TVS Motor Company’s standalone net profit for the second quarter of FY27 rose 52% year on year to ₹1,377 crore, with employee benefit expenses climbing 33% to ₹806 crore on the back of record vehicle sales and higher workforce costs.
The Chennai-based two-wheeler and three-wheeler manufacturer reported revenue from operations of ₹17,103 crore for July to September 2026, up 44% from ₹11,905 crore in the same quarter a year earlier. Standalone net profit stood at ₹904 crore in Q2 FY26.
Total standalone expenses rose 43.4% year on year to ₹15,284 crore. The cost of materials consumed, the company’s largest expense line, rose approximately 45% to ₹12,494 crore from ₹8,627 crore. Employee benefit expenses rose 33% to ₹806 crore from ₹607 crore, while other expenses increased 20% to ₹1,597 crore. Finance costs more than doubled to ₹124 crore from ₹47 crore, and depreciation and amortisation rose 28% to ₹276 crore.
Operating EBITDA for the quarter rose 47% to ₹2,219 crore from ₹1,507 crore a year earlier, with EBITDA margin improving by 30 basis points to 13%. Quarterly two- and three-wheeler volumes rose 27% to a record 19.19 lakh units from 15.07 lakh units. Electric two-wheeler sales more than doubled, rising 133% year on year to 1,86,186 units from 80,009 units in Q2 FY26.
On a consolidated basis, which includes subsidiaries and associates, TVS Motor reported net profit of ₹1,219 crore, up 46% from ₹833 crore, on revenue of ₹19,474 crore, up around 39%. Shares of TVS Motor rose 4% on the day of the results on the BSE.
The sharp rise in employee benefit expenses mirrors a broader trend across India’s listed manufacturing sector, where fresh hiring, variable pay revisions and wage reset under the four Labour Codes have begun showing up in Q2 FY27 result statements. The company’s motorcycle sales rose 28% in the quarter, scooter volumes rose 29%, and three-wheeler sales climbed 47%, suggesting volume-led operating leverage is sustaining the headcount addition.
