TVS Motor Company has increased its ownership in its financial services arm, TVS Credit Services Ltd, by acquiring an additional 4.39 per cent stake from Lucas-TVS for ₹7.11 billion. The transaction, completed on July 27, involved the purchase of 11.34 million equity shares and has raised TVS Motor’s fully diluted shareholding in the non-banking financial company (NBFC) to 85.15 per cent.
The company said the move is intended to strengthen its control over TVS Credit, simplify the shareholding structure, and improve operational efficiency across the business.
TVS Credit is a Reserve Bank of India (RBI)-registered, non-deposit-taking non-banking financial corporation (NBFC) that provides financing across multiple segments, including vehicle loans, consumer durable finance, and credit for small businesses. In FY26, the lender reported a turnover of ₹71.91 billion, profit after tax of ₹9.13 billion, and a net worth of ₹60.68 billion.
The acquisition follows recent comments by TVS Motor Chairman and Managing Director Sudarshan Venu, who said the company is assessing strategic alternatives for its financial services business. These include the possibility of a carve-out or separate structure as the lending business continues to grow through both organic expansion and acquisitions.
With TVS Motor’s market capitalisation standing at nearly ₹1.80 trillion, industry estimates value TVS Credit between ₹200 billion and ₹280 billion. At that valuation, the lending subsidiary could account for approximately 11 per cent to 16 per cent of the parent company’s overall market value.
Originally established as a captive financier for TVS Motor’s two- and three-wheelers, TVS Credit has broadened its portfolio over the years. The company now offers personal loans, business loans, gold loans, consumer finance, and financing for a wide range of vehicles.
The company maintained its growth momentum in the first quarter of FY27. Assets under management (AUM) increased 19 per cent year-on-year to ₹320.53 billion, while loan disbursements rose 31 per cent. Total income grew 13 per cent to ₹19.18 billion, and net profit climbed 15 per cent to ₹2.08 billion, reflecting steady business expansion despite intense competition in the lending market.
TVS Motor also delivered a strong performance in the June quarter. The company reported a 51.3 per cent year-on-year increase in net profit to ₹11.74 billion, while revenue rose 37.8 per cent to ₹138.96 billion, exceeding market expectations. EBITDA climbed 41 per cent to ₹17.79 billion, with the EBITDA margin improving to 12.8 per cent from 12.5 per cent a year earlier, supported by higher sales volumes, better realisations, and stronger other income.
Ahead of the announcement, TVS Motor shares ended Monday’s trading session 0.3 per cent higher at ₹3881.90 on the National Stock Exchange.
