From Financialexpress · Amriteshwar Mathur · · 1m 50s
Weak Monsoon, 30%+ Sales Growth: 2 CV Stocks to Watch
Tata Motors and Ashok Leyland report 42.7% and 31.7% sales growth despite weak monsoon and Middle East crisis.
In brief
Tata Motors and Ashok Leyland report 42.7% and 31.7% sales growth despite weak monsoon and Middle East crisis. Tata Motors and Ashok Leyland achieved strong vehicle sales growth in Q2 FY27 amid weak monsoon and Middle East crisis. Originally reported by Financialexpress.
Strong CV Sales Growth
Tata Motors reported 42.7% y-o-y vehicle sales growth in September 2026 quarter to 135,114 units.
Ashok Leyland Sales Surge
Ashok Leyland achieved 31.7% y-o-y vehicle sales growth to 64,677 units in Q2 FY27.
Monsoon and Middle East Impact
The monsoon season was broadly deficient in Maharashtra and Karnataka, and the Middle East crisis persisted.
Tata Motors' Overseas Sales
Tata Motors saw a 177.3% y-o-y jump in overseas sales to 21,132 units, driving 42.7% growth.
Domestic Sales Growth
Domestic CV sales grew 30.9% y-o-y to 113,982 units, supported by e-commerce and FMCG demand.
Ashok Leyland's Growth Drivers
Ashok Leyland's medium and heavy commercial vehicles benefited from sustained infrastructure and construction activity.
Tata Motors' GST Benefit
The 18% GST cut on trucks and buses from 22 September 2025 provided a cushion for CV makers.
Margin Pressure
Tata Motors' operating profit margin declined marginally y-o-y to 10.2%, while Ashok Leyland's dropped 110 basis points to 10%.
Tata Motors' Tender Offer
Tata Motors launched a voluntary tender offer for Iveco Group ending 26 October 2026.
Merged Entity Projections
The merged entity would have Euro 21 billion revenue split across Europe, India, South America, and the rest of the world.
Stock Valuations
Tata Motors trades at a standalone P/E of 22.9, while Ashok Leyland trades at 23.0.
Future Outlook
Both companies expect continued growth despite monsoon deficits and Middle East crisis.
The main idea
Tata Motors and Ashok Leyland achieved strong vehicle sales growth in Q2 FY27 amid weak monsoon and Middle East crisis.
