TVS Motor Company Ltd

Milestone and product details

• TVS Motor launches TVS iQube MillionR Special Edition to mark one million customers.
• Edition features Aurora Green Dual Tone colour and exclusive MillionR badging.
• IDC range is 145 km.
• Front storage expands from 32 to 35.5 litres.
• Includes USB Type-C charging port and over 118 connected features.
• Based on TVS iQube 3.5 kWh variant.
• Pricing: ₹1,40,138 ex-showroom Karnataka; iQube portfolio starts at ₹1,11,310.

Subject

• TVS Motor launches TVS Orbiter electric scooter in Sri Lanka.

Key product specs

• 1 kWh battery and 158 km IDC range (real-world 115 km).
• 5-year or 60,000 km warranty on battery and motor.
• 14-inch front wheel enhances stability and ride comfort.
• 34-litre under-seat boot space.
• 845 mm long flat-floor seat and 290 mm straight-line footboard.

Market entry rationale

• Launch expands TVS EV portfolio in Sri Lanka and supports global electrification.
• Strategic move to tap Sri Lanka's growing EV demand.

Availability and ecosystem

• Available in four colours: Neon Sunburst, Stratos Blue, Cosmic Titanium, Martian Copper.
• TVS Lanka to build extensive sales, after-sales support, spare parts, and EV specialists.

Launch details

• TVS King EV MAX launched in Sri Lanka as part of EV transition.
• Range of 179 km per full charge; 2.5-hour fast charge to 80%.
• 11 kW motor and 9.2 kWh Li-ion (LFP) battery.
• 0-30 km/h in 3.7 seconds; top speed 60 km/h.
• 6-year or 150,000 km warranty (whichever earlier).
• TVS SmartXonnect offers real-time navigation, alerts and diagnostics via smartphone.
• Available across select Sri Lanka dealerships; rollout to channel network by Sep 2026.

Market context and availability

• Three-wheelers play key role in urban mobility; EV adoption supported by lower operating costs.
• Launch underscores TVS’s expansion of EV portfolio into Sri Lanka.

NCRPS redemption details

• Record date fixed as 21 August 2026 for NCRPS holders.
• Redemption date set as 1 September 2026; payment of Rs 10 per NCRPS plus 6% annual coupon.
• Upon redemption, NCRPS extinguished; ISIN INE494B04019 to be deactivated.
• Total NCRPS outstanding: 190,03,48,456, each Rs 10, with 6% coupon.

Capital / Securities

• Allotment of 100,000 Senior, Unsecured, Listed NCDs at Rs 1 lakh each; aggregate Rs 1,000 crore; private placement.
• Coupon 7.28% p.a.; Tenure 39 months; Maturity 10 Nov 2029.
• Date of allotment: 10 Aug 2026; Listed on National Stock Exchange.
• Coupon dates: 10 Nov 2026, 2027, 2028, 2029.
• Charge/Security: Not Applicable.
• Late payment interest: 2% p.a. on overdue principal after cure period.
• Issuance type: Private placement via NSE Electronic Bidding Platform.

Financial Performance

• Revenue: INR 13,896 crores in Q1 FY27; up 38% YoY.
• Volume: 1.63 million units; up from 1.28 million.
• EBITDA: INR 1,779 crores; margin 12.8%; PBT INR 1,439 crores; PAT INR 1,174 crores.
• PBT includes fair value gains about INR 150 crores; PAT up 51%.
• EV revenue around INR 1,780 crores; EV penetration in June 10.6%.
• iQube crossed 1 million units; 2W ICE domestic growth 21%, international 31%.
• 2W EV sales grew 86% YoY; long-term rating upgraded to AAA.

Operational Highlights & Geography

• International sales: 4.68 lakh units, +33% YoY.
• HLX series strong in Africa, Middle East, LATAM; cumulative HLX > 5 million.
• Norton production started: Atlas and Manx; Atlas GT in pipeline.
• Raider launched in Egypt; King EV MAX launched in Nepal.
• Domestic EV penetration 10.6% in June; iQube and Orbiter contributing.
• Paddock premium experience channel announced.
• TVS Credit expanded network to nearly 62,000 touch points.

Capacity & Capex

• 3 million total capacity target; current 6.8 million.
• 2W capacity to 8.3 million; 3W to 0.42 million.
• Capex around INR 3,500 crores for capacity and new products.
• By Q4, capacity expected to reach 8.3 million.

Guidance & Outlook

• Q2 growth expected to be good; ICE slightly better than Q1; EV momentum similar or better.
• Full-year industry growth double-digit; EV penetration about 10.6% currently.
• Q3 could be impacted by El Nino and GST effects.
• October–November season; demand momentum to continue.
• Commodity headwinds front-loaded; pricing actions planned in Q2; EBITDA may improve.

Q&A Highlights

• EV capacity expansion to 50k; 3W to 30k; 3–4 month steps.
• 2W capacity expansion to 8.3 million; capex ~₹3,500 crores.
• Export contribution ~26% of turnover; Africa and LATAM key.
• Norton investments around ₹2,000–2,500 crores over 4–5 years.
• PLI incentives about 0.6–0.7% of turnover; receivable around ₹600 crores.

Target overview

• Name: TVS Credit Services Limited (TVSCS), RBI-registered non-deposit taking NBFC in India.
• Products include automobile finance, consumer durable loans, and small business loans.
• Incorporation date: 5 November 2008.
• FY2025-26 turnover: Rs 7,191.14 crore; PAT: Rs 913.17 crore.
• Net worth: Rs 6,067.63 crore; presence in India.

Deal details

• Acquisition completed on 27 July 2026 at 8:00 PM IST.
• TVSM acquired 113,37,297 equity shares, 4.39% of TVSCS paid-up capital.
• Aggregate consideration: Rs 711 crore; form of consideration: cash.
• Post-acquisition stake: 85.15% (fully diluted) from 80.76%.
• Purpose: consolidate TVSCS stake and streamline ownership and operations.
• Regulatory approvals: not applicable.
• Related party: not a related party transaction.

Target background

• Industry: Non-Banking Financial Services.
• Date of incorporation: 5 November 2008.
• Presence: India.