The company’s revenue from operations stood at Rs 14,756 crore in Q3FY26, up 34% from Rs 11,034 crore reported in the corresponding period of the previous financial year. The company posted its highest-ever quarterly sales, revenue and profits.
Overall two-wheeler and three-wheeler sales, including international business, grew 27% YoY to a record 15.44 lakh units in the quarter ended December 2025, compared with 12.12 lakh units in the year-ago period.
Motorcycle sales rose 31% to 7.26 lakh units in Q3FY26 from 5.56 lakh units in Q3FY25. Scooter sales increased 25% to 6.14 lakh units, compared with 4.93 lakh units in the corresponding quarter last year.
International two-wheeler sales grew 35% to 3.66 lakh units in Q3FY26, up from 2.72 lakh units in Q3FY25.
What should investors do?
Nomura has reiterated its Buy call on TVS Motor and raised its target price to Rs 4,159 from Rs 3,970, an upside potential of 11% from current levels. This is backed by a strong growth outlook. The brokerage expects the two-wheeler industry to grow at around 8% YoY in FY26–27, with TVS significantly outperforming at 19% in FY26 and 9% in FY27, driven by a rising scooter mix and multiple new launches. Exports are projected to grow sharply at 33% in FY26 and 10% in FY27, while the successful rollout of EV two- and three-wheelers, along with premium Norton motorcycles, could provide additional upside. Nomura has raised its volume estimates by 4–5% for FY26–28 and now expects EBITDA margins of 13% in FY26, 13.8% in FY27, and 14.7% in FY28, factoring in some commodity cost pressure. Overall EPS estimates have been upgraded by 2–4%, with FY27–28 EPS seen 5–11% above consensus, supported by operating leverage, a weaker INR, and TVS’s scale approaching that of larger peers such as Hero MotoCorp and Bajaj Auto.
Choice Institutional Equities has turned more constructive on TVS Motor, upgrading the stock from ‘Reduce’ to ‘Add’ and setting a target price of Rs 3,920. The brokerage highlights TVS’s consistent outperformance versus the industry, with Q3FY26 volumes up 28% YoY, driven by strong demand across domestic and international markets, ICE and EV segments. Domestic 2W ICE volumes rose 24% YoY, well ahead of industry growth of 16%, reflecting strong brand traction, a favourable product mix, and resilient rural and urban demand. International 2W ICE volumes grew 35% YoY, supported by healthy momentum in key export markets, while EV 2W volumes surged 41% YoY to 105,357 units, led by the continued success of the iQube platform.
Choice believes this sustained momentum underscores TVS’s superior execution and diversified business model, with further upside from premiumisation, EV scale-up, export recovery, and a strong product pipeline.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)