Under the proposed Scheme, shareholders of the company will receive equal number of shares in the resulting company as in TVS Motor, enabling them to participate in the future growth of both the mobility and consumer finance businesses.
The consumer finance and related business have expanded in scale and scope and a dedicated structure will provide greater strategic focus, flexibility in capital allocation and the ability to pursue opportunities across the consumer finance and related sectors. The proposed structure will better align shareholders with the future growth of these businesses while supporting their continued expansion, the company said in a statement.
In August 2026, the NBFC Companies within the Group have approved a proposal to merge and consolidate the Group’s consumer finance businesses into a single operating platform. The proposed demerger is the next step in this strategic process and is intended to segregate the Consumer finance and related businesses from TVS Motor into a dedicated platform and reflects the Group’s long-term conviction in India’s financial services sector and its role in supporting economic growth, financial inclusion and rising aspirations across the country, it added.
The proposed structure will also enable TVS Motor to sharpen its focus on its continuing automotive and mobility businesses. The Group remains committed to the growth and development of both the dedicated consumer finance platform and TVS Motor’s continuing business, the statement added.
“India’s rapidly expanding financial services sector offers tremendous opportunities for long-term growth. Driven by digitisation, expanding credit access and the aspirations of India’s growing middle class, financial services are playing an increasingly important role in one of the world’s fastest-growing large economies,” Sudarshan Venu, Chairman, TVS Motor Company, said.
At TVS VENU, we have built meaningful presence and capabilities in this sector through sustained investments over 15 years. Our NBFC TVS Credit, along with Home Credit India, serves more than 45 million customers across 100,000 touchpoints in India. Earlier this year, we announced the acquisition of education finance company Varthana, which will accelerate our participation in secured and longer-tenure lending. Our investment in Jana Small Finance Bank was made with a view to supporting high-quality institutions that address the huge opportunity arising from India’s evolving financial needs and expanding digital financial ecosystem,” he said.
“The businesses being demerged have developed strong capabilities, customer relationships and platforms that position them well for the future. We believe this new structure will create additional value for stakeholders while providing these businesses with greater strategic autonomy. The demerger will allow them to pursue opportunities across consumer finance and related sectors and allocate capital in line with their growth priorities. It positions them to realise the full potential of their assets and capabilities while enabling TVS Motor Company to remain focused on strengthening its leadership in mobility globally. Importantly, our shareholders will continue to participate in the future growth of both businesses,” Sudarshan Venu added.
The Composite Scheme will also envisage merger of TVS Motor Services, a wholly owned subsidiary with the company for streamlining the corporate structure and enhancing operational synergies.
The Scheme is subject to requisite statutory, regulatory, shareholder and other approvals as may be applicable.
In addition, the board also approved, acquiring controlling interest in STPL Trading and Services Private Limited which is in the process of merging with TVS Credit Services. Pursuant to this, the company will effectively get an additional 2.4 per cent holding in TVS Credit Services post the consummation of merger.
Meanwhile, the company’s net profit grew 52 per cent to Rs 1,377 crore in the second quarter from Rs 904 crore in the comparable period last year. The company recorded highest ever revenue in the second quarter.
Revenue rose 44 per cent to Rs 17,103 crore from Rs 11,905 crore.
TVS Motor posted its highest EBITDA of Rs. 2,219 Crores with a growth of 47 per cent for the second quarter of 2026-27 as against EBITDA of Rs. 1,507 Crores in the same period of 2025-26. The Company’s EBITDA margin improved by 30 basis points to 13.0 per cent from 12.7 per cent.
The company registered the highest ever quarterly sales, with overall two and three-wheeler sales increasing 27 per cent to 1.9 million units in the second quarter from 1.5 million units in the same period last year.
The second quarter motorcycles sales increased 28 per cent to 0.9 Million units, while Scooters sales grew 29 per cent to 0.8 Million units.
The company’s International Business sales grew 35 per cent to 0.5 Million units in Q2 2026-27.
Two-wheeler electric vehicles grew by 133 per cent registering sales of 186,186 units in the second quarter of 2026-27 as against 80,009 units during second quarter of 2025-26.
Three-wheelers sales for the quarter under review grew by 47 per cent to 78,475 units in the second quarter ended September 2026 as against 53,449 units in the quarter ended September 2025.