation of funds raised through earlier NCD issuances.

About TVS Holdings

TVS Holdings Limited is the core investment arm of the TVS Group, with interests in automotive components, financial services, and e-mobility. It holds key stakes in TVS Motor, TVS Credit, and related subsidiaries, managing both manufacturing and strategic investments.

REF:https://nsearchives.nseindia.com/corporate/SUNCLAYLTD_31072025144018_TVSHQUICKRESULTSSGD.pdf

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