BSE Auto Sector Regulatory Filings — July 28, 2026

Revenue grew 38% YoY (vs industry 2-wheeler growth of 21%), operating EBITDA up 41% YoY, credit rating upgraded to AAA, and EV segment grew 86% YoY

TVS iQube crossed 1 million cumulative sales, and the HLX series achieved 5 million cumulative sales, with the last 1 million achieved in just one year, indicating strong brand momentum

Automotive Technologies segment grew 33% YoY, significantly outperforming the Bearings & Industrial Solutions segment which grew only ~5% YoY, highlighting a shift in demand towards auto tech

Exports grew 24% YoY, indicating strong global demand and successful market diversification

Grant of 2,43,280 stock options at a ~10% discount to market price with a long vesting period (2028-2029) aligns employee interests with long-term shareholder value creation

Despite sharp increases in material costs due to the West Asia conflict, the company mitigated impact through top-line growth and price adjustments, demonstrating pricing power

EBITDA grew 19% YoY, outpacing revenue growth of 17.5% YoY, indicating operational efficiency improvements despite rising input costs

TVS grew 23% in the ICE 2-wheeler segment vs industry growth of 21%, showing market share gains in the core business

Free cash flow was lower due to planned inventory buildup and rising input costs (LPG, oil, freight, IT) not yet compensated by customers, signaling potential margin pressure ahead

Passenger vehicle production dropped ~8% month-on-month in June 2026, posing a near-term risk to revenue from the automotive segment

Rising costs for LPG, oil, freight, and IT are not yet fully compensated by customers, which could compress margins in the coming quarters

Bearings & Industrial Solutions posted only single-digit growth (~5% YoY), significantly underperforming the Automotive Technologies segment (33% YoY), indicating potential structural weakness in industrial demand

Supply chain disruptions in April, combined with material cost volatility from the West Asia conflict, could impact production and margins if they persist

Planned inventory buildup is reducing free cash flow, which could strain liquidity if demand softens unexpectedly

The grant of 2,43,280 stock options, while small, will lead to equity dilution when exercised in 2028-2029, potentially impacting EPS for existing shareholders

No financial data disclosed yet; the upcoming Q1FY27 results (Aug 6) could reveal margin pressure from input costs or demand slowdown, creating uncertainty

No financial data disclosed yet; the upcoming Q1FY27 conference call (July 31) will be closely watched for guidance on demand and cost trends

The 8% month-on-month drop in passenger vehicle production in June 2026 could signal a broader demand slowdown in the automotive sector

EV segment grew 86% YoY and iQube crossed 1 million cumulative sales; with the company's strong brand and distribution, this could be a multi-year growth driver as EV adoption accelerates

The credit rating upgrade to AAA (from AA+) reduces borrowing costs and improves investor confidence, potentially leading to multiple expansion

The Automotive Technologies segment's 33% YoY growth, driven by EV and advanced driveline components, positions the company well for the auto tech transition

Exports grew 24% YoY, providing a hedge against domestic demand fluctuations and access to higher-margin international markets

The stock option grant with a long vesting period (2028-2029) aligns management and employee incentives with long-term performance, potentially driving operational improvements

TVS grew 23% in ICE 2-wheelers vs industry 21%, indicating market share gains; continued outperformance could lead to higher valuations

The upcoming Q1FY27 earnings call on August 7, led by the CEO and CFO, could provide positive guidance on rural demand recovery or new product launches, creating a trading opportunity

The Q1FY27 conference call on July 31 could provide insights into demand trends, EV strategy, and margin outlook, potentially triggering a re-rating if guidance is positive

Both TVS Motor (38% YoY) and Schaeffler India (17.5% YoY) reported robust revenue growth, but rising input costs (West Asia conflict, LPG, oil, freight) are squeezing margins, requiring price hikes to maintain profitability.

TVS Motor's EV segment grew 86% YoY, significantly outpacing the ICE 2-wheeler industry growth of 21%, highlighting the accelerating shift towards electric mobility in the auto sector.

Schaeffler India's data shows a clear divergence: Automotive Technologies grew 33% YoY while Bearings & Industrial Solutions grew only ~5% YoY, suggesting that auto tech and EV-related components are driving growth while traditional industrial segments lag.

Schaeffler India's exports grew 24% YoY, providing a buffer against domestic demand volatility and indicating that companies with global exposure are better positioned to manage cyclical risks.

UNO Minda's stock option grant with a vesting period extending to 2028-2029 reflects a sector-wide trend of using long-term equity incentives to retain talent and align management with shareholder interests.

Q1FY27 conference call on July 31, 2026, to discuss results and provide guidance on demand, EV strategy, and margin outlook.

Q1FY27 earnings call on August 7, 2026, led by CEO and CFO, to discuss results and provide forward guidance on rural demand and new product launches.

Board meeting on August 4, 2026, to approve Q1FY27 results; watch for revenue and margin trends, especially given the stock option grant.

Monitor for any further updates on input cost pass-through to customers and the trajectory of the industrial segment growth, which is currently lagging.

Watch for any updates on supply chain normalization and material cost trends, given the West Asia conflict volatility.

Monitor monthly passenger vehicle production data for June and July to see if the 8% MoM drop in June is a one-off or a trend.

Watch for any further announcements on EV capacity expansion or new product launches, given the strong 86% YoY growth in the segment.