Tata Motors Share Price Jumps 6%: Strong CV Business Sparks Rally, Brokerages See Further Upside

Shares of Tata Motors rallied sharply in early trading on Thursday, August 13, after the company's commercial vehicle (CV) business delivered strong Q1 FY27 results. The stock gained as much as 6%, becoming the top performer in the Nifty 100 index.

Brokerage firms have remained positive on the stock, citing strong commercial vehicle demand, price hikes, improving margins and healthy volume growth.

Tata Motors Share Price Rises 6%

Tata Motors shares climbed to ₹485, registering a gain of around 6% in early trade.

The stock subsequently pared some gains. At around 10 AM, Tata Motors was trading at approximately ₹477.15 on the BSE, up ₹20.30 or 4.44%.

The strong move came after encouraging Q1 performance from the company's commercial vehicle business.

Nomura Upgrades Tata Motors to ‘Buy’

Brokerage firm Nomura has upgraded Tata Motors to a ‘Buy’ rating and assigned a target price of ₹554 per share.

Nomura highlighted the strong performance of Tata Motors' CV segment, noting that its Q1 EBITDA exceeded expectations.

The brokerage expects margins to improve further following recent price increases and has also raised its FY27 demand-growth forecast for medium and heavy commercial vehicles (MHCV) from 5% to 8%.

CLSA Sees More Than 30% Upside

CLSA has retained its ‘Outperform’ rating on Tata Motors and set a target price of ₹596.

Based on Wednesday's closing price, the brokerage's target indicates potential upside of more than 30%.

CLSA expects Tata Motors' commercial vehicle volumes to continue growing at a double-digit rate in Q2 FY27, supported by resilient demand.

Strong Q1 EBITDA Boosts Investor Sentiment

Tata Motors' Q1 EBITDA performance in the CV segment came in ahead of estimates.

According to Nomura, the better-than-expected performance was supported by strength across multiple CV segments. The brokerage expects additional margin improvement following the company's price hikes.

CLSA also highlighted the strength of the quarter, noting that Q1 EBITDA margin was around 50 basis points above consensus estimates, despite higher commodity costs.

MHCV Demand Expected to Remain Strong

The commercial vehicle outlook remains one of the key positives for Tata Motors.

Nomura expects MHCV volumes to grow at a healthy double-digit rate in Q2 FY27. The brokerage also pointed to the increasing adoption of electric commercial vehicles, with EV penetration in the small commercial vehicle segment reaching around 10%.

The company implemented a 25% price hike in July, amid cost pressures and supply constraints. Brokerage analysts believe the price increase could support margins going forward.

Indonesia Orders and Iveco Deal in Focus

Nomura also highlighted Tata Motors' export opportunity, with deliveries related to Indonesia expected during FY27 and FY28.

Meanwhile, the proposed Iveco deal is expected to be completed by early November 2026, according to the brokerage's assessment.

These developments could provide additional catalysts for the company's commercial vehicle business.

What Brokerages Are Saying About Tata Motors

Brokerage                              Rating              Target Price

Nomura                                Buy                  ₹554

CLSA                                       Outperform          ₹596

The brokerage commentary suggests that strong CV demand, double-digit volume growth, price hikes and improving margins could remain key drivers for Tata Motors.

However, investors should note that brokerage targets are estimates, not guaranteed future prices, and the stock remains subject to market and company-specific risks.