Tata Motors Ltd
Tata Motors Ltd
IndustrialsTata Motors Commercial Vehicle Limited is the flagship Company of the Tata group, having a long-standing presence in all kinds of small, medium and heavy commercial vehicle segment[1]
Tata Motors CV division enjoys strong analyst consensus with 80% buy ratings, robust TTM sales growth of 44%, and active debt reduction. However, the elevated PE of 49.5x and PB of 11.79x suggest much of the growth is already priced in, warranting a cautious accumulation approach.
Key Fundamentals
LargecapCommercial VehiclesAutomobilesTechnical Indicators
Key Insights
Strengths
1- Company has reduced debt.
Weaknesses
1- Stock is trading at 11.9 times its book value
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 1d agoTata Motors CV division enjoys strong analyst consensus with 80% buy ratings, robust TTM sales growth of 44%, and active debt reduction. However, the elevated PE of 49.5x and PB of 11.79x suggest much of the growth is already priced in, warranting a cautious accumulation approach.
- Strong analyst consensus with 80% buy recommendations out of 20 total ratings and zero sell ratings
- TTM sales growth of 44% indicates significant top-line momentum in the commercial vehicle segment
- Company has actively reduced debt, improving balance sheet quality and reducing financial risk
- Last year ROE of 34% demonstrates excellent capital efficiency and strong profitability
- Market cap of Rs 149,226 Cr reflects large-cap stability with institutional backing
- TTM profit growth of 15% shows earnings translating from revenue expansion despite cost pressures
- Dividend yield of 0.98% provides a modest income floor for long-term investors
- PE ratio of 49.5x is significantly elevated for an industrials/CV business, pricing in aggressive future growth
- Stock trading at 11.79x book value leaves minimal margin of safety for value-oriented investors
- Profit growth of 15% TTM lags sales growth of 44% TTM, indicating margin compression or rising costs
- Dividend yield of only 0.98% is low relative to the capital deployed at current valuations
- ROE, ROCE, and debt-to-equity historical data unavailable, limiting visibility on long-term return consistency
- No 52-week high/low data available (reported as 0), making technical risk assessment difficult
- Multi-year stock CAGR data unavailable, preventing assessment of long-term wealth creation track record
- Cyclical nature of commercial vehicle demand means current 44% sales growth is unlikely to sustain through downturns
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 1d ago- Q4 consolidated profit down 32% Jun 12
Tata Motors reported consolidated net profit of ₹5,783 crore for Q4 FY26, declining 32% YoY despite 7% revenue growth to ₹1.05 lakh crore.
- EV insurance costs 20-40% higher Jun 8
Comprehensive EV insurance premiums remain 20-40% higher than petrol vehicles despite a 15% green discount, with battery packs accounting for 35-50% of manufacturing cost creating structural cost pressure for buyers.
- EV market share erosion from 80%+ Jun 3
Tata's EV market share has fallen from a peak above 80% to 39.2% in FY26 as Mahindra grew EV sales 386% YoY and JSW MG reached 25.52% share in January 2026.
- Commodity inflation 5-6% of revenue Jun 12
ICE EBITDA margins declined to 6.4% in Q2 FY26, down nearly 2% YoY, with commodity inflation impacting 5-6% of revenue and aluminium, copper, and steel costs remaining elevated.
- Avinya delayed, platform dependency risk Jun 3
Avinya premium EV delayed from 2025 to 2027 after JLR shelved EMA platform plans for India; pivot to licensed Chery Freelander platform creates 2-5% per-vehicle royalty drag and long-term technology sovereignty concerns.
- Standalone PV profit fell sharply Jun 12
Tata Motors PV standalone profit after tax fell sharply to ₹455 crore in Q4 FY26 with EBITDA margin of 9.4%, reflecting cost pressures despite 43% revenue growth.
- Record FY26 PV sales, 15.3% growth Jun 16
Tata Motors PV sold a record 6.42 lakh units in FY26 with 15.3% growth (nearly double industry rate), revenue of ₹58,465 crore up 20.7% YoY, and PBT up 32.6% to ₹1,436 crore.
- EV sales surged 43% to 92,000 units Jun 16
EV sales grew 43.4% YoY to 92,179 units in FY26 generating ₹13,410 crore revenue, crossing 250,000 cumulative EV sales with monthly run rates hitting 10,517 units in May 2026.
- CV record revenue, 72.3% ROCE Jun 5
Tata Motors CV achieved highest-ever revenues of ₹83,855 crore (up 9.8% YoY) with an exceptional 72.3% return on capital employed, among the highest globally in commercial vehicles.
- 3,400 electric CV orders secured Jun 21
Tata Motors secured over 3,400 electric commercial vehicle orders across freight, logistics and passenger segments, reinforcing market leadership in the eCV space.
- ₹9,585 crore scrappage scheme boost Jun 8
Union cabinet approved a ₹9,585 crore two-year truck/bus scrappage scheme for Delhi-NCR; Tata Motors has 11 scrapping facilities with 1.9 lakh annual capacity and 50%+ market share in heavy trucks across covered states.
- Iveco acquisition to create top-4 CV Jun 5
Proposed Iveco acquisition expected to close in Q2 FY27 would make Tata Motors-Iveco among the world's top four CV companies, expanding presence across Europe and Latin America.
- May wholesales up 42% YoY Jun 2
Tata Motors delivered robust May 2026 performance with wholesales up 42% to 59,790 units, achieving a new monthly EV high of 10,517 units amid industry-wide record PV sales.
- Highest profit-to-GDP contribution Jun 12
Tata Motors PV contributed 0.15 percentage points to profit-to-GDP ratio — the highest among all Nifty 500 companies — as auto sector profits surged 69% to ₹1,813 billion in FY26.
