Target: ₹4,780CMP: ₹4,360TVS Motor (TVS) is one of the largest two-wheeler manufacturers in India, with a domestic market share of about 19.6 per cent in FY26.Q1FY27 revenue rose 38 per cent year-on-year to ₹13,896 crore led by 28 per cent volume growth. EBITDA grew 41 per cent to ₹1,779 crore and PAT rose 51 per cent to ₹1,174 crore, including a fair valuation gain of ₹150 crore against ₹28 crore last year. Gross margin contracted about 160 bps to 27.2 per cent as commodity inflation outpaced the price hike and richer product mix. EBITDA margin still rose 28 bps to 12.8 per cent, supported by operating leverage and cost optimisation.EV 2W sales jumped 86 per cent to 1.30 lakh units with revenue of about ₹1,780 crore. Exports hit a record 4.68 lakh units, up 33 per cent, with international business revenue of ₹3,634 crore. Three-wheeler sales grew 48 per cent to 66,697 units.The demand outlook remains healthy, supported by GST rationalisation, income-tax relief and improving affordability, though monsoon progression and inflation need watching. The management expects Q2 momentum to match or slightly exceed Q1 across domestic and export markets. Calibrated pricing, product and geography mix, scale and cost reduction should support the EBITDA journey. We value TVS’ standalone business at 37x FY28E EPS (₹4,525/share) and TVS Credit Services at ₹255 (2x P/BV with 15 per cent holding dis.) to arrive at a target price of ₹4,780 and maintain Buy rating.Published on August 4, 2026