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What is the story about?
Bajaj Auto and TVS Motor are two of India's largest two-wheeler makers. Both reported strong first-quarter results for FY27 (April-June 2026). Exports, a weaker rupee, and a better product mix lifted earnings at both companies.
Both companies clocked massive volume growth, well ahead of the industry growth rate, in both dealer dispatches and retail sales. The two companies were neck-and-neck on overall volume growth. However, with market share climbing to 22%, Bajaj has been able to catch up with TVS' lead in the electric vehicle (EV) market.
TVS Motor flagged commodity cost inflation of 3.5% in the first quarter, with a further 0.5% rise expected in the second. The Chennai-based automobile giant passed on about 30% of the cost pressure through price hikes.
Bajaj Auto reported inflation of 4.5% on total revenue, but did not detail how much it passed on; its profitability is well ahead of TVS'.
The Pune-based two-wheeler giant clocked 20.9% margin on earnings before interest, tax, depreciation, and amortisation (EBITDA), up from 19.7% a year earlier. TVS Motor's margin was 12.8%, up from 12.5%, but still beat the poll's forecast of a fall to 12.1%.
Bajaj's average selling prices rose 11% year-on-year, while TVS Motor's realisations rose 8%.
Bajaj Auto's exports had their best-ever quarter. Export volumes jumped 54% year-on-year and 20% quarter-on-quarter, while domestic volumes rose just 11% year-on-year and fell 7% quarter-on-quarter.
The company grew more than twice as fast as the industry across its top 30 export markets, and nearly twice as fast in African markets, where the industry itself grew 50%.
TVS Motor did not break out export volumes in the same way, but said it expects very strong international business growth to continue into Q2, at a similar or slightly better pace.
"I would say both logistics and supply chain difficulties impaired availability by 10% to 15%. So, we were looking at about 100,000 to 120,000 units more. Looking ahead, and hoping that logistics conditions improve, we should be breaching the 250,000 mark during the balance of this quarter, and hopefully continuing into quarter three," Rakesh Sharma, Joint MD, Bajaj Auto, told CNBC-TV18 on July 22.
Both companies expect EV growth to continue at a similar or slightly better pace in Q2.
Bajaj Auto's EV business is bigger as a share of revenue. EVs accounted for 30% of domestic revenue, up from 20% earlier, and the segment posted double-digit EBITDA margins. Its Chetak scooter has turned EBITDA positive and holds a 23-24% market share.
TVS Motor did not disclose an EV revenue share but said its two-wheeler EV capacity stands at 40,000 units, with plans to raise it to over 50,000. Bajaj Auto's EV two-wheeler capacity is higher, at 50,000 units currently, with plans to raise it to 60,000 immediately.
Meanwhile, Bajaj Auto is also expanding beyond its core two-wheeler business. Its KTM and Triumph brands sit under the "Pro Viking" business unit, and a joint KTM-Triumph-Torq initiative is expanding retail reach.
TVS Motor did not list specific new models in its latest conference call with analysts. Instead, it focused on defending its scooter market share, which stands at close to 40% in India, despite heavy discounting by a major rival.
Bajaj Auto has a wider set of new launches lined up for FY27. These include a new 150cc Pulsar, 10 facelifts across the 160-400cc range, a new 125cc Pulsar, and two new 125cc brands to increase its market share.
On the EV side, Bajaj has already launched the Agile and Lite Chetak 2501 variants, which make up 12% of its EV portfolio.
TVS Motor's expansion plans are larger in absolute terms. It is raising two-wheeler capacity to 8.3 million units from 6.8 million and three-wheeler capacity to 0.42 million units from 0.25 million by the fourth quarter.
Bajaj Auto plans to raise total capacity by 25%, to 9 million units a year from 7 million. It is also raising Chetak capacity to 16,000 units and targeting monthly exports of over 2.5 lakh units from the second quarter.
Both companies projected a strong second quarter ending September 2026.
TVS Motor expects the two-wheeler industry to keep up double-digit growth in Q2, possibly slightly better than in Q1, with domestic sales growing at a similar or slightly better rate.
TVS Motor's plans stay focused on its existing two-wheeler and three-wheeler lines, with capacity expansion as the key lever.
33 of the 48 analysts covering Bajaj Auto have a 'buy' call on the stock. The consensus target price is ₹11,545 as of July 22, 6% higher than the current market price.
TVS Motor, too, has 33 buy calls and a target price of ₹4,166.85, up 5.7% from the current levels.
The implied headroom for gains may be similar, but Bajaj Auto seems to have better profitability, a bigger capacity expansion plan, and more export muscle than TVS Motor, which in turn, has a comfortable lead in the EV market.
Read more: India's corporate profit-to-GDP ratio is at 2008 level, what happens next?
Both companies clocked massive volume growth, well ahead of the industry growth rate, in both dealer dispatches and retail sales. The two companies were neck-and-neck on overall volume growth. However, with market share climbing to 22%, Bajaj has been able to catch up with TVS' lead in the electric vehicle (EV) market.
