TVS Motor gets CARE AAA reaffirmed on ₹4,858 crore of bank lines

The ratings CARE assigned to TVS Motor

Larger bank lines, same rating

CARE Ratings wrote in letters dated 19 Oct 2026 that its rating committee reviewed the company's "operational and financial performance" for FY26 (Audited) and Q1FY27 (Unaudited). The largest change is in term loans: long-term bank facilities rose to ₹3,241.65 crore from ₹2,100.00 crore. Annexure 1 lists nine term loans, including ₹1,000 crore from Export Import Bank of India, repayable by May 2029, and ₹1,000 crore from State Bank of India, repayable by April 2029. Including short-term limits, the rated bank facilities in Annexure 1 total ₹4,858.00 crore. The quarter ended 30 Jun 2026 showed a net profit of ₹1,057.61 crore on consolidated revenue of ₹16,453.72 crore.

What the AAA and A1+ grades mean

CARE describes a rating as an opinion on "the likelihood of timely payment of the obligations under the rated instrument". AAA is the highest long-term grade on CARE's scale, and A1+ is the highest short-term grade. A Stable outlook signals that CARE does not expect the rating to change over the medium term. CARE also states that a rating "does not convey suitability or price for the investor".

Revalidation date and withdrawals

CARE's commercial paper letter asks the company to have the rating revalidated if the issue is not made by 18 Dec 2026. Separately, CARE withdrew its rating on non-convertible redeemable preference shares with immediate effect, because the company had fully redeemed them.

What the ratings mean for TVS Motor's shareholders

The filing reports rating actions and withdrawals. It does not describe a change to the company's operations or share capital. The full rating rationale is not in the filing, and CARE says it will send the rating report separately. CARE says it may review the ratings at least once a year. The next dated step in the filing is the board meeting on 28 Oct 2026, which the company notified on 16 Oct 2026.

Reference: Original filing (PDF)