TVS Motor Company shares fell 2% despite the firm reporting strong Q4 FY25 results. The company posted a 75% year-on-year (YoY) jump in net profit to ₹852.12 crore, up from ₹485.43 crore in Q4 FY24. Revenue from operations rose 17% YoY to ₹9,550 crore, compared to ₹8,169 crore in the same quarter last year.
Total income reached ₹9,564.94 crore, while profit before tax grew 65% YoY to ₹1,111.98 crore. Operating EBITDA touched a record ₹1,333 crore, with EBITDA margin at 14% (12.5% excluding PLI scheme benefits), compared to 11.3% a year ago.
On the operational front, TVS saw a 14% rise in total two-wheeler and three-wheeler sales, reaching 12.16 lakh units. Motorcycle sales increased by 10%, scooters surged 27%, and EV sales jumped 54% to 0.76 lakh units. Three-wheeler sales also grew 21% YoY.
For the full fiscal year FY25, TVS Motor recorded ₹36,251 crore in revenue, up 14% from FY24. Annual net profit climbed 30% to ₹2,710.54 crore, with total sales volumes at 47.44 lakh units, reflecting strong demand across all segments.
Nuvama Institutional Equities View
Nuvama Institutional Equities has reaffirmed its ‘Buy’ rating on TVS Motors, boosting the target price from ₹3100 to ₹3200 — a potential 15.1% upside from the current market price of ₹2778.20.
The brokerage highlighted strong momentum from the PLI (Production-Linked Incentive) scheme, which helped drive a 15% YoY revenue growth to ₹94 billion in the latest quarter. Nuvama noted TVS’s expanding market share both domestically and internationally, with further growth expected.
Key growth drivers include margin expansion from improved scale, better product mix, enhanced PLI benefits, and cost-saving strategies. The brokerage also raised its FY26–27 EPS estimates by 3%, citing stronger revenue and margin assumptions.
Nuvama projects a 12% revenue CAGR and a 24% EPS CAGR for TVS Motors between FY25–27, underlining its bullish outlook.
Citi View
Citi has kept its ‘sell’ rating on TVS Motor Company, even after the company posted strong Q4 results. While raising the target price to ₹2,050 from ₹1,800, Citi’s new target reflects a potential downside of around 26.2% from the current market price of ₹2,778.20. The brokerage highlighted that TVS Motor’s positive quarterly performance was driven by healthy average selling prices (ASPs) and benefits from the Production Linked Incentive (PLI) scheme. Despite the good results and a positive industry outlook, Citi remains cautious, citing valuation concerns.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
