Tata Motors Share After Q2 Results: Robust Volume Growth Powers the Quarter, but Input Cost Pressures Loom
- October 26, 2026
- Posted by: Lakshit Sharma
- Category: News
Tata Motors Ltd (NSE: TMCV), the commercial vehicle company, reported Q2 FY27 revenue of Rs 25,338 crore, up 36% year on year, and net profit of Rs 1,257 crore against a loss of Rs 867 crore. The Tata Motors share traded near Rs 388.15 around 2:54 PM on Monday, 26 Oct 2026, down 1.98%, as steel and rubber costs held the consolidated EBITDA margin at 10.9%.
Quick Answer
The Tata Motors share fell about 2% in its first session after the Q2 results because strong volumes were already known while input costs keep rising. Wholesale volumes grew 42% to 1,35,100 units against industry growth of 28%, but the consolidated EBITDA margin slipped 40 basis points to 10.9% on steel and rubber, and management guides to another 150 to 200 basis points of cost pressure in Q3. The company holds Rs 15,900 crore of net cash, and an Iveco tender offer is due to settle on 30 Oct. This is educational and not a recommendation to buy or sell.
The Tata Motors share price slipped about 2% on Monday after the commercial vehicle maker posted a strong volume quarter, because rising steel and rubber costs are squeezing margins even as demand stays firm. The Mint headline on the results, robust volume growth with input cost pressures looming, describes the same split that the market is weighing.
A note on the name. The data provider lists two Tata Motors companies, and the quarter covered here belongs to Tata Motors Ltd (TMCV, formerly TML Commercial Vehicles), whose results were announced on 23 Oct after market hours. The passenger vehicle business behind the other Tata Motors share trades separately as Tata Motors Passenger Vehicles (TMPV). This article covers the share price, Q2 numbers, volumes, costs, the Iveco offer, brokerage targets, valuation, technical levels and risks, and it is educational and not advice.
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Tata Motors Share Price Today: First Reaction to the Q2 Results
| Tata Motors share: measure (NSE, about 2:54 PM) | Reading |
|---|---|
| Last price | Rs 388.15, down 1.98% |
| Previous close (23 Oct) | Rs 396.00, down 4.41% that day |
| Open | Rs 391.85 |
| Day high and low | Rs 401.50 and Rs 381.70 |
| Volume | About 52.7 lakh shares |
| 52-week high and low | Rs 509 and Rs 306.30 |
| Distance from 52-week high | About 23.7% below (my calculation) |
| Distance from 52-week low | About 26.7% above (my calculation) |
| Fall since the 22 Oct close of Rs 414.25 | About 6.3% (my calculation) |
The Tata Motors share was already weak before the numbers came out. It fell 4.41% on Friday, 23 Oct, on volume of about 81 lakh shares, and the results followed after the market closed. On Monday it opened at Rs 391.85, touched Rs 401.50 and then slid to a low of Rs 381.70, which suggests that buyers defended the open and sellers took charge later in the session.
The Tata Motors share has now fallen about 8.2% from Rs 422.80 on 15 Oct (my calculation). That makes the question for the Tata Motors share clear. Does a quarter with 42% volume growth justify buying a fall, or does the cost warning for Q3 mean that more weakness is ahead?
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Tata Motors Q2 Results: Revenue, Profit and Margin
| Tata Motors Q2 FY27 item | Q2 FY27 | Comparison |
|---|---|---|
| Consolidated revenue from operations | Rs 25,338 crore | Rs 18,585 crore a year ago, up 36.33%; up 22.6% on Q1 |
| Standalone revenue | Rs 23,900 crore | Up 42% year on year |
| Consolidated net profit | Rs 1,257 crore | Loss of Rs 867 crore a year ago; Rs 2,560 crore in Q1 |
| Consolidated EBITDA margin | 10.9% | Down 40 basis points year on year |
| Standalone EBITDA margin | 11.7% | Down 90 basis points year on year |
| Standalone profit before tax | Up 51% | Absolute figure not given in the report I retrieved |
| Free cash flow in Q2 | Rs 4,600 crore | Rs 2,200 crore a year ago |
| Net cash | Rs 15,900 crore consolidated | Rs 11,300 crore standalone |
The turnaround from a loss is the headline of the Tata Motors Q2 results, but the quarter-on-quarter profit fell about 51% from Rs 2,560 crore in Q1, and a report links that gap to the mark-to-market treatment of the company’s Tata Capital investment. For that reason I look at margin and cash flow, which are cleaner, and at those two the message is mixed. Revenue grew faster than profit, so the margin slipped, and free cash flow more than doubled.
