TVS Motor Company Limited (TVSMOTOR) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to TVS Motor Company Limited 4QFI26 Post Results Earnings Con Call, hosted by 361 Capital Market Private Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the lesson only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Annamalai Jairaj from 361 Capital. Thank you, and over to you, sir.

Thank you, Kira.

Good evening, good evening, everyone, and thanks for joining us today. We are delighted to share that during this financial, last financial year of 25-26, TVS Motor Company surpassed all its previous highs and achieved an all-round record performance, achieved the highest ever sales volume, revenue, and profits. Our sales volume grew from 4.7 million units to 5.9 million units at 24% growth. Revenue grew from 35,251 crores to 47,270 crores, a 30% growth. And operating PBT grew from 3,553 crores to 4,975 crores, a 40% growth. When you look at the two-wheeler ice growth, it grew by 19%. Thank you. 3.7 lakh units as against last year's 2.8 lakh units. Total sales of three-wheelers grew by 63% to 220,000 as against 135,000 units during last year. On financial performance, during the year, company's EBITDA grew by 37%. Last year was 4,450 crores, and this financial year it is 6,079 crores. The EBITDA margin improved by 60 basis points, 12.9% this year, which are with last year's 12.3%. Operating PBT grew by 40%. During this year, the company generated an operating free cash flow of 3,805 crores as against 2,586 crores. Growth of 47%. Now, when we look at Q4 sales, the company achieved the highest ever revenue of 12,808 crores. A growth of 36% of our last year. This is the highest. Two-wheeler domestic ice sales grew by 26% compared to Q4 of last year as against industry growth of 24%. International market company sales grew by 23%. Total two-wheeler ice sales grew by 26% in Q4. EV two-wheeler sales grew by 51%. 115,000 as against last year 76,000. Total sales of three-wheelers grew by 65%. 60,000 units as against last year's 37,000 units. On financial performance in the quarter of Q4, sales revenue was 12,808 crores and we achieved the highest EBITDA of 13.1%. The company's operating EBITDA was at 1679 pros as against last year's 1172 pros. The company registered a PBT of 1,358 crores during this quarter as against 851 crores in Q4 last year. Now let me talk about TBF credit performance. The TBF credit services during the financial year 25-26 again has achieved a record level of PBT 1,248 crores. The book size is now 30,631 crores. Q4 previous credits reported sustained growth in disbursements, supported by improved consumption sentiment, and traction across all retail financing segments. The two-wheeler category witnessed strong demand during this quarter, aided by steady recovery across urban, semi-urban markets, and definitely, you know, we have seen the increasing adoption of electric vehicles, of course, supported by the improved affordability. And good finance penetration in the market. Consumer durable financing remains steady, driven by seasonal purchases and increased discretionary spending. Company continued to maintain its focus on risk-calibrated growth across all product categories. TV's credit has adopted a prudent and proactive approach to underwriting and risk-proof calibrated credit policy restrictions and sharper credit matrices. The portfolio quality has improved through reduction in total credit cost and GNPA. Financial year 2026, the TVS credit dispersed loans over 53 lakh new customers. Overall, the customer base is almost 2.4 crores now. TVS Credit continues to focus on leveraging technology, innovation, through digital transformation, deeper customer relationships, and while maintaining strong risk management practices with external credit rating of AA+. The book size has grown by 15%. Now, it is at 30,631 crores as against last year's 26,647 crores. PBT has grown by 22%, 1,248 crores as against 1,027 crores during last year. And for this quarter, PBT has grown by 15%, 348 crores as against 302 crores during the two-four of last year. On KVS Motor International Business Performance, We have recorded highest ever international business sales of 15.8 lakhs in the financial year 2026, a growth of 33% year on year. This performance was driven by very good demand for all of our products, the excellent rates, and sustained and continued strengthening of our distribution in this market. Africa, Asia, LATAM remains our key countries. Africa has done extremely well. Now we are focusing in LATAM region, and we have seen very encouraging traction in many markets, and there is an opportunity for further leveraging these markets for TVS. As you know, Asia is also doing well now. Sri Lanka is fully back on track. Nepal is doing extremely well. Bangladesh, there are some changes we have brought in and the exports will start soon. Performance reflects sustained momentum, and we are able to improve our product mix, and three-wheeler segments have started showing improvement now, and we are confident that going forward in this financial year, we will keep up the same momentum for TVS motor growth. On new products, I am very sure all of you would have seen Orbiter V1. It has done well. With 1.8 kW battery and you know this is for different set of customers. Now, it is available in two ranges, V1 1.8kW and V2 3.1kW. We have also started BAS across EV portfolio. This will also give an opportunity for customers to subscribe to battery usage instead of paying the full battery cost. We have also launched the CVS King Cargo, Heavy Duty CNG. As you know, the cargo vehicle EV is