Thank you, Mark. Good afternoon, all the participants.

On behalf of BNK Securities, welcome to 3Q FY26 post results conference call of TVS Motor Company Limited. I also take this opportunity to welcome the management team of TVS Motor Company Limited.

We are here with us today Mr. K.

N. Radhakrishnan, Director and Chief Executive Officer; Mr.

K. Gopala Desikan, Chief Financial...

Good

afternoon.

...Mr. K.

Gopala Desikan, Chief Financial Officer. Congratulations on good results, sir.

I would now invite Mr. K.

N. Radhakrishnan for the opening remarks to be followed by question-and-answer session.

Over to you, sir.

Good evening. Good evening, everyone, and thank you for joining us today.

Wish you all a very happy New Year and season's greetings to all of you and your family members. I'm glad to share that this quarter also, we continue to achieve new highs, delivering our highest ever quarterly sales, revenue, and profits.

During this quarter, company sales volume grew by 27%, revenue grew by 37%, operating EBITDA grew by 51%, and operating PBT grew by 56%. Let me get into more details about third quarter of this financial year, our performance.

On sales, during the this quarter, the overall operating revenue grew by 27%, and the revenue is at 12,476 crores as against 9,097 crores during the third quarter of last year. Two-wheeler domestic ICE sales grew by 21% compared to Q3 of last year as against an industry growth of 16%.

International market, company sales grew by 35% over last year as as against an industry growth of 23%. Total two-wheeler ICE sales grew by 25% compared to Q3 of last year and an industry growth of 17%.

EV two-wheeler sales grew by 40%, and it has crossed 1 lakh this year, 1,06,000 units as against 76,000 units during Q3 of last year. Total sales of three-wheeler is more than doubled to 60,000 units as against 29,000 units during last year third quarter.

On profits, during this quarter, company's operating EBITDA grew by 51%, and it is at 1,634 crores as against the EBITDA of 1,081 crores during Q3 of last year. The company's operating EBITDA margin improved by 120 basis points at 13.1% as against 11.9 during Q3 of last year.

All of you know that during last year, the entire year entire year PLI benefits of FY24-25 was recognized in Q4. On a normalized basis, Q3 FY25 EBITDA would have been at 12.4%, which means we got a 70 basis points on a sequential basis improvement on EBITDA.

Okay? On a year-on-year basis, a margin improvement of 70 basis points and a quarter-on-quarter basis, 40 basis points.

The company registered a PBT before exceptional items of 1,315 crores, recording a growth of 57% during this quarter as against 837 crores. During this quarter, company recognized ₹41 crores as an exceptional item towards the past service cost arising from the new labor codes.

Profit after tax for the quarter is 940 crores as against last year's 618 crores. Now, when we look at the first nine months, up to December, the first nine months of the year, company's operating revenue grew by 29%, and it is at 34,463 crores as against 26,701 crore during last year first nine months.

PBT before exceptional item for the first nine months is at 3,594 crores as against last year's 2,517 crores, a growth of 43%. Profit after tax for the first nine months period is 2,625 crores as against last year's 1,858 crores.

Overall, very good growth the first nine months this year. On TVS Credit, TVS Credit continue to witness excellent growth in disbursement.

The post-GST 2.0 implementation, there is a positive sentiment, and the market is doing well. The low inflation drove demand across product categories, leading to increased sales, deeper market penetration, and enhanced market share.

We also saw a successful festive season with robust demand. During this period, company maintained its focus on risk-calibrated growth across product categories, building a diverse book.

TVS Credit continued to drive penetration of existing products, expand product offerings, scale up distribution while enhancing customer experience and operational efficiency. First nine months, TVS Credit disbursed loans to over 41 lakh new customers, bringing its total customer base to nearly 2.3 crores.

The book size is 29,678 crores, grew by 9% over last year Q3. TVS Credit PBT before exceptional items for the quarter is quarter grew by 21% and is at 390 crores as against last year's 321 crores.

On Norton, we are building the lineup, which was unveiled in EICMA 2025. I'm very sure you would have had an opportunity to see many of these products.

The new Manx and Atlas families positioned the TVS ecosystem firmly in the premium, in the high, high-emotion luxury motorcycle segment, and it is definitely going to create for the super-premium category of our affluent global customers who value craftsmanship, exclusivity, and engineering pedigree, a real, real, special, super-premium kind of an experience. We are gearing up launch of Norton products in the Indian markets as well.

