At a Glance

TVS Motor just vroomed through Q1 FY26 with Revenue ₹10,081 Cr (+17% YoY) and PAT ₹779 Cr (+27% YoY). EBITDA margin revved up to 12.5%. But the real “wheelie” is its P/E of 56, meaning the market is paying Ducati prices for a moped company. Throw in a fresh ₹500 Cr NCD issue, and it’s clear—TVS is in beast mode, but investors better buckle up.

Introduction

Picture a company that sells everything from mopeds for your uncle to high-performance bikes that make teenagers broke. That’s TVS Motor. In an auto sector dominated by Bajaj and Hero, TVS stands out for being nimble, diversified, and ESG-conscious (because saving the planet sells). Q1 FY26 numbers reaffirm its dominance, but at this valuation, even the mopeds come gold-plated.

Business Model (WTF Do They Even Do?)

TVS manufactures motorcycles, scooters, mopeds, and three-wheelers. It’s the only Indian brand still rocking mopeds—nostalgia sells. Internationally, it exports to 80+ countries, with growing traction in EVs (iQube) and premium bikes (via tie-ups with BMW and Norton). Revenue split? 75% two-wheelers, 15% three-wheelers, 10% spares & accessories.

Financials Overview

Q1 FY26 Snapshot:

• Revenue: ₹10,081 Cr (+17% YoY)
• EBITDA: ₹1,263 Cr (+15% YoY)
• PAT: ₹779 Cr (+27% YoY)
• EPS: ₹12.84

FY25 Recap:

• Revenue: ₹44,089 Cr
• PAT: ₹2,380 Cr
• ROE: 28.4%
• ROCE: 15.4%

Auditor’s Mood: “Profits are riding high, but debt is also on a road trip.”

Valuation

• P/E: 56.4
• P/B: 15.7
• ROE: 28.4%

Fair Value Estimate:

1. P/E Method: FY26E EPS ~₹52; fair P/E 35 → ₹1,820
2. P/B Method: Book ₹179; fair P/B 8 → ₹1,430
3. DCF: Growth 18%, discount 11% → ₹1,900

Fair Value Range: ₹1,800–₹1,900 (Current ₹2,811 screams premium!)

What’s Cooking – News, Triggers, Drama

• EV Push: iQube sales scaling, Ather & Ola breathing down its neck.
• NCD Issue: ₹500 Cr to fund capex and EV expansion.
• Exports: Strong African and Latin American traction.
• Stock Mood: Investors betting TVS will be Tesla on two wheels.

Balance Sheet

Commentary: Debt is heavy, but manageable with high margins.

Cash Flow – Sab Number Game Hai

Takeaway: After years of cash burn, positive operating flow gives hope.

Ratios – Sexy or Stressy?

Verdict: ROE is hot, debt is not.

P&L Breakdown – Show Me the Money

Roast: Profits zooming, but valuation already assumes another 40% CAGR.

Peer Comparison

Roast: TVS has premium pricing envy—investors paying Ferrari rates for a scooter stock.

Miscellaneous – Shareholding, Promoters

• Promoters: 50.3%
• FIIs: 22.4% (love the EV story)
• DIIs: 18.8%
• Public: 8.4%
• Buzz: Stable hands, high FII participation.

EduInvesting Verdict™

TVS Motor is executing like a champ—solid revenue growth, EV adoption, and global expansion. However, valuation is racing ahead of fundamentals. With high debt and a P/E double its peers, any bump in the road (EV competition, raw material costs) could cause a skid.

SWOT

• Strengths: Diversified product mix, premium branding, strong exports.
• Weaknesses: High leverage, thin margins vs peers.
• Opportunities: EV boom, premium bikes, export markets.
• Threats: Bajaj & Hero price wars, Ola & Ather in EVs, rising costs.

Final Take: A fantastic company riding an electric future—but at ₹2,811, you’re paying today for 2028 dreams.

Written by EduInvesting Team | 31 July 2025
SEO Tags: TVS Motor, Electric Two-Wheelers, Auto Stocks