Tata Motors rallies 3%, hits new high; surpasses TMPV in market cap ranking

In the past two weeks, Tata Motors has rallied 17 per cent, as compared to 3 per cent market price decline in Tata Motors Passenger Vehicles (TMPV).

Tata Motors, Tata Motors Passenger Vehicles (TMPV) share price today

 

Share price of Tata Motors (formerly known as TML Commercial Vehicles) hit a new high of ₹371.20, gaining 3 per cent on the BSE in Tuesday’s intra-day trade on the back of healthy business outlook. The stock price of the Tata Group commercial vehicles (CV) company surpassed its previous high of ₹367.90 touched on December 2, 2025. The company made its stock market debut on November 12, 2025 post demerger.

 

In the past two weeks, Tata Motors has outperformed its split arm Tata Motors Passenger Vehicles (TMPV) (formerly known as Tata Motors) by surging 17 per cent. In comparison, during the same period, TMPV’s share price has declined 3 per cent. The stock hit an intra-day low of ₹341.90, and was trading close to its 52-week low of ₹335.30 touched on April 7, 2025.

Tata Motors surpasses TMPV in market capitalisation ranking

 

After a sharp surge in the stock price of the company, Tata Motors has surpassed TMPV in market capitalisation ranking. At 11:47 AM; Tata Motors market cap stood at ₹1.36 trillion and of TMPV at ₹1.26 trillion, the BSE data shows.  ALSO READ | IndiGo flight cancellations: Emkay sees 17% hit on FY26 pre-tax profit

Why is Tata Motors outperforming TMPV?

 

Tata Motors’ total CV volumes rose by a whopping 28.6 per cent year-on-year (YoY) for the month of November. The growth was broad-based, with heavy commercial vehicle (HCV) and light and medium commercial vehicle (ILMCV) segments recording strong double-digit gains of 34.2 per cent and 35.0 per cent YoY, respectively, while SCV cargo & pickups grew 19.0 per cent YoY.  The growth is supported by better fleet utilization levels as consumption picked up since the festive period. Exports surged 91.7 per cent YoY, reflecting sustained strong overseas demand.

 

CV saw a much stronger YoY uptick in November, after seeing some tailwinds in October as well. A strong consumption uptick post the GST rationalisation, coupled with the festive demand, led to higher fleet utilisation, better freight rates, leading to demand coming in from the fleet operators.

 

Overall, the auto sector remains well-positioned to deliver healthy growth in the coming months. Notable is the turn seen in the CV segment, which could lead to start of a new demand cycle, which has been subdued through FY24 and FY25, and the strong uptick in entry-level segments post GST rationalization, said analysts at Asit C. Mehta Investment Intermediates.

 

The CV space reported healthy volume prints for the month of November with continued recovery visible across medium and heavy commercial vehicle (MHCV) and light commercial vehicle (LCV) segments.  With GST rationalisation & pick up in government capex, CV volumes are likely to improve going forward (expectations of positive YoY growth in FY26), ICICI Securities said in a note.

 

Meanwhile, Tata Motors in the July to September quarter (Q2FY26) investor presentation said Q2 saw demand recovery driven by good monsoons and positive sentiment post-GST rate reduction. The growth momentum is expected to continue through H2 across segments. The GST cut boosted consumption and utilisation, supporting MHCV cargo volume growth. The mining, construction, and infrastructure sectors restart to drive tipper demand.  ALSO READ | ACC, MGL, Trent, REC, PFC, Bata and 35 others from BSE 500 hit 52-week lows 

On FY26 outlook and focus areas, Tata Motors said the company's focus areas are sustain trucks growth trajectory, continue share gain in private MCV buses, and initiate delivery against tenders won in Q2 (Maharashtra, Gujarat and Telangana), volume ramp up in Ace Pro, Ace and Intra and sustain robust financial performance by consistently delivering double-digit Ebitda margins healthy cash flows and strong ROCE.

 

In another development, S&P Global Rating on November 25, assigned a stable outlook for Tata Motors on expectations that the company will be able maintain a strong balance sheet over the next 24 months, with backing from sound operating performances.

 

Tata Motors will likely maintain its dominant share of India’s commercial vehicle (CV) market, with support from India’s economic growth, and favorable infrastructure and construction spending. 

 

“We believe India’s large and growing economy will support CV demand from higher government spending on infrastructure and construction along with buoyant consumer spending. Lower interest rates will also help,” S&P Global Ratings said.

 

Tata Motors will likely maintain positive free cash flow and low leverage, given operating cash flow may sufficiently cover spending over the next three years. While Tata Motors' proposed acquisition of Iveco Group N.V. could significantly increase leverage, the transaction is largely credit neutral due to our expectation of stronger business competitiveness, the rating agency said.