Sources differ slightly on net profit for the Tata Motors share, with one reporting Rs 1,257 crore and another Rs 1,254 crore. I use Rs 1,257 crore. One of the results summaries was produced with AI support, so I have used only the figures that other sources also report. Working capital contributed Rs 2,447 crore of the Rs 5,721 crore of H1 free cash flow, which means part of the cash gain may not repeat.
Tata Motors Share: Robust Volume Growth, Segment and Market Share Data
| Tata Motors share: Q2 FY27 volumes | Units | Growth year on year |
|---|---|---|
| Total wholesale | 1,35,100 | Up 42%, against industry growth of 28% |
| International | 21,100 | Up 177%, mainly from a large Indonesia order |
| Heavy commercial vehicles (HCV) | 33,800 | Up 41% |
| Small commercial vehicles and pickups | 44,000 | Up 27% |
| Electric vehicles | Not stated | Up 143% |
| Domestic | Not stated | Up 30% |
| Tata Motors share: H1 FY27 market share | Share | Change versus FY26 |
|---|---|---|
| Domestic commercial vehicles | 36.2% | Up 110 basis points |
| HCV | 55.7% | Up 50 basis points |
| CV passenger | 41.1% | Up 500 basis points |
| Small commercial vehicle pickups | 27.6% | Up 130 basis points |
Growth was broad, which supports the Tata Motors share. The company beat the industry by 14 percentage points, gained share in each of the four segments shown and saw electric volumes rise 143%. Even so, the export jump owes much to one large Indonesia order, so the 177% should not be treated as a run rate. Domestic growth of 30% is the cleaner measure of demand.
H1 volumes grew 35%, which is the base the Tata Motors share is now valued on. The CEO, Girish Wagh, called Q2 another strong quarter of consistent, profitable growth, and he said growth should moderate in the second half against a higher base. For Q3, management expects demand growth to ease to the high single digits or low double digits, with double-digit growth in intermediate and light commercial vehicles and CV passenger, and higher single-digit growth in HCV and small commercial vehicles.
Tata Motors Input Cost Pressures: Steel, Rubber and the Q3 Outlook
| Tata Motors input cost item | Detail |
|---|---|
| Variable costs in the profit bridge | Up Rs 1,416 crore, a 5.9% impact |
| Volume and mix | Positive Rs 1,159 crore |
| Net realisation | Positive Rs 1,017 crore |
| Foreign exchange and other income | Positive Rs 356 crore |
| Steel | At 52-week highs |
| Rubber | Remains elevated |
| Extra cost pressure guided for Q3 | 150 to 200 basis points, depending on settlement timing |
| Price increases this year | About 1% in January, 2% in April, 2.5% in July and 1% to 2% from 1 Oct |
The bridge shows why Tata Motors input cost is the central worry for the Tata Motors share. Volume and price together added more than Rs 2,100 crore to profit before tax (my calculation), but variable costs took back Rs 1,416 crore. The company has raised prices four times this year, and it is still behind on costs, which is why the margin fell even in a quarter of strong demand.
The next step matters more for the Tata Motors share. Management guides to a further 150 to 200 basis points of cost pressure in Q3, and the CEO said commodity costs persisted through H1 and remain a headwind. The October price increase of 1% to 2% should help the Tata Motors share margin, but the timing of steel settlements will decide how much of the pressure reaches the margin. A second risk is supply, since the company flagged constraints in castings, machining, sheet metal stamping and imported EV aggregates, with debottlenecking planned in Q3 and possibly Q4.
