Tata Motors CV shares surged over 6 per cent on Thursday after the company reported an 83 per cent year-on-year rise in consolidated profit after tax to ₹2,600 crore in the June quarter.The stock traded at ₹478.10 at 9.49 am after hitting a high of ₹485, compared with the previous close of ₹457.05.Nomura upgraded Tata Motors CV to buy with a target price of ₹554, citing Q1 EBITDA ahead of estimates and strong performance across segments. The brokerage said margins could improve further with price hikes and raised its FY27F MHCV demand growth estimate to 8 per cent y-y from 5 per cent.Nomura said Q2FY27E should see healthy double-digit MHCV growth. On EVs, it noted strong growth as TCO is reaching earlier, while EV penetration has touched 10 per cent in SCVs.The company said the Indonesia order should be delivered over FY27-28E. It also flagged cost pressure ahead and said a 2.5 per cent price hike was taken in July. Some supply constraints were also noted due to strong demand. The IVECO deal is expected to close by early November 2026E.CLSA maintained an outperform rating with a target price of ₹596. It said the Q1 EBITDA margin of 11.3 per cent, down 76bps y-o-y, was higher than consensus by around 50bps.CLSA said Tata Motors CV highlighted commodity inflation as having a 340bp y-o-y negative impact on margins. This was partially offset by operating leverage and price hikes, which had a 140bps y-o-y positive impact.The brokerage said commodity costs remain inflationary, but Tata Motors CV expects the impact to be mitigated through the 2.5 per cent July price hike and ongoing cost reduction measures. It added that underlying demand momentum remains healthy, with Q2FY27 volume likely to deliver double-digit growth.Domestic brokerage Elara Capital retained its accumulate rating and raised its target price to ₹508 from ₹423. The brokerage said it was impressed by Tata Motors CV’s sustained market share gains post GST cuts, with market share up 100bps y-o-y to 36.8 per cent in Q1.Elara said historical cycles from peak to trough have been 40-60 per cent lower, but it does not expect the downcycle, if at all, to be as severe as past cycles. It expects the MHCV industry to post a 3-4 per cent CAGR in FY26-28E.Given the strong Q1 and likely sustained double-digit growth in Q2, Elara raised its FY27E-29E volume estimates by ~2 per cent and EPS estimates by 3-4 per cent. It values Tata Motors CV at 12x September 2028 EV/EBITDA, versus 11x previously, and ascribes ₹20 value to its stake in Tata Capital and ₹11 to IVECO.Meanwhile, Motilal Oswal reiterated its neutral rating with a target price of ₹434 per share. Following the better-than-expected 1Q performance, the brokerage raised its earnings estimates by 6 per cent/2 per cent for FY27/FY28.Motilal Oswal now factors in Tata Motors CV posting a CAGR of 12 per cent/10 per cent/12 per cent in revenue/EBITDA/PAT over FY26-28E.Published on August 13, 2026