1. At a Glance – Blink and You’ll Miss the Price Tag
TVS Motor Company Ltd is currently trading at ₹3,724, casually flexing a market cap of ₹1.77 lakh crore, as if it’s no big deal. Over the last 3 months, the stock is up ~5%, over 1 year it’s up ~57%, and over 5 years it’s delivered a face-melting ~46% CAGR. Not bad for a company that still sells mopeds while Silicon Valley is busy pitching flying taxis.
The latest quarterly numbers (Q3 FY26) are loud. Revenue came in at ₹14,756 crore (+33.7% YoY) and PAT at ₹891 crore (+55.4% YoY). Margins are holding steady around 15% OPM, ROE is a spicy 28.4%, and ROCE sits at 15.4%. But then comes the buzzkill: P/E of ~68× and P/B of ~21.8×.
So yes, the engine is roaring, but the valuation tachometer is already in the red. The real question: is this Ferrari growth… or a Splendor priced like a Ferrari?
2. Introduction – From Mopeds to Market Darling
TVS Motor is that overachieving kid from school who quietly topped boards while everyone else was busy showing off. Started as a conservative, engineering-driven two-wheeler manufacturer, TVS has now morphed into a premium growth compounder with serious ambitions in EVs, global exports, and financial services.
What makes TVS unique is not just scale but category dominance across motorcycles, scooters, and mopeds. Yes, mopeds still exist, and yes, TVS basically owns that segment in India like a forgotten kingdom. Add to that a strong presence in scooters (Jupiter, Ntorq), aspirational motorcycles (Apache series, Raider), and now EVs (iQube), and you get a portfolio that touches every income bracket.
FY25 closed with ₹52,559 crore in sales and ₹3,064 crore PAT (TTM), translating into 23% sales CAGR and 49% profit growth TTM. That’s not cyclical recovery—that’s execution.
But execution comes with costs. Borrowings have ballooned over the years, financial services exposure has increased, and EV capex is burning cash faster than
petrol bikes burn fuel. TVS today is a high-quality business… priced like perfection.
Is perfection sustainable?
3. Business Model – WTF Do They Even Do?
At its core, TVS does one thing extremely well: sell two-wheelers at scale without embarrassing itself on margins.
Core Segments:
- Motorcycles – Apache series, Raider, Sport, Radeon. This is where brand aspiration lives.
- Scooters – Jupiter, Ntorq, Pep+. Cash cows with volume.
- Mopeds – The forgotten relic, still profitable, still owned by TVS.
- Electric Vehicles – iQube, with aggressive expansion planned in the 5–25kW segment.
- Three-Wheelers – Domestic + exports (Africa, Middle East, South Asia).
- Financial Services – Via TVS Credit, quietly becoming meaningful.
Geographically, India contributes ~72%, exports ~28%. Africa and South Asia remain key export markets, while EV exports have just begun (Nepal says hi).
The magic sauce? Engineering obsession + conservative branding + ruthless cost control. TVS doesn’t scream; it delivers. But with EVs and finance arms expanding, complexity is creeping in. Are they building a powerhouse—or a beautiful juggling act?
4. Financials Overview – Numbers Don’t Lie, But They Do Tease
Quarterly Performance Table (₹ crore)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 14,756 | 11,035 | 14,051 | 33.7% | 5.0% |
| EBITDA | 2,267 | 1,633 | 2,110 | 38.8% | 7.4% |
| PAT | 891 | 609 | 833 | 55.4% | 7.0% |
| EPS (₹) | 17.71 | 11.91 | 16.74 | 48.7% | 5.8% |
Annualised EPS (Q3 rule):
Average of Q1, Q2, Q3 EPS × 4
= (12.84 + 16.74 + 17.71) / 3 ×
