WatchTalking point
Profit and cash flow diverged
Reported profit rose 33.9% but operating cash flow fell 46.7% — worth investigating whether the profit is being collected.
Importance 75 / 95 · cash quality
TVS Motor Company · Research view
TVS Motor Company Ltd.
NSE: TVSMOTORBSE: 532343ISIN INE494B01023Face value ₹1consolidated
₹4,021
−1.92% · 2026-10-01 · 52-wk ₹3,283–₹4,466
Financials to FY2026 · 5 years of history · prices to 2026-10-01consolidatedstandalone
Section 02 · Synthesis
What stands out?
The strongest observations the engine found, ranked. Every line is generated from the filed numbers by a fixed rule — no opinion, no estimate.
StrengthConcernWatchContext
WatchTalking point
Growing, but light on cash
Revenue grew 27.2% but only 0.59× of reported profit came through as operating cash.
Importance 62 / 95 · cash quality
StrengthTalking point
Profit outpacing revenue
Profit grew 33.9% while revenue grew 27.2%, so the company kept more of each rupee of revenue as profit.
Importance 60 / 95 · growth
StrengthTalking point
Compounding revenue
Revenue compounded at 23.2% a year over 4 years (₹24,355 → ₹56,070).
Importance 60 / 95 · growth
Section 03 · The company
Who is this company?
Classified by the exchange under Consumer Discretionary › Automobile and Auto Components › Automobiles › 2/3 Wheelers.
- Market cap
- ₹1.91 L cr
- FY2026 revenue
- ₹56,070 cr
- FY2026 net profit
- ₹3,186 cr
- Net worth
- ₹10,713 cr
- Total debt
- ₹31,624 cr
- EPS (basic)
- ₹63.53
- Listed
- NSE · BSE
- Reporting
- Ind-ASApr–Mar
Peer set used on this page: 4 2/3 wheelers.
Section 04 · Business performance
Is the business growing?
RevenueNet profit
Strength
Profit grew 33.9% while revenue grew 27.2%, so the company kept more of each rupee of revenue as profit.
Rule PROFIT_FASTER_THAN_REVENUE
- Revenue growth per year
- +23.2%over 4 years
- Revenue growth
- +27.2%vs last year
- Net profit growth
- +33.9%vs last year
- Change in net profit since FY22
- +336%
Revenue compounded at 23.2% a year over 4 years (₹24,355 → ₹56,070).
Over 4 years profit compounded at 44.5% a year while revenue compounded at 23.2% a year — though FY2023 saw a one-off step-change of 79% (a merger, restructuring or a recovery off a low base), so the compounding is uneven.
Net profit grew 33.9% year on year (FY2025 → FY2026).
Revenue grew 27.2% year on year (FY2025 → FY2026).
Section 05 · Recent activity
What changed recently?
Quarterly results, the trailing-twelve-months snapshot, and verified corporate actions — kept separate from each other and from the annual story above. Every figure traces to a filed number; nothing here is external news or commentary.
Strength
Q1 FY27 net profit was ₹1,058 cr, up 64.5% from ₹643 cr a year earlier.
Rule QTR_PROFIT_GROWTH_YOY
Strength
Q1 FY27 revenue was ₹16,296 cr, up 33.5% from ₹12,210 cr in Q1 FY26 a year earlier.
Rule QTR_REVENUE_GROWTH_YOY
Strength
Q1 FY27 EBIT was ₹2,162 cr, up 40.5% from ₹1,539 cr a year earlier.
