Tata Motors Commercial Vehicles: Quick Note

Research evidence excerpt

Tata Motors Commercial Vehicles: Quick Note

Global Markets Research

Tata Motors Commercial Vehicles TATM.NS TMCV IN 31 July 2026

EQUITY: AUTOS & AUTO PARTS

RatingIveco’s performance improves in 2Q Remains Neutral

Target price INR 402 RemainsQuick Note

Closing price INR 437 31 July 2026Iveco: 2QCY26 industrial margins improves to 2.8% vs -3.3% in 1QCY26

• Iveco reported 2QCY26 results with revenues up 7% y-y (+1% y-y in 1QCY26), led by 11%

y-y overall volume growth (5% y-y in 1QCY26). Research Analysts

• Industrial EBIT margin was 2.8% in 2Q (-3.3% in 1QCY26, 4.2% in 2QCY25). The India Autos & Auto Parts

overall EBIT margin was 3.5% (-1.9% in 1QCY26, 4.9% in 2QCY25). Kapil Singh - NFASL

kapil.singh@nomura.com • Segment-wise, Truck revenue growth improved to 4% y-y and Bus revenue growth

+91 22 403 74199

remained healthy at 22% y-y. Bus volumes increased 8%, supported by the Annonay plant

Siddhartha Bera, CFA - NFASL operating at full capacity.

siddhartha.bera@nomura.com

• Industrial FCF was -EUR45mn in 2QCY26 vs +EUR119mn in 2QCY25 and -EUR685mn in +91 22 403 74362

1QCY26.

• Overall, order intake also improved to 11% y-y in 2QCY26, with 21% in light-duty and 47%

in medium- and heavy-duty, while bus order intake recorded a 22% decline.

• We estimate CY26F/27F EBIT margins of 1.6%/4.9% for Industrial and 2.4%/5.5% overall.

Key management commentary

Industry outlook for CY26E: Management lowered its LCV industry outlook to flat y-y in

CY26E (+5% y-y earlier) while MHCV demand remains unchanged at 5% y-y. Bus demand is

likely to be slightly lower in the EU/South America. Market share: (1) maintained its no.1

position in the European bus market and no.2 overall with more than 25% (+300bp q-q) market

share. (2) Launched Model Year 26 truck range in the first week of July.