We will have a differentiated strategy for Norton. Okay?

We will give more details closer to the launch. On Q4 outlook, I think all of us know that we saw very good growth.

In Q3, we saw post-GST reduction, industry grew by 20%. Rural grew by almost 19% and urban by about 21%.

The GDP growth for this financial year is also estimated about 7%. This robust performance not only reinforces the underlying strength of strength derived from the domestic market, but also positions India as world's fastest-growing major economy against many challenges in the global landscape.

As I told you, this year the the rainfall has been good, and the higher reservoir levels are also going to augur increased rabi sowing. This will this should definitely support the rural sentiments.

As you know that the monetary policy measures implemented by RBI, including the total repo rate reduction by 125 basis points in this year, is expected to improve the liquidity and credit environment. GST reduction definitely is going to support what we have seen in Q3.

We are expecting Q4 also to be doing extremely well for the industry. On EV, the Vahan for the first nine months, the industry grew by 14%, and all of you know that we had some challenges on the magnets availability.

Now it is better. Availability has become better.

The Q3, the Vahan EV industry grew by 7.5% over last year Q3. EV penetration is slightly lower now, but it is going to improve going forward.

We have seen very good growth for TVS in Q3. We are expecting with our products like iQube doing well and also TVS Orbiter, it is likely to do well.

Commercial vehicle mobility, the TVS King EV and the King Kargo HD EV, very good response in the market, and we are able to also grow here. The Vahan market share, Vahan market has gone up in EV L5 category.

This is going to help us. Overall, I think you will see EV penetration going up in two-wheeler, and three-wheeler anyway it has almost come to now 30, 32% in this quarter.

That will go up. On international market, the market is doing well.

Q3, we have seen exports from India growing by 23%, and the demand in Africa continues to grow on a quarter-on-quarter basis. LATAM also has grown over last year, and this growth momentum in Africa and LATAM will continue.

As Asia region is also doing well thanks to Sri Lanka coming back in a big way. Nepal continues to do well.

Okay? Europe continued to have challenges.

It is not growing. It may take a few more quarters for the performance to improve.

Overall, you know TVS already I highlighted that we have grown ahead of the industry, and we are very confident that this momentum will continue both on the industry side and we will likely to do better than the industry growth in Q4. Overall, if you look at thanks to GST, the momentum in India is good.

Industry will have a very good growth. Okay?

Like Q3, you can expect good growth in Q4 as well. International markets are doing well, and it will continue to do well in Q4.

Thanks to our good portfolio of products and our focus on consumers, quality, new products, and very clear attractive quality and technology with features, we are confident that we will do better than the industry growth both in domestic and international markets. We will You have seen the highest EBITDA for the company.

With the top-line growth, we will leverage the scale benefits. We will look at more premiumization and better product mix.

Our sustained effort on cost reduction will also enable us to continue, and we are confident that EBITDA will continue to grow going forward. Thank you.

Hi. Good afternoon, and thank you for taking my questions.

My first question is just around the industry outlook that you provided. I think in the December quarter, we've seen 20% growth for the industry.

Jan to date also on the Vahan retail portal seems to be around the mid to high teens. I think at the previous earnings call, at the end of 1H, you had indicated you expect sort of this 8 to 10% volume growth for the industry in the medium term, back half and medium term.

Just want to understand if there's some upside risks to that in your view over the medium term. If you see upside risks to this 8 to 10% kind of growth bracket for the two-wheeler industry?

Definitely, the GST is playing. All of us should know that it is not only in two-wheeler.

There is a good basket of products wherein the consumers have got the benefit of GST. It's all playing out.

I'm pretty confident that Q4 also, you will see anything upwards of 15% you can see in Q4, which is, according to me, one of the best growths what we have seen. We are very positive about the Q4 growth.

Year as a whole, if you look at it, because the first half has not been so great. It was only 2% growth.

Year as a whole, you will see somewhere around 9% growth. Exit is excellent.

That is going to help us, the two-wheeler industry, this year.

Got it. That's helpful.

My second question is just around commodity inflation. Just trying to understand, we've seen inflation in the precious metals, a little bit on copper, aluminum as well, and now there seems to be a reintroduction of the safeguard duties on steel.

