Shares of Tata Motors (CV) fell over 3% on Monday to Rs. fell 311, extending last week’s decline, as investors digested the newly listed commercial-vehicle maker’s first-quarter results, which sharply reduced print and sparked renewed debate over buy-hold, sell-hold stocks.

The company in the second quarter of FY26 posted Rs. Shares of Tata Motors ( CV ) fell nearly 4.5% to their intra-day low on Friday, after reporting a consolidated net loss of Rs 867 crore, compared to Rs 100 crore in the same quarter a year ago. 498 crore as against a net profit of Rs. The results marked the company’s first quarterly report since its standalone listing on November 12 following demerger from the passenger-vehicle business.

Brokerage scenario

Motilal Oswal maintained a ‘neutral’ stance on Tata Motors (CV), each at Rs. 341 was the target price, indicating a 6% upside from the stock’s previous close.

The brokerage flagged market share erosion as a major concern, noting that the company’s share in the LCV goods segment has declined sharply, from 40% in FY22 to 27% now, widening the gap with market leader Mahindra & Mahindra.

“The key focus area for the CV entity is to maintain strong financial performance by consistently delivering double-digit EBITDA margins, healthy cash flows and robust ROCE,” said Motilal Oswal.

After listing the first results disappointed

The commercial-vehicle maker posted a quarterly revenue of Rs. 18,585 crore in revenue from operations, up from Rs. 17,535 crore, up 6% from Rs. But despite the topline growth, the bottomline sank deep into the red.

The company recently listed investment in Tata Capital at Rs. A mark-to-market loss of Rs 2,000 crore was mainly attributed to the loss. These losses weighed heavily on profitability, resulting in a profit before tax of Rs. 600 crore (before exceptional items) and Rs. 900 crores resulting in net income.

In contrast, on an operational basis, the company posted strong metrics. Tata Motors (CV) said EBITDA margin increased 150 basis points year-on-year to 12.2%, while EBIT margin rose to 9.8%, an improvement of 200 basis points on higher volumes and favorable realizations. The company in the quarter Rs. It also reported a profit before tax (before exceptional items) of Rs 1,700 crore.

Creates operational momentum

Volume growth remained healthy. Commercial-vehicle wholesale sales reached 96,800 units, up 12% year-on-year. Domestic volume increased by 9%, and exports increased by 75%. Tata Motors (CV) said its domestic CV VAHAN market share remained stable at 35.3% in the first half of FY26.

The company took full advantage of the GST reduction across its product range to customers, and strengthened its portfolio with launches including Ace Gold+ Diesel, Winger Plus, LPT 812, and LPO 1822. It also signed an MoU with Green Energy Mobility Solutions to supply 100 Magna EV intercity coaches. Additionally, 1,300 vehicles of the Ace Pro EV were billed within four months of its launch.

Looking ahead, the company expects demand momentum in the second half of FY26 to be supported by the construction, infrastructure and mining sectors.

Shares are steady after a strong debut

The weakness in recent sessions followed last Wednesday’s blockbuster listing. Shares of Tata Motors (CV) on the NSE traded at Rs. 335 debuted at Rs. There is a 28.5% premium to the implied value of 260.75. Shares on BSE at Rs. opened at 330.25, up 26.6%, reflecting strong investor appetite amid hopes for a cyclical recovery in the CV sector.

Analysts, however, warned that the counter could see volatility in the near term as investors reassess valuations following the spin-off from the passenger-vehicle business, now rebranded as Tata Motors Passenger Vehicles (TMPV).

While the company’s operating strength may be offset by market-to-market losses and competitive pressures, near-term stock momentum may hinge on the pace of demand recovery, margin sustainability and clarity on market share trends.

Also Read | Tata Motors CV hits top gear on debut post demerger. Here are 7 takeaways from the list

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