TVS Motor: Priced for the next legs of execution?

Research evidence excerpt

TVS Motor: Priced for the next legs of execution?

Venugopal Garre +65 6326 7643 venugopal.garre@bernsteinsg.com 22 July 2026

DETAILS

HIGHLIGHTS FROM THE Q1 FY27 EARNINGS CALL

Headline numbers: growth broadening across every engine

Total volumes grew 28% YoY to 1.63 million units, revenue grew 38%, operating EBITDA grew 41%, and PAT grew 51% - the

company's highest-ever first-quarter print on each metric. Domestic ICE 2Ws grew 21% against a 13% industry pace, while

e-2Ws grew 86% and 3Ws grew 48%, indicating gains were not concentrated in any single category but spread across the

portfolio.

International: broadening beyond Africa

International sales hit a record 468K units, up 33% YoY, with growth in Africa remaining the anchor even as LatAm - a market

TVS entered only recently is now growing ahead of industry and Asia continues to perform well.

Norton: the proof point is Q2

Production of Norton's Manx and Atlas models has now started at the Hosur facility, with the Atlas beginning its move into

Europe and commercial launches planned across the UK, France, Italy, Germany, Spain and India, followed by the US later this

year. This remains a binary, long-duration bet - if European reception validates the brand's 125-year heritage, it becomes a high-

optionality asset, but Q2 FY27 is the actual proof point.

TVS Credit: a quietly compounding second engine

TVS Credit's loan book grew 19% YoY to INR320 billion, with disbursements to over 140K new customers taking the cumulative

customer base to nearly 2.6 crore and profit before tax growing 16%. Growth was driven by higher discretionary spending,

premiumisation, and deeper rural and semi-urban penetration - now spanning nearly 62K touchpoints - a franchise increasingly