TVS Motor's (TVSL) Q2FY16 performance was way above our as well as street estimates. Company's Revenue/EBIDTA/PAT grew by 8%/28%/23% YoY and 10%/29.5%/29% QoQ to Rs 28.8bn/2.1bn/1.16bn, as against our estimate of Rs 28.3bn/1.8bn/1bn in Q2FY16 respectively. Its volume growth was 0.2%YoY/6.3% QoQ to 678,718 units, while average realization improved by 8% YoY, benefitted by favourable currency and price hike over last one year. TVS recorded highest quarterly margins in last five years, its EBIDTA margin expanded 116 bps YoY/ 111 bps QoQ to 7.4%, as its RM/Sales fell 221bps YoY/ 71bps QoQ to 71.3%.