TVS Motor’s Q1 profit jumps 51% as margins improve; brokerages raise targets

TVS Motor reported Q1 FY27 net profit of ₹1,174 crore and revenue of ₹13,896 crore, up 51.3% and 37.8% year on year. EBITDA margin expanded to 12.8% as scooter, export, EV and three-wheeler volumes accelerated, prompting target-price upgrades from Jefferies and Kotak.

— Source publishedWed, 22 Jul, 2026, 08:21 IST·First seen Wed, 22 Jul, 2026, 09:07 IST·Source NDTV Profit

What happened

TVS Motor posted record Q1 FY27 sales, with profit up 51% and revenue up 38%. Brokerages raised or reiterated bullish calls as margins improved despite

Key facts

  • Net profit rose 51.3% YoY to Rs 1,174 crore
  • Revenue rose 37.8% YoY to Rs 13,896 crore
  • EBITDA rose 41.2% YoY to Rs 1,780 crore
  • EBITDA margin improved to 12.8% from 12.5%
  • Total two- and three-wheeler volumes rose 28% YoY to 1.63 million units
  • Motorcycle sales rose 19%
  • Scooter volumes rose 36%
  • International sales rose 33% YoY to 0.47 million units
  • Electric two-wheeler sales rose 86% to 129,940 units
  • Three-wheeler sales rose 48%
  • Jefferies target price: Rs 4,900, up from Rs 4,500
  • Macquarie target price: Rs 4,325
  • Morgan Stanley target price: Rs 4,327
  • Kotak target price: Rs 4,150, up from Rs 3,925

Why this matters

The acceleration across EVs, exports and three-wheelers highlights priority adjacencies where TVS Motor may deepen partnerships, distribution and capability investments to sustain diversification.

What to watch

  • Monthly domestic registration and wholesale trends for scooters, premium motorcycles, EVs and three-wheelers.
  • Export dispatch growth, especially whether recovery is broad-based across key international markets.
  • Sequential EBITDA margin performance and management commentary on product mix, discounts, raw materials and currency.
  • Festive-season dealer inventory levels, retail-offtake conversion and financing approval rates.
  • EV model launch cadence, bookings, service-network expansion and competitive price actions.
  • Commodity prices, foreign-exchange movement and any supply-chain disruptions affecting components.
  • Accelerate festive-season inventory allocation toward scooters, premium motorcycles and three-wheelers where mix and margins are strongest.
  • Use improved profitability to expand EV distribution, charging/service partnerships and financing access without relying excessively on discounting.
  • Increase export-market dealer coverage and local parts availability, particularly in regions where two- and three-wheeler demand is recovering.
  • Prioritize capacity, supplier and logistics investments that prevent delivery bottlenecks if volume momentum persists.
  • Maintain disciplined pricing and promotional spend to defend the 12.8% EBITDA-margin level as competitors respond.