TVS Srichakra Ltd showcased its new Protorq Racing slick tyre range at the PETRONAS TVS India One Make Championship 2026, reinforcing its position in the two-wheeler racing circuit. The tyre manufacturer has served as the technical partner for the championship for eight consecutive years.

The 2026 edition of the championship began on August 14, 2026, and will be conducted in five phases across different leagues. The TVS Apache RR 310 and TVS Apache RTR 200 motorcycles were fitted with the new slick tyres for both front and rear applications.

Product Specifications

The Protorq Racing tyres are engineered with racing-specific carcass material and construction. Key features include:

• High-grip compound and slick tread for exceptional surface contact
• Design optimized for sharp lean angles
• Outstanding lean behavior for high-speed cornering confidence

Executive Commentary

T.K. Ravi, Chief Operating Officer of TVS Srichakra Ltd, stated that the partnership reflects the company's technological expertise and commitment to developing high-performance two-wheeler tyres. He noted that Eurogrip Tyres remains a preferred choice among racers.

V. Sivaramakrishnan, CTO and Deputy COO, said that racing provides a platform to advance tyre technology through real-world experience. He added that demanding track conditions offer valuable insights to enhance tyre performance, handling, and rider confidence.

Vimal Sumbly, Head - Premium Business at TVS Motor Company, described the collaboration as rooted in a shared passion for racing and innovation. He stated that the synergy between race-tuned machines and specially engineered tyres enhances performance on the track.

TVS Srichakra reported a consolidated net profit of ₹340 crore for the quarter ended June 30, 2026 (Q1FY27), marking a substantial 164% increase from ₹129 crore in the corresponding period of the previous fiscal year. The Board of Directors approved the unaudited financial results in a meeting held on August 13, 2026.

Revenue from operations rose 30% to ₹1,067 crore (₹10.67 billion), up from ₹819 crore in Q1FY26. This top-line expansion was accompanied by improved operating profitability, with EBITDA increasing 68% to ₹808 million (₹80.8 crore) from ₹482 million. EBITDA margin widened to 7.6% from 5.9% year-ago, indicating effective leverage of fixed costs as sales volumes increased.

Key Financial Metrics

Impact of US Tariff Refunds

A significant contributor to the financial performance was the recognition of a receivable of ₹7.21 crore (net of estimated customer pass-through obligations) in respect of refunds of tariffs previously paid under the United States International Emergency Economic Powers Act (IEEPA). This recognition followed the judgment of the U.S. Supreme Court dated February 20, 2026, which invalidated the subject tariffs.

The company’s management determined that the criteria for asset recognition under Ind AS 37 were met, supported by the ruling and administrative procedures established by U.S. Customs and Border Protection. During the current quarter, the group’s US subsidiary, Super Grip Corporation, obtained a refund of ₹6.65 crore, including interest.

Standalone Results and Exceptional Items

On a standalone basis, TVS Srichakra reported a net profit of ₹29.22 crore for Q1FY27, compared to ₹18.12 crore in Q1FY26. Revenue from operations stood at ₹997.36 crore, up from ₹761.74 crore in the prior year quarter.

Exceptional items included:

• A voluntary retirement scheme expense of ₹1.00 crore.
• No recognition of the Investment Promotion Capital Subsidy grant income in the current quarter, whereas ₹18.81 crore was recognized in Q1FY26.

The statutory auditors, PKF Sridhar & Santhanam LLP, issued a limited review report on the unaudited standalone and consolidated financial results.

What the Numbers Show

The disproportionate rise in net profit relative to EBITDA highlights the impact of operating leverage and favorable non-operating items. While EBITDA grew nearly 68%, net profit jumped over 160%. This divergence suggests that non-operating expenses or tax provisions remained stable or decreased as a percentage of income, allowing a larger share of operating profits to flow through to the bottom line. Additionally, the absence of the large one-time government grant income recognized in the prior year period (₹18.81 crore) makes the current quarter’s operational growth even more significant.