Shares of TVS Motor Company may remain in focus after Nuvama Institutional Equities raised its target price by ₹200 to ₹3,400, citing better-than-expected Q1 earnings and an improving outlook across both domestic and export markets.
In its latest update, Nuvama retained a ‘Buy’ rating on the stock and highlighted robust earnings growth potential led by rising market share, margin expansion, and a positive volume outlook.
Q1 performance beats estimates on profitability
For the quarter ended June 2025 (Q1FY26), TVS Motor reported a 20% year-on-year increase in revenue to ₹10,080 crore, which was broadly in line with Nuvama’s expectations. However, EBITDA jumped 32% YoY to ₹1,260 crore, beating estimates, largely due to lower other expenses.
Growth momentum across markets
According to the brokerage, the two-wheeler maker is witnessing strong traction in both domestic and export markets. Nuvama believes TVS Motor is steadily gaining market share, with its domestic share likely to rise from 18% in FY25 to 19% by FY28.
The brokerage also expects margin expansion going forward, aided by better product mix, benefits from the government’s PLI scheme, and internal cost savings initiatives.
Earnings forecast and valuation
Nuvama forecasts a revenue CAGR of 14% and EPS CAGR of 20% over FY25–28E, supported by scale and profitability improvements. The target price of ₹3,400 is based on 35x Sep-27E EPS, up from the earlier base of Mar-27E, and includes a valuation of ₹148/share for TVS Credit.
