Tata Motors CV sales rise 17% in May, but miss Street estimates

Shares of Tata Motors Ltd. were trading lower on Monday, June 1, after the company's commercial vehicle (CV) business reported a 17% year-on-year increase in sales for May 2026, although the figure came in below market expectations.

Total commercial vehicle sales, including domestic and international markets, stood at 32,850 units during May, compared with 28,147 units a year earlier. However, the number fell short of the CNBC-TV18 poll estimate of 34,900 units.

Sales of medium and heavy commercial vehicles (MH&ICV) in the domestic market rose 10% year-on-year to 13,679 units from 12,406 units last year.

Combined domestic and international MH&ICV sales increased 7% to 14,596 units from 13,614 units a year ago.

The monthly sales performance comes after Tata Motors' commercial vehicle business reported a strong March-quarter earnings performance.

For the fourth quarter, revenue grew 19% year-on-year to ₹26,098 crore, while EBITDA rose 37% to ₹3,327 crore. EBITDA margin expanded to 12.8% from 11.1% a year earlier.

Volumes increased 25.4% year-on-year and 14.6% sequentially, while domestic market share improved to 36.5% from 35.5%.

Despite the strong earnings momentum, management has maintained a cautious outlook for the near term. The company expects high single-digit volume growth in the first quarter of FY27 but warned of elevated commodity cost pressures.

Tata Motors indicated that it does not plan to pass on the entire increase in raw material costs to customers, prompting it to moderate its margin outlook to the low-teens range from the mid-teens expected earlier.

The company also flagged lower vehicle availability in Sri Lanka as a headwind for its international business.

Shares of Tata Motors were trading 1.09% lower at ₹375.25 on Monday. The stock has declined more than 12% so far in 2026.