Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
TVS Motor Company Ltd (NSE: TVSMOTOR) Q4 2026 Earnings Call dated May. 13, 2026
Corporate Participants:
K. N. Radhakrishnan — Director and Chief Executive Officer
Analysts:
Annamalai Jayaraj — Analyst
Gunjan Prithyani — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and Gentlemen, good day and welcome to TVS Motor Company Limited 4 QSY 26 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 touch tone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Annamalai Jayraj from 361 Capital. Thank you and over to you sir.
Annamalai Jayaraj — Analyst
Thank you. Giraffe welcome to TDS Motor Company effort and bridge process of conference call. From previous Motor management we have Justice Director and Chief Executive Officer Chief Financial Officer. I’ll now hand over the call to Mr. Ki for the opening remarks to be followed with question and answer. Over to you Sir.
K. N. Radhakrishnan — Director and Chief Executive Officer
Good evening Good evening everyone and thanks for joining us today. We are delighted to share that during this financial Last financial year of 2526 TVs Motor Company surpassed all its previous highlights and achieved an all round record performance. Achieved the highest ever sales volume, revenue and profit. Our sales volume grew from 4.7 million units to 5.9 million units at 24% growth. Revenue grew from 36,251 crores to 47,270 crores at 30% growth and operating PBT grew from 3,563 crores to 4,975 crores a 40% growth.
When you look at the two wheeler ICE growth, it grew by 19% over the previous year and the industry growth during the same time was about 10%. Two Wheeler International Market Company sales grew by 31% over last year and against the industry growth of 23%. Total Two Wheeler Ice sales grew by 22% compared to the last year. As against industry growth of 12%, EV two wheeler sales grew by 33% and it is at 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 4450 crores and this financial year it is 6079 crores. The EBITDA margin improved by 60 basis points 12.9% this year. We serviced last year’s 12.3%. Operating EBITDA grew by 40% during this year. The company generated an operating free cash flow of 3805 crores as against 2586 crores growth of 47%. Now when we look at Q4 sales, company achieved the highest ever revenue of 12,808 crores, a growth of 36% of last year.
This is the highest two winner. Domestic ice sales grew by 26% compared to Q4 of last year as against an industry growth of 24%. International market summary sales grew by 23% total two wheeler rise 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 through four sales revenue was 12,808 crore and we achieved the highest EBITDA of 13.1% during the quarter.
Company’s operating EBITDA was at 1679 crore as against last year’s 1172 crores. Company registered a PBT of 1358 crore during this quarter as against 851 crores in Q4 last year. Now let me talk about TBS credit performance. The TVF credit services during the financial year 2526 again have achieved a record level of PPT 1248 crore. The book size is now 30,631 crores. Q4 TVS credits reported sustained growth in disbursement 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 market and definitely you know we have seen the increasing adoption of electric vehicles of course supported by the broad affordability and good finance penetration in the market. Consumer durable financing remains steady driven by seasonal purchases and increased discretionary spending. Company continue to maintain its focus on good calibrated growth across all product categories.
TV’s Creditors has opted a prudent and proactive approach to underwriting and risk through calibrated credit policy restrictions and sharper credit matrices. Overall the portfolio quality has improved through reduction in total credit cost and GNPA financial year 2026. The TVS Credit disbursed loans over 63 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% 1248 crores as against 1027 crores during last year and for this quarter EBITDA has grown by 15%. 348 crores as against 302 crores during the Q4 of last year. On TV’s model 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 our products.
The excellent range 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 UTM and we have seen very encouraging traction in many markets and there is an opportunity for further leveraging these markets for tds. 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 export will start soon.
Q4 exports 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 product I am very sure all of you would have seen Orbiter V1 it has done well with 1.8 kilowatt battery and this is for a different set of customers. Now it is available in two ranges, V1 1.8kW and V2 3.1kW. We have also started BaaS across EV portfolio.
