TVS Motor and Bajaj Auto reported strong Q1 FY27 results, fueled by higher exports and premium motorcycle sales. Both manufacturers saw significant profit growth despite inflationary pressures, as their electric vehicle segments gained momentum. Investors are tracking how these companies manage capacity expansion and potential demand risks from monsoon trends.
Detailed Coverage
Indian two-wheeler giants TVS Motor Company and Bajaj Auto have reported robust financial performances for the first quarter of the 2026-27 fiscal year. Both companies capitalized on a recovery in export markets and increasing consumer demand for electric vehicles and premium motorcycles, marking a positive start to the year for the two-wheeler sector.
TVS Motor Financial Performance
TVS Motor recorded a standalone revenue of ₹13,896 crore for the quarter, representing a 37.8% increase compared to the same period last year. The company saw a 27.7% growth in total volumes, supported by an 8% rise in the average selling price per unit. A key highlight was the net profit, which jumped by 51.4% year-on-year. The scooter segment, encompassing both traditional engines and electric models, now contributes 40% of the company's total sales volume. Additionally, TVS reported that cumulative sales of its iQube electric scooter have crossed the one-million-unit milestone.
Bajaj Auto Growth and Margins
Bajaj Auto reported a 37% year-on-year rise in revenue for the quarter. The company’s EBITDA, a measure of operating profit, grew by 45%, helping its operating margin expand by 45 basis points despite rising commodity costs. Net profit reached ₹3,000 crore, bolstered by healthy other income. Bajaj Auto’s EV division, centered on the Chetak electric scooter, has reached profitability, achieving low double-digit EBITDA margins. The company is now preparing for a busy pipeline, with 10 product launches scheduled before September.
Export Momentum and Sector Outlook
Exports played a critical role for both manufacturers as they navigated challenges in domestic demand. TVS Motor saw a 32% growth in exports, with markets in Africa and Latin America contributing 26% to its total revenue. Similarly, Bajaj Auto shipped 732,000 units and expects mid-teen export growth over the next two years. Both companies are currently investing in significant capacity expansion to support this demand, with TVS planning major increases in its two-wheeler and three-wheeler production by the fourth quarter of FY27, while Bajaj Auto is increasing capacity by 25% across its business units.
While the Q1 performance was strong, the companies face several monitorable risks. Management teams have highlighted concerns regarding potential supply chain disruptions and geopolitical instability, which could affect export volumes. Furthermore, domestic sales depend heavily on rural demand, which could be impacted by an uneven monsoon. Inflationary pressures also remain a factor, as any sustained rise in raw material costs may force companies to pass on expenses to consumers through price hikes, which could influence future sales volume and profit margins.