TVS Motor share price could see a 28% upside as brokerages maintain ‘Buy’ ratings. The company posted its highest ever revenue growth in Q2FY27, up 44% to Rs 17,103 crore. Strong demand in India and export markets helped profit jump 52% to Rs 1,377 crore, despite rising commodity costs.

Global investment bank Jefferies, Japanese brokerage Nomura, and domestic brokerage Motilal Oswal maintained their ‘Buy’ ratings on the stock, projecting up to 28% upside.

TVS Motor Q2 earnings

TVS Motor posted its highest ever revenue growth in Q2FY27, up 44% to Rs 17,103 crore from Rs 11,905 crore revenue growth recorded in the same quarter last fiscal. The company’s profit after tax jumped 52% to Rs 1,377 crore in Q2FY27 from Rs 904 crore in Q2FY26.

The company reported its highest-ever quarterly earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs 2,219 crore, marking a 47% increase from Rs 1,507 crore in the year-ago period.

Jefferies on TVS Motor: Two-wheeler demand firm in India, export markets

The global investment bank retained its ‘Buy’ call on the stock, and has a target price of Rs 5,425 apiece. This implies an upside of 28% from the stock’s current price of Rs 4,222.70.

Demand momentum for two-wheelers remains strong in both India and export markets and Jefferies prefers TVS’ improving franchise and strong margin delivery amid rising commodity costs.

Jefferies expects the company’s total volumes to grow 19% in FY27 and at 11% on a compounded annual growth rate (CAGR) basis over FY27 to FY29. “Despite high base, registrations rose 16% in first 14 days of festive (11-Oct to 24-Oct). We assume 2W industry to grow 10% in FY27 and at 8% CAGR over FY27-29. TVS’s exports remain strong, too, up 35% YoY in 2Q,” it said.

TVS Motor expects pressures from high commodity costs to persist, albeit at a lower intensity than in the first half of FY27. Jefferies projects EBITDA margin of 13.3-14.2% over the second half of FY27 to FY29. The company has already taken some price hikes in Q3, although rupee has also slightly strengthened of late, which could pose some drag on export profitability, it added.

Motilal Oswal on TVS Motor: Above industry growth in 2-wheelers

The domestic brokerage retained its ‘Buy’ rating on TVS Motor and has a target price of Rs 5,200, implying an upside of 23% from the current price.

Motilal Oswal has raised its earnings estimates for FY27 and FY28 by 11% and 10%, respectively, mainly due to strong margins in the September quarter, higher-than-expected realisations, and strong growth outlook in both domestic and export markets.

“We expect this outperformance to continue, given its healthy new launch pipeline, which in turn is likely to help sustain its premium valuations,” the brokerage said.

TVS Motor is expected to sustain above-industry level growth in domestic two-wheelers. This will be supported by market share gains, premiumisation, and “scooterisation”, despite industry growth moderating to single digits in the second half of FY27.

Export volumes will be supported by improving product availability, new market entries, product launches, dealer-network expansion, and increasing penetration of electric two- and three-wheelers.

Nomura on TVS Motor: EV demand to drive sales, market share

Japanese brokerage Nomura has also maintained its ‘Buy’ call on TVS Motor and raised the target price slightly to Rs 4,605. This implies an upside of 9% from the current price.

Nomura expects strong growth momentum across segments, led by robust EV demand and exports. These should drive revenue growth and improvement in market share. The brokerage has raised its revenue growth outlook for TVS by 6% across FY27 to FY29, led by higher average selling prices.

Nomura highlighted lower EV margins than ICE after the PLI scheme will end in FY28 as a key risk to its outlook. Other risks include large investments and capital expenditure straining free cash flows if growth is not commensurate.

TVS Motor: The way forward

Most brokerages remain positive on TVS Motor, highlighting growing demand in both domestic and export markets as key growth drivers. The company is also expected to sustain above-industry level growth in domestic two-wheelers. Pressure from high commodity costs are likely to persist, albeit at a lower intensity. However, the PLI scheme ending in FY28 is seen as a key risk to the outlook.