TVS Motor Company has achieved a record margin of 11.7% for the latest quarter, which is slightly below the expected 11.8%. This represents a year-on-year increase of 65 basis points and a quarter-on-quarter increase of 25 basis points, despite the growing revenue from electric vehicles.

The company predicts a recovery in rural demand and foresees a 7-8% industry growth in the upcoming quarter. ICICI Securities has downgraded its rating on TVS Motor Company from "Add" to "Hold" due to the stock's impressive performance, with a 70% increase over the past year, surpassing the Nifty index's 27% increase. The firm maintains a target price of INR 2,596, which is based on a 30x multiple of the expected standalone earnings per share for FY26. TVS is expected to achieve an EBITDAM of 12-12.5% in FY25-26, driven by strong growth in overall volumes and electric two-wheeler sales.

The company's strong performance is reflected in its achievement of a record margin and its positive outlook for future growth. Despite the downgrade in rating by ICICI Securities, TVS Motor Company has demonstrated impressive stock performance and is expected to continue its growth trajectory. With a focus on rural demand and the increasing popularity of electric vehicles, the company is well-positioned for success in the coming quarters.