Tata Motors Group is a leading global automobile manufacturer. Part of the illustrious multi-national conglomerate, the Tata group, it offers a wide and diverse portfolio of cars, sports utility vehicles, trucks, buses and defence vehicles to the world. It has operations in India, the UK, South Korea, South Africa, China, Brazil, Austria and Slovakia through a strong global network of subsidiaries, associate companies and Joint Ventures (JVs), including Jaguar Land Rover in the UK and Tata Daewoo in South Korea.
Q3 FY26 Earnings Results
- Revenue from Operations: ₹21,847 crore, up 16% YoY vs ₹18,819 crore; topline supported by strong CV volumes (wholesales 1,16,800 units, +20% YoY, domestic +18%, exports +70%) and stable demand through the festive period.
- EBITDA: Consolidated EBITDA margin 12.5%, up 30 bps YoY; EBIT margin 10.4%, up 100 bps YoY, reflecting operating leverage and favourable realizations despite cost headwinds and exceptional items.
- PAT: Consolidated PAT ₹705 crore, down 48% YoY vs ₹1,355 crore, mainly due to exceptional charges of about ₹1,643 crore related to demerger stamp duty (₹962 crore), new Labour Codes (₹603 crore), and acquisition expenses (₹82 crore); profit margin 3.23%.
- Other key metrics: Profit before tax before exceptional items ₹2,600 crore; the company remained net cash-positive at about ₹6,100 crore as of Dec 31, 2025, including TMF Holdings’ debt netted against Tata Capital investment value; domestic CV VAHAN market share rose 100 bps QoQ to 35.5% in Q3 FY26.
Management Commentary & Strategic Decisions
- Management highlighted that operational performance stayed steady with healthy revenue growth and margin expansion, and that the sharp PAT decline was purely due to one-time exceptional provisions for Labour Code implementation and demerger-related costs, not underlying business weakness.
- The company pointed to strong CV demand, aided by GST 2.0, infrastructure spending, and festive-season tailwinds, and expects demand to strengthen further in Q4 FY26 across most CV segments.
- Strategic moves: launch of 17 next-generation trucks under the “Better Always” philosophy, focusing on improved safety, total cost of ownership, and emission-free mobility; continued focus on optimized portfolio, decisive pricing strategy, and deeper customer engagement to unlock demand across segments; ongoing demerger and capital-structure optimisation while staying net-cash positive.
Q2 FY26 Earnings Results
- Revenue from Operations (CV segment): around ₹18,400 crore, up 6.6% YoY, driven by 12% YoY volume growth and continued focus on profitable growth; on a consolidated basis, revenues stood near ₹18,600 crore, up 6% YoY.
- EBITDA: CV EBITDA margin 12.2%, up 150 bps YoY; consolidated EBITDA margin 11.4%, EBIT margin 8.8% (CV EBIT 9.8%, +200 bps YoY), supported by higher volumes and favourable realizations.
- PAT / PBT: CV PBT (before exceptional items) ₹1,700 crore; consolidated profitability was impacted by about ₹2,000 crore mark-to-market losses on recently listed Tata Capital investments, leading to consolidated PBT (before exceptional) of about −₹600 crore and net income around −₹900 crore, despite the operating strength.
- Other key metrics: The group still remained net cash-positive at about ₹1,200 crore at that time, including TMF Holdings’ gross debt and Tata Capital investment value; Q2 performance set a strong base operationally heading into the festive-heavy Q3 for CVs.
Management Commentary Q2
- Management described Q2 FY26 CV performance as “robust,” with double-digit volume growth, better realizations, and improved margins; reiterated focus on profitable growth rather than just volume expansion.
- Strategic moves: continued push on premium, feature-rich CVs, tighter cost control, and capital discipline; at group level, mark-to-market volatility from investments was acknowledged as non-core, while operational focus remains on strengthening core automotive, CV, and PV businesses.
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