TVS Motor so close to a new high
TVS Motor is in focus today, rising 4% to Rs. 3,937.75 after the company reported its highest-ever quarterly revenue and profit for Q1 FY27. The stock touched an intraday high of Rs. 3,965, just Rs. 5 short of its 52-week high of Rs. 3,970, as investors reacted to strong volume growth, margin expansion and record profitability.
Trigger
- TVS Motor reported its highest-ever quarterly sales of 1.63 million units in Q1 FY27, up 28% YoY from 1.28 million units.
- Revenue rose 38% YoY to Rs. 13,896 crore from Rs. 10,081 crore.
- EBITDA increased 41% YoY to Rs. 1,779 crore from Rs. 1,260 crore.
- EBITDA margin improved to 12.8% from 12.5%, expanding by 30 bps YoY.
- Profit after tax rose 51% YoY to Rs. 1,174 crore from Rs. 776 crore.
- Motorcycle sales grew 19% YoY to 0.74 million units.
- Scooter sales rose 36% YoY to 0.68 million units.
- International business grew 33% YoY, with sales of 0.47 million units.
- Two-wheeler EV sales jumped 86% YoY to 1,29,940 units from 70,060 units.
- TVS Motor now has more than 1 million EV customers.
- Three-wheeler sales grew 48% YoY to 66,697 units.
The market is reacting to the breadth of TVS Motor’s performance. This was not just a profit beat driven by one segment. Growth was visible across motorcycles, scooters, EVs, exports and three-wheelers, which gives investors confidence that the company’s momentum is broad-based.
The strongest signal is operating leverage. Revenue grew 38%, but EBITDA rose 41% and PAT grew 51%, showing that higher volumes, price adjustments, cost optimisation and scale benefits helped the company protect profitability despite commodity cost pressure. The improvement in EBITDA margin to 12.8% is important because two-wheeler companies are usually vulnerable to raw material inflation.
The stock’s move close to its 52-week high suggests that the Street is willing to assign a premium valuation to TVS Motor’s execution quality. However, valuation does remains a watch point. The stock trades at a premium multiple, with consolidated PE above 50, so the market is already pricing in continued execution. Any slowdown in demand, commodity spike, EV margin pressure or export weakness can lead to volatility.