- PV price hike 1.5% from July Jun 12
Tata Motors announced up to 1.5% price increase across all PV models (ICE and EV) effective July 1, 2026, the second hike this year after 0.5% in April, bringing cumulative increase to ~2%.
- CV price hike 2.5% from July Jun 18
Commercial vehicle prices to increase up to 2.5% effective July 1, 2026, varying by model and variant, to counter rising commodity and input costs.
- JLR targets £1.7bn savings, 4% EBIT Jun 17
JLR targeting £1.7 billion in cost savings over two years to lower breakeven to 300,000 units by FY27, with 4% EBIT margin target and £3.7 billion investment plan alongside focus on North America.
- JLR refinancing $2B loan over 5 years Jun 2
JLR reportedly planning to raise a $2 billion loan from global banks to refinance existing debt with a five-year tenure; specific lender details not yet disclosed.
- SDV strategy via t.idal platform Jun 16
Tata Motors advancing software-defined vehicle strategy through proprietary t.idal architecture with NVIDIA partnership, spending ₹2,836 crore on R&D in FY26 including ₹1,936 crore capex.
- Double international business growth Jun 23
Tata Motors announced aim to double growth for international businesses as a strategic push toward global expansion; specific timelines and financial metrics not yet disclosed.
- ₹35,000 crore capex plan to FY30 Jun 5
Tata Motors committed ₹33,000-35,000 crore between FY26-FY30 targeting 1.2 million annual PV sales and 20%+ market share by 2030, with plan recalibration triggers if growth falls below 5% CAGR.
- Sierra EV launch set for June 30 Jun 12
Sierra EV launching June 30, 2026 on acti.ev+ architecture with 65kWh and 75kWh battery options in RWD and AWD variants, slotting between Curvv EV and Harrier EV.
TL;DR: Tata Motors is executing strongly on volume growth with record FY26 PV sales (6.42 lakh units, +15.3%), surging EV momentum (92,000 units, +43%), and exceptional CV profitability (72.3% ROCE). Key risks include EV market share erosion from 80%+ to 39%, persistent commodity inflation compressing ICE margins, and platform dependency on Chery for the delayed Avinya premium EV programme. The trend is broadly positive with accelerating monthly volumes (May +42% YoY) and the Iveco acquisition potentially transforming the global CV business, though investors should watch whether price hikes and competitive pressure moderate near-term demand growth.
Quarterly Results
| Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Sales | 17,535 | 18,819 | 21,863 | 17,324 | 18,585 | 21,847 | 26,098 |
| Expenses | 15,828 | 16,786 | 19,432 | 15,248 | 16,553 | 19,260 | 22,771 |
| Operating Profit | 1,707 | 2,033 | 2,431 | 2,076 | 2,032 | 2,587 | 3,327 |
| OPM % | 10% | 11% | 11% | 12% | 11% | 12% | 13% |
| Other Income | 206 | 407 | 72 | 332 | -1,865 | -981 | -28 |
| Interest | 408 | 352 | 319 | 254 | 256 | 198 | 166 |
| Depreciation | 541 | 557 | 592 | 480 | 472 | 483 | 510 |
| PBT | 964 | 1,531 | 1,592 | 1,674 | -561 | 925 | 2,623 |
| Tax % | 48% | 12% | 16% | 17% | 55% | 24% | 32% |
| Net Profit | 498 | 1,355 | 1,340 | 1,397 | -867 | 705 | 1,793 |
| EPS in Rs | — | — | — | — | — | 1.91 | 4.87 |
Profit & Loss
| Mar 2025 10m | Mar 2026 | |
|---|---|---|
| Sales | 58,217 | 83,855 |
| Expenses | 52,045 | 76,238 |
| Operating Profit | 6,172 | 7,617 |
| OPM % | 11% | 9% |
| Other Income | 685 | -135 |
| Interest | 1,079 | 874 |
| Depreciation | 1,690 | 1,945 |
| PBT | 4,088 | 4,663 |
| Tax % | 22% | 35% |
| Net Profit | 3,195 | 3,030 |
| EPS in Rs | — | 8.23 |
| Div. Payout % | 0% | 49% |
Balance Sheet
| Mar 2025 | Mar 2026 | |
|---|---|---|
| Equity Capital | 0 | 736 |
| Reserves | 10,533 | 11,998 |
| Borrowings | 9,925 | 5,615 |
| Other Liabilities | 26,393 | 33,960 |
| Total Liabilities | 46,851 | 52,309 |
| Fixed Assets | 13,664 | 13,962 |
| CWIP | 1,875 | 2,026 |
| Investments | 5,282 | 13,283 |
| Other Assets | 26,030 | 23,038 |
| Total Assets | 46,851 | 52,309 |
Cash Flow
| Mar 2025 | Mar 2026 | |
|---|---|---|
| Operating | 8,547 | 14,981 |
| Investing | 456 | -3,892 |
| Financing | -7,970 | -5,223 |
| Net Cash Flow | 1,033 | 5,866 |
| Free Cash Flow | 7,005 | 12,878 |
| CFO/OP | 139 | 209 |
Ratios
| Mar 2025 | Mar 2026 | |
|---|---|---|
| Debtor Days | 19 | 12 |
| Inventory Days | 43 | 35 |
| Days Payable | 134 | 101 |
| Cash Conversion Cycle | -72 | -54 |
| Working Capital Days | -44 | -89 |
| ROCE % | — | 36% |
Documents
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Company Information
Tata Motors Commercial Vehicle Limited is the flagship Company of the Tata group, having a long-standing presence in all kinds of small, medium and heavy commercial vehicle segment[1]