TVS Motor Q3 FY26 Preview: Record Sales Signal Profit Surge

Introduction

TVS Motor Company is set to announce its third-quarter financial results for fiscal year 2026 on January 28, 2026, with market analysts anticipating a period of substantial growth. The company has already laid a strong foundation for these expectations by reporting its highest-ever quarterly sales volume for the quarter ending December 2025. This performance, detailed in a provisional business update, was driven by robust domestic demand, a significant uptick in international sales, and continued momentum in the electric vehicle segment. The combination of higher volumes, an improved product mix, and favorable currency movements is expected to translate into significant revenue and profit growth, positioning the company for a strong finish to the year.

Record-Breaking Quarterly Performance

In the third quarter of FY26 (October-December 2025), TVS Motor achieved a historic milestone by selling a total of 1.54 million units, the highest quarterly volume in its history. This marks a significant increase from the same period in the previous fiscal year. The two-wheeler segment was the primary contributor to this achievement, with sales reaching 1.484 million units, a notable 25% year-on-year growth compared to the 1.183 million units sold in Q3 FY25. The company's focus on diverse product offerings, including both commuter and premium motorcycles, has resonated well with consumers, leading to sustained market share gains.

Surge in Three-Wheeler and International Business

The three-wheeler segment demonstrated exceptional performance, with sales more than doubling. Volumes surged by an impressive 106% to 60,000 units in Q3 FY26, up from 29,000 units in the corresponding quarter of the previous year. This reflects a strong recovery in commercial vehicle demand. Furthermore, TVS Motor's international business continued its upward trajectory, showcasing the company's expanding global footprint. Overseas sales grew by 40%, increasing from 294,000 units in Q3 FY25 to 410,000 units in Q3 FY26, indicating strong demand across key export markets in Latin America, Asia, and Africa.

Stellar Sales in December 2025

The final month of the quarter, December 2025, capped off the period with remarkable sales figures. Total sales for the month stood at 481,389 units, a 50% increase compared to the 321,687 units sold in December 2024. The two-wheeler segment again led the charge, with sales rising 48% to 461,071 units. Domestic two-wheeler sales were particularly strong, growing 54% year-on-year to 330,362 units. Within this category, motorcycle sales increased by 50% to 216,867 units, while scooter volumes rose by 48% to 198,017 units, highlighting broad-based demand across its portfolio.

Electric Vehicle Segment Gains Traction

TVS Motor's strategic focus on electric mobility is yielding significant results. The electric vehicle (EV) segment registered sharp growth, with sales reaching 35,605 units in December 2025. This represents a 77% increase compared to the 20,171 units sold in December 2024. The growing consumer acceptance of the TVS iQube electric scooter, supported by an expanding charging network and government incentives like the PLI scheme, has been a key factor in this success. The strong performance in the EV space contributes to a healthier product mix and positions the company to capitalize on the long-term shift towards sustainable transportation.

Q3 FY26 Sales Performance Summary

Financial Outlook and Analyst Projections

Following the strong operational update, analysts have projected a robust financial performance for TVS Motor in Q3 FY26. Consensus estimates suggest that the company's standalone revenue could grow by approximately 35% year-on-year to ₹12,323 crore, compared to ₹9,097 crore in Q3 FY25. The bottom line is expected to see even stronger growth, with net profit projected to rise by 59% to ₹982 crore from ₹619 crore in the year-ago period. This anticipated profit surge is attributed to operating leverage from higher sales, a favorable product mix skewed towards premium and EV models, and the benefits of a depreciated rupee on export earnings. EBITDA margins are expected to expand to around 12.7%, up from 11.9% in the same quarter last year.

Market Reaction and Stock Movement

Investor confidence in TVS Motor has been high, reflected in its stock performance. Following the release of the sales data, the company's shares saw positive movement, trading around the ₹3,800 mark. The stock had previously touched a 52-week high of ₹3,798.50, and its market capitalization stands at approximately ₹1,80,153 crore. The strong sales figures and positive financial outlook are likely to sustain investor interest as the official earnings announcement approaches. Key factors for investors to watch in the upcoming results will be management's commentary on demand trends, raw material costs, and the outlook for both domestic and export markets.

Conclusion

TVS Motor Company's record-breaking sales performance in the third quarter of FY26 underscores its strong operational execution and favorable market positioning. With significant growth across all key segments—two-wheelers, three-wheelers, EVs, and international markets—the company has set the stage for an impressive financial showing. The market will now be closely watching the official results on January 28, 2026, for confirmation of the projected double-digit revenue and profit growth, which would solidify TVS Motor's standing as a top performer in the Indian automotive sector.