TVS Motor stock gains analyst support after strong Q2 results

TVS Motor's strong second quarter has prompted Motilal Oswal to raise its earnings estimates for fiscal 2027 and fiscal 2028. In a report published on October 29, 2026, NDTV Profit said the brokerage had lifted its estimates by 11 percent for FY27 and 10 percent for FY28 after the company's Q2 performance.

Revenue increased 43.7 percent year over year to about INR 17,100 crore, according to the report. EBITDA rose 47 percent to about INR 2,220 crore, with a 13 percent margin supported by product mix, currency effects and cost controls. Net profit increased 52 percent to about INR 1,380 crore, while higher input costs pushed gross margin down to 37 percent.

EV capacity moves higher

TVS Motor is also preparing to expand its electric two-wheeler capacity. Business Standard reported on October 29 that monthly capacity is planned to rise to 80,000 units by March 2027 from roughly 60,000 to 65,000 units. Electric two-wheeler sales more than doubled in Q2 to 186,186 units, while domestic EV sales rose 129 percent, ahead of industry growth of 84 percent.

The expansion places TVS Motor in direct competition with Bajaj Auto and Ather Energy, which are also adding electric scooter capacity. Motilal Oswal reiterated its Buy rating and set a target price of INR 5,200, but the broker also noted that the stock's premium valuation depends on sustained launches, volume growth and margin execution.

Company and competitive position

TVS Motor manufactures two-wheelers, including electric scooters, for the Indian market and is headquartered in Chennai, India, according to the company's investor information. The company holds a leading position in India's electric two-wheeler segment. Bajaj Auto and Ather Energy are named as key competitors in that market, with Bajaj operating a broad vehicle portfolio and Ather focused on electric scooters.