Bajaj Auto vs TVS Motor: Which company is more profitable?
TVS Motor flagged commodity cost inflation of 3.5% in the first quarter, with a further 0.5% rise expected in the second. The Chennai-based automobile giant passed on about 30% of the cost pressure through price hikes.
Bajaj Auto reported inflation of 4.5% on total revenue, but did not detail how much it passed on; its profitability is well ahead of TVS'.
The Pune-based two-wheeler giant clocked 20.9% margin on earnings before interest, tax, depreciation, and amortisation (EBITDA), up from 19.7% a year earlier. TVS Motor's margin was 12.8%, up from 12.5%, but still beat the poll's forecast of a fall to 12.1%.
Bajaj's average selling prices rose 11% year-on-year, while TVS Motor's realisations rose 8%.
Bajaj Auto vs TVS Motor: Who has the edge in exports?
Bajaj Auto's exports had their best-ever quarter. Export volumes jumped 54% year-on-year and 20% quarter-on-quarter, while domestic volumes rose just 11% year-on-year and fell 7% quarter-on-quarter.
The company grew more than twice as fast as the industry across its top 30 export markets, and nearly twice as fast in African markets, where the industry itself grew 50%.
TVS Motor did not break out export volumes in the same way, but said it expects very strong international business growth to continue into Q2, at a similar or slightly better pace.
"I would say both logistics and supply chain difficulties impaired availability by 10% to 15%. So, we were looking at about 100,000 to 120,000 units more. Looking ahead, and hoping that logistics conditions improve, we should be breaching the 250,000 mark during the balance of this quarter, and hopefully continuing into quarter three," Rakesh Sharma, Joint MD, Bajaj Auto, told CNBC-TV18 on July 22.
Bajaj Auto vs TVS Motor: The EV battle
Both companies expect EV growth to continue at a similar or slightly better pace in Q2.
Bajaj Auto's EV business is bigger as a share of revenue. EVs accounted for 30% of domestic revenue, up from 20% earlier, and the segment posted double-digit EBITDA margins. Its Chetak scooter has turned EBITDA positive and holds a 23-24% market share.
TVS Motor did not disclose an EV revenue share but said its two-wheeler EV capacity stands at 40,000 units, with plans to raise it to over 50,000. Bajaj Auto's EV two-wheeler capacity is higher, at 50,000 units currently, with plans to raise it to 60,000 immediately.
Meanwhile, Bajaj Auto is also expanding beyond its core two-wheeler business. Its KTM and Triumph brands sit under the "Pro Viking" business unit, and a joint KTM-Triumph-Torq initiative is expanding retail reach.
Bajaj Auto vs TVS Motor: Who has more new launches lined up this year?
TVS Motor did not list specific new models in its latest conference call with analysts. Instead, it focused on defending its scooter market share, which stands at close to 40% in India, despite heavy discounting by a major rival.
Bajaj Auto has a wider set of new launches lined up for FY27. These include a new 150cc Pulsar, 10 facelifts across the 160-400cc range, a new 125cc Pulsar, and two new 125cc brands to increase its market share.
On the EV side, Bajaj has already launched the Agile and Lite Chetak 2501 variants, which make up 12% of its EV portfolio.
Bajaj Auto vs TVS Motor: Who has a bigger budget for capacity expansion?
TVS Motor's expansion plans are larger in absolute terms. It is raising two-wheeler capacity to 8.3 million units from 6.8 million and three-wheeler capacity to 0.42 million units from 0.25 million by the fourth quarter.
Bajaj Auto plans to raise total capacity by 25%, to 9 million units a year from 7 million. It is also raising Chetak capacity to 16,000 units and targeting monthly exports of over 2.5 lakh units from the second quarter.
Bajaj Auto vs TVS Motor: A comparison of the management commentary
Both companies projected a strong second quarter ending September 2026.
TVS Motor expects the two-wheeler industry to keep up double-digit growth in Q2, possibly slightly better than in Q1, with domestic sales growing at a similar or slightly better rate.
TVS Motor's plans stay focused on its existing two-wheeler and three-wheeler lines, with capacity expansion as the key lever.
Bajaj Auto vs TVS Motor: Which stock has a bigger headroom for gains?
33 of the 48 analysts covering Bajaj Auto have a 'buy' call on the stock. The consensus target price is ₹11,545 as of July 22, 6% higher than the current market price.
TVS Motor, too, has 33 buy calls and a target price of ₹4,166.85, up 5.7% from the current levels.
The implied headroom for gains may be similar, but Bajaj Auto seems to have better profitability, a bigger capacity expansion plan, and more export muscle than TVS Motor, which in turn, has a comfortable lead in the EV market.
Read more: India's corporate profit-to-GDP ratio is at 2008 level, what happens next?
