Tata Motors PV Shares Surge 5% After Q4 Results; Brokerages Split on Future Outlook
New Delhi, May 15: Shares of Tata Motors Passenger Vehicles Ltd rose more than 5% on Friday after the company posted stronger-than-expected fourth-quarter earnings for FY26. The stock settled at Rs 356.55, gaining 5.22% after the results were announced post market hours on Thursday.
The rally came as investors reacted positively to robust profitability in both the domestic passenger vehicle business and Jaguar Land Rover (JLR). Despite the sharp jump, the stock has remained largely flat over the past year and is still down slightly on an annual basis.
Strong Q4 Numbers Drive Optimism
According to Motilal Oswal Financial Services Ltd, Tata Motors PV reported a profit after tax of Rs 5,880 crore in the March quarter, significantly higher than estimates.
The brokerage said the India business witnessed margin expansion, while JLR’s EBIT margins improved sharply due to stronger sales volumes, lower depreciation, better product mix, and foreign exchange gains. The recovery in JLR performance was seen as one of the biggest positives in the quarterly results.
Brokerages Remain Cautious Despite Earnings Beat
Even after the strong quarterly performance, some brokerages continued to maintain a cautious outlook on the stock.
Motilal Oswal reiterated its “Sell” rating and fixed a target price of Rs 303 per share. The brokerage expressed concerns over rising input costs, pressure on margins in the domestic passenger vehicle segment, and ongoing demand challenges in global markets for JLR.
Elara Capital also retained its “Reduce” rating and lowered its target price slightly to Rs 354. The brokerage noted that Tata Motors management is avoiding aggressive price hikes in the domestic market as higher prices could affect consumer demand at a time when commodity costs remain elevated.
Some Analysts See Significant Upside
On the other hand, several brokerages turned optimistic about the company’s future growth prospects.
Nuvama Institutional Equities maintained its “Buy” recommendation and raised its target price to Rs 470. The brokerage expects strong growth in revenue and profitability over the next few years, supported by better sales volumes, production-linked incentive benefits, improved product mix, and cost savings at JLR.
Nuvama also highlighted the importance of upcoming launches and the improving performance of the luxury vehicle business.
JM Financial Upgrades Stock to ‘Buy’
JM Financial upgraded the stock from “Reduce” to “Buy” and assigned a target price of Rs 415.
The brokerage cited improving demand trends for JLR in Europe, the UK, and North America, along with healthy domestic passenger vehicle growth expectations. It also pointed to Tata Motors’ strong product pipeline, including the upcoming Tata Sierra EV and Range Rover EV launches.
Analysts believe these launches, along with lean dealer inventory levels and rising electric vehicle adoption, could support growth momentum in the coming quarters.
EV Segment Continues to Be Key Growth Driver
Industry experts say Tata Motors continues to hold a strong position in India’s electric vehicle market. As the EV ecosystem expands and consumer adoption improves, the company is expected to benefit from its early lead in the segment.
The company’s future performance will likely depend on how successfully it manages rising costs, global demand uncertainty, and execution of its new product launches.
