TVS Motor: First Take: 1QFY27 - strong beat as company manages to contain commodity inflation

Research evidence excerpt

TVS Motor: First Take: 1QFY27 - strong beat as company manages to contain commodity inflation

J P M O R G A N Asia Pacific Equity Research

21 July 2026

TVS Motor Overweight

TVSM.NS, TVSL IN

First Take: 1QFY27 - strong beat as company manages Price (20 Jul 26):Rs 3,590

to contain commodity inflation Price Target (Mar-27):Rs 4,355

Our First Take: TVS’s 1QFY27 operating results were a beat on our own and

consensus expectations. Revenue came in at Rs139.0bn (+38% YoY, +2% vs.

JPMe), EBITDA at Rs17.8bn (+41% YoY, +14% vs. JPMe and +10% vs BBG

consensus) and EBIT at Rs15.1bn (+43% YoY, +16% vs. JPMe). ASP was 2%

higher and gross profit/vehicle was 8% better than JPMe. Adj PAT at Rs 10.2bn

(+36% YoY) was 9% above JPMe.

India Automobiles, Auto parts,

Airlines and Leisure

Key Positives Amyn Pirani AC

(91-22) 6157-3583

Gross profit/ vehicle declined only 1% QoQ despite commodity headwinds. amyn.pirani@jpmorgan.com

Average realizations (Rs85k; +2% vs. JPMe) improved 8% YoY as EBITDA/

Harshit Mittal

vehicle (10.9k, +14% vs JPMe ) also outperformed our expectations. (91-22) 6157-3152

harshit.mittal@jpmorgan.com

J.P. Morgan India Private Limited, J.P. Morgan

Key Negatives/Question Marks Tower,Registration:Santacruz(E),INH000001873,Mumbai (91-22)- 400098,6157-3000.SEBI

Interest cost grew 87% YoY and was 51% higher vs. our expectations. The

company continued to make investments in subsidiaries and associates and has

made Rs 80.6bn investments in 1QFY27 including Rs 61.3bn in TVS Motor

(Singapore). We will seek clarity on the future trajectory of investments by the

company.

Likely Changes to Consensus

We expect positive revisions to consensus estimates based on the 1QFY27 print.

Management's commentary on the impact of commodity inflation as well as the