also giving very good response from the customer. The recently launched CNG Cargo is going to give us very good response. Initial months have been very promising. We'll start durability, ease of operation. The vehicle comes with robust hip-spring suspension. It offers very good ergonomic cabin with stop speed of 62 kmph, excellent ground clearance and turning radius. I am very sure with these two launches of Cargo EV and Cargo CNG, we will take a very prominent position in the cargo category in three-wheeler. On Norton, All of you know that the company has done. We started sometime in 2021 and we have invested behind building new products. And this year, it's very, very key. We have unveiled our product in Aikma, Milan. We got excellent feedback and we are going to soon come up with New models of Norton, Manx, Manxar, Atlas and Atlas GT. More details of that I will give you closer to the launch. And I am very sure this will be available in Europe and some of them will be available in India. So 26-27 is going to be very very important here, especially the Q2 of 26-27. Domestic ICE business. And now looking at this quarter and going forward. Last year, you saw very good growth in Q4. Urban was slightly better than rural. And 25-26, we saw very good GDP growth. Now, coming to this year, financial year, we are looking at... Continuation of the GST benefits. There are some headwinds in terms of the ongoing West Asia conflict. There are challenges in terms of commodity prices, steel, aluminium, crude oil derivatives, and there are pressures on input costs, also some supply chain disruption. We have also gone through similar situation in the past. The company has also taken many initiatives to further strengthen our cost reduction, improving the product mix, also taking up price increases wherever they are able to look at, and this is a continuous journey of closely monitoring the economy and constantly looking at correcting the Contribution through various initiatives. What is most important is our demand, both in domestic and international, for all our models are extremely good. As I said in the April press news, we had some challenges in the supply chain with respect to labor availability, gas, and also some challenges in terms of on-time availability of some raw materials. Things are becoming better. This month is going to be better. And we are confident that Q1, we will force a very good growth, better than the industry. On EV, actually the industry is growing better. Last quarter of Q4, last year, we saw 38% growth. And just to give you some data, the overall, the penetration in Q4 was almost 7.8%. We saw it 7.1%. If you look at here as a whole, the penetration has moved from 6.2 to 6.6. I'm very sure that EV two-wheeler will continue to increase the penetration. And the momentum will continue this year. As you know, we have recently launched TBS IQBS with 4.7 kilowatts. And this is definitely going to be a favorite EV for families. We have more than 900,000 Indian customers and families are enjoying this product. TVS i-cube has played a key role in driving electric mobility adoption in India. With this new launch of TVS i-cube S, it offers a range of 175. It comes with new color graphics and enabling families to go further with greater ease and confidence. On commercial mobility, we are consistently improving on our EV three-wheelers. Now, the Vahen share is continuously increasing for our three-wells of EV, and we are confident that in this financial year, we will reach a very prominent place with overall the EV passenger, EV cargo, in addition, the cargo CNG what we have launched. All of you know that CVS Motor has recently signed a joint development agreement with Hyundai Motor Company, so commercial as an electric three-wheeler. This is going to be redefining the mobility, and as you know, Hyundai Motor will lead the design and co-develop the e3wheeler by leveraging its research and development expertise, advanced mobility technology, and human-centric design approach. The previous model will co-develop the product using our leading head electric platform, extensive three-wheeler engineering expertise, deep local market understanding, And I'm very sure with a long legacy of trust, quality focus, we'll be able to come up with a product which is a grand success in the market. On international business, what we have seen in two-fold, I am very sure that this year also you will see the momentum. We are also closely monitoring the effects of the war situation. But as I speak, every international market we are seeing very good pull for TVS range of products. We are also constantly monitoring There are some challenges, especially in the lead time for delivery, because of some of the logistic issues, but I am confident that with our close monitoring and working with our distributor, we will be able to overcome this. And to conclude, during Q4, you have seen our EBITDA has gone to 13.1. We will continue to liberate scale benefits, better product mix. And sustained efforts on cost reduction, which will definitely enable us. While there are challenges on geopolitical issues, I think thanks to our customers and our product portfolio, we are confident we'll put every effort to further improve our cost, and we will definitely look at leveraging our growth momentum. On top line, better than the industry growth. This quarter and next quarter, we will be very, very cautious. We will make sure that we will continue to invest in technology, R&D, innovation, and brand building. We will very closely look at every cost element to make sure that we grow ahead of the industry. Thank you.

