India's TVS Motor to demerge finance business; beats quarterly profit view on strong demand

TVS Motor

28/10/2026 10:29

Oct 28 (Reuters) - TVS Motor TVSM.NS, India's third-largest two-wheeler maker by sales volume, said it would spin off its consumer-finance business into a separately listed entity and reported a bigger-than-expected quarterly profit on strong vehicle demand, sending shares up 3.7%.
The Jupiter scooter maker's second-quarter profit jumped 52.4% to 13.77 billion rupees ($144.66 million). Analysts, on average, had expected 12.76 billion rupees, according to data compiled by LSEG. 
Shareholders will receive one share in the new finance company for every TVS Motor share held, leaving the resulting entity with the same ownership structure as the automaker
The spun-off business, which includes lending, leasing and investment activities, generated revenue of 39.21 billion rupees in the six months ended September 30
The restructuring would give the finance business greater autonomy over strategy and capital allocation, while allowing TVS Motor to focus on its mobility operation, the company
TVS Motor's overall sales rose 27% year-on-year to 1.9 million units in the September quarter, driven by strong domestic sales and an increase in exports
Revenue climbed 44% to a record 171.03 billion rupees 
Demand continued to benefit from last year's tax cuts, despite many manufacturers, including TVS, undertaking price hikes to offset elevated commodity costs
Sales in its EV segment, including its iQube and Orbiter scooters, surged 133% to 186,186 units

($1 = 95.1875 Indian rupees)

 (Reporting by Puyaan Singh in Bengaluru; Editing by Janane Venkatraman)
 ((Puyaan.Singh@thomsonreuters.com;))