TVS and Bajaj post record Q1 revenue as EV demand drives capacity plans

TVS Motor and Bajaj Auto reported record first-quarter revenue and strong profit growth, supported by domestic demand, exports and accelerating EV sales. Both are adding capacity, though an uneven monsoon remains a risk for rural two-wheeler demand.

— Source publishedTue, 21 Jul, 2026, 21:19 IST·First seen Tue, 21 Jul, 2026, 21:24 IST·Source Mint · Companies

What happened

TVS Motor Company · TVS Motor and Bajaj Auto posted record Q1 revenue and strong profit growth, citing GST-led domestic demand and exports. Both reported

Key facts

  • TVS Q1 consolidated revenue: ₹16,453 crore, up 34% YoY
  • TVS Q1 net profit: ₹1,057 crore, up 65% YoY
  • Bajaj Auto Q1 revenue: ₹21,688 crore, up 65% YoY
  • Bajaj Auto Q1 net profit: ₹3,188 crore, up 44% YoY
  • TVS domestic two-wheeler sales: 1.42 million units, up 27%
  • Bajaj domestic two-wheeler sales: 586,547 units, up 11%
  • TVS EV sales: 129,940 units, up 86%
  • Bajaj EV sales: 115,406 units, up 75%
  • Bajaj capacity target: over 9 million units from 7 million
  • TVS EV capacity target: 50,000 units/month from 40,000

Why this matters

Accelerating EV adoption increases the strategic value of battery, charging, and supply-chain partnerships as both companies expand capacity.

What to watch

  • Monthly VAHAN registrations and company-reported EV wholesales versus the 75%-86% year-over-year growth rates.
  • EV market-share movement for TVS iQube and Bajaj Chetak relative to Ather, Ola Electric and Hero MotoCorp.
  • Monsoon distribution, reservoir levels, rural wage trends and financing availability ahead of the festive selling period.
  • Battery-cell prices, rare-earth/component availability, import-duty changes and localization announcements.
  • Capacity commissioning timelines, dealer-network additions, inventory levels and EV gross-margin commentary.
  • Export recovery in Africa, Latin America and South Asia, including currency and freight-cost trends.
  • Accelerate EV scooter and motorcycle launches across price tiers, including models positioned against mass-market Chinese-component competitors.
  • Expand EV production capacity, battery-pack sourcing, charging partnerships and dealer service coverage to reduce delivery lead times.
  • Use strong cash generation to protect export distribution, selectively raise marketing spend and pursue component localization.
  • Maintain flexible ICE production planning to manage potential rural-demand volatility during the monsoon and festive season.

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