Sir, shall we open the floor for question and answer? Yes, please. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Kapil Singh from Noomura. Please go ahead.

Good evening, sir. Thanks for the opportunity and congratulations on your strong performance. My first question is just on your growth outlook for domestic and international for FY27. What kind of growth are you expecting? And any color in between, you know, motorcycles, Tell us iScooters and EV Scooters directionally, what do you expect there?

See, we are expecting a good single-digit growth on the industry this year. And we are seeing growth momentum. Of course, there are some challenges in terms of the prices going up, especially on gases and inflation going up. But thanks to our product range, the demand situation is very good for us. Particularly if you look at, let me start with overall, I already highlighted that the EV is doing extremely well, and we have two good brands, iCube and Orbiter. On Scooter, if you look at Jupiter 110 and 125, it's doing extremely well in the market and as a category. According to me, 26-27, the growth momentum will continue on scooters. EV will be very good, scooters will be very good, and also super premium category is also likely to do very well. The challenge will continue in the economy category. Okay, economy category, the challenge will be a little higher because that is where Most of the customers who have challenges in terms of higher inflation, fuel prices, are likely to review. Fortunately for TV is, we have, for example, currently, as I speak, including EV, the scooter category share is almost 38%. And according to me, that is likely to go over 40%, which means scooters are likely to grow faster. And we have very strong brand. We have a new variant of Jupiter, Ntorp, N25, N150. And the response of N150 is outstanding in the market, which was recently launched. And on EV side, Orbiter, again outstanding response in the market. iCube continues to do very well, especially the new variants, whatever we have launched. So, scooters, we are strong and we will continue to grow ahead of the industry. And you know, last three years, we have done extremely well on our premium, Apache and Ronin is doing extremely well. Super premium, Ronin is also doing extremely well. So, overall, we have a very good portfolio. EV will grow well, scooters will grow well, premium and super premium will grow well. Then, the challenge will be on the economy category, and our proportion in that category is very small. Okay, of course. The new moped with alloy wheels is doing extremely well in the market. What we have seen is if you add value to the customer, still customers are willing to look at even if there are challenges in demand. This is on the domestic market. Now, coming to international market, as we see, the demand for us is extremely good. And I am very sure that the momentum whatever we have seen in Q4 will continue this year. We will be very closely watching the situation related to the geopolitical challenges. There are delays in terms of transit time, which we need to support our distributors, which we are working very closely with them. But as long as the demand is very good, we are very confident that we will do better than the industry.

Thank you so much for the detailed answer. On the commodity side, also, I just wanted to know how much is the commodity inflation that we are expecting in the quarter and how much price hike we have taken and also for similar numbers for Q4 required conditions.

See, the commodity, I think this is unprecedented. I think it is around 3 to 5 percent, because as I speak, there are challenges, but we were able to increase prices, 35 percent of these price increases, we were able to offset by increasing prices. We are closely monitoring the situation, both in domestic and international, we have passed on price increases. We will also keep a close watch on that and, you know, this is something which we will look at it very, very closely. And second, I think the product mix is going to definitely help us. The leverage in the top line is going to help us. So, it will be a combination of Cost reduction, product mix, growing the scale benefit, and looking at appropriate price increases in the right models. So it's a combination of all strategies put together. We have seen similar situation in the past. Maybe it is a little higher, everything happening in one quarter of this time. So we will closely monitor that.

So just to clarify, this 3 to 5 percentage is as a percentage of the revenue, right? Revenue, revenue, revenue, revenue, yes, yes, yes. How much was PLI for the quarter? PLI is about 0.9 percent, about 0.9 percent. Thank you. Thank you, man, as the magnitude.

