Mumbai, Dec. 22 -- The brokerage expects a strong recovery in the Indian medium and heavy commercial vehicle segment, with volumes seen growing 8% to 10% YoY in FY26 and FY27. The upcycle is likely to be driven by higher freight rates, better fleet operator profitability, an ageing vehicle base and possible pre buying ahead of regulatory changes and price hikes.

With a 46% market share in the domestic MHCV segment in FY25, Tata Motors is seen as a key beneficiary of the demand revival. The brokerage also flagged long term upside from the EUR 3.8 billion acquisition of Iveco's truck business, which is currently in a downcycle but is expected to recover from FY27. EBITDA margins for the commercial vehicle business are seen expanding to 12%...