Tata Motors PV shares post biggest daily rally since Feb 2023 after return to profit in Q4; should you BUY?

Shares of Tata Motors Passenger Vehicles jumped over 8 per cent in early trade on Friday, May 15, after the company reported a strong recovery in March quarter earnings for FY26. Investor sentiment improved after the automaker posted better revenue growth and margin expansion across its India business and Jaguar Land Rover (JLR) operations.

Tata Motors PV share price

Tata Motors PV shares climbed as much as 8.3 per cent to hit an intraday high of Rs 366.95 on the NSE, compared to the previous close of Rs 338.75. The stock later traded at Rs 357.95, up 5.67 per cent at around 11 am.

Net profit rebounds in Q4

The company posted a consolidated net profit after tax (PAT) of Rs 5,783 crore in the fourth quarter of FY26, compared with a net loss of Rs 3,486 crore in the December quarter.

The turnaround came on the back of a sharp rise in revenues. Core revenues jumped nearly 50 per cent sequentially to Rs 1.05 lakh crore in the March quarter, against Rs 70,108 crore in the previous quarter.

Operational performance also improved significantly. EBITDA margin expanded by 960 basis points to 10.7 per cent, while EBITDA rose multifold to Rs 11,259 crore.

As Tata Motors carried out a demerger in October 2025, year-on-year comparisons are not comparable, the company said.

JLR performance supports recovery

Luxury vehicle arm JLR remained a key contributor to the earnings recovery during the quarter.

JLR reported a 59 per cent sequential rise in revenue from operations to Rs 85,625 crore in the March quarter, compared with Rs 53,849 crore in the previous quarter.

The luxury carmaker also posted a net profit of Rs 7,387 crore, against a net loss of Rs 3,344 crore in the December quarter.

“JLR remains resilient and well placed to address the geopolitical, inflationary and regulatory challenges the industry faces,” the company said in its investor presentation released on Thursday evening.

The company also said it plans to invest 18 billion pounds over the five-year period starting FY24. It will provide guidance for FY27 on June 17, 2026.

Brokerages remain cautious despite strong quarter

Several brokerages acknowledged the better-than-expected operational performance but continued to remain cautious on the stock due to concerns around JLR’s medium-term outlook.

Jefferies maintained its “Underperform” rating and cut the target price to Rs 300 from Rs 310. The brokerage said EBITDA improved sharply quarter-on-quarter and came 23 per cent above estimates due to stronger margins in both JLR and India operations.

However, Jefferies flagged multiple headwinds for JLR, including rising competition, higher consumption taxes in China, elevated discounts and warranty costs, and ageing key models. It added that the improving India PV business may not fully offset the drag from JLR.

Citigroup maintained its “Sell” rating and lowered the target price to Rs 330 from Rs 345.

UBS retained its “Sell” rating but raised the target price to Rs 325 from Rs 310.

Meanwhile, CLSA maintained its “Accumulate” rating and increased the target price to Rs 468 from Rs 440.