In the past, TVS has passed on some of the commodity inflation with judicious price hikes. Just want to understand what are the offsets available to the company to manage the commodity inflation, and have we taken any price hikes in the December quarter as well as the March quarter to date?

You're right. I think there are increases in aluminum, copper, zinc, platinum, palladium, rhodium.

I think that you will see in this quarter. We always look at a combination of with our top line growing.

The strength of the company has been when the volume is going, we are able to get the scale benefits, and we are also able to drive our cost-down program. We have been very prudent.

We keep looking at price increases. If you look at recently, we have taken up about 0.2, 0.3 percentage price increases.

This is a kind of a constant journey, because we definitely want our growth momentum to continue. We want to mitigate the journey with a combination of scale plus cost reduction plus product mix has definitely helped us, and some appropriate price increases.

This will be the strategy even in this quarter.

Got it. That's helpful.

Just lastly, housekeeping question, if you could share the international business revenues and the spare parts revenues, please?

IB, overall revenue for this quarter is about 2,909 crores, and spare parts all put together about 1,183 crores.

Got it. That's helpful.

Thank you very much, and all the best.

Yeah. Thank you.

Yeah. Thanks a lot for the opportunity, sir.

My first question pertains to the breakdown of the industry growth, if you can just help us understand what are the categories across both urban and rural you're seeing volume growth being driven from? Because when we look at the Vahan data, predominantly it suggests that players with skew towards premium portfolio and scooters are doing well.

If you can just help us understand how the product categories are doing on the ground. Within that, in rural, are you seeing better traction for premium and scooters after the GST cut as households have better savings in their hand or better disposable income in their hand, are they buying better or gravitating towards scooters?

If any other qualitative color which you want to share on the consumer behavior, sir?

Scooters have really done well. While the industry has done well, I think one category which has done extremely well is scooter.

You remember I always believed that scooters, with ICE plus we should always add the EV, we are close to now 40% category share of overall two-wheeler industry. This is exactly what I used to say in the meeting that scooters will grow faster than the industry, and that is exactly what is happening in the industry today.

Other important thing we should look at the premium and the super-premium is growing faster. Okay?

The executive category of motorcycle is also growing. I think what is happening is the entry level segment is not growing as much.

If you look at urban-rural, urban is about 21% and 19% rural. Rural is also doing well.

I don't think we can't say that rural is not doing well. Urban is slightly ahead.

Within rural, are you seeing traction for scooters and premium getting better still after the GST cut?

See, overall, if scooter has to do well and the premium and the super-premium has to do well, definitely in the rural also, scooters are doing well. Thanks to the infrastructure, especially roads and road connectivity, in many of the rural markets, I think this is definitely helping.

Definitely helping the scooters and the premium and super-premium to grow. Of course, the support of retail financing.

Okay. No, another thing is related to your own supplies, because we did hear about massive shortages during the festive.

Even today, if we do channel checks, we get a feedback that there are some short supplies on scooters and new launches. If you can just help us understand where are we on the capacity side, what are the plans we have for improving capacity and improved availability of our products so that there is no impact on the retail market share side?

Also, if you can just help us understand what are your plans to ramp up the supplies from where we are today?

See, one thing, thanks to all the customers, our products are in very good demand in the market, thanks to our customers. Also, recently launched products are also in good demand.

End of December, maintenance off, plus a few holidays in January, there is a little bit of challenge, because end of December, there are company holidays on maintenance off, which is very important for the factory. Then you have the New Year Day, and then Pongal, and these are some challenging times where there are some requirements of company holidays.

Barring that, there are no challenges, and for taking capacity increases, it takes about two months to three months. Fortunately, we have been very proactive in investing behind that.

We always believe that the dealer should keep only 21 to 30 days stock, because we want products to be fresh to the customer. There may be a few dealers where they have to plan a little bit better.

We are fully taking care of the supplies for the market, and we will continue to do that. Of course, in the EV side, we had a set back because of the magnet availability.

We tried our level best. Now it is recovering.

I can tell you that it is recovering, and hopefully by another month, you will see full supplies of EV also into the market. Overall, I think we have been at it in terms of both managing the capacity, delivery, and thanks to the kind of growth in the market.

I think it's a balanced journey.

Any thoughts on the export market, sir, final question?

Export is also doing well. You have seen, and we are expecting Q4 also should do well.

Like I said last time, Africa, last year had a bad year, but industry has come back well. We are growing ahead of the industry, and I'm very sure Q4 also you will see this kind of an industry growth, and we will outperform the industry.