This will also give an opportunity for customers to subscribe to battery usage instead of paying the full battery cost upfront. We have also launched the TVF King Cargo Heavy duty cng. As you know, the cargo vehicle EV is also giving very good response from the customers. The recently launched CNG Cargo is going to give us very good response. Initial months have been very promising. Built on durability, ease of operation, the vehicle comes with robust heat swing suspension. It offers very good ergonomic cabin with top speed of 62 km per hour, 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 weeks on North End. 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 is very, very key. We have unveiled our product in EICMA Milan. We got excellent feedback and we are going to soon come up with new models of Norton Manx, Manx R, 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 2627 is going to be very, very important year. Especially the Q2 of 2627 on 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 2526 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 Western 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 disruptions. We have also gone through similar situation in the past. 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 April, 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 material. Things are becoming better. This month is going to be better and we are confident that Q1 we will post 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 am very sure that EV2 Wheeler will continue to increase the penetration and the momentum will continue this year. As you know, we have recently launched TVS IQ disc with 4.7 kilowatts and this is definitely going to be a favorite EV for family. We have more than 900 and 900,000 Indian customers and families are enjoying this product. Tsiqubes played a key role in driving electric mobility adoption in India which is the new launch of TVS iCube.
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 EV3 wheeler. Now the Wahan share is continuously increasing for our three wheeler 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 car grow CNG what we have launched. All of you know that TVS Motor has recently signed a joint development agreement with Hyundai Motor Company to 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 developed the E3 Wheeler. By leveraging its research and development expertise, advanced mobility technologies and human centric design approach. EVS Motor will co develop the product using our leading edge electric platform, extensive three wheeler engineering expertise, deep local market understanding and I’m very sure with our long legacy of trust, quality, focus we will be able to come up with a product which is a grand success in the market.
On international business what we have seen in Q4 I am very sure that this year also you will see the momentum. We are also closely monitoring the effects of the war situation and as I speak every international market we are seeing very good pull for TV’s range of products. We are also constantly monitoring. There are some challenges especially in the lead time for delivery because of some of the logistics 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 we have seen our EBITDA has gone to 13.1. We will continue to leverage scale benefits, better product mix and sustained efforts on cost reduction which will definitely enable us right there are challenges on geopolitical issues. I think our thanks to our customers and our product portfolio. We are confident we’ll put every effort to further improve our costs 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 and D innovation and brand building. We will very closely look at every to make sure that we grow ahead of the industry. Thank you.
Questions and Answers:
Operator
Shall we open the floor for question and answer? Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question May Press Star N1 on the Touch tone telephone. If you wish to remove yourself from the question queue, you May Press Star N2. 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 Nomura. Please go ahead.
Annamalai Jayaraj
Good evening sir. Thanks for the opportunity and congratulations on a 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 Motorcycles, I scooters and EV scooters directionally. What do you expect There
K. N. Radhakrishnan
See, we are expecting 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 on. Particularly if you. If you look at. Let me start with overall I already highlighted that the EV is doing extremely well and we have two good grants, iCube and Orbiter. On scooter, if you look at Jupiter 110, Jupiter 110 and125, it’s doing extremely well in the market.
And as a category, according to me, 2627, 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. Economy category, the challenge will be little higher because that is where most of the customers who have challenges in terms of higher inflation fuel prices are likely to refuse. Fortunately for TV is we have for example currently at the SSP 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 upwards and we have very strong Brands of Jupiter, NTOR, M25,150 and the response of 150 is outstanding in the market which was recently launched.
And on EV side Orbiter, again outstanding response in the market. IQ continues to do very well, especially the new variants, whatever we have launched. So super 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 in the.
Then the challenge will be on the economy category and our proportion in that category is very small. Of course the new mopred with alloy wheel 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.
Annamalai Jayaraj
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 first quarter and how much price hike we have taken and also for similar numbers for Q4, FY26,
K. N. Radhakrishnan
The commodity. I think this is unprecedented. I think it is around 3% to 5% because as I speak there are challenges but we were able to increase prices. 35% of these price increases we were able to offset by increasing prices. They are closely monitoring the situation both in domestic and international. We have passed down price increases. We’ll also keep a close watch on that. And 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 leveraging 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 model. So it’s a combination of all strategies put together. We have seen similar situation in the past. Maybe it is little higher. Everything happening in one quarter this time. So we will closely monitor that.
Annamalai Jayaraj
Just to clarify this 3 to 5 percentage as a percentage of the revenue, Right.
K. N. Radhakrishnan
Revenue. Revenue. Revenue. Revenue. Yes, yes, yes.
Annamalai Jayaraj
How much was PLI for the quarter?
K. N. Radhakrishnan
PLI is about 0.9%.
Annamalai Jayaraj
Thank you. Thank you. I’ll come back to meet you.
