Tata Motors (TMCV) shares in focus as CLSA initiates coverage: What you need to know

Using the term "cycling up the hill", CLSA said the company is entering a sweet spot of a cyclical upswing, with the domestic CV cycle still at an early stage of recovery.

CLSA also expects the company’s Iveco operations to benefit from upcoming emission norm changes in calendar years 2027 and 2028. Additionally, it noted that strong consolidated cash flows could help the company achieve a leaner balance sheet by FY28.

Shares of TMCV have rallied over 10.6% over the past month (as of the February 26 closing level).

About Tata Motors Ltd (TMCV)

Tata Motors Limited (TMCV) is a commercial mobility company. The company is a manufacturer of trucks and buses. Its portfolio offers applications from last-mile delivery to long-haul freight and public transportation.

The company’s vehicular business includes small trucks, trucks, buses, and vans. Its non-vehicular businesses include services, spares, aggregates, fleet edge, TATA OK, and REWIRE.

Its small truck portfolio includes the Tata ACE, Tata Intra, and Tata Yodha. Its trucks include Haulage, ILMCV Trucks, Tippers, and Tractors. Its vans include school vans, tourist vans, and ambulance vans. Its aggregates include Gensets, trailer axles, components, and industrial engines.

Its service offerings include Fleetcare, Tata Alert, Tata Zippy, Tata Kavach, Tata Delight, Tata Motors Genuine Oil, and Sampoorna Seva 2.0.

Tata Motors demerger details

Tata Motors completed a major restructuring in November 2025, demerging its business into two separate listed entities: Commercial Vehicles (CV) and Passenger Vehicles (PV, including EVs and Jaguar Land Rover). This strategic split was aimed at improving operational focus, agility, and financial transparency. Shareholders received a 1:1 share entitlement in the new entities.

Tata Motors Commercial Vehicles (TMCV) (now trading as Tata Motors Ltd) was listed on the BSE and NSE on November 12, 2025. The Tata Motors Passenger Vehicle (TMPV) business, representing the remaining entity, continued trading following the demerger, with the record date for the separation set as October 14, 2025.

Tata Motors CV Q3 FY26 earnings

Tata Motors said its consolidated net profit declined 48% to ₹705 crore for the third quarter ended December 2025 (Q3 FY26), hit by one-time provisions for the new labour code and the demerger process.

The commercial vehicle maker had reported a net profit of ₹1,355 crore in the October-December quarter of last year.

Its total revenue from operations stood at ₹21,847 crore for the third quarter against ₹18,819 crore in the year-ago period, Tata Motors said in a statement.

The company stated that exceptional items during the quarter included the impact of the new labour code (₹603 crore), demerger (₹962 crore), and acquisition cost (₹82 crore).

The impact of these and other items stood at ₹1,600 crore in the consolidated financials, it added.

"Disciplined execution of an agile strategy delivered yet another strong financial performance this quarter, supported by demand tailwinds from GST 2.0 and the festive season," Tata Motors MD and CEO Girish Wagh said.

With infrastructure spending accelerating, the company is well-positioned to sustain momentum and drive continued growth, the MD added.

The company said going forward, it expects demand to further strengthen in the fourth quarter of the current fiscal year across most commercial vehicle segments.