Thank you. We will take the next question from the line of Chandra Maury Mutia from Goldman Sachs. Please go ahead.

Hi, good evening, and thank you for taking my questions. My first question is around production capacity. So in S526, we've manufactured and sold close to 5.9 million vehicles. I just want to understand at this stage, what is the rough range of our two-wheeler production capacity and three-wheeler production capacity. And then you have announced recently that you plan to expand capacity to service demand. Just want to understand what proportion of addition we can expect over the next 12 to 24 months as well.

Immediately, we are looking at increasing the capacity by another half million to go to somewhere around 8.3 million. Because the demand is good and first time we have to add significant capacity in the next 12 months. Work has already started in the last quarter of last year, last financial year. This financial year is going to be very important. Quarter after quarter we are reviewing. And possibly for 28 and 29, we are also thinking about what kind of capacity additions we need to add. But one thing we are very clear, we want to be ahead of the industry growth. And for that, we will make sure that capacity will not be a constraint and we will be investing behind it.

All right. That's helpful. Second question is just around some of the supply chain challenges that globally the automotive industry is facing. So you did call out gas, you did call out certain raw materials for production. Beyond that, Rare Earth has been sort of up and down over the past 12 months. And EVs are also picking up where the earth might be important. So, I just want to understand across some of your key materials, where are some of the challenges presently, and power included, and how do you see that progressing over the next few months?

See, supply chain was something unique we had in the last April and end of March. Primarily, I think it all started the post-geopolitical unrest. I think the gas prices going up and other energy costs going up. One, it affected the commodity, commodity prices, but sometimes the commodity availability. As you know, we don't keep more than 30 days of stock with our dealers in India. So, normally it is 21 to 30 days maximum, and they are all cash and carry. What happens is, you know, you have to, and our retails are extremely good, which you would have seen from our Vahen. And also international, the demand is very good and the retails are extremely good. So, very critical that we are able to ramp up and produce material and give it to them. And our supply chain. Because of these delays in energy and sometimes raw material, a couple of delays can also affect sometimes production. This is one. Second, across India, we are seeing some challenges with respect to labor. It is not only unique to South, but many, many areas, especially the tire 2 suppliers. Tire 1 is able to manage, but many of the tire 2, they have serious problems. So we are supporting them. And for example, month of May, we are much better than April. Hopefully, this month, end of this month, we will come out of it. That's why I am confident about Q1. We will be very, very confidently growing ahead of the industry in brutality, both in retails and in dispatches. But this we have to closely monitor and see appropriate countermeasures. Very, very important.

Got it. That's helpful. And just my last question is bookkeeping questions. Just related to the point we made around the channel stock we maintained, if you could just give us at this point in time where the channel stock is for domestic versus the normal channel stock and for international business as well versus the normal channel stock we maintained. And also if you could share the exports and spares revenues for the quarter.

Channel stock has started improving this month because we were able to produce much better in the first 10 days of May and I'm very sure by end of this month and first week of June, it will come to that. We always operate between the 21 days to 30 days kind of that range. Fortunately for us, every product is under high pull. So we have to make sure that we deliver that, which we will do. The revenue from international business for Q4, you are asking, right? Right. Q4, we are at almost 3,000 crores. 2,999. Spare parts, the total spare parts is, just a minute, just give me, overall spare parts are, It's about 1122 crores.

Correct, that's helpful. Thank you very much, and all the best.

1-1-2-2.

1-1-2-2. Correct. Thank you.

Thank you. Next question is from the line of Gunjan Prithiani from Bank of America. Please go ahead.

Hi, thanks for taking my questions. My first question is, which is going back to the comments you made that, you know, for the next one or two quarters, you'll be cautious. I'm just trying to understand, is it more the cost headwinds that worry you? Is it the supply disruption? Or maybe to some extent, the sort of price increases that the industry is taking to offset the commodity? Do you see that there could be some risk to the demand as well, which is pretty strong at the moment? So, some more clarity on the comments you made around the next two quarters questions.

