4 Stocks to Watch as Delhi Bans New Petrol Two-Wheelers from April 2028

#2 TVS Motor Company

Coming second on the list is TVS Motor, the world's third-largest two-wheeler manufacturer, with state-of-the-art manufacturing facilities in India and Indonesia.

The company operates a highly diversified business offering motorcycles, scooters, mopeds, commercial three-wheelers, and electric vehicles, along with its retail finance arm, TVS Credit Services.

The electric vehicle (EV) segment is a major strategic pillar for TVS, where the company emerged as the number one player in the Indian EV 2-wheeler space for FY26.

During this period, EV two-wheeler sales reached a record 3.71 lakh units, delivering a 33% year-on-year (YoY) growth.

The company has a network of over 1,000 EV dealers and around 5,000 public charging touchpoints, supported by a broadening product portfolio that includes the iQube series, the TVS Orbiter, the premium TVS X, and the TVS King Kargo HD EV for commercial logistics.

Coming to its financial performance, the company has delivered a top-line growth of 21% CAGR over 3 years and a net profit CAGR of 33%.

The last 3-year ROE has been 30%.

Looking ahead, management is highly optimistic about its growth trajectory, guiding to outperform overall industry growth in both revenue and volume across domestic and international markets.

While management refrains from giving numerical guidance for future margins, they are confident in a continued upward trajectory for profits and EBITDA.

This expected margin expansion will be driven by leveraging economies of scale, a richer product mix focused on premiumisation, targeted price increases, and sustained cost-reduction initiatives.

EV gross margins are already positive, and as sales volumes scale up ahead of the industry, the EV segment is expected to become EBITDA positive as well.

The company is reviewing new capacity additions for the coming years, navigating short-term supply chain challenges regarding rare-earth magnets, and expanding its commercial EV footprint through a joint development agreement with Hyundai Motor Company to co-develop a new electric three-wheeler.

For more details, check out TVS Motor's financial factsheet.

#3 Hero MotoCorp

On number three comes Hero MotoCorp, the world's largest manufacturer of motorcycles and scooters by volume for 25 consecutive years, boasting a sprawling presence across 52 countries and serving over 124 m customers globally.

The company's core business revolves around the design, manufacturing, and sale of internal combustion engine (ICE) two-wheelers, along with a highly profitable parts, accessories, and merchandise (PAM) segment.

A crucial and rapidly growing component of its business is the electric 2-wheeler (EV 2W) segment under the VIDA brand, which saw its sales surge by 200% in FY24 and its volumes expand 2.5 times in FY26.

The EV segment recently achieved a record quarterly market share of 11.7%, driven by the success of models like the VIDA V2 series and VX2 EVOOTER and is supported by innovations such as Battery-as-a-Service to enhance customer affordability and lower the barrier to entry.

Coming to its financial performance, the company has delivered a top-line growth of 12% CAGR over a 3-year period and a net profit CAGR of 29%.

The last 3-year ROE has been 25%.

Looking ahead, the management has provided strong guidance for the company's future KPIs, projecting high single-digit to 8-10% volume growth for the 2-wheeler industry in the near term, with expectations that scooters will grow faster than motorcycles.

The company intends to outpace this industry growth and capture a higher market share across both categories.

Despite short-term commodity cost headwinds, Hero MotoCorp maintains a medium-term EBITDA margin guidance of 14-16%. It's planning to protect its profit trajectory through calibrated price hikes, operating leverage, and its LEAP cost-saving initiatives.

To cater to the anticipated surge in EV demand, Hero MotoCorp plans to double its EV manufacturing capacity in the immediate future, with a subsequent doubling expected before the end of the financial year.

The leadership emphasised that the path to EV profitability relies heavily on scaling up volumes rapidly across new cities, driving down bill-of-materials (BOM) costs through better unit economics, and leveraging the government's Production-Linked Incentive (PLI) scheme to ultimately achieve self-sustainability.

For more details, check out Hero MotoCorp's financial factsheet.

#4 Ather Energy

Fourth on the list is Ather Energy, a leading manufacturer of electric two-wheelers (E2W) in India, primarily operating in the premium and mass-premium scooter segments with models like the 450 series and the newly launched family scooter, Rizta.

The sale of EV two-wheelers forms the absolute core of its business, consistently contributing around 87% to 88% of its total revenue mix.

Beyond direct vehicle sales, Ather has built a highly lucrative non-vehicle revenue stream that accounts for 12-14% of its income, predominantly driven by software subscriptions known as ProPacks.

This boasts an high attach rate of up to 93% alongside accessories, servicing, and a vast infrastructure network of over 6,000 fast-charging points operating on the proprietary LECCS standard.

Looking ahead, management's growth guidance is aggressively focused on expanding its total addressable market through the upcoming "EL" scooter platform, which is specifically designed for the mass market segment (priced between Rs 1 to 1.25 lakhs) where Ather currently has no presence.

Management expects electric scooters to grow 2-2.5 times the rate of the scooter market, effectively compounding at 4-5 times the growth rate of the 2-wheeler industry.

Regarding its margin trajectory and profits, Ather is charting a clear path toward sustainable standalone profitability, having already narrowed its EBITDA losses dramatically to just (2.5%) by 4QFY26.

Management guides that future gross margin expansion will be heavily driven by the EL platform's optimised cost structure, which utilises steel frames and reduces reliance on expensive aluminium to mitigate commodity inflation, alongside strong operating leverage and high-margin software revenues.

To support this rapid EV growth, a major business update is the construction of Factory 3.0 at Chhatrapati Sambhajinagar (Auric).

Phase 1 of this plant is expected to commence trial operations by 3QFY27, adding an incremental capacity of 42,000 units per month while boosting unit economics through deeper vertical integration like in-house battery pack and transmission assembly.

For more details, check out Ather Energy's financial factsheet.

Conclusion

Delhi's EV Policy 2.0 is more than a local regulatory change; it's another sign that the transition away from petrol two-wheelers is likely to gather pace.

For established players and EV-focused entrants alike, the real test will be how quickly volumes scale, unit economics improve, and how sustainable profitability will be. The shift is still at an early stage, but the direction is becoming clear.

Investors should conduct thorough research on financials and corporate governance before making any investment decisions, ensuring they align with your financial goals and risk tolerance.

Happy investing.

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