Tata Motors PV: Bullish Signals Emerge Amid Record Sales and a Quarterly Loss

A Mixed Picture for Tata Motors PV

Tata Motors Passenger Vehicles Ltd. (TMPV) presents a complex but compelling picture for investors. On February 10, 2026, the stock closed at ₹379.35, a modest 0.52% increase from its previous close of ₹377.40. While the short-term movement is positive, a deeper look reveals a company experiencing record sales and strong bullish technical indicators, yet simultaneously grappling with a significant consolidated quarterly loss. This divergence between operational success and bottom-line financial performance defines the current narrative for the automotive major.

Financial Performance: A Tale of Two Ledgers

The most recent financial disclosure for the quarter ending December 31, 2025, revealed a consolidated net loss of ₹3,486 crore. This marked a sharp reversal after three consecutive quarters of profit, raising concerns among investors. The company's profit before tax (PBT) also swung to a loss of ₹3,136 crore, a stark contrast to the ₹6,105 crore profit reported in the same quarter of the previous year. This downturn was accompanied by a 26% year-on-year decline in consolidated sales, which stood at ₹69,605 crore.

However, the story within the passenger vehicles division is notably different and far more optimistic. Revenue from Tata Passenger Vehicles surged by 24% year-on-year to ₹15,317 crore during the same quarter. This growth was driven by robust vehicle volumes, which reached a record 171,000 units, up 22% from the previous year. Management attributes this strong performance to sustained demand, the positive impact of GST 2.0, and a strong festive season.

Unprecedented Sales Momentum

Tata Motors PV has demonstrated remarkable strength in its sales figures, consistently setting new records. The company's January 2026 sales jumped by an impressive 47.1% to 71,066 units. This follows a trend of strong offtakes, with volumes exceeding 60,000 units in both September and October 2025. November sales also saw a significant 26% year-on-year increase to 59,199 units.

Shailesh Chandra, Managing Director & CEO of Tata Motors Passenger Vehicles, noted that the third quarter of fiscal year 2026 marked the company's highest-ever quarterly wholesales. He expressed confidence in the industry's growth trajectory, supported by strong demand and a pipeline of new models set to launch, positioning the company for accelerated growth in the upcoming fiscal year.

Technical Indicators Flash Green

Adding to the bullish case, a series of technical indicators have turned positive for TMPV. On February 9, 2026, several key moving average crossovers signaled a bullish trend on the daily charts. This suggests that the stock's short-term momentum is outpacing its longer-term momentum, a pattern often watched by technical analysts.

Notably, the 50-day moving average crossover has historically been a reliable signal for the stock. Over the last five years, this signal has been followed by an average price gain of 7.0% within 30 days.

Market Performance and Peer Context

Despite the recent positive momentum, TMPV's stock has faced challenges over the longer term. In the last year, the stock has declined by 20.5%, underperforming both the NIFTY index, which rose 11.5%, and the Nifty Auto index, which jumped 23.69%. However, performance in the last month has been strong, with the stock gaining around 7.26%.

From a valuation perspective, TMPV appears differently positioned compared to its peers based on available data.

Strategic Initiatives and Headwinds

Operationally, the company has faced disruptions, including a cyber incident at its Jaguar Land Rover (JLR) unit, which impacted performance. In response, management has focused on strategic growth drivers. The recent unveiling of the 2025 Sierra SUV, a modern revival of an iconic model, is aimed at capturing a larger share of the competitive mid-size SUV market. Furthermore, Tata Motors is actively lobbying the Indian government to maintain high import taxes on electric vehicles, a move designed to protect its domestic market leadership as international competitors like Tesla consider entry.

Analyst Outlook

Analysts remain divided on the stock's prospects. Goldman Sachs has expressed caution, citing the disruptions at JLR and weaker guidance. In contrast, Ambit Institutional Equities maintains a 'Buy' rating on the parent company, Tata Motors, with a target price of ₹430, pointing to strong free cash flow and a robust outlook for the commercial vehicle segment.

Conclusion

Tata Motors Passenger Vehicles is at a pivotal juncture. The company's operational performance, marked by record-breaking sales and strong consumer demand, is undeniably impressive. This is further supported by a confluence of bullish technical signals suggesting positive short-term momentum. However, the consolidated net loss in the recent quarter serves as a critical reminder of broader challenges, likely linked to its global operations. Investors will be closely watching to see if the stellar performance of the passenger vehicle division can translate into sustained profitability for the entire company in the quarters ahead.