Newly-listed Tata Motors CV shares fall up to 4.5% after Q2 results, analysts warn of market share loss

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26 Aug, 2025 12:21

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The shares of Tata Motors, which now represents the automaker's commercial vehicle business, dropped around 4.5 percent to its day’s low on November 14. This comes after the company reported a consolidated net loss of Rs 867 crore for the second quarter of the financial year 2026.

The newly-listed company’s net loss in Q2 FY26 came against a net profit of Rs 498 crore reported in the corresponding quarter of the previous financial year. The shares of Tata Motors CV business were listed on November 12 after its demerger with the passenger vehicle segment.

Tata Motors said that its reported profits were adversely impacted by mark-to-market losses on account of recently listed investments in Tata Capital.

The firm's revenue from operations however rose 6 percent year-on-year (YoY) to Rs 18,585 crore during Q2 FY26, from Rs 17,535 crore reported in Q2 FY25. Expenses grew more than 15 percent YoY to Rs 19,296 crore during the quarter under review.

Looking ahead, Tata Motors anticipates a strong second half for FY26 with the festive season underway, improving consumption, and the full impact of GST reforms yet to unfold. "Construction, infrastructure, and mining activities will gain momentum, further fueling demand for trucks and tippers," the firm said.

The company added that with a robust pipeline of upcoming launches, and a richer, more customer-aligned product portfolio, it is well-positioned to accelerate momentum and drive meaningful, broad-based growth and market share improvement across all segments. The business will continue its focus on profitable growth to deliver double digit EBITDA margin and robust cash flows along with high ROCE, it said.

Motilal Oswal remains ‘Neutral’ on the stock, with a target price of Rs 341 apiece. This implies an upside potential of more than 6 percent from the stock’s previous closing price.

The domestic brokerage said that the key concern for Tata Motors’ CV business is its gradual loss of market share across key segments. It added that what was most concerning was the firm’s market share loss in LCV goods from a high of 40 percent in FY22 to 27 percent now, with the gap with current market leader Mahindra & Mahindra (M&M) rising with every passing year.

“A key focus area for the CV entity is to sustain robust financial performance by consistently delivering double-digit EBITDA margins, healthy cash flows and strong ROCE,” it said.

The shares of Tata Motors' commercial vehicle business were listed at Rs 335 apiece on the NSE on November 12, marking a premium of more than 28.5 percent from the discovered price. This officially completed the demerger of automaker Tata Motors.

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