Earnings Outlook
Volume growth to drive TVS Motor Apr-Jun PAT up 30% YoY
This story was originally published at 14:47 IST on 30 July 2025
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By Narayana Krishna
HYDERABAD - A strong product mix and sustained growth in the electric vehicle segment is expected to help TVS Motor Co. Ltd. post a healthy on-year earnings performance for the June quarter. Outpacing its peers, the Chennai-based two-wheeler maker is likely to deliver robust double-digit growth in net profit, supported by strong volumes, analysts said.
TVS Motor is expected to report a 30% on-year rise in net profit at INR 7.5 billion for the June quarter and revenues are expected to grow 19% on year to INR 99.9 billion, based on the average of the estimates of 10 brokerages. Till the March quarter, the company has consistently reported net profit growth for 12 straight quarters and maintained uninterrupted revenue growth for 19 consecutive quarters. In its pre-earnings note, HDFC Securities said TVS Motor was riding on the back of its successful models and variants, including EVs, and has also been expanding its geographic footprint, a further boost to its June quarter earnings.
TVS Motor has reported a 17% on-year rise in its total volumes for the June quarter at 1.28 million units. The company's exports rose 39% on year to 352,000 units. TVS Motor, which makes two-wheelers and three-wheelers, exports its vehicles to around 80 countries.
Among the earnings projections, InCred Research Services Pvt. Ltd. has the lowest net profit estimate of INR 6.91 billion for TVS Motor and YES Securities (India) Ltd. has the highest at INR 8.02 billion. For revenue, the lowest estimate is INR 98.1 billion by Anand Rathi Share and Stock Brokers Ltd. and the highest is INR 100.9 billion each by InCred and Nirmal Bang Equities. The company is scheduled to announce its June quarter earnings on Thursday.
Both Kotak Institutional Equities and Motilal Oswal expect TVS Motor's June quarter earnings before interest, tax, depreciation, and amortisation margin to expand, supported by operating leverage and a favourable product mix.
Kotak forecasts a 120 basis points year-on-year improvement in the EBITDA margin at 12.7%, aided by the government's production-linked incentive scheme benefits and richer product offerings, though this is expected to be partially offset by commodity cost pressures. Motilal Oswal pegs the margin at 12%, up 80 basis points from a year ago. The average of estimates of eight brokerages available for TVS Motor's Apr-Jun EBITDA is INR 12.3 billion.
Analysts will look for the company's commentary on demand outlook, exports trends, raw material costs, and traction in EV sales going forward.
TVS Motor's stock price has fallen nearly 0.5% since the announcement of its March quarter earnings on Apr. 28. At 1409 IST, the shares were at INR 2,781.10 on the National Stock Exchange, down 0.7% from the previous close.
Of the 19 research reports on the company available with Informist, 12 have a 'buy' or equivalent rating, with an average target price of INR 2,904. Five have a 'hold' rating with a target price of INR 2,832 and two have a 'sell' rating with a target price of INR 2,569 per share.
Following are the Apr-Jun earnings estimates for TVS Motor Co. Ltd. based on reports from 10 brokerage firms in the descending order by the estimate of net profit:
Brokerage firm | Net sales | Net profit | EBITDA |
| --in million rupees-- | ||
YES Securities (India) Ltd | 99,583.00 | 8,016.00 | 12,953.00 |
JM Financial Institutional Securities Pvt Ltd | 1,00,345.00 | 8,014.00 | 12,844.00 |
Nomura Equity Research | 99,718.00 | 7,724.00 | 12,493.00 |
Kotak Institutional Equities | 98,268.00 | 7,565.00 | 12,448.00 |
HDFC Securities Ltd | 1,00,686.00 | 7,448.00 | -- |
Motilal Oswal Financial Services Ltd | 1,00,361.00 | 7,412.00 | 12,043.00 |
Nuvama Wealth Management Ltd | 1,00,407.00 | 7,400.00 | 12,073.00 |
Nirmal Bang Equities Pvt Ltd | 1,00,853.00 | 7,268.00 | 12,102.00 |
Anand Rathi Share and Stock Brokers Ltd | 98,064.00 | 7,156.00 | -- |
InCred Research Services Pvt Ltd | 1,00,853.00 | 6,911.00 | 11,699.00 |
Average | 99,913.80 | 7,491.40 | 12,331.88 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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