New Delhi, Aug. 2 -- Volkswagen Group's India unit returned to profit growth in financial year 2026 (FY26) after two consecutive years of decline, driven by a surge in Skoda sales, and more than a doubling of financial assistance from its foreign group entities that helped sustain margins.

Skoda Auto Volkswagen India Pvt Ltd (SAVWI) reported a 48% jump in net profit to Rs.139 crore in FY26, while total revenue rose 11% to Rs.22,338 crore, according to the filings with the ministry of corporate affairs dated 24 July. The upbeat performance came as retail sales of its largest Indian brand, Skoda, surged 68% during the financial year, aided by the success of the Kylaq SUV.

The company's net profit had fallen 2% to Rs.93.9 crore in FY25 and...