TVS Motor may hive off TVS Credit financial services business to unlock value

Chennai-based Wednesday said it could hive off its , , as the two-wheeler major looks to after a record-breaking year.

Addressing shareholders at the company’s Annual General Meeting (AGM) Chairman Sudarshan Venu said, “The company may, at an appropriate time, in stages, guided by long-term strategic considerations, evaluate alternatives, including a possible separation of the financial services business, to further strengthen and unlock shareholder value.”

Venu said the group has made “sustained investments” in building the lending business over the years, positioning it as a mature, standalone-capable unit within the broader “VENU” ecosystem.

TVS Credit posted a 26% jump in disbursements and closed the year with an exceeding Rs 30,000 crore, serving 2.4 million customers across two-wheelers, tractors and consumer durables. The business carries AA+ ratings from all three major agencies, Venu said.

Separately, TVS said it is also confident of sustaining the growth momentum it is seeing in its international business. International sales accounted for more than a quarter of total revenue, with volumes crossing 1.59 million units last fiscal. Venu said, “We are now present in more than 90 countries. We believe Africa and also Latin America and Asia as long-term strategic paths to growth, and are now entering the European market as well”. The newly relaunched are scheduled to debut across the UK, France, Italy, Spain and the US later this year.

Africa too, he said, sits at an extraordinary inflection point. “A young population with mobility needs that will only grow. We are a trusted brand in the African market, and we very much intend to build on that,” he noted.

Overall, international business is expected to continue to grow, demonstrate resilience, and show growth during the coming FY26-27. Venu said, “Our international business is expected to hold momentum and India’s trade relationships continue to open doors for us as we grow.”

As regards the overall outlook, Venu said, “There is a sense of uncertainty and volatility, and at the same time a sense of opportunity, both in India, which is a fast-growing economy, and in some of our other markets as well.” In light of this, he said the company continues to invest in technology and new products.

The board approved an interim dividend of Rs 12 per share, up 20% year-on-year, along with bonus preference shares worth Rs 1,900 crore maturing later this year.