Tata Motors climbs 4% to record high; what's driving the rally?

Shares of Tata Motors, which now houses the Tata Group’s commercial vehicle (CV) business after the demerger, surged as much as 4 per cent to hit a fresh record high of Rs 492 in Wednesday’s intra-day trade on the BSE.

The stock crossed its earlier high of Rs 485 touched on January 30, 2026. At 9:23 AM, it was trading at Rs 483.45, up 2.3 per cent, compared with a 0.17 per cent rise in the BSE Sensex.

Since its market debut in November 2025 post the CV business demerger, the stock has rallied nearly 50 per cent from Rs 327.65. The strong move reflects improving sentiment around the commercial vehicle cycle and export growth.

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Largest-ever international order

The rally follows the company’s announcement of its biggest overseas order to date.

PT Tata Motors Distribusi Indonesia, a wholly owned indirect subsidiary, has secured an order for 70,000 commercial vehicles. The order includes 35,000 Tata Yodha pickups and 35,000 Tata Ultra T.7 trucks.

The vehicles will be deployed across Indonesia to support agricultural activities and rural logistics. They will be used for farm-to-market transportation and regional goods movement.

The order has been placed by state-owned PT Agrinas Pangan Nusantara. According to the company, the deal aims to strengthen agricultural supply chains, improve rural connectivity and support national food security initiatives.

The size of the order provides strong visibility on export volumes over the coming quarters.

Q3 performance shows volume strength

For the October-December quarter of FY26, Tata Motors reported consolidated net profit of Rs 705 crore. This was down 48 per cent year-on-year from Rs 1,355 crore.

The decline in profit was mainly due to one-time exceptional costs.

Revenue from operations rose more than 16 per cent year-on-year to Rs 21,847 crore. Operating margin improved to 12.60 per cent from 12.07 per cent last year. Consolidated EBITDA margin increased 30 basis points to 12.5 per cent.

The company incurred exceptional costs of Rs 1,643 crore during the quarter. This included Rs 962 crore towards stamp duty charges linked to the demerger. It also booked Rs 603 crore related to the implementation of new labour codes and Rs 82 crore for acquisition-related expenses.

Excluding these one-offs, operating performance remained steady.

Sales and market share improve

The company’s CV segment wholesales stood at 1,16,800 units in Q3FY26, up 20 per cent year-on-year.

Domestic volumes rose 18 per cent, while exports jumped 70 per cent. The strong export growth supports the positive reaction in the stock.

Domestic CV VAHAN market share improved by 100 basis points sequentially to 35.5 per cent in the December quarter.

The large Indonesia order, rising export volumes and stable margins have strengthened investor confidence. The market is now focusing on execution of the export deal and sustainability of volume growth in the coming quarters.