We are confident about the demand. I think there is absolutely, thanks to the customer delight, the products and the product range what we have delivered, we are very confident on the demand side. I am talking about TVS. The uncertainty is on the raw material availability, timely availability. The costs are high, but a couple of days delay here and there is one worry. Another worry which we are getting over completely is the supply chain, tire-through disruption, such that we are coming out of it fully. So I am very confident by end of couple of weeks time, we will be completely out of it. And we are closely monitoring the overall situation in terms of what is happening on the geopolitical situation. Because this is not only for us, it is for the entire industry. So we have to be very cautious about that. When I say cautious, we have to closely monitor what is happening, how the segments are doing well. And please note that for a distributor also, the material has to reach on time and if there is a 10-15% delay in terms of the extra lead time for transit, okay, again, when you have high pull, You know, that is also, we cannot lose any opportunity. So, otherwise, we are pretty confident. So, maybe in two, three weeks, we will come out of fear.

Okay, got it. And the second question is if you can share a bit more color on the investments that we made in this quarter of 700 crores. And the losses also from subsidy were a bit higher this quarter. So any color on that and if you can share a guide for fiscal 27 for investments in Capex?

See, the overall, let me tell you, it is more for the overseas subsidiary reason, we spend about investments. We are about 2400 crores. I am saying for the year. And predominantly it is for Norton. Okay. And Norton products are getting ready and many of the products are going to be seen in Q2 of this year. And I am pretty confident I have seen the products. They are all extremely good. And it is going to really redefine the super premium class globally. About 200 crores is in TVS credit services and we also have put as a strategic investment in Dubai to have significant focus on international markets. So we have established a total infrastructure and we have invested, this we said about a couple of quarters back, about 300 crores we have invested. So all put together this quarter, this year, the last financial year was 2,400 crores. Next year the investments will be much lower. It will be maybe another 500-600 crores lower than this 2,400 crores. Okay, because we are very confident that any of the investments, whatever we have made, is going to start yielding better revenues and start getting results for us. Now, coming to CapEx, our focus on the product development and new products will continue. We are expanding in a significant way on all 2-wheelers and 3-wheelers, that will be about 1000 crores plus. Okay, and we are also expanding our R&D, because we believe in investing in R&D, capability, testing. So all put together the campus for next year for DBS Motors will be likely to be around 3500 crores.

Okay, got it. And last question, sir, is on the EV capacity. Like you mentioned you're upping the capacity. Can you talk about what is the EV capacity on a monthly basis right now? And where do you see that, you know, capacity unlocking happening? To what level are we planning to take it given the demand is rising on the EV side? And any plans to sort of also leverage on these EV products that you have in the international markets? Because the similar trend that we're seeing in India is also playing out in some of the Asian countries on higher You are absolutely right.

I think the Asian market response to iCube is very good. We are now starting our orbiter. So Asian markets have started a good proportion of our EVs. Currently we are doing about, last year if you look at our average was about 32,000, around 30 to 32,000. We have now moved maybe around 40,000 and we will soon move to 50,000 per month. So that is the kind of direction we are looking at in EV. We will definitely be ahead of the industry, that I can promise you. We are constantly looking at our capacity versus demand and expansion in the network. And also you have seen the variance in IQ, you have seen the variance in Orbiter. And we will go ahead of the industry.

Got it. Thank you so much, sir.

Thank you. Next question is from the line of Amin Pirani from JPMerson. Please go ahead.

Yes, hi, sir. Thanks for the opportunity. So, my first question was on exports. You mentioned that we are seeing a lot of strength, but in the near term, there can be some challenges. As of now, if you look at Africa, LATAM, and South Asia, Are we seeing any signs of any challenges regarding inflation or the same issues that we're seeing in India in terms of gas availability and fuel prices emerging in any of these geographies? Because some of these geographies have announced work from home, rationing of fuel. So any worries or any concerns you're hearing from the ground here?

See, these are things you have to constantly look at it, but the strength is we have a very strong product range of HLX series, 100, 125, 150. Actually, the demand is so high for us, we are not able to meet the demand today. So, country by country, people are loving our products in African markets and many other markets. So, our endeavor is to significantly Thank you. Okay. The challenge, according to me, what we are seeing is a delay in terms of, you know, the container availability and making sure that there is a 15% increase in the lead times now. Okay. And as you know, you know, when the distributor plans it, whatever the money is putting and he has got certain dealers and sub-dealers. They need to have this plan and routine present is like another 10 days delay, you know, 10 days delay or 8 days delay or 1 week delay. So this is something we need to plan and we need to also support them in terms of possibly higher capacity, higher production, okay, better planning. So this is something we have to look at, but the inflation, prices of energy. Local challenges, this we always constantly look at it because we are now talking about this war situation, but last year or a year before that we have seen Ukraine-Russia war also created certain problems in this region. So this is something we have been very closely monitoring and I am very confident that we will come over it. We will get over these challenges. We will come up with very clear solutions. What is more delighting is every market in which products are sought after, and we are very confident that that momentum is going to help us to grow faster than the industry.

