Strong print: Margin resilience & growth acceleration drives EPS upgrade

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Strong print: Margin resilience & growth acceleration drives EPS upgrade

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TVS Motors

Strong print: Margin resilience & growth

acceleration drives EPS upgrade

Reiterate Rating: NEUTRAL | PO: 4,200 INR | Price: 3,792 INR

Margin beat & bullish growth outlook drives EPS upgrade 22 July 2026

TVS’s Q1 EBITDA margin at 12.8%, down 30bps Q/Q was ahead of our 12% estimate & Equity

street expectations. This is a strong outcome amid steep cost headwinds from metal

inflation (+3.5pp hit) & management noted that majority of the cost pressure reflected

Key Changesin Q1. Overall, it is impressive that TVS & likely most of the 2W OEMs have navigated

severe cost push with limited hit via disciplined price action (1.5-2%), favorable mix/ (Rs) Previous Current

currency & operating leverage. Overall good margin delivery, strong export momentum Price Obj. 3,920.00 4,200.00

(>30% in Q1) & guidance of double digit 2W industry growth for F27 drives earnings

upgrades of 5-7% for F27-28E. We raise PO factoring revised estimates & roll over by Gunjan Prithyani >>

Research Analyst

3M. PO Rs4200 (vs. Rs3920), still based on 32x. Expect stock to continue to react BofAS India

positively despite today’s upmove. However, we reiterate our Neutral rating given +91gunjan.prithyani@bofa.com22 6632 8246

valuations at 30x F28E PE (Adj for captive fin co) will likely cap meaningful upside. Eshan Bhargava >>

Growth firing across domestic, exports & EVs ResearchBofAS IndiaAnalyst

Beyond the print, the key takeaway from the call was bullish growth commentary across +91eshan.bhargava@bofa.com22 6632 3004

domestic 2Ws, exports & EVs. Co expects 20% y/y growth seen in Q1 in domestic 2Ws

to sustain or potentially even get tad better in Q2. This underpins F27 guide of double