Brokerage firm Emkay Global has increased the price target for TVS Motor Company to Rs 5,600, citing strong sales volume and rising electric vehicle market share. The company recently reported a 44% year-on-year revenue growth for the second quarter of fiscal year 2027, driven by higher demand and premium product sales. Investors are monitoring the firm’s ability to maintain profit margins amid fluctuating raw material costs.
Emkay Global Financial has increased its price target for TVS Motor Company to Rs 5,600, following the company’s strong results for the second quarter of fiscal year 2027. The brokerage maintains a positive stance on the stock, pointing to a combination of high sales growth and the company's expansion in the electric vehicle (EV) market.
Growth Driven by Volumes and EVs
During the second quarter, TVS Motor reported a 44% revenue increase compared to the same period last year. This growth was fueled by a 28% rise in total sales volume. Additionally, the company saw a 5% sequential increase in average selling prices, suggesting that customers are continuing to buy higher-value, premium models. The company also strengthened its market position, capturing a 21.1% share of the domestic two-wheeler market, a gain of 110 basis points over the previous quarter.
The electric vehicle segment remains a central part of the company's growth strategy. As industry data shows EV penetration reaching approximately 11.6% in September 2026, TVS Motor is leveraging its existing product lineup to capture this rising demand. Success in this segment is vital, as the company competes with both traditional manufacturers and new EV-focused players for market share.
Margin Sustainability and Future Outlook
Despite the positive performance, the company faces the challenge of managing input costs. Material costs increased by roughly 1.9% sequentially during the second quarter. However, management was able to maintain an operating profit margin (EBITDA margin) of 13% by using a mix of cost-reduction initiatives and strategic pricing. The company expects raw material costs to remain stable through the third quarter, with the possibility of some relief by the fourth quarter of the fiscal year.
Investors should keep in mind that the broader economic environment poses risks. Fluctuations in interest rates and fuel prices can affect consumer demand for two-wheelers. Furthermore, while the company has managed margins effectively so far, it must continue to balance cost control with intense competition, particularly in the EV space where prices can be aggressive.
The long-term performance will depend on the company's ability to drive growth through premiumization—the shift toward selling more expensive, higher-margin products—and its execution in the electric mobility sector. Investors may want to track upcoming updates on margin stability, the company's ability to control raw material expenses, and the actual rate of electric vehicle adoption in the coming months.