Iveco Offer and the Balance Sheet Behind the Tata Motors Share
| Iveco tender offer item | Detail |
|---|---|
| Offer price | Euro 14.40 per share, raised from Euro 14.10 on 9 Oct |
| Reported deal size | About Euro 3.91 billion, all cash |
| Iveco shareholder approval | All resolutions passed at the EGM on 16 Oct |
| Tendered as of 22 Oct | About 35% of shares |
| Acceptance period closes | 26 Oct |
| Settlement | Scheduled for 30 Oct, subject to successful completion |
| Consolidation | Expected to begin next quarter |
The Iveco offer is the other big item for the Tata Motors share. The deal is large against the company’s Rs 15,900 crore of net cash, and the reports I retrieved do not set out how it will be funded, so I will not guess at the mix of cash and debt. What can be said is that the balance sheet will look different once Iveco is consolidated, and that margin, debt and return ratios should be re-read after the next result.
Tata Motors Share Price Target: What Brokerages Said
| Tata Motors share: brokerage (after Q1, Aug 2026) | Rating | Target (Rs) | Versus Rs 388.15 (my calculation) |
|---|---|---|---|
| Emkay Global | Buy | 700 | Up 80.3% |
| Nomura | Buy (upgraded) | 554 | Up 42.7% |
| Nuvama | Not stated | 525 | Up 35.3% |
| Elara | Accumulate | 508 (from 423) | Up 30.9% |
| Motilal Oswal | Not stated | 434 | Up 11.8% |
These targets are from August, after the June quarter, and I could not retrieve updated Tata Motors share price target calls after the Q2 results. They are included to show how analysts valued the stock when it was near Rs 485. Emkay’s Rs 700 was the highest and Motilal Oswal’s Rs 434 the lowest among 18 brokerages at that time, and UBS, HSBC, Investec, Kotak Securities and IIFL were also on Buy, without targets in the report.
Because the Tata Motors share has since fallen about 20% from that level (my calculation, from Rs 485 to Rs 388.15), and the cost outlook has been flagged, brokerages are likely to revisit their numbers. Please read the latest reports before you rely on any Tata Motors share price target.
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Valuation and Technical Levels for the Tata Motors Share
| Tata Motors share: valuation (data provider) | Reading |
|---|---|
| Market capitalisation at Friday’s close | Rs 1,45,728 crore |
| Trailing price to earnings | 34.80; about 34.1 at Rs 388.15 (my calculation) |
| Industry price to earnings | 23.44 |
| Book value per share | Rs 34.58 |
| Price to book | 11.44; about 11.2 at Rs 388.15 (my calculation) |
| Debt to equity | 0.25 |
| Dividend yield | 1.01% |
| Tata Motors share: indicator (daily) | Reading |
|---|---|
| 14-day RSI | About 28.8, oversold |
| 20-day EMA | About Rs 417.70, 7.1% above the price (my calculation) |
| 50-day average | About Rs 441.97, 12.2% above the price (my calculation) |
| SuperTrend | Sell; upper band Rs 432.62, lower band Rs 380.53 |
| MACD | Minus 10.06 against a signal of minus 8.18, negative |
| ADX and directional lines | ADX 34.7; plus DI 8.2, minus DI 30.5, a down trend |
| Bollinger bands | Lower Rs 392.70, middle Rs 418.39, upper Rs 444.07 |
| Average true range | About Rs 13.72 a day |
| Tata Motors share: level | Rs | What it marks |
|---|---|---|
| Resistance 3 | 432.62 | SuperTrend upper band |
| Resistance 2 | 414.25 | 22 Oct close, the pre-fall area |
| Resistance 1 | 401.50 | Today’s high |
| Support 1 | 381.70 | Today’s low |
| Support 2 | 380.53 | SuperTrend lower band |
| Support 3 | 306.30 | 52-week low |
The valuation of the Tata Motors share is high on earnings and on book value, and it is set by recent profit that includes non-operating items, so I would not read too much into the single P/E. What stands out on the chart is that the price is oversold, with an RSI near 28.8, yet trapped below the lower Bollinger band at Rs 392.70 and the SuperTrend upper band at Rs 432.62.
A close under Rs 380.53 would break the SuperTrend support and expose the lower levels, and a close above Rs 432.62 would be the first sign of a trend change. For context, the sister listing, Tata Motors Passenger Vehicles, traded near Rs 262.90, down 0.64%, close to its own 52-week low of Rs 259.35, so the weakness is not limited to this company. These are indicator readings and not forecasts.
