TVS Motors Q4 Results Review: Analysts Split Despite Strong Results, EV Momentum

TVS Motor Co. delivered a strong performance in fourth quarter of fiscal 2025, surpassing expectations with robust average selling prices and substantial benefits from the Production Linked Incentive scheme. However, Citi and Macquarie have presented sharply contrasting views on the stock.

TVS Motor clocked its highest quarterly profit in at least a decade as electric vehicle sales boosted earnings. Standalone net profit of the iQube maker rose 75.74% over the year-ago period to Rs 853.12 crore in the three months ended March 31, on the back of revenue that increased 16.91% to Rs 9,550.44 crore, according to an exchange filing on Monday.

Citi has maintained its 'sell' rating on TVS Motor, although it raised its target price to Rs 2,050 from Rs 1,800. The brokerage acknowledged the company's strong quarterly results, driven by favourable industry conditions, tax reforms, and PLI benefits.

Citi remains cautious, noting that when adjusted for PLI, margin growth appears modest. The brokerage warned that the competitive landscape remains tough and sustaining high margins without continued PLI support could be challenging. Nonetheless, Citi expects TVS’ market share to improve in the near term, driven by new model launches, particularly in the electric three-wheeler segment.

On the other hand, Macquarie remained firmly bullish, retaining its 'outperform' rating with a significantly higher target price of Rs 3,045. It named TVS its top pick in the two-wheeler segment.

Macquarie highlighted strong positioning for both growth and margin expansion, citing the company's efforts to strengthen electric vehicle sales through improved distribution and product launches. It also expects a strong recovery in exports, particularly in Africa and Latin America, alongside steady growth in domestic demand.

According to Macquarie, TVS' strategic investments in product development and the expected ramp-up of EV contributions to revenues will support long-term growth.

While both brokerages agree on the positive industry outlook, fuelled by rural recovery, improved infrastructure activity, and upcoming marriage season demand, they differ on margin sustainability. TVS is well placed to continue its growth momentum, according to Macquarie. Whereas, Citi remains cautious about challenges once incentive benefits reduce.