Tata Motors CV shares jump 3% but brokerages are cautious. Here’s why

Tata Motors CV shares snapped a five-session losing streak on Friday, rising to an intraday high of Rs 390.65 apiece on NSE in the morning. This comes despite brokerages turning cautious after the company’s results for the January-March quarter of the financial year 2026.

Also Read | Tata Motors shares decline over 3% after Q4 results. What are Motilal Oswal and Nuvama saying?

The company on Wednesday reported a 70% year-on-year (YoY) increase in standalone net profit to Rs 2,406 crore for Q4 FY26, as against a net profit of Rs 1,419 crore reported in the corresponding quarter of the previous financial year. The firm’s revenue meanwhile rose 22% to Rs 24,452 crore in Q4FY26 versus Rs 19,999 crore posted in the year-ago period.

Along with the Q4 results, Tata Motors CV announced that its board recommended a final dividend of Rs 4 per equity share for the financial year 2026, subject to shareholders’ approval at its upcoming Annual General Meeting (AGM). Once approved, the dividend will be paid to eligible shareholders on or before July 2 this year.

Live Events

Also Read | Tata Motors (CV) Q4 Results: Standalone profit spikes 70% YoY to Rs 2,406 crore; revenue jumps 22%

Nomura on Tata Motors CV shares

Nomura downgraded the shares of Tata Motors CV from ‘Buy’ to ‘Neutral’, and reduced its target price by nearly 27% to Rs 402 apiece. The latest target price implies an upside potentia of nearly 6% from the stock’s previous closing price.

The international brokerage believes that there are risks to the CV cycle from the West Asia crisis, potential rise in fuel prices and margin risk from higher commodities. While it expects the India CV business to be able to successfully navigate these challenges, its concerns on IVECO have increased after the weak results. “While IVECO has called out “strengthened quality focus across businesses and rework costs in Bus ” as the key reasons, we are not convinced. The starting points for TMCV management to bring improvements are much lower now, and we will await guidance from TMCV after takeover. Hence, we downgrade the stock to Neutral,” it said, while lowering earnings estimates for the company.

JM Financial on Tata Motors CV

JM Financial retained its ‘Buy’ rating on the shares of Tata Motors CV, but reduced its target price to Rs 555 apiece. The domestic brokerage highlighted that the company’s Q4 EBITDA margin of 13.2% beat its estimates, driven by operating leverage and cost savings, partly offset by higher raw material costs.

“Management indicated domestic demand remains healthy, though any rise in diesel prices amid the West Asia conflict could impact sentiment; it expects single-digit CV industry growth in Q1FY27. We factor in 5.2% domestic volume growth for FY27E. Export demand across MEA has weakened due to the conflict,” JM Financial said, adding that rising commodity pressures are expected to impact Q1 FY27 margin.

To mitigate this, Tata Motors CV hiked prices by 2% in April 2026. No further price hikes are planned to protect demand, alongside ongoing cost optimisation, it noted. “While TMCV continues to guide for mid-teen EBITDA margin over the medium term, we factor in FY27E EBITDA margin of 12.3% (13.1% in FY26) considering cost pressures,” it added.

Motilal Oswal on Tata Motors CV

Motilal Oswal maintained a ‘Neutral’ rating on the shares of Tata Motors CV, with a target price of Rs 416 apiece. The domestic brokerage highlighted that the company’s profit was below its estimate due to lower-than-expected other income, even as operational performance was in line.

“Demand outlook for the domestic CV industry has turned cautious post ongoing geopolitical dynamics and the impact it may have on the Indian economy, with likely margin pressure in the near term,” it added, while lowering its growth forecast.

Tata Motors CV share price

Tata Motors CV shares jumped nearly 3% to trade at Rs 390.65 apiece on NSE. The stock has fallen over 11% in one week and more than 12% in one month.

The company currently has a market capitalisation of more than Rs 1.4 lakh crore.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)