Because many markets, we are doing extremely well, and we will continue to do the same kind of focus in Q4.

Thanks a lot, sir. I will get back in the queue.

Best of luck.

Hi, team. Thanks for the opportunity.

Congratulations for a very good quarter. If you look at other expenses in the previous quarter, we talked about three one-offs in other expenses.

In this quarter also, the other expenses growth seems to be ahead of volumes. Any one-off or anything you would like to call out in that?

See, the other expenses, most of them are related to the variable expenses related to packing, freight due to the volume growth. The only one of the things little bit higher this year in this quarter is marketing expenses, because you know the number of products we launched.

Okay? We had about 60 crores of additional expenses because of that.

Otherwise, if you look at the other expenses, one is packing, freight in line with that. Then marketing I already told you.

New technologies, R&D, we always put our investments. Okay?

This quarter, we have the maintenance, the annual maintenance, we spent about 15 crores, which is as per plan. Overall, there is nothing unique other than the launch-related marketing expenses.

Right. Sir, secondly, on the commodity side, we've seen commodity upcycles in the past also, but this time it's coming after the GST cut where prices dropped.

Do you think it'll be easier for OEMs to pass on commodity as price increases in this cycle as the price has dropped quite sharply and customer appetite or affordability is better?

I think it is a balanced journey. I think when we fully passed on the GST benefits to the customer, that has helped for us to also grow and the industry also to grow.

It is not easy to just increase prices. I think as a responsible company, we want to give better value to our customers.

That's why we invest behind variants, new technology, new attractive features. Otherwise, you cannot hold on to the demand higher than whatever you have done.

This is a very, very balanced journey, and we have to also understand that when you give better value to the customer, they will like to buy the vehicle. We have to look at whenever the material cost goes up, you have to have a balanced effect.

That's why when you grow the top line, you can get the scale benefit and premiumization. I think company has been always focusing on the premiumization.

Better mix you are able to focus, and scooters doing well is also another important strategy. We are very focused on not increasing prices.

We want to give better value to the customer, and somewhere there is opportunity, we want to take little bit price increase.

Sir, just largely, precious metals have been the one which has seen the most inflation. Any number you would want to share as percentage of sales, how big that is, or how do you see that?

Because we've seen very sharp increase in platinum, palladium, and all.

See, overall we have to look at it, because when the customers look at it, they want to look at as a product. There has been increases in aluminum, copper, zinc, everywhere.

Platinum, palladium, rhodium, and with BS-VI, the contents are little higher in this product. I think as a total, we look at what is the impact.

Impact may be about 0.2, 0.3%. I don't think it is huge.

That's why I said, how do we make sure that we are able to increase the customer demand, how are we able to look at growing the top line, how are we able to look at the mix. Okay?

That should be the focus, according to me. We can also look at a small passing on to the market in terms of pricing the appropriate kind of thing.

This is the combination of strategies we use.

Right. Sir, in that sense, the 0.2% price hike you've taken and the 0.2, 0.3% increase that you're talking about in commodity, in a way, the equation looks balanced in that sense, right?

That is a fair way to conclude?

Maybe. See, the material cost increases also when scale is done, that also supports the suppliers.

When they have better scale on the same platform, that's why I always believe that top-line growth has to be very, very robust. If you can also look at same platform, then the suppliers will get huge benefits.

It's a kind of win-win-win-win for everybody.

Great. Thanks, sir.

Yeah. Hi.

Thanks for taking my question. Sir, I just wanted to go back to your comments on the domestic industry growth.

You clearly a lot of confidence on Q4, and you mentioned shortages in the market as well. If I were to just think of fiscal '27, any thoughts you would like to share that, do you expect this sort of momentum to continue moving into fiscal '27?

Is it fair to say that we can have another 8-9% sort of growth here in fiscal '27 as well? The reason I ask this is because we're not seeing this sort of demand recovery in some of the other sectors.

Is autos just about two-quarter pent-up demand, and it starts to come off? Any thoughts from your side will help us think better about the cycle.

Gunjan, I will answer in two steps. Okay?

First, I never said there is shortage for products of TVS in the market. I said there were challenges in EV iQube and now recently launched Orbiter, primarily because of the magnet availability.

Now that is also easing out. From capacity point of view, we are also taking proactive action.