Great. That's good to know. And we can see that in your, you know, monthly run rate improvement as well. So the second question is on the domestic market. We've seen, you know, in the last 12 months, EV three-wheeler and even CNG three-wheeler launch, as well as, you know, two-wheeler EV scooter launches. In the motorcycle category, is there anything that, you know, any category launches that we can look forward to in the next 12 months? Any specific category in motorcycles that you're targeting for launches?

TV always believes in investing behind technology, coming up with models which delight the customer. This has been our focus for our growth ahead of the industry, and that momentum will continue. Last year you have seen iCube, you have seen RTX, you have seen Orbiter, now V1 version. And we have seen three-wheelers. We started with the passenger EV, then we started cargo, then CNG cargo. So we completely believe in investing behind products. And our strength is R&D. Our strength is software. Our strength is digital. Our strength is connected services. So this is something we will continuously invest and we will drive. That's also the reason our caprice is pretty high. Yeah. Because we don't, we don't, we don't, we don't stop in investing. You know, we always say that these are all medium to long-term strategy of the company to grow aspirationally in every market. And on top of it, you know, Super Premium Norton. Okay. There are models which we are investing. Products are getting ready in our co-suit plant and Solihel. So we are very excited about 26, 27. I think it is going to be a key Turn around here for the next phase of growth for TVS and Norton.

That's great to know. So just a clarification, will you be manufacturing these initial Norton products in India as well?

Yes, yes, yes. Solihel is looking at one model which is in the high-end, where we will be making it there. Okay, the other models are going to be made here, and we will also look at... What type of models in Solihel? What type of models in India? But we are leveraging India, especially the household plant in a big way.

Okay. That's great, sir. Thank you. Thanks for the opportunity.

Thank you. Next question is from the line of Ahmed Theranandani. From Philip Capital, India, please go ahead.

Yes, sir. Thanks for the opportunity. Sir, as per your earliest year's assessment, what has been the impact on rural sales due to El Nino? And my second question is related to looking at the elevated and extended cost inflation, how much more price increase you are planning to take to sustain the FY26 level margins?

See, one is Mansoom, as we opened this year when we look at the reservoir water level, as of now it is 16% higher. Okay? So, it is definitely good for the carrier's season. However, the point what you said is El Nino risks could moderate the rainfall. Okay, so we have to be constantly watching that and we have to make sure that the reservoir water levels are very very critical going forward. So that is very critical for looking at, in my opinion, Q3 and Q4, which we will very closely look at it. Very closely look at it. What was your second question?

Sir, looking at the elevated and extended cost inflation, so how much more price increases you are planning to take to sustain your FY26 level margins?

Normally, I don't give you any guidance on margin, okay, because we don't look at, we take, pricing is a strategy, we look at, and I always believe that pricing is only one element. We always look at the value what we are giving to the customer, in terms of TCO, in terms of attractiveness, in terms of technology, in terms of connectivity. So, pricing is only one element. And we also have used the varianting strategy. You know, there are different types of customers. So, we continue to leverage these methods, and when you grow the top line ahead of the industry, that is also going to give you many benefits. And in terms of cost inflation, this 3 to 5%, According to me, it is quite significant, okay? So we have to closely monitor and we constantly look at, you know, what type of opportunity is given to us in terms of looking at variance, what kind of pricing we can look at. So it's a continuous journey, okay? And our endeavor is to grow the top line and continue the momentum. Again, we don't look for one quarter, another quarter. Many times we become very anxious about what happens in Q1 and Q2. We always look at the trajectory. When we started the growth momentum, all of you know that we were at 6.5% in EBITDA. This quarter we are closing at 13.1%. So we always look at the direction. And definitely with our product portfolio, the focus what we have on product mix and both a combination of three-wheeler, premium, international business. All these are going to strengthen our realization per vehicle. That is very important. When you have the realization per vehicle going up, I think you can always leverage costs. And we can also amortize our fixed costs over a larger base. So the growth momentum and the Ibidda journey will continue. Okay? We should not be so much worried about one quarter, two quarters.

