Tata Motors rallies 4%, hits new high; what's driving CV stock price?

The stock price of Tata Motors hit a new high of ₹492 in intra-day on Wednesday, and has zoomed 50 per cent from its listing day price of ₹327.65 per share on November 12, 2025.

Tata Motors share price today

 

Shares of Tata Motors (formerly known as TML Commercial Vehicles) hit a new high of ₹492, surging 4 per cent on the BSE in Wednesday’s intra-day trade. The Tata Group commercial vehicles (CV) company on Tuesday after market hours announced that its Indonesian subsidiary secured its largest-ever order for 70,000 commercial vehicles, comprising 35,000 Tata Yodha pickups and 35,000 Tata Ultra T.7 trucks, for deployment across Indonesia.

 

The stock surpassed its previous high of ₹485 touched on January 30, 2026. Since its market debut (post demerger of CV business), the market price of Tata Motors has zoomed 50 per cent from a level of ₹327.65 on November 12, 2025.

 

At 09:23 AM; Tata Motors was trading 2.3 per cent higher at ₹483.45, as compared to 0.17 per cent rise in the BSE Sensex.  CHECK Stock Market LIVE Updates 

What’s driving Tata Group commercial vehicles stock?

 

Tata Motors offers one of the industry’s most comprehensive commercial vehicle portfolios across over 40 countries, spanning sub-1-tonne to 60-tonne cargo vehicles and 9-seater to 71-seater mass mobility solutions.

 

PT Tata Motors Distribusi Indonesia, a wholly-owned indirect subsidiary of Tata Motors has informed that it has entered into an agreement for the supply of 70,000 vehicles for deployment in Indonesia. The vehicles will be used to support agricultural activities and rural logistics, including farm-to-market transportation and regional goods movement across the country.

 

The order, placed by state-owned PT Agrinas Pangan Nusantara, is aimed at strengthening agricultural supply chains, improving rural connectivity, and enhancing national food security initiatives, the company said.  Check Q3 Results today 

Tata Motors outlook

 

The December 2025 quarter (Q3FY26) has witnessed very good uptick and sales momentum as also overall sentiment. And as the consumption continues to be at a higher level post GST 2.0 leading to expansion in some of the end-use sectors and infrastructure activity by the government, the management said they are looking at improved levels of demand in March 2026 quarter (Q4FY26) as well across all the segments.

 

The bus demand will increase now, especially because they are cyclical and do well in Q4 and Q1 of each financial year.  On trucks, given the sharp recovery, the management in the Q3 earning conference call said they are looking forward to continuing this momentum in trucks.

 

Key drivers in 2026 will include the government’s sustained infrastructure push and expansion in end-use sectors, both of which are expected to fuel positive momentum for the industry.

Brokerages view on Tata Motors CV

 

This order marks a significant milestone for Tata Motors’ global commercial vehicle ambitions and strengthens India’s position in export oriented mobility solutions, ICICI Securities said in a note.

 

Post demerger Tata Motors CV is supported by structurally improved profitability, strong free cash flow & superior ROCE profile. Leadership in MHCV space & demand tailwinds further strengthen the investment case with incremental upside from exports. Post Q3 results, analysts at ICICI Securities assign BUY rating on the stock and value it at ₹545 on SOTP basis (14x EV/EBITDA on FY28E, 2x P/B on long term investments).

 

The management indicated that double-digit volume growth will sustain for a few quarters aided by replacement demand, small operators, tipper truck segment and low base benefit. New launches, Ace Gold and Ace Pro, are helping the company to regain peak volumes. The company gained market share with the help of tipper trucks in MHCV segment, while management reiterated that its focus is not only market share but also profitable growth. Tata Motors has taken 1 per cent vehicle price hike in January 2026, across its product range, to overcome commodity cost pressure.

 

The volume growth trajectory for CV sector and Tata Motors has been as per expectations in recent months. With the impressive QoQ EBITDA margin expansion trend sustained, analysts at InCred Equities has increased FY26F-28F EBITDA margin by 30-60bp, thereby maintaining EBITDA estimates.  Following strong cash flow benefitting via lowering interest costs, and also higher other income, the brokerage firm has increased FY26F-28F profit after tax by 2-5 per cent. It maintained 'ADD' rating on the stock with a new target price of ₹521, as strong industry demand tailwinds along with market share gains demand a valuation upgrade.  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.