The two- and three-wheeler maker’s ₹1,174 crore quarterly profit and 12.8% EBITDA margin reflect strong demand, premiumisation, and disciplined cost management.
TVS Motor Company reported a strong performance for the first quarter of fiscal 2027, with net profit rising 51% year-on-year to ₹1,174 crore. Revenue increased 38% to ₹13,896 crore during the quarter.
The company’s earnings were supported by strong sales, favourable currency movements, an improved product mix, and tight cost control, according to analysts.
TVS Motor shares gained following the results. At 9:18 AM on Wednesday, the stock was trading 2.66% higher at ₹3,892 per share on the NSE, while the Nifty 50 was down 0.44% at 24,091.70. The stock touched an intraday high of ₹3,913, gaining 3.21%.
TVS Motor posted its highest-ever standalone quarterly profit of ₹1,174 crore in Q1FY27, compared with ₹776 crore in the same quarter last year. The company also reported record EBITDA of ₹1,779 crore, up 41% year-on-year. EBITDA margin improved to 12.8% from 12.5% a year earlier.
Revenue rose 38% to ₹13,896 crore from ₹10,081 crore in Q1FY26, supported by the company’s highest-ever quarterly sales. Total two- and three-wheeler volumes increased 28% year-on-year to 1.63 million units from 1.28 million units in the year-ago quarter.
Motilal Oswal Financial Services said TVS Motor’s Q1FY27 EBITDA was 8% above its estimate, with the impact of higher input costs offset by a stronger product mix, favourable currency movements, and effective cost control. While lower other income, higher depreciation, and an increased tax rate affected profitability, net profit was broadly in line with the brokerage’s expectations.
Following the quarterly performance, Motilal Oswal raised its earnings per share estimates for FY27 and FY28 by 8% and 5%, respectively. The brokerage maintained a ‘Buy’ rating on the stock with a target price of ₹4,470.
Nirmal Bang said growth was broad-based across domestic and international markets. Motorcycle volumes grew 19% year-on-year, scooter volumes rose 36%, and three-wheeler volumes increased 48%.
The brokerage expects TVS Motor to continue outperforming the broader industry, supported by premiumisation, exports, and its electric vehicle business. It expects the company to deliver a 12% compound annual growth rate in volumes between FY26 and FY28. However, it warned that rising commodity prices, geopolitical uncertainty, and supply-chain disruptions could put pressure on margins. Nirmal Bang maintained a ‘Hold’ rating with a target price of ₹4,265.
