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TVS Motors reported healthy performance in Q1FY27

ICICIdirect Research 22 Jul 2026 DISCLAIMER

News: TVS Motors reported healthy performance in Q1FY27 with a ~28% YoY growth in total sales volume, at 16.3 lakh units. Net sales for the quarter came in at ₹ 13,896 crore, up ~38% YoY. ASPs for the quarter came in at ₹ 85.2k/unit (up 3.8% QoQ). The operational EBITDA for the quarter came in at ₹1,779 crore with margins at 12.8% (down ~30bps QoQ). PAT in Q1FY27 stood at ₹1,174 crores (up ~51% YoY) supported by higher other income.

View: Management's commentary remained highly constructive despite a challenging cost environment. The company delivered record revenue, EBITDA and PAT while absorbing nearly 3.5% raw material inflation in Q1, driven by higher steel, aluminium and oil-linked input costs following geopolitical disruptions. Another ~0.5% cost increase is expected in Q2, but management believes this will be largely mitigated through calibrated price hikes, richer product mix, operating leverage and continued cost-reduction initiatives, supporting a gradual improvement in margins. At the same time, TVS expects domestic demand, exports and EV adoption to remain robust, with Q2 likely to be as strong as or stronger than Q1. Capacity expansion, continued market share gains, strong export momentum and the upcoming global launch of Norton motorcycles reinforce management's confidence that FY27 will be a year of above-industry growth and sustained earnings expansion despite near-term commodity headwinds. The stock reacted positively to the quarterly results in yesterday’s trading and now trades at 45x P/E and ~27x EV/EBITDA on TTM basis.

Impact: Neutral

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