Operator
Thank you. We will take the next question from the line of Chandra Modi Matia from Goldman Sachs. Please go ahead.
Annamalai Jayaraj
Hi, good evening and thank you. To my questions. The first question is around production capacity. So in FY26 we’ve manufactured and sold close to 5.9 million vehicles. We 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, you can see 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 or so.
K. N. Radhakrishnan
Immediately we are looking at increasing the capacity by another one and a half billion to go to somewhere around 8.3 million because the demand is good and first time we have to add a 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. But one thing we are very clear we want to be ahead of industry growth and for that we will make sure that capacity will not be a constraint and we will be investing behind that.
Annamalai Jayaraj
Got it? 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 up and down over the past 12 months and EVs are also picking up where rare earth might be important. So just want to understand across some of your key materials where are some of the challenges presently in manpower included and then how do you see that progressing over the next few months?
K. N. Radhakrishnan
The supply chain was something unique we had in the last April and end of March primarily I think it all started 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. 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 Wahun 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 tier two suppliers tire one is able to manage. But many of the tier two 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 totality, both in details and in dispatches. But this we have to closely monitor and see appropriate countermeasures. Very, very important.
Annamalai Jayaraj
Got it. That’s helpful. And this, my last question is bookkeeping questions just related to the point you made around the channel stock in maintain. 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 in maintain and also if you could share the exports and spares revenues for the quarter.
K. N. Radhakrishnan
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 pool. 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? Q4, we are at almost 3,000 crores, 2,999 and spare parts.
The total spare part is. Just a minute, just give me Overall is about 1122 crores.
Annamalai Jayaraj
Got it, got it. That’s helpful. Thank you very much and all the best. Thank you.
Operator
Thank you. Next question is from the line of Gunjan Prithiani from Bank of America. Please go ahead.
Gunjan Prithyani
Thanks for taking my questions. My first question is going back to the comments you made that you know, for the next one or two quarters we’ll be cautious. I’m just trying to understand is it more the cost headwinds that worry you? Is this 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 2/4 question.
K. N. Radhakrishnan
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’m talking about evm. The uncertainty is on the raw material availability, timely availability. Okay. The costs are high but couple of days delay here and there is one, one worry, another worry which we are getting over. Completely is the supply chain tire flow disruption but that we are coming out of actually.
So I am very confident by end of a 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, 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 and 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 pools, 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 it.
Gunjan Prithyani
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,
K. N. Radhakrishnan
See the overall, let me tell you it is more for the overseas subsidiary. We spend about investments. 2,400 crores total I’m paying for the year and predominantly it is for Norton and Northern. Products are getting ready and many of the products are going to be seen Q2 of this year and I’m pretty confident I’ve seen the products, they’re all extremely good and we’re going to really redefine the super premium class globally. About 200 crores is in DBA 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 couple of quarters back about 300 crores. We have invested all put together this quarter this year, this last financial year was 2,400 crores. Next year the investment will be much lower. It will be maybe another 500, 600 crores lower than this 2400 crores because we are very confident that many of the investments, whatever we have made this 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 from TV’s motor side that will be around like this year around close to 2004.
Another additional investment is I told you we are adding another one and a half million of capacity.
Gunjan Prithyani
So we
K. N. Radhakrishnan
Are expanding in a significant way on all two wheeler and three wheelers, that will be about 1000 crores plus. Okay. And we are also expanding our R and D because we believe in investing in R and D capability testing. So all put together, the Catrix for next year for previous model will be likely to be around 3500 crores.
Gunjan Prithyani
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 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’s also playing out in some of the Asian countries on higher E2 wheeler demand.
K. N. Radhakrishnan
You’re absolutely right. I think Asian market the 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’re seeing the variance in orbiter and we will go ahead of industry.
Gunjan Prithyani
Got it. Thank you so much sir.
Operator
Thank you. Next question is from the line of Anan Pirani from JP Morgan. Please go ahead.
Unidentified Participant
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 are hearing from the ground here?
K. N. Radhakrishnan
See these are things you have to constantly look at it. But the strength is we have a very strong product range of HLS 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 lobbying our products in African markets and many other markets. So our endeavor is to significantly and proportionately increase. Okay. The challenge according to me what we are seeing is the 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 you, as you know, you know when the distributor plans it, whatever the money is putting and he has got certain dealers and some dealers, they need to have this plan and routine doesn’t dislike another 10 days delay, 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, we always constantly look at it because we are now talking about this war situation.
