TVS Motor looks to close FY25 on a high as scooter sales boost performance

Mint

27-04-2025

For K.N. Radhakrishnan-led TVS Motor Company Ltd, the fiscal year 2025 was one of many firsts. The company managed to maintain a healthy balance of traditional fuel vehicles and the new-age electric vehicles to record its highest-ever sales of 4.7 million.
The country's third-largest two-wheeler seller outpaced the market leader
Hero Motocorp
Ltd in terms of growth. As against a 5% growth for the Delhi-based firm, the Hosur-based TVS recorded a 12% jump in its two-wheeler sales.
Even in the EV two-wheeler space,
TVS Motor
was able to take the challenge to market leader
Ola Electric Mobility
Ltd which recorded just 4.5% growth in the financial year 2025. In contrast, TVS posted a growth of nearly 30% to cross 2 lakh sales.
The ambition to take the challenge to the market leaders was set by Radhakrishnan in the very first quarter of the previous financial year. However, it did not go in favour of the company.
During the year, its domestic sales of motorcycles declined by 2% even as the motorcycle market grew by 5%. In the electric vehicle space, Bajaj has closed the gap with TVS in market share from a difference of 8% in the financial year 2024 to just 0.5% at the end of March 31.
However, analysts remain bullish about the prospects of the 63-year-old company.
'We expect TVS Motor's market share to remain steady in the motorcycle segment; however, expect overall market share to improve to 18.3% in FY2027 from 17.1% in FY2024," analysts at Kotak Institutional Equities wrote in a 13 March note.
Against this backdrop,
Mint
lists five things to look out for when TVS announces its results for the January to March quarter on Monday
.
As per average estimates of four brokerages, the company will post revenue growth of around 13% in the last quarter of the financial year 2025. In Q4FY24, the company's revenue grew 24% to
₹
8,168 crore.
Analysts attribute the double-digit growth in revenue to the strong surge in volumes in a year where total scooter sales in the country crossed the pre-pandemic total of 6.7 million for the very first time.
'Revenues are expected to increase by ~15% YoY, led by a 15% YoY increase in volumes, a richer domestic vehicle mix being partly offset by higher export volumes (exports being of lower cc models)," analysts at Axis Securities wrote in a 9 April note.
The company recorded a 14% growth in two-wheeler sales during January-March period, with sales increasing to 11.80 lakh units from 10.32 Lakh units in the fourth quarter of financial year 2023-24.
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The average of four analyst estimates for the quarter suggests that the profitability of the company will see a nearly 40% growth to around
₹
680 crore in the March quarter as margins expand.
To be sure, the estimates of the brokerages have not accounted for any PLI benefit the company may have accrued during the quarter.
'We expect Ebitda margin to expand 70bp YoY to 12% led by favorable product mix and cost control," analysts at
Motilal Oswal Financial Services
wrote in a 7 April note.
The management's commentary on the international business will be closely watched as the company recently completed the acquisition of Singapore-based electric vehicle start-up Ion Mobility's assets for $1.7 million to expand its presence in Southeast Asia.
During the January to March period, the exports of the company grew by 31% to 3.40 lakh units. Commentary on whether international volatility due to the announcement of tariffs by the US administration will affect the growth will be closely tracked.
TVS Motor has rapidly expanded its electric vehicle sales in the last few years. From sales of 9,740 units in the financial year 2022 to more than 2.3 lakh in the financial year 2025, the trend suggests that the company is rapidly expanding its EV offering.
Launched in May last year, TVS' economic iQube 2.2 kWh model has managed to boost sales in the previous year which saw nearly 30% growth.
Although it is challenging the market leader Ola Electric for the leadership, it is increasingly coming under pressure from Bajaj Auto which saw a more than 100% jump in EV two-wheeler sales in the last financial year.
A key highlight to watch for would be company's plans for new product offerings and how the company will stave off competition as it looks to defend its 20% market share.
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EVs hit with falling resale value as consumer demand cools
While scooter sales in the country are surging ahead, the company is facing pressure in the motorcycle segment which is witnessing weak demand in the cheap economical segments.
During the last financial year, the pricier Apache Bike series of the company witnessed strong growth of 18% to reach 4.46 lakh sales.
Management's commentary on whether it will increase focus towards premium bikes will be a key highlight as the economy segment is recording weak demand.
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