Bajaj Auto shares jump 4% to hit 52-week high post strong Q1 earnings; TVS Motor too surges 4% on robust show

Shares of two-wheeler companies Bajaj Auto and TVS Motor Company were trading with impressive gains in the early trade on Wednesday, July 22, following the companies’ robust June quarter (Q1 FY27) financial performance.

Bajaj Auto shares jumped as much as 4.17% to hit a high of ₹10,838 apiece on the NSE, also its 52-week peak level.

Similarly, TVS Motor Company shares rallied as much as 3.71% to hit a high of ₹3,933 apiece on the NSE.

Bajaj Auto

Bajaj Auto on Tuesday said it expects good, solid double-digit growth in both two- and three-wheeler demand, and it is aiming for the top position in the EV segment in the country.

In a post-earnings media interaction, Bajaj Auto Ltd Executive Director Rakesh Sharma said that the company would have posted better performance in the previous quarter but for factors such as inflation, supply chain issues, and serious logistics issues, which “impaired” availability by 10-15%.

Sharma also said that the company may consider roping in a strategic partner provided that its vision strategies align with the brand.

“The demand hopefully will continue at this rate. Of course, not those rocking rates post-GST, but good solid double-digit or maybe let’s say 8-10% growth rates in domestic. Both electric two- and three-wheelers are growing extremely fast because of the obvious reasons of operating economics of EV versus petrol,” Sharma said.

Domestic had a solid quarter with motorcycles, with good growth, he said and added that “we had launched a portfolio makeover post-festive last year, beginning November, around eight models particularly in the 150-160cc segment”.

Analysts remain positive on Bajaj Auto following its strong Q1 FY27 performance.

Bernstein said the company delivered a strong quarter driven largely by its own execution, unlike peers that benefited primarily from GST cuts and supportive domestic policies. The investment firm also described Bajaj Auto’s earnings call as a benchmark for disclosure quality, highlighting management’s transparency on strategy, commodity inflation, production disruptions, and the roadmap from margin pressure to EBITDA recovery.

CLSA noted that Bajaj Auto reported a Q1 FY27 EBITDA margin of 20.9%, up 9 basis points sequentially and 69 basis points ahead of its estimates despite a 4.5% quarter-on-quarter rise in commodity costs.

The investment firm said the impact of higher raw material costs was largely offset by rupee depreciation, given that exports contribute around 40% of revenue, along with a 2.3% price hike, operating leverage, a richer product mix and discretionary cost-control measures.

Analysts at Jefferies stated that Q1 EBITDA and profit after tax rose 42-45% year-on-year, coming in 5-7% above its estimates, led by better-than-expected margins.

It noted that EBITDA margin expanded 10 basis points sequentially despite severe commodity cost headwinds.

The investment firm also highlighted that domestic two-wheeler demand remains resilient while exports continue to grow strongly. It added that Bajaj Auto plans to launch two new Pulsar motorcycles by September and two new brands during FY27, prompting it to raise its FY27-FY29 EPS estimates by 6-8%.

TVS Motor Company

The company reported its highest-ever quarterly revenue of ₹13,896 crore, up 38% from ₹10,081 crore in the corresponding quarter of the previous fiscal, the earnings release showed.

TVS Motor also posted a record EBITDA of ₹1,779 crore, marking a 41% year-on-year increase from ₹1,260 crore. Its EBITDA margin improved by 30 basis points to 12.8%, compared with 12.5% in the year-ago period.

Profit after tax (PAT) rose 51% to ₹1,174 crore from ₹776 crore in the June quarter of FY26.

Analysts are upbeat on TVS Motor after its strong Q1 FY27 performance.

CLSA notes that the company reported an EBITDA margin of 12.8% in Q1 FY27, down 31 basis points sequentially but 60 basis points ahead of its estimates, despite a 3.5% quarter-on-quarter increase in commodity costs.

The investment firm said the impact was offset through a 1.5% price hike, operating leverage, cost optimisation initiatives and favourable currency movements, with exports contributing 26% of revenue. It added that management remains confident of sustaining volume momentum and expects to outperform the industry in both domestic and export markets.

Jefferies has increased its FY27-FY29 EPS estimates by 4-5%, remaining 7-21% above Street estimates.

The investment firm noted that Q1 EBITDA and recurring profit after tax grew 40-41% year-on-year, coming in 4-7% above its estimates, driven by better-than-expected profitability.

It also highlighted strong two-wheeler demand in both domestic and export markets, improving franchise strength, and said that the peak of margin concerns now appears to be behind the company.

While it acknowledged that TVS Motor's valuation of 39x FY27E P/E is above its 10-year average of 35x, it believes the premium is justified.