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TVS Motor Explores Separating Financial Services Business

Дата публикации: 22-07-2026 13:01:04

TVS Motor Company is evaluating options, including a possible separation of its financial services Business, which includes TVS Credit Services Ltd, as part of a broader effort to strengthen the business and unlock shareholder value, Chairman Sudarshan Venu told shareholders at the company's annual general meeting.
The move, if pursued, would mark a significant step for the Chennai-based two-wheeler maker, which owns an 80.76% stake in the non-banking finance company. Addressing shareholders, Venu said the financial services business had become an important part of the group's operations after years of investment.
"TVS Credit makes it possible for more people to meet their financial aspirations in India in the fastest-growing large economy with an increasing middle class. Rated AA+ by all three major rating agencies, TVS Credit is continuing to grow with prudence, with purpose, and with the same values of TVS," he said.
"Over the years, the group has made sustained investments in building and nurturing its financial services business, which have evolved into an important part of the broader TVS Venu ecosystem.”
He said the company was considering different strategic options for the business. "Looking ahead, the company may, at an appropriate time in stages, guided by long-term strategic considerations, evaluating alternatives including a possible separation of the financial services business to further strengthen and unlock shareholder value."
TVS Credit is a retail-focused non-banking finance company that finances products including two-wheelers, three-wheelers, used cars, tractors, commercial vehicles, consumer durables, personal loans, gold loans and business loans. It primarily serves self-employed and first-time borrowers in semi-urban and rural markets across 22 states.
The finance company reported a 26% year-on-year increase in disbursements in the 2025-26 financial year and ended the year with assets under management of Rs 30,639 crore, up 15% from a year earlier. Total income rose 9% to Rs 7,196 crore, while profit before tax increased 21% to Rs 1,238 crore. Its customer base expanded to about 2.44 crore during the year.
In 2023, Premji Invest acquired a 9.7% stake in TVS Credit for Rs 737 crore through a combination of primary and secondary investments.
Venu did not provide a timeline or disclose the structure of the proposed separation. His comments are the company's first indication that it is examining strategic alternatives for financial services unit, including TVS Credit, as it looks to enhance long-term shareholder value.
Recently, Hero FinCorp Ltd, promoted by India’s largest two-wheeler maker Hero MotoCorp, filed papers for an initial public offering worth Rs 3,668.1 crore.


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TVS Motor has an 80.76% stake in the non-banking finance company.

TVS Motor Company is evaluating options, including a possible separation of its financial services Business, which includes TVS Credit Services Ltd, as part of a broader effort to strengthen the business and unlock shareholder value, Chairman Sudarshan Venu told shareholders at the company's annual general meeting.

The move, if pursued, would mark a significant step for the Chennai-based two-wheeler maker, which owns an 80.76% stake in the non-banking finance company. Addressing shareholders, Venu said the financial services business had become an important part of the group's operations after years of investment.

"TVS Credit makes it possible for more people to meet their financial aspirations in India in the fastest-growing large economy with an increasing middle class. Rated AA+ by all three major rating agencies, TVS Credit is continuing to grow with prudence, with purpose, and with the same values of TVS," he said.

"Over the years, the group has made sustained investments in building and nurturing its financial services business, which have evolved into an important part of the broader TVS Venu ecosystem.”

He said the company was considering different strategic options for the business. "Looking ahead, the company may, at an appropriate time in stages, guided by long-term strategic considerations, evaluating alternatives including a possible separation of the financial services business to further strengthen and unlock shareholder value."

TVS Credit is a retail-focused non-banking finance company that finances products including two-wheelers, three-wheelers, used cars, tractors, commercial vehicles, consumer durables, personal loans, gold loans and business loans. It primarily serves self-employed and first-time borrowers in semi-urban and rural markets across 22 states.

The finance company reported a 26% year-on-year increase in disbursements in the 2025-26 financial year and ended the year with assets under management of Rs 30,639 crore, up 15% from a year earlier. Total income rose 9% to Rs 7,196 crore, while profit before tax increased 21% to Rs 1,238 crore. Its customer base expanded to about 2.44 crore during the year.

In 2023, Premji Invest acquired a 9.7% stake in TVS Credit for Rs 737 crore through a combination of primary and secondary investments.

Venu did not provide a timeline or disclose the structure of the proposed separation. His comments are the company's first indication that it is examining strategic alternatives for financial services unit, including TVS Credit, as it looks to enhance long-term shareholder value.

Recently, Hero FinCorp Ltd, promoted by India’s largest two-wheeler maker Hero MotoCorp, filed papers for an initial public offering worth Rs 3,668.1 crore.

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