But last year or 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 pretty confident that we will come over it. We will get over these challenges, we’ll come up with a very clear solution. What is more delighting is every market previous products are sought after and we are very confident that that momentum is going to help us to grow faster than the industry.
Unidentified Participant
Great, that’s good to know. And we can see that in your monthly run rate improvement as well. So my second question is on the domestic market we’ve seen 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 motorcycles that you’re targeting for launches?
K. N. Radhakrishnan
Always believes in investing behind technology, coming up with models which delight the customer. This is, this has been our focus for our growth ahead of the industry and that momentum will continue. Last year you have seen IQ, you have seen RTX, you have seen Orbiter, now V1 version and you have seen three wheeler. We started with the passenger EV, then we started cargo, then PNG cargo. So we completely believe in investing behind products. And our strength is R and 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 write. That’s also the reason our capital is pretty high,
Unidentified Participant
Because
K. N. Radhakrishnan
We don’t stop in investing. We always say that these are all medium to long term strategy of the company to grow aspirationally in every Market on top of it, you know, super premium Nortek. Okay. There are models which we are investing products are getting ready in our fossil plant and Solihealth. So we are very excited about 26, 27. I think it is going to be a key turnaround year for the next phase of growth for CVS and Norfolk.
Unidentified Participant
That’s great to know. So just a clarification, will you be manufacturing these initial Norton products in India as well?
K. N. Radhakrishnan
Yes. Yes sir.
Unidentified Participant
Okay.
K. N. Radhakrishnan
Solihull is looking at one model which is in the high end where we will be making. 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 whole plant in a big way.
Unidentified Participant
Okay, that’s, that’s great. Thank you. Thanks for the opportunity.
Operator
Thank you. Next question is from the line of Ahmed Hiranandani from Philip Capital India. Please go ahead.
Annamalai Jayaraj
Yes sir. Thanks for the opportunity sir. As per your earlier years assessment, what has been the impact on rural sales due to El Nino? And my second question 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?
K. N. Radhakrishnan
See one is monsoon. As we open this year, when we look at the reservoir water level as of now it is 15% higher. Okay. So it is definitely good for the Caribbean season. However, the point, what we said is El Nino risk could moderate the rainfall. 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,
Annamalai Jayaraj
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?
K. N. Radhakrishnan
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 cpu, in terms of attractiveness, in terms of technology, in terms of connectivity. So pricing is only one element. And we also have used varianting strategy. 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. 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 various what kind of thriving we can look at. It’s a continuous journey and our endeavor is to grow the top line and continue the momentum. Again we don’t look for one quarter, another quarter. Many a times we become very anxious about what happens in Q1, what happens in Q2. We always look at a 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 and both the combination of three wheeler, premium, international business, all these are going to strengthen our realization for vehicle. That is very important when you have the realization for vehicle going up, I think you can always leverage cost and we can also amortize our fixed cost over a larger base.
So the growth momentum and the EBITDA journey will continue. Okay. We should not be so much worried about 1/4, 2/4.
Annamalai Jayaraj
All the best. Thank you so much.
K. N. Radhakrishnan
Thank you.
Operator
Thank you. Next question is from the line of Raghunandan from Nirma Research. Please go ahead.
Annamalai Jayaraj
Good evening sir. Thank you so much for the opportunity and congratulations on strong results. Firstly, sir, in the export market, do you expect the growth to be higher than domestic market in FY27 and within exports? Would you in terms of pecking order, would you say growth will be higher in Latin America followed by Africa and Asia?
K. N. Radhakrishnan
I think if you look at many of these markets, international market, 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 road and thanks to the consumer class of 1.4 billion who definitely looks at two wheeler as a great category for their own income generation and community. 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 vast situation has put little bit of challenges. But I am 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. 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’m saying from the industry point of view and from our point of view, we are optimistic about product range and what we are going to deliver in terms of now 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. And latter you have seen it went 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 cvs. The product pool is very good in the market,
Annamalai Jayaraj
Sir. Very helpful. Sir. Rawlin 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.
K. N. Radhakrishnan
Pranik is a great brand. If you recollect the last three years, I always say that, you know, we started with 2,000, went to 4,000, 8,000. Okay. I’m telling you shortly we will cross 10,000. Okay. And it is grateful 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 full has started already in Indonesia, in 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 customer.
