It’s one of the few sectors that have shown strong growth over the past few quarters despite the Middle East war and global crude oil prices currently hovering around $ 100 per barrel. Yes, families across the globe are increasingly opting for affordable, individual mobility and it has resulted in booming overseas demand for two-wheelers made by Bajaj Auto and TVS Motor Company.
The African Demand Surge: Breaking Down Bajaj Auto’s 52% Export Jump
For instance, Bajaj Auto’s two-wheelers exports jumped 52% y-o-y to 6,36,005 units in the June 2026 quarter, and it exceeded the 11% y-o-y growth in domestic two-wheeler sales in the quarter under review. Bajaj Auto exports two-wheeler models like Pulsar and Boxer, and the company has highlighted very strong demand from Africa, especially from Nigeria where demand jumped nearly 3 times y-o-y in the quarter under review, while Latin American countries also witnessed buoyant sales.
For perspective on the growth in exports in June 2026 quarter, we looked at FY26, where Bajaj Auto had grown its overseas two-wheeler sales by 18% y-o-y to 1,967, 810 units.
Also, Bajaj Auto’s commercial vehicles including three-wheelers, overseas sales grew 69% y-o-y to 96,168 units in the first quarter of FY27.
The Latin American Catalyst: How TVS Motor Expanded by 34%
Similarly, TVS Motor Company’s overseas sales grew nearly 34% y-o-y to 0.47 million units in the first quarter of FY27, and there was strong demand for its models like HLX, Apache and Raider in Latin America, Africa and Asia.
And TVS Motor Company’s two-wheeler sales overseas grew 30% y-o-y to 1.43 million units during FY26.
Hero MotoCorp, a leading player, will declare its June 2026 quarter results on August 6.
Why the 7% Rupee Depreciation is Fueling Valuations
Investor interest for two-wheeler stocks has been strong with this sector benefiting from strong demand overseas coupled with nearly 7% y-o-y depreciation in the rupee to Rs 95 levels against the dollar.
Bajaj Auto declined 1.3 % to Rs 11,128 on Friday, and the stock had hit a 52-week high of Rs 11,333 on 23 July, 2026.
Meanwhile, TVS Motor Company fell 1.2% to Rs 3,870 on Friday, and the stock had reached a 52-week high of Rs 3,974 on 23 July, 2026.
Export growth drives June 2026 quarter performance
Strong overseas sales helped Bajaj Auto’s total vehicle sales jump 29% y-o-y to 14,38,251 units in the June 2026 quarter.
As a result, Bajaj Auto’s standalone revenue from operations surged 37% y-o-y to Rs 17,243 crore in the June 2026 quarter, and the company has highlighted that its revenues hit an all-time high.
Operating Margins: How Higher Realisations Combated Rising Input Costs
Realisations of the company also grew nearly 5.3% y-o-y to Rs 1.19 lakh per vehicle in the first quarter of FY27, and it helped the company overcome higher input costs like copper and steel, amongst others.
As a result, Bajaj Auto’s operating profit margin rose 110 basis points y-o-y to 20.7% in the first quarter of FY27. Strong growth in volumes and realisations helped the company’s standalone net profit jump 42.3% y-o-y to Rs 2,982.8 crore in the first quarter of FY27.
Bajaj Auto v/s TVS Motor Company in the June 2026 quarter (standalone results)
| Bajaj Auto | TVS Motor Company | |
| Growth in vehicle sales (% y-o-y) | 29% | 27.7% |
| Growth in net sales (% y-o-y) | 37% | 37.8% |
| Growth in net profit (% y-o-y) | 42.3% | 51.5% |
The EV Catalyst: TVS Motor’s 86% Surge in Electric Mobility
Meanwhile, buoyant exports also helped TVS Motor Company’s total vehicle sales grow 27.7% y-o-y to 16,30,558 units in the June 2026 quarter. Of equal importance, its two-wheeler electric vehicles grew by 86% y-o-y to 129,940 units in the first quarter of FY27.
The company highlighted that in Q1FY27 it achieved its highest ever quarterly sales. It is also possibly for the first time that TVS Motor Company’s total vehicle sales in a quarter have exceeded those of Bajaj Auto.
TVS Motor Company’s standalone revenue from operations grew 37.8% y-o-y to Rs 13,896 crore in the first quarter of FY27.
Its average realisations also grew nearly 8% y-o-y to Rs 85,222 per vehicle in the June 2026 quarter, and it helped to overcome higher input costs. As a result, the company’s operating profit margin rose 30 basis points y-o-y to 12.8% in the June 2026 quarter.
A strong operational performance helped TVS Motor Company’s standalone net profit rise 51.5% y-o-y to Rs 1,174 crore in the June 2026 quarter.
For both the companies, the core automobile business is reflected in their respective standalone results.
Capital Efficiency Showdown: Why TVS Motor Leads with a 34.4% RoE
Bajaj Auto had a Return on Equity of 29.3%, according to Screener.in, while for TVS Motor Company it is 34.4%.
Return on Equity (%) – Bajaj Auto v/s TVS Motor Company
| Return on Equity (RoE) | |
| Bajaj Auto | 29.3% |
| TVS Motor Company | 34.4% |
The Road Ahead: Upcoming EV Launches and the 37% Valuation Gap
Investors will be closely monitoring if both Bajaj Auto and TVS Motor Company can sustain the growth momentum, especially in overseas markets, going forward.
TVS Motor Company is expected to launch upgrades / variants for its popular models Apache and launch of TVS Jupiter Electric is expected shortly.
And Bajaj Auto is planning to launch new models for its Pulsar and Chetak electric range
Valuations of two-wheeler stocks
Bajaj Auto trades at a standalone P/E of 28.5 times, and over the past 5 years, it has traded between 17.5 times and 45.6 times.
TVS Motor Company trades at a standalone P/E of 45.4 times, and over the past 5 years, it has traded between 28.3 times and 63.9 times.
Valuations of Bajaj Auto versus TVS Motor Company
| Two-wheeler company | Standalone P/E |
| Bajaj Auto | 28.5 times |
| TVS Motor Company | 45.4 times |
Two-wheeler companies are expected to continue their strong growth despite the Middle East crisis. However, Bajaj Auto trades at a discount of nearly 37% to TVS Motor Company. Readers could put both Bajaj Auto and TVS Motor on their watch list of stocks for 2026.
Disclaimer:
Amriteshwar Mathur is a financial journalist with over 20 years of experience.
The writer and his family have no shareholding in any of the stocks mentioned in the article.
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