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TVS Motor Shares In Focus After Q2 Profit Jumps 50 Percent As Brokerages See Upside
TVS Motor reported a 50.2 percent year on year increase in consolidated net profit to Rs 1194.51 crore for Q2 FY27, while revenue from operations rose 38.6 percent to Rs 19474.44 crore. Strong volume growth, improving profitability, electric vehicle sales and export momentum have led brokerages to maintain a positive outlook on the stock.
By Finblage Editorial Desk
4:36 pm
29 October 2026
TVS Motor Company shares remained in focus after the two and three wheeler manufacturer reported a strong performance for the quarter ended September 2026. Consolidated net profit attributable to owners rose 50.2 percent year on year to Rs 1194.51 crore from Rs 795.48 crore in the corresponding quarter last year. Revenue from operations increased 38.6 percent to Rs 19474.44 crore from Rs 14051.22 crore in Q2 FY26.
The company also delivered strong operational growth during the quarter. Total two and three wheeler sales increased 27 percent year on year to around 1.9 million units. Motorcycle sales rose 28 percent, while scooter volumes increased 29 percent. Electric two wheeler sales more than doubled, rising 133 percent to 186186 units, while international sales increased 35 percent to around 539000 units.
Profitability also improved, with EBITDA rising 47 percent year on year to a record Rs 2219 crore. The EBITDA margin improved to around 13 percent, supported by higher volumes, better realisations and operating leverage. TVS Motor's domestic two wheeler market share also reached a 23 year high of around 20 percent, according to brokerage commentary.
Brokerages have generally maintained a positive view following the results, citing market share gains, premiumisation, electric vehicle growth, exports and margin improvement as key drivers. Goldman Sachs retained its Buy rating and raised its target price to Rs 5290, while Jefferies maintained Buy with a target of Rs 5425. Emkay also retained its Buy rating and raised its target to Rs 5600. Macquarie maintained Outperform with a target of Rs 4325, while Kotak Neo retained Add with a target of Rs 4400.
The company's proposed demerger of its consumer finance business has also emerged as a potential value unlocking opportunity. TVS Motor has announced plans to separate the financial services business into a separately listed entity, which brokerages see as an additional potential catalyst for shareholders.
However, the brokerage view is not uniformly positive. Citi maintained its Sell rating despite raising its target price to Rs 3600 from Rs 3500, pointing to valuation concerns. This highlights the key debate around the stock, with strong operating momentum supporting the growth outlook while elevated valuations remain a potential risk.
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