The transaction involved the purchase of 1,13,37,297 equity shares of TVS Credit and was completed on July 27. According to the company, the acquisition is aimed at consolidating its stake in the non-banking financial company (NBFC), streamlining ownership and improving operational efficiencies.
TVS Credit, an RBI-registered non-deposit taking NBFC, offers a range of lending products, including vehicle finance, consumer durable loans and small business loans. During FY26, the company reported a turnover of ₹7,191.14 crore, a profit after tax of ₹913.17 crore and a net worth of ₹6,067.63 crore.
Strategic move comes amid carve-out evaluation
The acquisition comes just days after Chairman and Managing Director Sudarshan Venu revealed that TVS Motor is evaluating strategic options, including a potential carve-out or separation, for its financial services business as it continues to expand through both organic growth and acquisitions.
TVS Motor currently commands a market capitalisation of around ₹1.80 lakh crore. A standalone valuation of ₹20,000–28,000 crore for TVS Credit would imply that the lending business alone accounts for roughly 11–16% of the parent company’s market value.
Also Read: TVS Motor may spin out its lending biz. What’s it worth?
Over the past few years, TVS Credit has transformed from a captive financier for TVS Motor’s two- and three-wheelers into a diversified lending franchise spanning vehicle finance, consumer durable loans, personal loans, business loans and gold loans.
The momentum has continued into FY27. In the June quarter, TVS Credit’s assets under management (AUM) rose 19% year-on-year to ₹32,053 crore, while disbursements increased 31%. Total income climbed 13% to ₹1,918 crore and net profit grew 15% to ₹208 crore, reflecting continued business expansion despite a competitive financing environment.
Last week, TVS Motor itself reported a stronger-than-expected June quarter. Net profit rose 51.3% year-on-year to ₹1,174 crore, while revenue increased 37.8% to ₹13,896 crore, with both figures surpassing CNBC-TV18 estimates.
EBITDA grew 41% to ₹1,779 crore, while margins expanded to 12.8% from 12.5% a year earlier, supported by higher volumes, improved realisations and a sharp increase in other income.
Ahead of Monday’s announcement, shares of TVS Motor Company Ltd closed 0.30% higher at ₹3,881.90 on the National Stock Exchange.
