TVS Motor to demerge consumer finance business; reports record quarterly revenue

The scheme envisages merging wholly owned subsidiary TVS Motor Services with TVS Motor to streamline corporate structure and improve operational synergies. | Photo Credit: The Hindu TVS Motor Company plans to demerge its consumer finance and related businesses into a separate holding company, allowing it to sharpen its focus on mobility while giving its financial services operations greater strategic autonomy. The announcement came as the two- and three-wheeler maker reported record quarterly revenue of ₹17,103 crore for the September quarter of FY27, up 44% year-on-year (YoY).The board approved a Composite Scheme of Arrangement under which existing shareholders will receive an equal number of shares in the resulting company as they hold in TVS Motor, enabling them to participate in the growth of both businesses.The proposed restructuring aims to improve capital allocation and allow the finance business to pursue opportunities across consumer finance and related sectors. The scheme is subject to statutory, regulatory, shareholder and other applicable approvals.The move follows a proposal approved by the group’s non-banking financial companies (NBFCs) in August 2026 to consolidate their consumer finance operations on a single platform. The group’s financial services businesses, including TVS Credit and Home Credit India, serve more than 45 million customers through 100,000 touchpoints across India.“Importantly, our shareholders will continue to participate in the future growth of both businesses,” said Sudarshan Venu, chairman of TVS Motor Company.The scheme also envisages merging wholly owned subsidiary TVS Motor Services with TVS Motor to streamline the corporate structure and improve operational synergies.Separately, the board approved the acquisition of a controlling interest in STPL Trading and Services Private Limited, which is in the process of merging with TVS Credit Services. Following the merger, TVS Motor expects to gain an additional approximately 2.4% stake in TVS Credit Services.Record quarterly performanceTVS Motor’s earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 47% YoY to a record ₹2,219 crore. Its EBITDA margin expanded to 13% from 12.7%, while net profit surged 52% YoY to ₹1,377 crore.Quarterly two- and three-wheeler sales reached a record 1.9 million units, up 27% YoY. Motorcycle sales rose 28% to 0.9 million units, while scooter sales increased 29% to 0.8 million units.International business grew 35%, with sales reaching 0.5 million units. Electric two-wheeler sales more than doubled YoY to 186,186 units. Three-wheeler sales climbed 47% to 78,475 units.For the half-year ended September 2026, revenue increased 41% to ₹30,999 crore, while profit before tax rose 52% to ₹3,454 crore. Published - October 28, 2026 05:15 pm IST