That is first point. Okay?

It is Pramod who asked there is a shortage in the market. I think it is for the dealers to plan, and we are here to support them with the products on time.

Now coming to the growth rate, I'm very confident that Q4 also you will see the benefit, because GST got implemented, I think, third week of September or fourth week of September. You will see the first half of next year is also going to be very good, because the benefits will come into the industry.

Second, I want to give little bit a long-term answer. With the kind of infrastructure getting built in India with the road connectivity, rural, urban, semi-urban getting better and better connectivity, and please understand the mobility needs and given the challenges on the public transport system, and I always say that the self-employed is a good proportion in India.

Given that, the best segment is two-wheelers, because customers can afford it, customers can definitely use that for mobility as well as the 50% of self income group. Overall, I'm a firm believer that 8 to 9% as a CAGR, you can look at on a long-term basis.

Okay? Second half of next year also, I'm very sure, if not like first half, you will see many of these things getting implemented in India.

Overall, the GDP is likely to grow. With that, I think you will see a robust growth in the two-wheeler even '27.

I don't want to give some projections as of now, but overall, this is my preliminary thinking.

Got it. No, that's helpful, sir.

Sir, the second question that I had was again on Norton. Congratulations on the unveil of the product.

Just wanted to hear your thoughts on how do we now think about the investments in the business, because, my understanding, we've also invested almost 900 crores in subsidiaries in this quarter. If you can give us some color on how do we see the investments going forward and how soon we sort of also start to see the losses come off?

Some color on Norton investments and the breaking even or whatever loss reduction in the subsidiaries.

See, Norton, I'm extremely happy the products are getting ready. Okay?

We are now preparing I'm very sure all of you, whoever has visited Milan show, you would have seen the products. These products are going to hit the market in 20 20 2026 this year.

You will see the growth coming, and they are super-premium, and it is going to definitely delight the customers globally. Once we have a very clear plan of action to go to the market, we will definitely share with you.

This is a very, very important year from the Norton point of view. Now coming to investments in Norton, first year, we have to put the products, and we have to support it with marketing, because we want to build the brand in a very, very strong way.

We will definitely invest behind the right areas on technology and marketing. Okay?

Now coming back to the second question on 900 crores, the delta this quarter has been TVS Credit Services, we have invested about 200 crores. For the pre-launch or pre-marketing of Norton, we have given another 60, 70 crores additional during last quarter, including the EICMA show.

Okay? EICMA Milan show.

I think these are all very measured delta. Also the Ion PT TVS project, we have invested about close to 100 crores.

Investments are in the right direction, in the right products. TVS Credit Services, you know the kind of book size we are growing and the profit it is generating.

We will look at the investments most appropriately based on where the strategic focus is there for the company.

Sir, just a clarification. You mentioned 60 crores incrementally in Norton, but I'm just trying to get the breakup of this 900 crores.

Would it be...

No, this is compared to last quarter. Last quarter, last quarter is what I said.

Okay. Incrementally 60 crores more in Norton and 200 crores in TVS Credit is the incremental delta from last quarter.

Is that understanding...

Correct, correct, correct. Correct.

Correct, correct, correct, correct.

Got it, sir. Last question, from a mix perspective, premiumization is something you said certainly helps us from a margin management, cost mitigation.

Scooters, the way it is growing, how do I think about the margin profile of scooters versus, let's say, bikes or mopeds? Any color you can give?

Is scooters at parity? Is it premiumization within scooters that's helping?

Just this quick one on that.

See, we focus on the customer, and we focus on technology and features. Okay?

We want to look at overall portfolio. While I said product mix is very important and premiumization is very important, and we are focusing on that.

Okay? We have to look at the customer segment and try to be leading many of these segments.

That has been our focus. Okay?

We always look at the total portfolio contribution. Okay?

We don't look at segment-wise. Okay?

Segment-wise is important, I agree. We want overall top line to grow ahead of the industry.

We want to look at how we can increase our premium category share to go up. Also, scooter category share, how to go up.

We do interventions with respect to products, variants, and making sure that they grow faster than the industry.

Got it. Thank you so much, sir.

Hi. Good afternoon.

Thank you for taking my question, sir. Sir, first question I had was on Mexico.

Could you sort of tell us what's the impact of the new duties, how much were we paying currently, and what is our exposure to that market? No,

see, first of all, we are now building Mexico. Okay?

