TVS Holdings Limited has received credit rating updates from CARE Ratings Limited, with the rating agency reaffirming and assigning CARE AA+ stable ratings to the company's non-convertible debentures worth ₹950 crore.

Rating Details and Actions

CARE Ratings Limited, through its communication dated February 9, 2026, provided the following rating actions for TVS Holdings' debt instruments:

The rating agency's assessment factors in the group's diversified business investments across multiple sectors and TVS Holdings' role as a core investment company licensed by the Reserve Bank of India in March 2024.

Key Rating Strengths

The CARE AA+ rating is supported by several fundamental strengths of TVS Holdings. The company maintains a strong financial position through its substantial stake in TVS Motor Company Limited, holding 50.26% equity valued at approximately ₹88,699 crore as of February 2, 2026. This investment provides significant debt coverage of around 94 times against the company's gross debt of ₹944 crore as of December 31, 2025.

TVS Holdings operates as a holding company for key group entities including TVS Motor Company, Home Credit India Finance Private Limited, TVS Digital Limited, and TVS Holdings (Singapore) Pte. Limited. The company successfully completed the acquisition of Home Credit India Finance on February 3, 2025, now holding an 81.04% equity stake, which strengthens the group's presence in financial services.

Financial Performance and Structure

The company's financial metrics demonstrate robust capital structure management. As of December 31, 2025, TVS Holdings reported a tangible net worth of ₹1,510 crore, up from ₹1,463 crore as of March 31, 2025. The gearing ratio improved to 0.62 times from 0.64 times during the same period.

The company's revenue streams include dividend income from TVS Motor Company, brand royalties, and management fees from group entities. In FY25, TVS Holdings received ₹239 crore in dividends compared to ₹191 crore in FY24.

Strategic Developments

TVS Holdings has undergone significant corporate restructuring to position itself as a core investment company. In October 2024, the company discontinued its automotive spare parts trading business in compliance with RBI conditions. The company also divested its entire stake in TVS Emerald Limited for ₹485.85 crore in Q3FY25 as part of strategic realignment.

The Board approved a Scheme of Arrangement in September 2025 to issue 6% cumulative non-convertible redeemable preference shares worth an estimated ₹986.52 crore, offering 46 preference shares of ₹10 each for every equity share. This scheme remains subject to regulatory and shareholder approvals.

Rating Outlook and Sensitivities

CARE Ratings maintains a stable outlook, expecting TVS Holdings to sustain its financial flexibility through consistent income streams and adequate debt coverage. The rating could face positive action with significant improvement in TVS Motor Company's credit profile, while substantial decline in the flagship company's performance or increased debt levels reducing coverage below 10 times could trigger negative rating action.

The rating agency notes key monitoring factors including exposure to market value fluctuations of investments and dependence on dividend income from TVS Motor Company. The company's liquidity position remains strong, supported by healthy dividend inflows and the group's market access capabilities.

Source: TVS Holdings Limited regulatory filing and CARE Ratings Limited

TVS Holdings has delivered strong financial performance in its third quarter results, with consolidated net profit showing substantial growth compared to the corresponding period last year.

Financial Performance Overview

The company reported consolidated net profit of ₹5 billion for the third quarter, representing a notable improvement from the ₹4 billion recorded in the same quarter of the previous year. This translates to a year-on-year growth rate of 25.00%, indicating robust business performance during the reporting period.

Business Performance Analysis

The 25% increase in consolidated net profit reflects TVS Holdings' ability to enhance its operational efficiency and maintain strong business momentum. The ₹1 billion absolute increase in net profit demonstrates the company's continued focus on profitability and effective cost management strategies.

The year-on-year comparison provides a clear indication of the company's financial trajectory, with the current quarter's performance surpassing the previous year's results by a significant margin. This growth pattern suggests sustained business improvement and operational excellence across the organization's various business segments.