Shares of TVS Motor Company experienced a nearly 2 percent decline in early trading on October 29, following the release of its second-quarter results for the financial year 2026. The stock was trading at Rs 3,498.50 per share. In its announcement on October 28, the two-wheeler manufacturer reported a standalone net profit of Rs 906 crore, marking a 37 percent year-on-year (YoY) increase from the Rs 663 crore profit reported during the same quarter last year. The company also reported a revenue growth of 29 percent YoY, reaching Rs 11,905 crore, driven by strong sales across various segments.

TVS Motor's operating performance showed considerable improvement, with earnings before interest, tax, depreciation, and amortization (EBITDA) rising 40 percent YoY to Rs 1,509 crore in Q2 FY26, compared to Rs 1,080 crore in Q2 FY25. This figure represents the highest quarterly operating EBITDA for the motorcycle manufacturer, with an EBITDA margin expansion of 100 basis points YoY, reaching 12.7 percent. Despite these positive indicators, analysts have mixed reactions regarding the stock's future performance.

Morgan Stanley maintained an 'Overweight' rating on TVS Motor, setting a target price of Rs 4,022 per share, indicating a potential upside of nearly 13 percent. Meanwhile, Jefferies also assigned a 'Buy' rating with a target price of Rs 4,300, suggesting a 21 percent upside. They noted a 23 percent YoY increase in volumes and a notable rise in the company's market share to a 22-year high in domestic two-wheelers. Nomura echoed this sentiment with a 'Buy' call and a target price of Rs 3,970, while Motilal Oswal's insights remain undisclosed. Despite the drop in share price, analysts largely view the company as positioned for growth, particularly through trends like scooterisation and premiumization in the two-wheeler market.