TVS Motor's Q2 FY27 EBITDA hit ₹2,219 crore, a 47.2% rise YoY, with a 13% margin—slightly up from 12.7% last year and just shy of the ₹13.2% consensus. Revenue climbed to ₹17,103 crore, up 43.7% YoY and topping the ₹16,790 crore estimate.
Net profit grew 52.3% YoY to ₹1,377 crore, nudging above the ₹1,370 crore estimate. The company also flagged that raw‑material costs hit an all‑time high, tightening margins.
CLSA keeps an ‘Outperform’ rating with a ₹4,896 target, while Nomura’s ‘Buy’ calls a ₹4,605 target. The brokerage sees the planned FY28 demerger of the finance arm as a catalyst to unlock value and reduce capital needs.
Management projects domestic and export markets to sustain single‑digit growth in H2 FY27, backed by an 80,000‑unit EV capacity push and strong semi‑urban demand. Yet the end of the production‑linked incentive may compress EV margins.
The shares finished 4% below the day's high, yet remain 12% up YTD. Analysts expect the demerger to drive a 20% CAGR in EPS through FY27‑29, but caution that hefty capex could pressure free cash flow if growth stalls.