The shares of TVS Motor Company dropped over 4% on Thursday after the company reported a 19% year-on-year (YoY) jump in consolidated net profit to Rs 772 crore for the January-March quarter of FY26 from Rs 648 crore reported in the same period last year.
The shares of the company have fallen around 5% in two days since the release of the results during the market hours of Wednesday to hit an intraday low of Rs 3383 apiece on Thursday. The two-wheeler major’s revenue from operations meanwhile rose 30% YoY to Rs 15,053 crore in the fourth quarter of the financial year which ended on March 31, 2026, up from Rs 11,542 crore reported in the year-ago period.
Sequentially however, TVS Motor Company saw its net profit fall 8% from the Rs 841 crore reported in the third quarter of the same financial year, while revenue grew 2% quarter-on-quarter (QoQ) compared to Rs 14,756 crore in the October-December quarter of FY26.
Also Read | TVS Motor Q4 Results: Cons PAT grows 19% YoY to Rs 772 crore as revenue jumps 30%
Morgan Stanley on TVS Motor
Morgan Stanley maintained ‘Overweight’ rating on the shares of TVS Motor, with a target price of Rs 4,327 apiece. This implies an upside potential of nearly 23% from the stock's previous closing price of Rs 3,527.20 apiece on NSE.
The international brokerage highlighted that the management is confident of delivering strong volume growth in domestic and export markets, although it sees commodity inflation as a 3-5% headwind, ET Now reported. It added that sustained growth and margin delivery support its positive stance.
Goldman Sachs on TVS Motor
Goldman Sachs maintained its ‘Buy’ rating on TVS Motor shares, and increased its target price to Rs 4,150 apiece. This implies an upside potential of nearly 18% from the stock’s previous closing price.
The international brokerage said that the firm’s Q4 revenue and EBITDA were broadly in line with expectations, with the management expecting to outperform strong single-digit industry growth, ET Now reported.
Like Morgan Stanley, Goldman Sachs also highlighted that commodity inflation is causing 300-500 bps gross margin headwind. It raised FY27-29 EPS estimates by up to 3%, according to the report.
Citi on TVS Motor
Citi maintained its ‘Sell’ call on the shares of TVS Motor, but raised its target price to Rs 3,000 apiece. This implies a downside potential of nearly 15% from the stock’s previous closing price.
The international brokerage highlighted that the company’s Q4 EBITDA was slightly ahead of estimates, while profit was in line with expectations, ET Now reported. It estimated commodity cost headwinds to impact 3-5% of revenue.
However, Citi warned that elevated depreciation and interest costs may pressure earnings, and valuations leave little room for error.
Bernstein on TVS Motor
Bernstein maintained a ‘market-perform’ rating on the shares of TVS Motor, with a target price of Rs 3,460 apiece. This implies a downside potential of nearly 2% from the stock’s previous closing price.
The international brokerage said that the stock is priced for near-perfect execution across multiple growth levers, but premium valuation when compared to peers leaves limited margin for error, ET Now reported.
It highlighted that commodity inflation has been described by management as “unprecedented in speed”. It flagged risk from overlapping execution cycles across EVs, Norton and exports. However, Bernstein noted that TVS remains the strongest challenger in scooters, with its share rising to 28% in FY26.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