Rule QTR_OPERATING_PERFORMANCE_CHANGE_YOY
A. Quarterly results
RevenueNet profit
| Quarter | Revenue | YoY | Net profit | YoY | Net margin |
|---|---|---|---|---|---|
| Q2 FY25 | 11,302 | — | 588 | — | 5.2% |
| Q3 FY25 | 11,135 | +10.1% | 609 | +19.6% | 5.5% |
| Q4 FY25 | 11,542 | +14.9% | 698 | +69.5% | 6.0% |
| Q1 FY26 | 12,210 | +17.3% | 643 | +32.6% | 5.3% |
| Q2 FY26 | 14,051 | +24.3% | 833 | +41.6% | 5.9% |
| Q3 FY26 | 14,756 | +32.5% | 891 | +46.3% | 6.0% |
| Q4 FY26 | 15,053 | +30.4% | 820 | +17.5% | 5.4% |
| Q1 FY27 | 16,296 | +33.5% | 1,058 | +64.5% | 6.5% |
B. TTM snapshot
Trailing twelve months to 30 Jun 2026 · sum of the last 4 contiguous quarters
- Revenue
- ₹60,155 crTTM
- EBITDA
- ₹9,078 crTTM
- EBIT
- ₹7,766 crTTM
- PBT
- ₹5,434 crTTM
- Net profit
- ₹3,601 crTTM
C. Corporate actions
30 Mar 2026DividendInterim Dividend - Rs. - 12.0000 — ₹12.00/share
25 Aug 2025Scheme of arrangementScheme of Arrangement
26 Mar 2025DividendInterim Dividend - Rs. - 10.0000 — ₹10.00/share
19 Mar 2024DividendInterim Dividend - Rs. - 8.0000 — ₹8.00/share
2 Feb 2023DividendInterim Dividend - Rs. - 5.0000 — ₹5.00/share
25 Mar 2022DividendInterim Dividend - Rs. - 3.7500 — ₹3.75/share
30 Mar 2021DividendInterim Dividend - Rs. - 1.4000 — ₹1.40/share
4 Feb 2021DividendInterim Dividend - Rs. - 2.1000 — ₹2.10/share
17 Mar 2020DividendInterim Dividend - Rs. - 1.4000 — ₹1.40/share
11 Feb 2020DividendInterim Dividend - Rs. - 2.1000 — ₹2.10/share
18 Mar 2019DividendInterim Dividend - Rs. - 1.4000 — ₹1.40/share
30 Oct 2018DividendInterim Dividend - Rs. - 2.1000 — ₹2.10/share
6 Mar 2018DividendInterim Dividend - Rs. - 1.3000 — ₹1.30/share
8 Nov 2017DividendInterim Dividend - Rs. - 2.0000 — ₹2.00/share
14 Mar 2017DividendInterim Dividend - Rs. - 1.2500 — ₹1.25/share
3 Nov 2016DividendInterim Dividend - Rs. - 1.2500 — ₹1.25/share
17 Mar 2016DividendInterim Dividend - Rs. - 1.5000 — ₹1.50/share
4 Feb 2016DividendInterim Dividend - Rs. - 1.0000 — ₹1.00/share
5 May 2015DividendInterim Dividend - Rs. - 1.1500 — ₹1.15/share
6 Feb 2015DividendInterim Dividend - Rs. - 0.7500 — ₹0.75/share
6 Jun 2014OtherE-Voting
2 May 2014DividendInterim Dividend - Rs. - 0.7500 — ₹0.75/share
30 Oct 2013DividendInterim Dividend - Rs. - 0.6500 — ₹0.65/share
3 May 2013DividendInterim Dividend - Rs. - 0.6000 — ₹0.60/share
6 Feb 2013DividendInterim Dividend - Rs. - 0.6000 — ₹0.60/share
Section 06 · Business performance
Is it becoming more profitable?
EBITDA marginNet margin
Strength
ROE of 31.6% is the highest in 4 years (prior range 14.5% to 28.1%).
Rule ROE_AT_MULTI_YEAR_HIGH
- EBITDA margin now
- 15.0%
- 5-year range
- 11.4–15.2%
- ROE FY2026
- 31.6%
- ROCE FY2026
- 18.0%
ROE improved from 28.1% to 31.6% year on year.
Section 07 · Financial health
Is financial health improving?
Net worth (shareholders' funds)
Watch
Reported profit rose 33.9% but operating cash flow fell 46.7% — worth investigating whether the profit is being collected.
Rule PROFIT_UP_CASH_DOWN
Operating cash flowNet profit
- Total debt
- ₹31,624 cr
- Operating cash flow ÷ net profit
- 0.59×FY2026
- Free cash flow
- ₹−1,368 cr
- Current ratio
- 0.97×
Revenue grew 27.2% but only 0.59× of reported profit came through as operating cash.
Net worth compounded at 20.7% a year over 4 years (₹5,053 → ₹10,713).
Operating cash flow was only 0.59× reported profit (FY2026).
Section 08 · Relative position
How does it compare with peers?
Ranked against 4 2/3 wheelers (FY2026, consolidated).
Revenue growth
TVSMOTOR · 1st of 4 · set median 23.7%
EBITDA margin
TVSMOTOR · 4th of 4 · set median 20.7%
Return on equity
TVSMOTOR · 1st of 4 · set median 28.0%
P/E ratio
TVSMOTOR · 4th of 4 · set median 28.7×
Context
Trades at 53.05× earnings — 85% above the 2 3 wheelers median of 28.69×.