Shantan, all the best. Thank you so much. Thank you.

Thank you. Next question is from the line of Raghu Nandan from Noama Research. Please go ahead.

Good evening, sir. Thank you so much for the opportunity and congratulations on strong results. Firstly, sir, in the export market, would you expect the growth to be higher than domestic market in SI27? And within exports, in terms of pecking order, would you say growth will be higher in Latin America followed by Africa and Asia?

I think if you look at many of these markets, international markets, India, you know, I always believe that India has got a huge opportunity and the type of investments, what government has done on the infrastructure side, especially on the roof. And thanks to the consumer class of 1.4 billion, who definitely looks at two-wheeler as a great category for their own. I'm very sure the growth momentum will continue. And thanks to GST, I think the entire scenario got changed when government reduced 28% to 18%. It's not only on two-wheeler, overall. This VAR situation has put little bit of challenges, but I'm very sure that the need for commuting, The need for Especially 50% of the class is self-income kind of customers, rural customers. That momentum will continue in India. Now, growth, I said about a strong single digit, okay? It could even, you know, if things go better in the second half, you can see something becoming better also. But we have to be cautious, you know, I am saying from the industry point of view. And from our mind of view, we are optimistic about product range and what we are going to deliver into the market. Coming to international, international last, if you look at 21, 22, 23, we saw a lot of challenges and it went to the bottom. Now all these international markets are coming back. Last year we saw a good growth. I am very sure this year also you will see similar growth and the momentum will continue. Okay, and later, you have seen it went to down, Africa went down, and we have seen it in Asia, so we are pretty confident that the momentum, whatever you have seen, will continue in the international market, and especially for TVS, the product pool is very good in the market.

Noted, sir. Very helpful. Sir, Ronin model has done extremely well, and monthly volume has crossed 8,000 in domestic market. How do you see the potential for this product in domestic and exports, and how do you see, you know, like this helping your play on premiumization?

Ronit is a great brand. If you recollect, in the last three years, I always say that, you know, we started with 2000, went to 4000. I am telling you shortly, we will cross 10,000. And it is great pool in India, in every state, and thanks to all those customers who love Ronin, it is yet another brand like Apache, I can tell you. I don't want to give you any guidance on the volume, because we are building it, and thanks to every customer of Ronin, and the pool has started already in the international market, every market, wherever we operate. So, it is going to be a long-standing, very good brand for the super premium customers, and once again, thanks to all the customers.

Wonderful, sir. Just a housekeeping question. Can you share the EV revenue for FY26?

EV revenue? You have to give me a minute. Just let me look at it. About 5,000 crores.

Got it, sir. Thank you very much, sir. I'm wishing you all the best.

Thank you.

Thank you. Next question is from the line of Ashish Jain from Macquarie, India. Please go ahead.

Sir, good evening. Sir, firstly, you know, on investments, you said that Fiscal 27 investments will be 500, 600 crores lower. But I thought bulk of the Norton investment is behind us. So can you give some color on where that 2000 crore investment will be spent in Fiscal 27?

No, no, investments will be lower, but it will not be zero. I think, please understand, product development is still continuing. Because we can't have only few models, we have to have in all segments models for Norton, but it will be lower than this year, and other investments where we are investing this year, some of them will continue. Some new investments will be there, which close up to the investment we will let you know. Okay, it may not be in Norton and the current investment, because we constantly look at the opportunities and we will be doing that, but overall, at this point of time, it will be 70% of the current year, somewhere around that.

Right. Sir, when you say new, will it be something outside Norton plus Dubai plus PBS Credit Services? Can it be something outside these three as well?

We always look at new opportunities, and we want to seize these opportunities. So, closer to when we decide, we will let you know.

Sir, secondly, you know, if I look at our export volumes, you know, while we have done a phenomenal job in terms of growing ahead of the industry, our volumes are still more skewed to Africa. So, like, you know, let's say from the next two, three-year point of view, you know, do we see an opportunity to gain substantially in LATAM? You know, how has the experience been in LATAM? Can you speak a bit about that?

