Jefferies lifts TVS Motor target to Rs 5,425 on demand and margin gains

Jefferies raised its TVS Motor target price from Rs 4,900 to Rs 5,425, citing robust domestic and export two-wheeler demand, EV progress and improving profitability. Q1 FY27 net profit rose 51.3% year on year to Rs 1,174 crore as EBITDA margin expanded to 12.8%.

— Source published Wed, 19 Aug, 2026, 08:09 IST · First seen Wed, 19 Aug, 2026, 08:57 IST · Source NDTV Profit

What happened

TVS Motor Company · Jefferies raised TVS Motor’s target price to Rs 5,425, citing strong Indian and export two-wheeler demand, EV progress and improving

Key facts

  • Jefferies target price raised to Rs 5,425 from Rs 4,900
  • Q1 FY27 net profit rose 51.3% YoY to Rs 1,174 crore
  • Q1 FY27 revenue rose 37.8% YoY to Rs 13,896 crore
  • Q1 FY27 EBITDA rose 41.2% YoY to Rs 1,780 crore
  • EBITDA margin improved to 12.8% from 12.5%
  • Average standalone FCF rose from Rs 0.7 billion in FY11-23 to Rs 7.3 billion in FY24-26
  • FY26 FCF estimated at Rs 9.5 billion
  • Subsidiary investments grew at 29% CAGR over five years
  • Shares gained 17.12% YTD and 34% over 12 months
  • Stock closed at Rs 4,356.80, down 0.66%

Why this matters

TVS Motor’s EV progress, export strength and improving profitability reinforce its strategic appeal for partnerships, technology investments and adjacent mobility opportunities.

What to watch

  • Monthly domestic two-wheeler wholesale and retail registrations, especially premium motorcycle and scooter growth versus industry.
  • Export dispatch trends, major destination-market demand, freight costs and currency movements.
  • Quarterly EBITDA margin relative to 12.8%, with disclosure on commodity costs, incentives, mix and operating leverage.
  • EV unit sales, market share, dealer expansion, product-launch cadence and EV segment contribution losses/profitability.
  • Dealer inventory days, retail-versus-wholesale divergence and financing availability in rural and semi-urban markets.
  • Competitive pricing, new launches and discounting from Hero MotoCorp, Bajaj Auto, Honda and electric-two-wheeler rivals.
  • Increase premium product launches and refreshes in motorcycles and scooters to defend realization and mix.
  • Expand EV distribution, charging/service capability and financing partnerships while controlling EV investment losses.
  • Allocate additional marketing and dealer inventory toward high-growth domestic regions and recovering export markets.
  • Use improved profitability to pursue selective capacity, localization and supplier investments rather than broad-based discounting.
  • Investors and competitors may revise volume, margin and EV penetration assumptions upward following the target-price increase.