Revenue Beat: TVS Motor Company Limited Beat Analyst Estimates By 22%

Investors in TVS Motor Company Limited (NSE:TVSMOTOR) had a good week, as its shares rose 6.7% to close at ₹2,455 following the release of its third-quarter results. Revenue of ₹111b came in a notable 22% ahead of expectations, while statutory earnings of ₹35.50 were in line with what the analysts had been forecasting. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on TVS Motor after the latest results.

Check out our latest analysis for TVS Motor

Taking into account the latest results, the 35 analysts covering TVS Motor provided consensus estimates of ₹413.1b revenue in 2026, which would reflect a noticeable 3.9% decline over the past 12 months. Statutory earnings per share are predicted to leap 64% to ₹68.25. In the lead-up to this report, the analysts had been modelling revenues of ₹404.0b and earnings per share (EPS) of ₹64.53 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Despite these upgrades,the analysts have not made any major changes to their price target of ₹2,620, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic TVS Motor analyst has a price target of ₹3,128 per share, while the most pessimistic values it at ₹1,669. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 3.1% annualised decline to the end of 2026. That is a notable change from historical growth of 20% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 8.2% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - TVS Motor is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards TVS Motor following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at ₹2,620, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple TVS Motor analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for TVS Motor that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.