TVS Motor Company (TVSL IN) – Q3FY26 Result Update – Continues to outperform the industry – Accumulate
Published on 30 Jan 2026
TVSL reported its highest-ever quarterly revenue and EBITDA margin, both beating estimates, aided by the recognition of PLI, demand improvement led by low inflation, improved product mix, price increases and cost reduction. The management expects domestic 2W industry to clock 8-9% CAGR in the long term driven by infra development, improved connectivity, and persistent mobility needs, and we believe TVSL is well positioned to outperform the industry. We estimate volume/realization CAGR of 12.7%/3.9% over FY25-28E translating to revenue/EBITDA/EPS CAGR of 17.1%/20.8%/22.5%. Retain ‘ACCUMULATE’ with TP of Rs4,200 (previously Rs4,360), valuing the stock at 42x P/E based on Sep’27 EPS, and Rs80 for TVS Credit Services Ltd.
