Tata Motors CV share price: Auto stock down 3% post Q3 earnings; brokerage sees 20% upside

Shares of Tata Motors Ltd’s Commercial Vehicles (CV) arm slipped nearly 3% in Friday’s trade, reacting to the company’s third-quarter earnings for the fiscal year 2026. At 12:55 pm, the counter was trading down 2.53% at Rs 458.30 apiece on the BSE.

The commercial vehicle major reported a sharp 48% fall in net profit for the quarter ended December 31, 2025. The company’s net profit slipped to Rs 705 crore in Q3, down from Rs 1,355 crore recorded in the same period a year ago.

Meanwhile, JM Financial has maintained a bullish stance on Tata Motors CV stock, projecting a target price of Rs 550, implying a potential upside of approximately 20% from current levels.

According to the company’s investor presentation, the company clocked wholesale of 117,000 units in Q3, marking a 20% year-on-year jump. This volume growth was largely fueled by the GST 2.0 implementation and continued festive momentum across product lines.

JM Financial, in its latest note, retained a ‘Buy’ rating on the stock, anchoring its optimism on a structural upcycle in the commercial vehicle sector. The brokerage said that the EBITDA margin of 12.6% was up 30 basis points year-on-year, driven by operating leverage and cost-saving initiatives.

"The management has indicated that the ongoing cycle appears structurally stronger, supported by sustained infrastructure spending, higher fleet utilization, logistics formalization, and improved transporter economics," JM Financial said.

Tata Motors CV, during the quarter, the company launched 17 next-generation trucks, the company said.

“The company has implemented a 1% price hike effective 1st Jan’26, while a potential moderation in discount intensity could provide additional support to the margins,” the brokerage said.