TVS Motor to Spin Off Finance Unit, Reports Record Quarterly Revenue
TVS Motor Company announced plans to demerge its consumer finance business while reporting a record quarterly revenue of ₹17,103 crore.
TVS Motor Company plans to spin off its consumer finance operations into a separate holding company, while reporting a record revenue of ₹17,103 crore in the fiscal second quarter of 2026-27, a 44% increase year-on-year.
The demerger aims to enable the company to focus more on its mobility business and grant greater autonomy to its financial services. Sudarshan Venu, chairman of TVS Motor Company, said shareholders will benefit by holding equal shares in both the original and new finance entity.
The restructuring, awaiting regulatory approvals, includes merging TVS Motor Services with TVS Motor to enhance operational efficiencies. The consumer finance branch had a turnover of ₹3,921 crore in the first half of FY27, contributing to a total company turnover of ₹35,770 crore.
Financial Performance
TVS Motor reported a consolidated net profit of ₹1,194.51 crore for Q2, up from ₹795.48 crore in the same period last year, reflecting a 50% growth. Two- and three-wheeler sales reached 1.9 million units, a 27% increase.
Sales of motorcycles grew by 28%, totaling 0.9 million units, while scooter sales rose by 29% to 0.8 million units. The international market showed robust growth, increasing by 35%, and electric two-wheeler sales more than doubled to 186,186 units. Three-wheeler sales climbed 47% to 78,475 units.
Strategic Moves
The demerger aligns with a broader strategy following a consolidation initiative within the group’s non-banking financial companies last year. The board approved acquiring a controlling interest in STPL Trading and Services, enhancing its stake in TVS Credit Services by an estimated 2.4% post-merger.
Radhakrishnan, Director and CEO of the company, expressed confidence in achieving a market share of over 50% in the scooter segment in the coming years. This restructuring is expected to unlock new opportunities in consumer finance while allowing TVS Motor to concentrate on its core mobility business.
“We believe this new structure will create additional value for stakeholders,” Venu said.
Sources
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.