TVS Motor Company (TVSL IN) – Q2FY27 Result Update – Another Quarter of Outperformance – ACCUMULATE
Published on 29 Oct 2026
TVSL reported strong Q2 numbers as the management aims to outperform industry in both domestic and export markets and mitigate RM inflation through cost reduction, pricing, optimization initiatives, mix, and operating leverage. It sees the scooter segment growing faster than overall 2W industry and EV penetration to further inch up. It expects to gain share in international business which should grow well in FY27. TVSL continues to invest in the brand, products, capacity enhancements and new technologies. Prudent cost reduction measures and calibrated price hikes should help mitigate the RM cost inflation amid geopolitical uncertainties and supply chain disruptions. We estimate volume/realization CAGR of 10.4%/6.0% over FY26-29E translating to revenue/EBITDA/APAT CAGR of 17.0%/18.9%/21.4%. Retain ‘ACCUMULATE’ rating with TP of INR4,650 (previous INR4,500), valuing the stock at 35x P/E based on Sep’28E standalone EPS, and INR101 for TVS Credit Services Ltd.
