TVS Motor Company has attracted strong bullish recommendations from multiple brokerages, with Emkay Global maintaining its buy rating and revising the target price up 6% to ₹5,300 from ₹5,000, while ICICI Securities upgraded to buy from add with a revised target of ₹4,400 versus ₹4,100. Motilal Oswal has joined the bullish chorus with a buy rating and target price of ₹4,470, valuing the stock at 35x FY28E EPS in its research report dated July 21, 2026. LKP Research has now added to the positive sentiment with a buy rating and target price of ₹4,508, valuing the stock at 38x FY28E EPS in its latest report dated July 24, 2026, underpinned by confidence in execution and long-term earnings visibility. All brokerages are confident about the company's sustained domestic and international outperformance, driven by robust retail demand, strong EV momentum, and strategic global expansion across LATAM, Middle-East and EU markets.
TVS Motor Company delivered another robust quarter with revenue growing 38% year-on-year to ₹139 billion, driven by 28% volume growth and 4% quarter-on-quarter average selling price increase. According to Emkay Global Financial's research report dated July 22, 2026, the company's EBITDA surged 41% year-on-year with EBITDA margin at 12.8%, despite a 30 basis points quarter-on-quarter dip as the 130 basis points gross margin decline was offset by lower other expenses. As reported by Motilal Oswal, Q1FY27 EBITDA came in 8% ahead of estimates at ₹17.8 billion, with the impact of sharp input cost rise offset by improved mix, favorable currency benefits, and tight cost control. The latest LKP Research report confirms EBITDA at ₹17.8 billion (+40.9% YoY, +5.9% QoQ) and adjusted PAT of ₹11.7 billion (+50.8% YoY, +17.7% QoQ), with realization at ₹85.2k (+8% YoY/+3.8% QoQ) and gross margin at 27.2%. The growth was broad-based across domestic markets, exports, and electric vehicles, with TVS Motor continuing to outpace industry performance through sustained premiumization and market share gains.
Management expects two-wheeler demand to remain healthy and guides for double-digit FY27 domestic two-wheeler industry growth, with the second quarter expected to outperform the first quarter. As reported by Emkay Global, TVS Motor targets sustained outperformance through a diversified product portfolio, accelerating EV franchise with E-2W industry penetration at 10.6% in June 2026 and TVS as the number one player, and a dominant premium motorcycle portfolio. The company continues to benefit from India's EV transition and is investing aggressively with ₹35 billion capex earmarked for capacity expansion, targeting 2W/3W capacity to reach 8.3 million/0.42 million units by Q4 FY27 versus current 6.8 million/0.25 million units. LKP Research forecasts revenue/EBITDA/PAT CAGR of ~18%/20%/25% over FY26–FY28E, with the PLI benefit in Q1 being about 0.6% of the turnover. Motilal Oswal notes that this outlook is likely to help sustain the company's premium valuations.
The worst of commodity inflation appears to be behind, with 0.5% impact expected in Q2 versus 3.5% in Q1. According to Emkay Global's analysis, TVS Motor's margin expansion is expected to continue, aided by calibrated price hikes of 1.5% in Q1 and 0.5% in Q2 to date, favorable product mix, premiumization, and ongoing cost optimization. As reported by ICICI Securities, price hikes, richer mix, cost-optimisation efforts and operating leverage are expected to support margins despite inflationary headwinds. The company continues to invest in future growth with the global rollout of Norton motorcycles to further strengthen its premium portfolio. LKP Research notes that EBITDA margin was 12.8% (down 30 bps QoQ, 30 bps up YoY) with gross margin at 27.2% (down 160 bps YoY/down 140 bps QoQ).
Both brokerages have raised their financial estimates significantly, with Emkay Global raising FY27E/28E EPS estimates by approximately 4% on higher volume and ICICI Securities raising FY27–28E EBITDA/PAT by 3–6%. The brokerages model revenue/EBITDA/PAT CAGR of 19%/22%/26% over FY26-29E and expect EBITDA/PAT to grow at 22%/27% CAGR. LKP Research forecasts revenue/EBITDA/PAT CAGR of ~18%/20%/25% over FY26–FY28E. Motilal Oswal's research report dated July 21, 2026, indicates that the company's PAT came in line with estimates at ₹10.2 billion (+32% YoY) despite lower other income, higher depreciation, and a higher tax rate. The recommendations are based on TVS Motor's structural advantages including premiumization-led growth, market share gains across categories, resilient margins, and position as a key beneficiary of India's EV transition.
