Tata Motors soars 13% in 3 days, outperforms split arm TMPV; here's why

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

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Tata Motors, Tata Motors Passenger Vehicles share price today

Shares of Tata Motors (formerly known as Tata Motors Commercial Vehicles) hit a new high of ₹359.90, as they rallied 5 per cent on the BSE in Friday’s intra-day trade owing to a healthy business outlook.

 

The stock price of the Tata group’s commercial vehicles company was quoting higher for the third straight day, surging 13 per cent during the period. It has recovered 18 per cent from its low of ₹306 touched on November 14, 2025. Tata Motors made its stock market debut on November 12, 2025.

 

Meanwhile, shares of Tata Motors Passenger Vehicles (formerly known as Tata Motors) were down nearly 1 per cent at ₹355 on the BSE in intra-day trade. In the past three trading days, the stock has gained 1 per cent, while thus far in the month of November it has declined 13 per cent.

 

Why Tata Motors is outperforming Tata Motors Passenger Vehicles (TMPV)?

 

S&P Global Rating on November 25, assigned a stable outlook for Tata Motors on expectation that the company will 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 favourable 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 a 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 expectations of stronger business competitiveness, the rating agency said. 

 

Meanwhile, last month, S&P Global Ratings revised its outlook of TMPV to 'Negative' owing to slow recovery at Jaguar Land Rover (JLR). The global ratings agency expects the cash flow at Tata Motors Passenger Vehicles to be significantly lower due to a prolonged operational disruption at its wholly-owned subsidiary, JLR. The cyberattack, which began on August 31, 2025, has materially hampered JLR's operations, according to S&P Global. Production was completely halted throughout September and the first week of October.

 

JLR has since resumed production and is gradually ramping up. Post the demerger of the commercial vehicle operations, JLR accounts for more than 80 per cent of TMPV's earnings. Meanwhile, for FY26, JLR has guided earnings before interest and tax (EBIT) in the range of 0 per cent to 2 per cent and a negative free cash flow of £2.2 billion to £2.5 billion. 

 

However, Tata Motors' in 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. GST cut boosted consumption and utilisation, supporting Medium and Heavy Commercial Vehicles (MHCV) cargo volume growth. The mining, construction, and infrastructure sectors restart to drive tipper demand.

 

On FY26 outlook and focus areas, Tata Motors said the company's focus areas are to 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.