Strong growth outlook across segments: Success in premium, EVs and exports to drive strong growth; margin tailwinds from forex and operating leverage

研报英文原文证据摘录

Strong growth outlook across segments: Success in premium, EVs and exports to drive strong growth; margin tailwinds from forex and operating leverage

Global Markets Research

TVS Motor TVSM.NS TVSL IN 22 July 2026

EQUITY: AUTOS & AUTO PARTS

RatingStrong growth outlook across segments Remains Buy

Target priceSuccess in premium, EVs and exports to drive strong Increased from INR 4,594growth; margin tailwinds from forex and operating leverage INR 4,105

1QFY27: EBITDA margin slightly higher at 12.8% Closing21 July 2026price INR 3,792

• 1QFY27 revenue was up 38% y-y, with EBITDA margin at 12.8% (Nomura estimate:

Implied upside 12.5%, Bloomberg consensus: 12.2%). ASP was in line with our estimate at INR85k. +21.1%

EBITDA came in at INR17.8bn, +41% y-y (our estimate: INR17.3 bn, consensus: INR

Market Cap (USD mn) 18,716.2

16.5bn). Adjusted PAT was INR11.7bn, +51% y-y. Consolidated PAT at INR10.1bn was ADT (USD mn) 44.1

INR1.5bn lower than standalone PAT. TVS invested INR6bn in TVS Singapore (unlisted).

• Management commentary – Domestic 2W: expects double-digit industry growth in Relative performance chart

2QFY27E and to continue outperforming peers. Exports: demand is very strong, and the

entry into LatAm will drive further growth. Supply challenges are behind. Inventory:

target is 25-30 days. New launches: four models under Norton targeting various segments

will be launched in FY27E. Production has begun in Hosur, where it has invested INR25bn in

Norton till date. Costs: there can be some more increase in commodity prices in 2Q. Price

hikes were 1.5% in 1Q and 0.5% in 2Q. PLI was 0.7%. Margin levers are pricing, ASP, cost

reduction, and operating leverage. Capacity increase to 8.3mn (from 6.8mn) for 2Ws and

0.42mn (from 0.35mn) units for 3Ws planned by FY27E-end.