Yeah, Africa, we invested long back, and I'm extremely happy the way TVS brand is preferred in Africa. In this, please understand it takes time to establish your brand and you know the HLX series, HLX 100, 125, 155 is the most preferred brand in this market. Asia is very strong for us, Africa is very strong for us. And I completely agree with you, LATAM, we are growing ahead of the industry, which means we are gaining market share year after year. And LATAM is going to be the focus for TVS. Definitely. But you have to give 2-3 years time because we need good distributors, we need very good investment behind brands, we need to have visibility of this brand in the market. So our full focus will be, of course, there is huge ed room in Africa and Middle East. Okay. Huge opportunity even for TVS. So we want to further strengthen Africa and Middle East and strengthen, put the strong foundation in Lata, grow it. Okay? So, that journey will continue, and LATAM will be the focus.

Sir, just an extension of that. So, shall we think that LATAM's journey will be more through Apache and Ronin, or, you know, it will be much wider, including entry-level products as well?

All products. See, every country I have seen, there are proportion of premium, super premium, and executives and entry-level. See, these are all developing countries. So we have to play with the portfolio, even for the distributor and dealer productivity and their profitability. So we will play with the portfolio and sometimes you can also design and develop something unique for this market. And please remember, the Indonesia products are also doing extremely well. Okay, quietly we are doing now, about last year, we did average of... Thank you very much, everyone, and welcome to the Q&A, the Q&A, the Q&A, the Q&A, the Q&A, the Q&A, Good morning, sir.

Thank you so much.

Can we get into the last question, please?

Yes, sir. We will take the next question from the line of Yarsha Garawal from Nirmal Bus Securities. Please go ahead.

Hi, sir. Thank you for the opportunity. I just wanted to understand the strategic rationale behind the Hyundai TOS partnership in the three-wheeler EV segment, and what is the expected timeline for commercialization and product launches under this partnership?

I think all of you know about Hyundai, their capability in terms of, you know, their ability to design, look at their R&D capability, advanced mobility technology, very clear understanding of human-centric approach, country by country. We want to completely liberate that. Equally on the other side, you know, we have excellent leading edge electric platform. We have the three-wheeler engineering expertise, deep local understanding of Indian market, international market. So we will look at how do we use this, both companies leveraging the strength and how we come with the redefined mobility in the three-wheeler category. I can give you Thank you so much now. I think closer to the launch, I can give you more details. I think what we have to look at is overall how the company is moving. And we have done extremely well. How we were moved from 3.1 to 3.1. So whenever we look at, we look at portfolio, we look at every product and every project. And overall, we looked at the performance of the company and I am very confident this also is going to help us in improving our EBITDA journey.

And the last question, sir, how do you think about international growth potential for the EV scooters?

I think it has started well, especially in the Asia market. We are also entering into many markets where we are present. I am very positive because whether it is iCube or Orbiter, it is loved by the customer. But each country is specific, each country is unique. We need to be very closer to the customer in understanding and what needs they are expecting. Sometimes we may have to also come up with a new model, even in electric, because the customer preferences we have to understand, and that is the strength of TVS. We invest behind, for example, HLX, whatever we are selling in Africa and Lata, we don't sell even one number in India. So, we have to constantly believe in looking at the customers, coming up with the models which are unique to the customer and the usage.

Okay, sir. That was very helpful. Thank you for all of it. That's it.

So, overall, thanks, everyone. I think last year, last financial year is a great year. The model company posted the highest ever revenue of 47,270 crores, highest ever net profit of 3,615 crores. It's the best-in-class quality, our focus on the consumer, strong portfolio of brands starting from Apache, Jupiter, iCube, Orbiter, Raider, Entor, HLX, Radeon, Ronin, TVS Inc, King Sargo, EV, IVE. I'm pretty confident and all the products from Indonesia, the company will leverage going ahead of the industry. We will definitely use scale benefits. We will use the focus premiumization journey. We will focus on the sustained material cost reduction, we will look at model mix, okay, while there are challenges, as I said, we are cautiously optimistic and we will continuously looking at improving the top line and continue to grow our EBITDA margin going forward. Q1, Q2, we will closely look at it and we will take appropriate countermeasures. And we will continue to grow the top line and do best for the industry and the customers. Thank you.

Thank you very much. On behalf of 361 Capital Market Private Limited, that concludes this conference. Thank you all for joining us today, and you may now disconnect your lines.