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Sustained market outperformance backed by strong product portfolio:

TVSL delivered a strong Q4FY26, with revenue growing 34% YoY, while standalone APAT rose 33% YoY. Domestic ICE volumes grew 26% YoY, outperforming the industry growth of ~24%, led by continued strength in scooters, premium motorcycles and EVs. Scooter contribution has now increased to ~38% of the overall portfolio and is expected to cross 40%, going forward, supported by healthy traction in Jupiter, Ntorq and iQube. Premium motorcycles, such as Apache and Ronin, also continue to witness robust demand, positioning the company favourably in the fast-growing premiumisation trend.

We believe TVSL’s consistent outperformance across domestic, export and EV segments reflects its strong execution capabilities, premium-led portfolio and strengthening global presence. We expect growth momentum to sustain, supported by accelerating EV penetration, premiumisation, export recovery and upcoming launches. However, rising competition intensity and commodity inflation could moderate near-term margin expansion.

View and Valuation:

We largely maintain our FY27E/FY28E EPS estimate, supported by faster EV scale-up, continued premiumisation and sustained recovery in exports. We maintain our target price at INR 3,920, valuing the company at 34x (maintained) P/E multiple (compared to 1-year avg. forward P/E of 37x) based on FY28E EPS and assign a value of INR 101 per share to TVS Credit. Accordingly, we maintain our ‘ADD’ rating on the TVSL stock.

TVSL: Outperformed our estimate across the board

* Revenue was up 34.1% YoY and up 2.7% QoQ to INR 1,28,076 Mn (vs CIE est. at INR 1,23,619 Mn), led by 28.3% YoY growth in volume and 4.5% YoY growth in ASP

* EBITDA was up 26.2% YoY and up 2.9% QoQ to INR 16,795 Mn (vs CIE est. at INR 15,878 Mn). EBITDA margin was down 82 bps YoY and flat QoQ to 13.1% (vs CIE est. at 12.8%)

* Adjusted PAT was up 33.0% YoY and up 1.8% QoQ to INR 9,977 Mn (vs CIE est. at INR 9,834 Mn)

Export recovery and Norton to drive long-term growth optionality:

TVSL export business remained a key growth driver, with international volumes rising 33% YoY in FY26, supported by strong recovery across Africa, Sri Lanka and Latin America. The management remains confident of sustaining export outperformance despite near-term geopolitical and logistics headwinds. Simultaneously, Norton Motorcycles represents a strategic long-term premiumisation play, with global launches expected from Q2FY27E.

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