TVS Motor approves consumer finance business demerger

TVS Motor Company has approved a plan to demerge its consumer finance and related businesses into a separate holding company, Harita ARC Ltd. The restructuring aims to allow the company to focus on its mobility business while providing greater autonomy to its financial services unit.

Under the proposed scheme, which awaits further regulatory approvals, shareholders will receive one share in the new finance entity for every one share of TVS Motor they hold. The consumer finance unit recorded a turnover of approximately ₹3,921 crore for the period ending September 2026, out of a total company turnover of ₹35,770 crore for the same period.

Alongside the demerger announcement, TVS Motor reported record quarterly revenue of ₹17,103 crore for the fiscal second quarter of 2026-27, representing a 44% year-on-year increase. Consolidated net profit rose 50% to ₹1,194.51 crore. The company also noted significant growth in electric two-wheeler sales, which more than doubled to 186,186 units.