Can EVs Drive Further Growth in FY27?
The Indian two-wheeler industry is witnessing a shift towards electric mobility, supported by rising EV adoption and growing demand for fuel-efficient alternatives. With manufacturers expanding their electric vehicle portfolios, strong sales momentum and profitability will remain key factors shaping the sector’s outlook.
With a market capitalisation of Rs.1,99,536 cr, the shares of TVS Motor Company Ltd closed at Rs. 4200 per share, down from its previous close of Rs. 4,280 per share.
TVS Motor Company recorded a 133% year-on-year increase in electric two-wheeler sales to 1.86 lakh units in Q2 FY27. This compares with approximately 80,000 units in the corresponding quarter last year.
Overall Q2 Results Show Strong Earnings Growth
The company reported its highest-ever operating revenue of Rs. 17,103 crore for the quarter ended September 2026, registering a 44% year-on-year growth compared with Rs. 11,905 crore in the corresponding quarter of the previous year.
Operating EBITDA margin improved by 30 basis points to 13.0% from 12.7% in September 2025. The company also posted its highest-ever profit after tax (PAT) of Rs. 1,377 crore, marking a 52% year-on-year increase from Rs. 904 crore.
Overall Vehicle Sales Remain Robust
The company recorded its highest-ever quarterly sales in Q2 FY27, with overall two- and three-wheeler sales growing 27% year-on-year to 19 lakh units, compared with 15 lakh units in Q2 FY26. Motorcycle sales increased 28% to 9 lakh units from 7 lakh units, while scooter sales rose 29% to 8 lakh units from 6 lakh units.
The company’s international business reported 35% growth, with sales reaching 5 lakh units in Q2 FY27, compared with 4 lakh units in the corresponding quarter last year. Two-wheeler electric vehicle sales surged 133% year-on-year to 1.86 lakh units from 80,009 units in Q2 FY26.
Three-wheeler sales also registered strong growth, increasing 47% to 78,475 units in the quarter ended September 2026, compared with 53,449 units in the corresponding quarter of the previous financial year.
Electric Two-Wheeler Sector Demand Accelerates
India’s electric two-wheeler market also witnessed strong expansion. Retail sales reached a record 2.08 lakh units in September 2026, increasing 89% year-on-year. During April–September FY27, electric two-wheeler retail sales rose 76% to approximately 11.2 lakh units.
TVS Motor recorded around 2.90 lakh electric two-wheeler retail sales during the first half, up 98% year-on-year, with a reported market share of 26%. These figures suggest that EV adoption is becoming an important driver of growth in the two-wheeler industry.
Product Launches and Global Expansion
TVS Motor Company introduced several product updates during the quarter, including an all-new range of TVS Apache RTR motorcycles, the TVS Jupiter spectral colour scooter, and the TVS Orbiter’s first anniversary milestone of 100,000 units. The TVS iQube crossed one million units, marked by the MillionR Special Edition, while the TVS Raider Super Squad Edition was unveiled at the 1st Motorcycle Unveiled in Cinema Hall event.
The company continued expanding its international presence, with the TVS Raider launching in Africa, the TVS Orbiter and Ntorq 150 making their debut in Sri Lanka, and the TVS Callisto 110 launching in Jakarta. These launches reflect the company’s efforts to widen its product reach across international markets.
Can EVs Drive Further Growth in FY27?
TVS Motor’s strong electric two-wheeler sales, improving profitability and expanding overall volumes provide a positive base for the remainder of FY27. Industry-wide growth in electric mobility and scooters could offer further opportunities. However, investors should monitor whether the company can sustain its EV sales momentum, maintain margins and compete effectively as more manufacturers expand their electric vehicle portfolios.