As of now, while there are some impact on the duty, we are also looking at localization. We are not seeing a serious impact at this point of time, because the volumes are low.

We are also trying to increase our local content. Possibly it may take about couple of months' time.

It is not going to put huge impact on TVS Motor.

Sir. Currently it's what, 10% of your volumes or something of export volumes,

I'm just... No.

Much, much lower. Very small.

Okay. Got it, sir.

That's helpful. Sir, the other thing was, could you tell us what was the EV three-wheeler volumes for the quarter and the EV revenues overall for the quarter?

EV revenue overall means you want including two-wheeler EV?

Yeah.

Yeah. Three-wheeler volume, just a minute.

I think you have to give me 1 minute, okay?

Sure, sir.

Around 8,500 to 9,000, because every month it has been increasing. Around 8,500 numbers in this quarter.

Sir. Revenues for EV?

I'll get back, because I have to check.

Okay. Got it, sir.

Just a related question was on PLI, we've been previously indicating about a 50 bps benefit because of PLI. Would that have gone up in this quarter or it's still at those sort of...

A little bit. It has little bit gone up.

It is about 0.7.

Okay. If I go back previously, I think almost 8 to 10% of our revenues are coming from EVs.

If we take a 13-14% sort of PLI benefit, then it should be almost 1.3, 1.4% of revenue, 130 bps. The gap I understand to some extent it is because of some of the suppliers who are getting those benefits and therefore you not accruing those.

Still, is there a scope for increasing this or what is the gap here that we can sort of improve this further?

Thanks to government on the PLI. I think you have answered in your question itself.

It's a combination of the company and some of the suppliers getting the benefit overall. Okay?

For us, it is about 0.7. We have not missed any opportunity in securing the PLI benefits from the government.

Okay? Number two, I think our endeavor is to focus on delighting the customer, whether it is iQube, whether it is TVS Orbiter, or TVS King.

As our numbers have been growing ahead of the industry growth. Definitely this is going to help us to improve the EV profitability going forward.

Systematically, we always believe in customer and then top-line growth. That will result in all the growth of the bottom line.

Same principles what TVS Motor uses, even in EV we use that.

Sure, sir. Just trying to understand, whole EV portfolio is now accruing PLI or is there some portion which is still not accruing any PLI benefit?

We are getting PLI for the... Orbiter

as well?

There are there are a few products where, above certain price, there we are not eligible because of the there are as per the, you know. That volume is a very small volume.

Got it, sir. Sir.

Great. Thank you so much.

Thanks for

answering my questions.

Hi. Good afternoon, and thank you for taking my question.

My first question was around the investment and CapEx plan for the year. At the start of the year, you had spoken about CapEx target of 1,600 crores and investments of 2,000 crore.

In the first half, we had done CapEx of about 1,000 crore, and in three quarters, we have done investments of about 2,000 crore. Are you looking at revising those targets that you had for this year?

The CapEx will be around 1,000 1,700 crores or slightly around that, because we are also now looking at increasing some of the areas' capacity given the kind of growth what we have seen. Okay?

Investments around 2,900 crores overall.

Got that. And...

Far, we have invested. Tell me.

Just a clarification under earlier to Gunjan's question. You last quarter hadn't shared the Norton investment.

If you could just share what was the investment last quarter over which there's an incremental 50, 60 crores?

I think last quarter is about 240 crores, and this quarter about 290 crores, Norton.

Perfect. Thanks a lot.

My second question was around your commodity cost. You spoke about 0.2, 0.3%.

Is that the total commodity basket impact or only the precious metals which we are talking about? How

does... Total may be about 0.4 at best.

Okay. Has all of that already been flowing through your material cost or there is something which is yet to come through?

Because your production last quarter was lower than your wholesale, some of the sales you would have done would be based on the earlier period.

No, some are some are in Q3, some are in Q4. Some are in Q3, some are in Q4.

Okay? This is where I said, we want to look at very closely the top line and look at growing faster than the industry.

You will get the scale benefits, and some areas we also increase prices. For example, early part of this quarter, we have taken about 0.3% price increase.

It's a it's a it's a balanced review, what we look at.

Got it. That's very helpful.

Thanks a lot.

Yeah. Good afternoon, sir, and congratulations on a very strong performance.

My

question was on the currency. What is the realization we've had for the quarter?

Is there some hedging we are following or we are realizing as per the spot rates? Thank you.

