TVS Motor Company (TVSL IN) – Q1FY27 Result Update – Strong Quarter with Prudent Cost Mitigation – Accumulate
Published on 22 Jul 2026
TVSL reported strong Q1 numbers beating estimates. The management aims to outperform industry in both domestic and export markets with planned launches in Oct-Nov’26. It sees the scooter segment grow faster than overall 2W industry and EV penetration to further inch up, with overall international business growing strongly in FY27. TVSL will continue to invest behind brand, products and technology filling up white spaces, and keep outperforming the industry. 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 12.2%/5.9% over FY26-28E translating to revenue/EBITDA/APAT CAGR of 18.8%/20.6%/23.7%. Retain ‘ACCUMULATE’ rating with TP of INR4,200 (previously INR4,100), valuing the stock at 35x P/E based on FY28E EPS, and INR93 for TVS Credit Services Ltd.
