Tata Motors rallies 4% in 2 days, nears new high; what's driving CV stock?

Tata Motors share price today

 

Shares price of Tata Motors (formerly known as TML Commercial Vehicles) continued its upward move, gaining 2 per cent at ₹501 on the BSE in Friday’s intra-day trade. In the past two trading days the stock price of Tata Group’s commercial vehicles (CV) company has rallied 4 per cent. It touched a record high of ₹500 on February 12, 2026. 

 

In the past six months, Tata Motors has outperformed the market by soaring 50 per cent, as compared to 2.3 per cent rise in the BSE Sensex.

 

At 09:32 AM; Tata Motors was quoting 0.5 per cent higher at ₹493.65, as compared to 0.43 per cent decline in the benchmark index. A combined 1.8 million share changed hands on the NSE and BSE.

 

 

What’s driving Tata Motors stock price?

 

Tata Motors has announced the deployment of 40 green hydrogen powered heavy-duty trucks at V.O. Chidambaranar Port under an initial agreement with the V.O. Chidambaranar Port Authority. 

 

The project will begin with trials of a hydrogen-powered prime mover, followed by phased deployment of hydrogen internal combustion engine (H2-ICE) prime movers over the next two years, marking a significant step toward decarbonizing port logistics operations.

 

The move signals a strong push toward clean energy adoption in India’s commercial transport sector, particularly in high-emission segments like port freight movement. If successfully implemented, hydrogen-powered trucks could reduce carbon emissions, cut dependence on fossil fuels, and position India as an early adopter of hydrogen mobility in heavy duty transport, ICICI Securities said in a note.

 

Brokerages view on Tata Motors

 

Tata Motors’ CV business has entered a structurally stronger phase, evidenced by 10 consecutive quarters of double-digit EBITDA margins and first-ever double-digit EBIT margins (10.6 per cent) in Q3FY26. The improvement is being driven by higher volumes, favourable product mix toward HCVs and tippers, fixed-cost management, and improved realizations. 

 

Importantly, the company generated ~₹4,800 crore of FCF in Q3FY26, strengthening its net cash position despite one-time exceptional charges. This provides strong downside protection, enhances balance sheet strength, and supports sustained value creation across cycles. Unlike past cycles driven purely by GDP or infrastructure spending, the current recovery is supported by structural efficiency gains post-GST, analysts at ICICI Securities.

 

Post demerger TMCV is supported by structurally improved profitability, strong FCF & superior ROCE profile. Leadership in MHCV space & demand tailwinds further strengthen the investment case with incremental upside from exports. The brokerage firm has assigned a BUY rating on the stock and values it at ₹545 on SOTP basis (14x EV/EBITDA on FY28E, 2x P/B on long term investments).

 

According to the company's management, underlying demand remains robust, led by improving freight rates (+2-5 per cent post GST 2.0), rising E-way bill volumes (+23 per cent YoY), and improving transporter profitability, thus accelerating replacement demand. Commodity headwinds (~50bps margin impact each in Q3/Q4) have largely been mitigated via 1 per cent portfolio-wide price hikes taken in January 2026, with continued focus on margins with price hikes and sustained reduction in discounts, said analysts at Emkay Global Financial Services. 

 

The brokerage firm believes the overall CV demand environment remains constructive, with double-digit growth likely to sustain till H1FY27 – Tata Motors CV should lead this multi-year upcycle in analysts view. They retained ‘Buy’ rating on the stock with a target price of ₹650 per share.  ===========================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.