TMCV
Large CapTata Motors Limited
Auto
Tata Motors Limited (formerly TML Commercial Vehicles Limited) is the commercial vehicles segment of Tata Motors, including joint operations with Tata Cummins. It manufactures and sells commercial vehicles, offering a range of trucks, buses, and small commercial vehicles, and provides related parts and services.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 90/100Rev +19% YoY · PAT +34% YoY · margin expansion · +19% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹26,098 Cr | +19.4% | +19.5% |
| EBITDA | ₹3,327 Cr | +36.9% | +28.6% |
| Operating margin | 13.0% | +200 bps | +100 bps |
| PAT | ₹1,793 Cr | +33.8% | +154.3% |
| PAT margin | 6.9% | +74 bps | +364 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Tata Motors' CV segment delivered strong Q4 FY26 performance with standalone wholesales up 25% YoY and revenue up 22% YoY. Full year FY26 saw 14% wholesale growth and 11% revenue growth, with EBITDA margins expanding to 13.2% and Auto ROCE reaching 72%.
The CV segment demonstrated robust financial and operational performance in FY26, driven by strong volumes, improved product mix, and disciplined cost management. Margin expansion and significant FCF generation are positive, though commodity inflation and export market sentiment bear watching.
New Product Portfolio
Launched 17 Next-Generation Trucks and Ace Pro mini-truck, setting new standards for safety, profitability, and affordability.
Non-Cyclical Business Growth
Non-cyclical business growth at 1.6x cyclical business, aiding overall profitability and showing a CAGR 2.7x cyclical business CAGR.
Government & Export Orders
Won pan-India orders of over 5,000 buses from State Transport Undertakings and secured a 70,000-unit order for Indonesia.
Electric Vehicle Expansion
Launched Intra EV to broaden the electric range and deployed 3815 cumulative E-buses, with 250 new EV bus orders received.
Strong Consumption Demand
GST 2.0-led consumption demand boosted Q4 to strong momentum, with consistent +15% E-way bill generation in Q4 FY26 vs Q4 FY25.
Healthy Fleet Utilization
Overall fleet indicators and transporter profitability are healthy, with HCV cargo utilization remaining strong at 76.8% in April 2026.
Refreshed Product Portfolio
A refreshed product portfolio, proactive risk mitigation, and disciplined execution position the company well for FY27.
Commodity Inflation
Cautiously monitoring broad-based commodity inflation (Steel, Aluminum, Copper), which partially offset margin expansion in Q4 FY26.
MENA Export Market Sentiment
Subdued sentiment in MENA export markets is a near-term headwind, impacting export volumes.
Diesel Prices
Diesel prices remain a key monitorable for operating economics and transporter profitability.
West Asia Conflict Impact
The West Asia conflict led to a slight March dip in freight rates and vessel transit delays, though exposure to impacted hubs is limited.
Commodity Price Volatility
Broad-based commodity inflation (Steel, Aluminum, Copper) poses a risk to sustained margin expansion.
Geopolitical Risks
Subdued sentiment in MENA export markets and potential impacts from the West Asia conflict could affect international business.
Iveco Acquisition Delays
Regulatory approvals for the proposed Iveco acquisition are still underway, with last pending approvals actively pursued for earliest closure.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Annual (FY) comparison provides a holistic view of the business cycle and strategic execution, while quarterly (QoQ and YoY) comparisons highlight recent operational momentum, pricing discipline, and market share dynamics in a cyclical industry.
Volume Growth (Wholesales)
Q4 FY26 standalone wholesales were 131.8K units, up 25% YoY. Full year FY26 standalone wholesales were 428.1K units, up 14% YoY.
Realization
QoQ realisation improvement on back of pricing discipline and favorable mix. Annual revenues at ₹77K Cr, reflecting strong volumes and mix.
Domestic Market Share (VAHAN)
Overall VAHAN Market share for FY26 was 35.7% (vs 37.1% in FY25). HCV market share consolidated to 55.0% for FY26 (vs 53.9% in FY25).
Fleet Utilization (HCV Cargo)
HCV Cargo Fleet Utilization (active vehicle%) was 76.8% in April 2026, reflecting healthy and stable demand.
Iveco Acquisition Timeline
Management expects to complete the proposed acquisition of Iveco by Q2 FY27, with most regulatory approvals already received.
FY27 Investment Spending
Investment spending for FY27 is expected to be in a similar range as FY26 (~₹3K Cr), prioritizing growth and technology investments.
Trucks Growth Momentum
Focus on continuing growth momentum by leveraging the new higher-payload truck portfolio and scaling the BEV Truck range.
Buses Market Share Recovery
Aim to drive profitable market share recovery across sub-segments while scaling government tender procurement and execution capabilities.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margin | 13.9% (Q4 FY26 Standalone) | Sustained 'teens' EBITDA margin, which was delivered ahead of target. |
| Iveco Acquisition Closure | Regulatory approvals underway, last pending approvals being pursued. | Completion of the transaction by Q2 FY27 as expected by management. |
| Domestic Market Share | Overall VAHAN Market share at 35.7% for FY26. | Profitable market share recovery across sub-segments, especially in SCV & PU and CV Passenger. |
| Commodity Price Impact | Cautiously monitoring broad-based commodity inflation. | Management's ability to pass on rising input costs and maintain margin discipline. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
46NeutralSMA20 -8.2% / mo
Technical chart
TMCVdaily · 5Y+10.3%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 32.
- SMA20 falling (~12.3% over last month) — short-term momentum negative.
- RSI(14) at 32 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 29% off 52W high · 19% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 8.6%.
- Quality contributes 15/20 to the score.
- Balance sheet contributes 8/15 to the score.
Main drags
- Fair-value margin of safety is negative at -455.9%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Growth is weaker at 2/25; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 67th percentile of the scored universe and 53rd percentile within Auto. Main check: results consistency is weak at 49/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 2 latest quarters had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Auto: 53rd pctile, median 71 · Large: 43rd pctile, median 74
30 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is 8.6%.
- ▸OPM spread across recent quarters is 3%.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸Only 1 years of positive FCF.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 24.20
- P/B
- 10.49
- EV/EBITDA
- 13.88
- Market Cap
- 133669.00Cr
Profitability
- ROE
- 43.40%
- ROCE
- —
- ROA
- 5.79%
- Dividend Y
- 1.10%
Growth (CAGR)
- Revenue 5Y
- —
- EPS 5Y
- —
- Revenue 3Y
- —
- EPS 3Y
- —
Balance Sheet
- Debt/Equity
- 0.44
- Interest Coverage
- 11.48×
- Altman Z
- 4.67
- Book Value
- 34.60
Cash Flow
- FCF Yield
- 8.63%
- FCF Positive Y
- 1/5
- OCF
- 14981.00 Cr
- EPS TTM
- 8.23
Shareholding
- Promoter Hold
- 42.56%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 28%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Auto — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.