No, we have a hedging policy and we strongly follow that. It's a very robust policy where we cover the net exposure over a period of time.

For the current quarter, I think the realization is around 88.

Okay. Because rupee has been depreciating further, so as your hedges roll...

Probably you may get. As per the policy, those benefits will accrue over a period of time.

It's a policy where we we cover for the next few quarters. That's how Not few quarters, few weeks.

Okay. We are able to...

12

weeks, I'd say. Yeah.

Thanks, sir. We are able to hold on to...

We are able to.

Okay.

Yes, yes, yes. Yes.

Yes. Yeah.

Sir, the

second question was on electric vehicles. We launched the Orbiter.

How has been the response, and the customer profile difference between iQube and Orbiter, if you can give some color over there? Also on the EV profitability journey, where are you, at what volume level do you turn EBITDA breakeven, some color?

See, first on Orbiter, this is the product differentiation. How it is priced.

It is basically to give it to those set of customers who want a lesser range, and they can look at this as a differentiated product. Okay?

It's too early to really come back actual usage and how it is performing. Far, whatever we have seen, the markets where we have launched, we have not launched it all India.

The demand is excellent, and we are ramping up now. First, we'll cross the 10,000 numbers per month.

Okay? The good news is iQube is also growing, Orbiter is also growing.

From the customer point of view, excellent reception for the both the products in the market. That's number one.

Overall, it is growing ahead of the industry. Okay?

On contribution, we are positive, and we are becoming better and better quarter after quarter, because that is our focus. Like I said, overall when we look at the EBITDA margin, I'm pretty confident that while the volumes are growing, I'm very confident that this EV will also become EBITDA positive, and it will also grow forward the overall PBT level.

The focus is fully on the demand creation, growing the market ahead of the industry, increasing the contribution very systematically. Okay?

Then we are pretty confident that it will also start. Overall, please look at our EBITDA journey as a company.

This quarter is the highest, 13.1, which means EV is also doing well, you should understand.

Sure, sir. Sir, can you give us the capacity numbers for overall and for EVs that we have currently?

EV, we are producing about average 30,000 to 32,000 of iQube, and as of now, they're coming closer to 10,000 of Orbiter.

Sir, any capacity number you have that you are planning to have for...

We are reviewing that for next year. We are reviewing that for next year, and we are also investing.

Possibly in the next call, I'll be able to give you the kind of increases we are looking at. We are definitely investing in capacity, because this is something which is growing.

Sure. Sir, just lastly on the investments, we have increased the guidance to 2,900 crores from 2,000 crores.

Where is the additional investment going towards?

Investments. Investments, one is on Norton.

Another one is on TVS Credit Services. Okay?

No, overall. Overall.

We have also invested behind the Ion project, which is part of the PT TVS. The the e-bike business.

Okay? Overall these are the these are the areas.

These are the areas we have done. We have also, strategically we have invested in Dubai for international market.

I think all this we highlighted in the last three quarters, three quarters. Okay?

This this is primarily the for more focus in the international and growing the international markets. These are the areas where we have invested.

Sure, sir. Thank you, and wishing you all the best.

Thank you. Thank you.

Thank you, sir, for the opportunity. Congratulations again for a strong quarter once again.

Sir, firstly, exports has witnessed a robust growth more than 35% on YTD basis. Within exports, how do you see the potential for Jupiter model in future?

In FY24, Jupiter used to be 60,000 units. How do you expect the ramp-up ahead?

See, Jupiter is overall much ahead of the 60,000. Okay?

If you if you look at Jupiter alone now, we are doing on an average You're asking international or domestic?

International, sir, export market, as you said. Trying to understand, how can be the potential in future?

Potential in future for, see, markets like Asia, some markets in Middle East, and some markets in Turkey, okay, very few markets in Africa, some markets in LATAM, also ASEAN. I think Jupiter is a great brand.

What we are trying to look at is each of these markets, we are trying to leverage by marketing this product, its advantages. It will grow.

This year also, it will grow. Overall, scooters will grow in international market.

I may not be able to put a number to it, but fortunately we have the product, we have the capacity to give it to the market. Sri Lanka coming back in this category is a big, big advantage, because Sri Lanka is a big scooter market, as you know.

Jupiter is one of the key players in Sri Lankan market.

Got it, sir. Thank you.