Tata Motors Share: A Framework by Investor Type
| Investor type | Things to weigh | What to check |
|---|---|---|
| Long-term investor | Market share gains, free cash flow and the Iveco transaction against a high multiple | Margin recovery after the Q3 steel settlements |
| Short-term trader | An oversold down trend with resistance near Rs 401 to Rs 433 | Support near Rs 380 to Rs 382 and volume |
| Existing holder | Strong volumes but a cost warning for Q3 | Your entry price and risk limit |
None of these rows is a recommendation. The same quarter gives both a growth story and a margin warning, and the Tata Motors share will move on which one the market weights at any given time.
Risks to Check Before You Act on the Tata Motors Share
- Input costs. For the Tata Motors share, steel is at 52-week highs and management guides to another 150 to 200 basis points of pressure in Q3.
- Slower growth. For the Tata Motors share, management expects demand growth to moderate to high single digits or low double digits against a higher base.
- Supply constraints. For the Tata Motors share, shortages in castings, machining, stamping and imported EV parts can cap volumes.
- Deal risk. For the Tata Motors share, the Iveco offer is large, and the funding and integration details are not yet clear.
- Trend. The Tata Motors share is in a down trend, and it fell 6.3% in two sessions.
Conclusion
The Tata Motors share fell about 2% on its first session after a quarter of 42% volume growth, Rs 25,338 crore of revenue and Rs 4,600 crore of free cash flow, because steel and rubber costs are squeezing margins and Q3 carries more pressure. The market is paying for volumes but pricing in the cost risk, so read the company’s filings, watch the levels near Rs 380 and Rs 401, and decide according to your own risk profile.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
How did the Tata Motors share react to the Q2 results?
Ans. Tata Motors Ltd (TMCV) fell 4.41% on Friday, 23 Oct, before the results were announced after market hours. On Monday, 26 Oct, it was down 1.98% at about Rs 388.15 around 2:54 PM, after a high of Rs 401.50 and a low of Rs 381.70. The fall reflects concern about input costs and slower growth.
What were the Tata Motors Q2 results for FY27?
Ans. Consolidated revenue rose 36% to Rs 25,338 crore, and net profit was Rs 1,257 crore against a loss of Rs 867 crore a year ago. Wholesale volumes grew 42% to 1,35,100 units, and the consolidated EBITDA margin fell 40 basis points to 10.9%. Free cash flow was Rs 4,600 crore.
What are the Tata Motors input cost pressures behind the Tata Motors share fall?
Ans. Steel is at 52-week highs and rubber remains elevated, and variable costs reduced profit before tax by Rs 1,416 crore in the quarter. Management guides to another 150 to 200 basis points of cost pressure in Q3, depending on settlement timing. The company raised prices by about 1% in January, 2% in April, 2.5% in July and 1% to 2% from 1 Oct.
What is the Tata Motors share price target?
Ans. I could not retrieve updated targets after the Q2 results. After the June quarter, Emkay Global had a target of Rs 700, Nomura Rs 554, Nuvama Rs 525, Elara Rs 508 and Motilal Oswal Rs 434. Please check the latest brokerage reports before you rely on any target.
What is the Iveco offer and when does it settle?
Ans. Tata Motors made an all-cash tender offer for Iveco at Euro 14.40 per share, raised from Euro 14.10 on 9 Oct, with a reported size of about Euro 3.91 billion. About 35% of shares were tendered by 22 Oct, acceptance closes on 26 Oct and settlement is scheduled for 30 Oct. The company holds Rs 15,900 crore of consolidated net cash.
What are the key technical levels for the Tata Motors share price?
Ans. On daily indicators, support is near Rs 381.70, Rs 380.53 and the 52-week low of Rs 306.30, and resistance is near Rs 401.50, Rs 414.25 and Rs 432.62. The 14-day RSI is about 28.8 and the SuperTrend is on a sell signal. These readings are not forecasts.
Is this Tata Motors share article investment advice?
Ans. No. This article is educational. Prices, ratios, results and targets come from company disclosures, news reports and data providers and may change. Please check the facts and your own risk profile before you invest.
Is this article investment advice?
Ans. No. It is educational and not a recommendation to buy or sell. Please check the figures against company filings and your own risk profile before you act on anything you read here.