Shares of Tata Motors Passenger Vehicles (PV) have rallied 9 per cent so far in February, outperforming the broader market, as improving domestic demand and expectations of a recovery at Jaguar Land Rover (JLR) lift investor sentiment. The stock was trading at ₹382 on the BSE on Tuesday, up 1 per cent in intra-day trade, and has rebounded 14 per cent from its January 21 low of ₹335.35.
In comparison, the BSE Sensex has gained 1.5 per cent during the same period. The stock is on track for its sharpest monthly gain in four months since turning ex-demerger in October 2025.
The rally is being driven by robust demand in the domestic PV segment, supported by recent launches and positive momentum following GST 2.0. Management expects a sharp improvement in Q4FY26, aided by normalization in JLR volumes and stronger deliveries.
While global demand remains challenging, JLR is stepping up brand-led initiatives and cost-saving measures to enhance cash flows. The company has reaffirmed its FY26 guidance, projecting an EBIT margin of 0–2 per cent and free cash outflow of £2.2–2.5 billion, with investment spending of £18 billion planned over five years.
Brokerages remain cautiously optimistic. Analysts at ICICI Securities upgraded the stock to ‘Add’ with a revised target price of ₹410, citing improving domestic margins and production ramp-up at JLR. Meanwhile, BNP Paribas India flagged near-term volatility due to weak global demand but noted domestic performance as a key silver lining.
Despite challenges at JLR, expectations of new product launches and improving operational efficiency have bolstered investor confidence, pushing the stock above several target levels.
Tata Motors PV Climbs 9% in February, Domestic Demand Boosts Sentiment