On the commodity side, would you also have hedges, sir, which can delay the impact of the recent commodity price increases?

We closely monitor here. We also take advice from hedging agencies, and we very closely work with those people.

We are not hedging at this point of time. We take advice.

That's what I said. Okay?

According to me, we have to closely monitor the situation and then work. What is most important is, you have to improve the scale.

Scale can help you to absorb. Then you have to look at category by category, and we can look at what kind of overall value you can give to the customer.

That will give you an opportunity to look at some small price increases. I'm not saying fully you can pass on.

You have to look at on a balanced way.

Got it, sir. Scale, price hike, product mix improvement, INR depreciation, and vendor...

Most importantly, product mix. See, scale and product mix gives a huge benefit to even the supply chain.

Same platform and the volume goes up, they're able to also cut down the cost. Because that's why I said win-win can come only when you are able to look at the overall scale going up, the revenue going up, numbers going up.

That is very, very critical.

Q4 gross margin, you should be able to maintain, sir, as a combination of factors despite the commodity increase?

I can only tell you that I already gave you in my opening remarks. You have seen our performance in quarter after quarter.

The same performance will continue, because we don't want to give any guidance on gross margin. I can tell you we are confident about growing ahead of the industry.

That is going to help the company, and our strategy of looking at the product mix, maximizing the scale benefits, also continued effort on our cost reduction. These are all going to help the EBITDA journey.

Got it, sir. Last question, sir, on 2026 should see the launch of Norton motorcycles that you had shown in EICMA.

Apart from that, you had also showcased that N1S electric maxi scooter and EX, which is the electric motorcycle. What can we expect on the electric side, sir, for 2026?

See, the strength of TVS Motor is very strong R&D and new product development capability. We look at the customer very closely.

I think those are all, I would like to say that, certain products and the concepts what we had displayed there. Okay?

Closer to the launch, I'll tell you the timeline. At this point of time, I think we believe in our strength of R&D and new product development capability.

Most importantly, we want to focus on the customer and delight the customer. That strategy will continue as a company.

Wonderful, sir. Any date for the listing of preference share?

That's all from my side.

What is that? Listing of NCRPS,

any date?

No, no, the listing is still taking time. We are closely following up with SEBI.

We will continue to follow up more closely. That's the status now.

Got it, sir. Thank you.

It's not in my control. We are not able to give a date.

I think we should close this now.

Can we have the last question?

Hi. Thank you, sir, for the opportunity.

Sir, I just wanted to understand given the commodity price increase which we have seen in Q4, what is the impact you see without the price increase, just the impact from the commodity increase on margins?

I think this is the fourth time or fifth time. These commodity prices plus minus are likely to happen in every quarter.

Okay? Sometimes we have seen softening, sometimes we've seen marginal increases.

Like I said, the strategy of the company is always to look at delighting the customer and giving the best value to the customer. Thanks to the industry, it is doing extremely well.

Thanks to our products and thanks to our customers, we have been also growing very well on the top line. Continue to grow the top line, continue to get the benefit of scale, continue to work with the suppliers and look at what kind of cost reduction we can bring in, and very clearly work on other cost reduction initiatives.

Wherever possible, without hurting the customer, increase the prices wherever it is possible. Okay?

This is a continuous and a constant journey company looks at it. Okay?

Most importantly, look at our EBITDA journey. We have to look at whether are we improving quarter after quarter on our EBITDA journey.

Okay?

Hello? Yes, sir.

Thank you so much.

Thank you. I want to thank everyone.

You have seen the Q3 performance and the accelerated growth momentum and the kind of performance on highest revenue, EBITDA, and profits. We are extremely happy about the revenue on 12,474 crores.

With the best-in-class quality and very, very focus on consumers and the kind of strong portfolio of brands like Apache, Ronin, Jupiter series, iQube, Orbiter, Raider, NTORQ, HLX series, Radeon, TVS King, TVS King Kargo, both ICE and EV, I think we will grow ahead of the industry. Thanks here to all the customers both in the domestic and international market.

We will continue to leverage scale benefits. We will focus on further strengthening our premiumization journey, consistently look at the material cost reduction.

I think this will be the focus to further improve our EBITDA journey. As we have been consistently performing on top line, and we have been also consistently focusing on growing the EBITDA quarter after quarter.

Thanks to every customer, and we are confident that company will continue to grow better and better. Thank you, everyone.