The brokerage expects TVS Motor to deliver volume growth of 14%, 11% and 10% over FY27 to FY29, outpacing broader industry growth estimates. It also pointed to the company’s ability to pass on input cost pressures and benefit from margin tailwinds, including gains from the production-linked incentive (PLI) scheme.

Electric vehicle growth remains a key driver, with the company expected to see improving profitability in its EV segment. A strong pipeline of premium launches and continued focus on product mix are seen supporting earnings growth.

The upgrade comes alongside robust operating momentum. TVS Motor reported a 25% YoY increase in total sales for March 2026 at 5.19 lakh units, led by strong growth across segments. Electric vehicle sales surged 44% YoY during the month.

However, risks flagged include commodity price volatility, regulatory changes and rising competition in the electric two-wheeler segment.

TVS Motor Company is a reputed global manufacturer of two-wheelers and three-wheelers, with four manufacturing facilities located in India and Indonesia.

The company’s standalone net profit jumped 52.04% to Rs 940.37 crore on a 37.14% jump in revenue from operations to Rs 12,476.26 crore in Q3 FY26 over Q3 FY25.