Rule PE_ABOVE_PEERS
- P / E
- 53.1×TTM to Jun 26
- P / B
- 17.8×latest book
- P / S
- 3.2×TTM sales
- Earnings yield
- 1.9%TTM to Jun 26
On the trailing twelve months. Last full year: P/E 60.0× · P/S 3.4× · ROE 31.6%.
Section 09 · The stock
How has the stock performed?
Context
Over 4 years profit compounded at 44.5% a year while the stock returned 38.3% a year — but FY2022 profit (₹731) was well below the through-cycle level (~₹1,779), so this rate is inflated by the recovery from a low base.
Rule STOCK_LAGGED_EARNINGS · recovery
- 1-year return
- +16.3%
- 3-year return
- +164.3%
- 5-year return
- +613.1%
- From 52-wk high
- −10.0%
Section 10 · Technical data
What does the technical data say?
Price-action indicators as of 2026-10-01. Secondary to the fundamentals above — included for timing context, not as a signal.
- vs 50-day avg
- Below₹4,204
- vs 200-day avg
- Above₹3,755
- RSI (14)
- 37.2neutral
- MACD histogram
- -14.1
- From 52-wk high
- −10.0%
- From 52-wk low
- +22.5%
- 30-day volatility
- 18.5%ann.
- 6-month return
- +15.6%
Section 11 · Open questions
What should I investigate further?
Observations the engine tagged watch or deteriorating — prompts for your own research, not conclusions.
- WatchProfit and cash flow divergedReported profit rose 33.9% but operating cash flow fell 46.7% — worth investigating whether the profit is being collected.PROFIT_UP_CASH_DOWN · conviction 75
- WatchGrowing, but light on cashRevenue grew 27.2% but only 0.59× of reported profit came through as operating cash.GROWTH_WITH_WEAK_CASH · conviction 62
- ConcernWeak cash conversionOperating cash flow was only 0.59× reported profit (FY2026).WEAK_CASH_CONVERSION · conviction 52
Data coverage is complete — 5 years of financials (FY2022–FY2026), full P&L, balance sheet and cash-flow statement, sector metrics fully mapped.
Section 12 · Reference
The numbers
The full statements, kept deliberately secondary. Every figure traces to a BSE Integrated Filing (inline XBRL); ratios are recomputed from the normalised facts.
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 24,355 | 31,974 | 39,145 | 44,089 | 56,070 |
| Total income | 24,388 | 32,112 | 39,251 | 44,159 | 56,092 |
| EBITDA | 2,788 | 4,205 | 5,649 | 6,718 | 8,415 |
| Profit before tax | 1,064 | 1,977 | 2,746 | 3,579 | 4,863 |
| Net profit | 731 | 1,309 | 1,779 | 2,380 | 3,186 |
| EPS (₹) | 15.9 | 28.0 | 35.5 | 47.0 | 63.5 |
| Net worth | 5,053 | 5,910 | 7,511 | 9,442 | 10,713 |
| Total debt | 15,297 | 21,626 | 25,287 | 27,616 | 31,624 |
| Operating cash flow | −1,560 | −4,405 | −1,253 | 3,503 | 1,867 |
| Free cash flow | −2,545 | −5,724 | −2,363 | 1,044 | −1,368 |
| Ratio | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth YoY | — | 31.3 | 22.4 | 12.6 | 27.2 |
| Profit growth YoY | — | 79.2 | 35.8 | 33.8 | 33.9 |
| Profitability | |||||
| EBITDA margin % | 11.4 | 13.2 | 14.4 | 15.2 | 15.0 |
| Net margin % | 3.0 | 4.1 | 4.5 | 5.4 | 5.7 |
| Return on equity % | 14.5 | 23.9 | 26.5 | 28.1 | 31.6 |
| Return on capital % | 10.0 | 14.0 | 15.5 | 16.2 | 18.0 |
| Leverage & cash | |||||
| Debt to equity | 3.03 | 3.66 | 3.37 | 2.92 | 2.95 |
| Cash flow ÷ profit | -2.13 | -3.36 | -0.70 | 1.47 | 0.59 |
| Current ratio | 0.93 | 0.88 | 1.02 | 1.12 | 0.97 |