Chennai: Sudarshan Venu, CMD of TVS Motor Company, said on Wednesday that the company is evaluating strategic options for its financial services business, including a potential carve-out or separation, as it continues to expand through both acquisitions and organic growth.The financial services business has emerged as a key pillar of the TVS Venu faction of the larger TVS Group following years of sustained investment. “The financial services business has seen significant capital allocation, and it is now very profitable and fast-growing,” he said.In recent years, the group has accelerated its expansion through a series of acquisitions and strategic investments, broadening its presence across the lending ecosystem.“At an appropriate time, and in a phased manner guided by long-term strategic considerations, the company will evaluate various alternatives, including a possible separation of the financial services business, to further strengthen the business and unlock shareholder value,” Venu told shareholders at the 34th annual general meeting of TVS Motor.The company’s financial services portfolio includes TVS Credit and Home Credit India. The group recently announced the acquisition of Varthana Finance, having earlier purchased a 10% stake in Jana Small Finance Bank.TVS Credit’s loan book grew 19% year-on-year to Rs 32,053 crore in Q1 FY27 from Rs 26,898 crore a year earlier, while profit after tax rose 15% to Rs 208 crore from Rs 181 crore.K. N. Radhakrishnan, Director and CEO of TVS Motor Company, said TVS Credit delivered sustained growth in disbursements during the quarter, supported by improving consumer demand and strong traction across key retail financing segments.Consumer durable financing benefited from higher discretionary spending, premiumisation and wider market reach during Q1 FY27. Two-wheeler financing also recorded strong demand, driven by steady participation from semi-urban and rural markets, the marriage season and rising adoption of electric vehicles, he said during TVS Motor’s Q1 FY27 earnings call.TVS Credit increased its network to nearly 62,000 touchpoints nationwide. The company disbursed loans to more than 1.4 mn new customers during the June quarter, taking its total customer base to nearly 26 mn.
