TVS Holdings maintains strong credit rating for debentures

TVS Holdings Limited (TVSHL) has received a reaffirmed credit rating of CARE AA+/Stable for its non-convertible debentures from CARE Ratings Limited. This rating applies to existing debentures totaling INR 300 crore and a proposed issuance of INR 450 crore, indicating a stable outlook for the company's financial instruments. The announcement, dated November 26, 2025, highlights TVSHL's strong financial flexibility and comfortable debt cover.

The rating factors in TVSHL's role as the holding entity for TVS Motor Company Limited (TVSM), its flagship entity with a strong credit profile and consistent dividend payments. As of November 12, 2025, TVSHL holds a 50.26% stake in TVSM, valued at INR 82,441 crore, providing substantial coverage for its outstanding debt. The company’s investment in TVSM translated to a strong debt cover of 87x against a gross debt of INR 944 crore as of September 30, 2025.

TVSHL's liquidity is deemed strong, supported by healthy dividend income, brand royalties, and management fees from group companies. The company reported a tangible net worth increase from INR 1,463 crore on March 31, 2025, to INR 1,490 crore by September 30, 2025, with gearing (gross debt/TNW) at 0.63x. This positive assessment reflects TVSHL's diversified business investments and strategic realignment, including its recent acquisition of Home Credit India Finance Private Limited.