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Key Conference Call Highlights

Update on the domestic market:

* In Q4FY26, the TVSL reported its highest-ever quarterly revenue of INR 1,28,080 Mn, up 34% YoY, while standalone PAT rose 31% YoY to INR 9,980 Mn. EBITDA margin stood at 13.1%

* Scooter contribution (including EVs) has increased to ~38% of total sales and is expected to cross 40%, going forward, supported by a strong traction in Jupiter, Ntorq and iQube

* Premium motorcycles, including Apache and Ronin, continue to witness a healthy demand, while the economy motorcycle segment remains relatively weak due to inflationary pressure and higher fuel costs

* Management forecasts the domestic 2W industry to deliver a healthy single-digit growth in FY27E and remains confident of outperforming the industry’s average growth, aided by strong product momentum and portfolio mix

* Dealer inventory levels remain in the normal range of 21–30 days, although temporary supply-side disruptions in April 26 impacted dispatches. The management indicated that the situation had improved materially in May 26.

Update on EVs:

* EV 2W sales grew 33% YoY in FY26 to 0.37 million units, while 4QFY26 EV sales increased 51% YoY to 115k units. EV penetration for the industry stood at ~7.8% in 4QFY26 versus 7.1% in the previous quarter

* TVS iQube continues to witness robust traction, with a cumulative customer base surpassing 0.9 million users. The company recently launched the iQube ST variant with a 5.1kWh battery pack and an IDC range of 212 km

* TVS has also introduced Battery-as-a-Service (BaaS) across its EV portfolio, enabling customers to subscribe to battery usage instead of paying the battery cost upfront

* EV production capacity has increased from ~30–32k units/month last year to ~40k units/month currently and is expected to scale up to ~50k units/month in the near term

* In the electric 3W category, TVSL continues to gain market share in both passenger and cargo segments. The recently launched TVS King EV Cargo and TVS King Cargo CNG have received an encouraging initial response

* TVSL has signed a joint development agreement with Hyundai Motor Company for the development of electric 3W, wherein Hyundai will lead design and co-development, while TVS will leverage its EV platform and 3W expertise

Update on exports and international business:

* In 4QFY26, international business revenue stood at ~INR 30,000 Mn, while exports continued to outperform industry growth trends

* Africa remained a strong growth market for the company, while LATAM continued to witness healthy traction. Sri Lanka has fully recovered and Nepal is also performing strongly

* Bangladesh operations are expected to normalise gradually following strategic changes undertaken by the company

* Management highlighted that demand across international markets remains healthy despite logistics disruptions and longer transit lead times arising from geopolitical uncertainties

Update on capacity expansion and margin:

* TVSL plans to increase annual production capacity by ~1.5 million units over in the next 12 months, taking total capacity to ~8.3 million units, supported by robust demand outlook

* The management indicated that the company would continue investing aggressively in manufacturing capacity, product development and R&D to ensure growth remains ahead of industry levels

* Commodity inflation remains a near-term concern, with management indicating raw material inflation of 3–5% due to rising prices of steel, aluminium, gas and crude-linked derivatives

* The company is offsetting cost pressure through calibrated price hikes, favourable product mix, operating leverage and cost optimisation initiatives.

* PLI benefits contributed ~90 bps to margins during the quarter

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