Annamalai Jayaraj
Wonderful. Sir, just a housekeeping question. Can you share the EV revenue for FY26?
K. N. Radhakrishnan
EV revenue? You have to give me a minute. Just, just let me. About. About 5000 crore.
Annamalai Jayaraj
Got it sir. Thank you very much sir. And wishing you all the best. Thank you.
Operator
Thank you. Next question is from the line of Ashish Jain from Macquarie India. Please go ahead.
Unidentified Participant
Hi sir. Good evening. So firstly, you know on investments you said that fiscal 27 investments will be 5,600crores 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
K. N. Radhakrishnan
Will be lower but it will not be zero. I think. Please understand product development is still continuing because you can’t have only few models. We have to have an all segment models for Northern. 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 closer to the investment, we will let you know, 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.
Unidentified Participant
Right, That’s a. When you say new, will it be something outside Norton plus Dubai, plus TV’s credit services, can it be something outside these three as well?
K. N. Radhakrishnan
We always look at new opportunities and we want to see these opportunities. So
Unidentified Participant
Closer
K. N. Radhakrishnan
To when we decide, we’ll let you know.
Unidentified Participant
So secondly, you know, if I look at our export volumes, you know, while we have done a phenomenal job in terms of going 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? How has the experience been in Latam? Can you speak a bit about that?
K. N. Radhakrishnan
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 two, three 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 headroom in Africa and Middle east, huge opportunity even. So we want to further strengthen Africa and Middle east and strengthen, put the strong foundation in Latam, grow it. Okay. So that journey will continue and LATAM will be the focus.
Unidentified Participant
So that’s an extension of that. So shall we think that Latam journey will be more through Apache and Ronin or you know, it will be much wider in including entry level products as well.
K. N. Radhakrishnan
All products. See every country I have seen there are the portion of premium, super premium and execution and entry level. So 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 some something unique for this market and Please remember the Indonesia products are also doing extremely well. Currently we are doing now about last year we did average of 17,000 per month.
Now we are getting into almost 20,000 plus. And these Bebex and Quebecs are also in many of these markets doing very well. So the portfolio what we have we will erase that and country specific certain products also we will design and develop. So it’s a combination of investment behind some new products leveraging existing models and we will take it up in a big way.
Unidentified Participant
Got it sir. Thank you so much. And
K. N. Radhakrishnan
Can we get into the last question please?
Operator
Yes sir, we will take the next question from the line of Yasha Agarwal from Mirmurbank Securities. Please go ahead.
Unidentified Participant
Hi sir, thank you for the opportunity. I just wanted to understand the strategic rationale behind the Hyundai TVS partnership in the three wheeler EV segment and what is the expected timeline for commercialization and product launches under this partnership.
K. N. Radhakrishnan
I think all of you know about Hyundai, their capability in terms of, you know, their ability to design. Look at their R and D capability, advanced mobility technology, very clear understanding of human centric approach country by country we want to completely leverage that equally on the other side 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 so much now I think closer to the launch I can give you more details including the lead time
Unidentified Participant
Extension to this question. How should we think about revenue contribution profitability potential from the partnership over Medium fund?
K. N. Radhakrishnan
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 6.5 to 13.1. So whenever we look at, we look at portfolio, we looked at every product and every project and overall we look at the performance of the company and I am very confident this also is going to help us in improving our ebitda.
Unidentified Participant
And the last question sir, how do you think about international growth potential for the EV scooters?
K. N. Radhakrishnan
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 pvip.
We invest behind for example hlx, whatever we are selling in Africa and latter we don’t sell even one number in India. So we have the VIP constantly believe in looking at the customers coming up with the models which are unique to the customer and the usage.
Unidentified Participant
Okay sir, that was very helpful. Thank you so much. That’s it
K. N. Radhakrishnan
Overall thanks everyone. I think last year, last financial year is a great year. The motor company posted the highest ever revenue of 47,270 crores. Highest ever net profit of 3 with the best in class quality. Our focus on the consumer, strong portfolio of brands starting From Apache, Jupiter, iCube, Orbiter, Raider, NCOR, HLS, Radeon, Ronin, KVX, King, Intago, EV Ice. 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 customer. Thank you.
Operator
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.