Tata Motors Ltd. (CV) surged as high as 6.12% to Rs 485 in early trade on Thursday after the company posted healthy rise in its first quarter bottom-line and revenue despite continued commodity cost pressures.
The company posted a 8% year-on-year rise in its net profit for the first quarter of FY27 to Rs 1,528 crore from Rs 1,411 crore in the year-ago period. Revenue from operations climbed 23% to Rs 19,329 crore from Rs 15,682 crore.
EBITDA increased 17% to about Rs 2,300 crore, while the EBITDA margin moderated to 11.7% from 12.3% a year earlier as raw material costs weighed.
Tata Motors attributed the resilient profitability to disciplined pricing, cost-efficiency measures and improved operating leverage despite severe commodity headwinds. Profit before tax and exceptional items rose 26% to Rs 2,057 crore.
As of 9:40 a.m., the stock pared some gains to trade 4.17% higher at Rs 467 apiece on the NSE, as against a 0.39% decline in the benchmark Nifty index.
The share price has 14.32% year-to-date, and clocked its highest intraday gain on November 13, 2025 when it soared nearly 32%.
ALSO READ: Tata Motors' CV Story Is Getting Stronger; Nomura Upgrades To 'Buy', Hikes Target Price
Nomura Turns More Bullish
Tata Motors may be entering a phase where stronger commercial vehicle (CV) demand and improving margins start doing more of the heavy lifting for earnings.
That said, Nomura has turned more bullish on the stock, upgrading it to ‘Buy' from ‘Neutral' and raising its target price to Rs 554 from Rs 402, implying around 21% upside from its current level.
The upgrade by Nomura analysts Kapil Singh and Siddhartha Bera comes after Tata Motors' commercial vehicle business delivered a stronger-than-expected June quarter, while management commentary pointed to healthy near-term demand and further room for margin improvement.
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