TVS Motor may evaluate TVS Credit separation to unlock shareholder value; international business to sustain growth: Sudarshan Venu

TVS Motor Company may evaluate a separation of its financial services arm, TVS Credit, to unlock shareholder value while maintaining its investment-led growth strategy across electric vehicles, exports and premium motorcycles, Chairman Sudarshan Venu said at the company's Annual General Meeting (AGM) on Wednesday. He said the move, if pursued, would be guided by long-term strategic considerations and undertaken in stages.

The company, which reported its highest-ever annual sales of 5.89 million vehicles in FY26, also recorded record revenue of ₹47,270 crore and EBITDA of ₹6,079 crore. Venu said TVS Motor remains optimistic about growth in FY27 despite an uncertain global environment, backed by investments in technology, new product development and international markets.

TVS Credit separation under consideration

Speaking on the financial services business, Venu said TVS Credit delivered another strong year, with disbursements rising 26% and its asset base crossing ₹30,000 crore while serving over 24.4 million customers.

"Over the years, the group has made sustained investments in building and nurturing its financial services business, which has evolved into an important part of the broader TVS ecosystem. Looking ahead, the company may, at an appropriate time, in stages, guided by long-term strategic considerations, evaluate alternatives including a possible separation of the financial services business to further strengthen and unlock shareholder value," he said.

Exports, EV business to remain growth engines

Venu said TVS Motor's international business now contributes more than a quarter of the company's revenue after annual volumes crossed 1.59 million units, with operations spanning over 90 countries.

"Our international business has expanded to contribute over a quarter of our revenue with volumes rising to over 1.59 million units last year. We believe Africa, Latin America and Asia remain long-term strategic growth markets, and we are now entering the European market as well. Overall, the international business is expected to continue to demonstrate resilience and show growth during FY26-27," he said.

On electric mobility, Venu said TVS Motor sold over 3.71 lakh electric two-wheelers in FY26, up 33% year-on-year, driven by the expanded TVS iQube portfolio and the newly launched Orbiter scooter. He added that the company has established more than 1,000 EV dealerships and supported 5,000 public charging points across India.

R&D, AI and premium motorcycles in focus

The chairman said TVS invested more than ₹1,250 crore in research and development during FY26, with over 2,000 engineers working across connected technologies, electrification and next-generation mobility solutions.

"We believe generative AI is a significant opportunity and are investing in this to embrace the future and how it can impact our customers and our business," Venu said, adding that the company has also established a design and engineering hub in Bologna through Engines Engineering. He further noted that premium offerings, including the Apache RTX 300 and NTORQ 150, have strengthened the company's premium portfolio, while the revived Norton brand is set for launches across the UK, Europe, India and the US during the year.