Why TVS Motor shares fell over 2% today despite strong Q4 results

TVS Motor Company shares fell 2.65% in morning trade to Rs 3,433.90, even after the two-wheeler manufacturer reported strong Q4 FY26 earnings with double-digit growth in profit, revenue and vehicle sales.

The stock came under pressure despite TVS Motor reporting a 31.15% year-on-year rise in standalone profit after tax to Rs 997.7 crore for the January to March quarter of FY26, compared with Rs 760.68 crore in the same period last year.

Revenue from operations increased 34.10% year-on-year to Rs 12,807.63 crore, compared with Rs 9,550.44 crore in Q4 FY25.

The company also reported strong volume growth during the quarter. Overall two-wheeler and three-wheeler sales, including international business, rose 28% to 15.60 lakh units, compared with 12.16 lakh units in the March quarter of the previous fiscal.

Motorcycle sales grew 23% to 6.93 lakh units, while scooter sales increased 32% to 6.60 lakh units. Electric vehicle sales also rose sharply by 51% to 1.15 lakh units, compared with 0.76 lakh units in the same quarter last year. Three-wheeler sales grew 65% to 0.60 lakh units.

For the full FY26, overall two-wheeler and three-wheeler sales grew 24% to 58.89 lakh units, compared with 47.44 lakh units in FY25.

However, the stock moved lower as investors appeared to react to the company’s capex commentary and recent stock weakness. TVS Motor said it is planning a total capex of nearly Rs 3,500 crore, including around Rs 2,000 crore investment for the current financial year and an additional Rs 1,000 crore to raise production capacity by 1.5 million units, along with focus on research and development.

The stock had already shown weakness before the latest fall. It was down 2% in one week, 5.17% in one month and 6.57% year-to-date.

Overall, TVS Motor shares declined despite strong Q4 numbers as investors focused on the company’s planned capex, capacity expansion spending and recent weakness in the stock.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Fingo is not liable for any losses arising from the use of this information.