TVS Motor Company is expected to report strong revenue and profit growth in the second quarter, supported by higher vehicle sales, export demand, price increases and a favourable product mix.
Brokerage estimates indicate that revenue could rise 35-40% year on year to around Rs 16,000-16,650 crore. EBITDA is estimated at roughly Rs 2,100-2,185 crore, while profit after tax could increase 40-50% to around Rs 1,310-1,370 crore.
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TVS Motor sold around 19.19 lakh vehicles in Q2FY27, marking growth of 27.3% year on year. Two-wheeler sales rose 27% to around 18.4 lakh units, while three-wheeler sales increased 47% to 78,475 units.
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The increase in vehicle sales is expected to support double-digit revenue growth across brokerages. Most brokerage estimates put EBITDA margins at around 12.8-13.3%, compared with approximately 12.7% in the year-earlier quarter. Steel, aluminium, rubber and other material costs remain important risks. Higher freight and other operating expenses could also offset some of the gains from increased volumes and better realisations.
Brokerage-Wise Estimates
Jefferies
Jefferies expects strong earnings growth at TVS, with pre-exceptional profit before tax projected to rise about 45% year on year. Its broader sector view favours two-wheeler manufacturers, which are expected to translate volume growth into earnings more effectively than passenger-vehicle makers.
JP Morgan
JP Morgan expects TVS to report robust growth, with its revenue estimate around 5% above consensus, EBITDA around 6% above consensus and PAT around 7% above consensus. Its broader sector analysis points to better earnings resilience among two-wheeler manufacturers despite commodity inflation.
Citi Research
Citi expects strong volume growth to help offset the impact of higher commodity costs. While gross margins could face sequential pressure, the brokerage expects operating leverage to help keep the EBITDA margin broadly stable quarter on quarter.
BofA Global Research
BofA expects two-wheeler manufacturers to remain relatively better placed to manage commodity inflation. Its sector outlook highlights the role of price increases, better mix, operating leverage and currency benefits from exports in supporting profitability.
Investec
Investec expects TVS to continue outperforming several two-wheeler peers on volume growth and earnings. Its sector assessment highlights strong dispatches across two-wheelers and commercial vehicles, with input-cost inflation remaining a risk. The brokerage's broader view is that companies with stronger pricing, product mix and operating leverage should be better positioned to absorb cost increases.
IIFL Capital
IIFL expects two-wheeler volumes to rise 27% year on year and 18% sequentially. Higher average selling prices, price increases and export realisations are expected to support revenue. The brokerage also expects a sequential margin improvement, supported by operating leverage and a favourable product mix, although input costs remain a headwind.
ICICI Securities
ICICI Securities expects TVS to benefit from strong volume growth and improved operating leverage. Price hikes, product mix and currency movements are likely to support margins, partly offsetting the impact of higher commodity costs.
JM Financial
JM Financial expects TVS to be among the better-performing two-wheeler manufacturers, supported by robust demand and operating leverage. It sees price increases and a favourable product mix helping the company manage input-cost pressures.
Nirmal Bang
Nirmal Bang expects TVS Motor's standalone revenue to grow around 38% year on year, supported by approximately 27% volume growth, price increases and favourable currency movements. It expects EBITDA growth of around 33% and PAT growth of about 38%. The brokerage is relatively cautious on margins, flagging commodity-cost inflation as a headwind. It will also monitor the sustainability of demand, export momentum and the impact of new launches.
Elara Securities
Elara expects strong revenue growth, supported by volume expansion, pricing and a favourable product mix. Its estimates point to adjusted profit growth of more than 50%, while the brokerage's broader sector commentary highlights elevated commodity costs and the importance of pricing and operating leverage in supporting margins.
Key Monitorables
How much of the rise in raw-material costs can TVS absorb through pricing, operating leverage and a better product mix? Investors will also watch whether the momentum in two-wheeler sales continues after the festive season and whether stronger volumes translate into sustained retail demand.
International business sales grew 35% in Q2FY27. The sustainability of export demand, realisations and currency benefits will be important for both revenue and margins.
TVS's electric-vehicle sales are another key monitorable. Investors will look for updates on demand, product mix, profitability and the competitive environment in the electric two-wheeler market. A growing contribution from premium motorcycles and scooters could support average realisations.
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