The Apache-maker posted a 41.6% year-on-year (YoY) growth in net profit to Rs 833 crore, from Rs 588 crore. Revenue from operations surged 25.5% YoY to Rs 14,051 crore, compared with Rs 11,197 crore in the same period last year.
TVS Motor also reported its highest-ever operating EBITDA of Rs 1,509 crore for Q2FY26, marking a 40% increase from Rs 1,080 crore in the same quarter of FY25. The operating EBITDA margin improved by 100 basis points to 12.7% from 11.7% a year ago.
The company achieved its highest-ever quarterly sales, with total two-wheeler and three-wheeler volumes, including international markets, rising 23% YoY to 15.07 lakh units versus 12.28 lakh units in the same quarter last year.
Should you buy, sell, or hold TVS Motor?
Nomura: Buy | Target Price: Rs 3,970 | Upside: 12%
Nomura remains bullish on TVS Motor, reiterating its Buy rating with a target price of Rs 3,970 — implying a 12% upside from the last NSE close. It expects TVS to outperform the two-wheeler industry, driven by new launches, growing scooter market share, and strong export traction in Latin America, Africa, and Asia. Nomura believes upcoming EV models and the Norton motorcycle portfolio could provide further upside.However, the brokerage trimmed FY26–28F EBITDA margin estimates by 40–50 bps to 12.9%, 14.2%, and 14.9%, respectively, due to lower-than-expected PLI benefits. Despite a 5–6% EPS cut, FY27–28F EPS remains 12–15% above consensus, supported by robust 14% 2H volume growth and continued margin expansion.
Motilal Oswal: Buy (Upgraded from Neutral) | Target Price: Rs 4,159
Motilal Oswal upgraded TVS Motor to Buy from Neutral, citing its strong product pipeline and sustained outperformance. The brokerage raised its FY27 estimates by 5.5%, projecting revenue, EBITDA, and PAT CAGR of 21%, 25%, and 29%, respectively, over FY25–28.
Motilal highlighted consistent market share gains in domestic and export markets and a focus on margin improvement as key drivers. The firm raised its valuation multiple to 36x Sep’26 EPS (from 35x), setting a target price of Rs 4,159. It also noted 32% YoY retail volume growth during the festive season, outperforming the industry’s 24%, led by strong demand and models such as Orbiter, Raider 125, and Ntorq 150.
Citi: Sell | Target Price: Rs 2,750 (Down from Rs 2,800)
Citi maintained a Sell rating on TVS Motor, cutting its target price slightly to Rs 2,750. It noted that EBITDA was marginally below estimates due to higher SG&A costs, while the PAT miss stemmed from lower other income.
Citi expects GST cuts to aid two-wheeler demand, with management guiding for 8% YoY industry growth in H2FY26. While urban demand remains strong and rural recovery is likely post a good monsoon, the brokerage flagged rich valuations and rising competition, prompting a cautious stance.
Shares of TVS Motor closed the previous session at Rs 3,548, down 2.5% on the NSE. The stock has gained nearly 50% year-to-date, outperforming most peers in the two-wheeler space.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)