Revenue rises 17% to Rs 21.5K crore as Tata Motors CV business achieves 10th straight quarter of double-digit EBITDA margins
NEW DELHI (India CSR): Tata Motors Limited has reported an impressive performance in its Commercial Vehicles (CV) segment for the third quarter of FY26, underlining the company’s sharp focus on profitable growth, operational discipline, and product-led innovation.
In its financial results announced on January 29, 2026, Tata Motors revealed that the CV business delivered strong gains in revenue, profitability, and free cash flow during the quarter ending December 31, 2025. The performance was supported by higher volumes, improved realizations, and sustained demand momentum across domestic and export markets.
The results come at a time when India’s infrastructure push, festive season demand, and expanding industrial activity continue to provide strong tailwinds for the commercial mobility sector.
Commercial Vehicles Segment – Key Financials
| Q3 FY25 | Q3 FY26 | YTD FY25* | YTD FY26 | Q3 vs Q3 | 9M vs 9M | |
| YoY | YoY | |||||
| Revenue (Rs. Cr.) | 18,478 | 21,533 | 53,551 | 56,912 | 3,055 | 3,360 |
| EBITDA % | 12.4% | 12.7% | 11.6% | 12.4% | 30 bps | 80 bps |
| EBIT% | 9.6% | 10.6% | 8.8% | 10.1% | 100 bps | 130 bps |
| PBT (bei) (Rs. Cr.) | 1,681 | 2,290 | 4,409 | 5,616 | 609 | 1,207 |
| FCF (Rs. Cr.)** | 1,479 | 4,752 | 1,654 | 5,169 | 3,273 | 3,515 |
Revenue Growth Driven by Volume Expansion and Market Momentum
Tata Motors’ Commercial Vehicles segment recorded quarterly revenue of Rs 21,533 crore, marking a robust 17% year-on-year increase compared to Rs 18,478 crore in Q3 FY25.
This growth was largely driven by a sharp rise in wholesale volumes and improved customer traction across key truck and intermediate segments. Total CV wholesales stood at 116.8K units, up 20% YoY, highlighting strong market demand.
Domestic and export volumes also rose significantly, with domestic sales increasing 18% YoY and exports surging 70% YoY, reflecting Tata Motors’ growing international footprint.
The company’s domestic CV VAHAN market share improved sequentially by 100 basis points, reaching 35.5% in Q3 FY26, reinforcing its leadership position in India’s competitive truck market.
Profitability Improves as EBITDA and EBIT Margins Stay Strong
Tata Motors continued its streak of strong profitability in Q3 FY26, with segment EBITDA rising to ₹2.7K crore, up 19% YoY.
The EBITDA margin stood at 12.7%, representing the 10th consecutive quarter of double-digit EBITDA margins, a major milestone for the business.
Even more notably, Tata Motors achieved a double-digit EBIT margin, with EBIT reaching 10.6%, up by 100 basis points compared to the previous year.
The company credited this improvement to:
- Higher vehicle volumes
- Better pricing and realizations
- Operational efficiencies
- Portfolio optimization
However, profitability was partially offset by rising input costs and the absence of the maiden PLI benefit recorded in the prior period.
PBT Surges 36% as Business Execution Strengthens
Profit Before Tax (before exceptional items) for the CV segment climbed sharply to Rs 2,290 crore, up by Rs 609 crore from Q3 FY25 levels.
This translates into a strong 36% growth, showcasing Tata Motors’ ability to convert demand momentum into meaningful financial performance.
The company’s disciplined execution strategy, combined with improved product mix and cost control, has played a critical role in sustaining profitability even amid inflationary pressures.
Free Cash Flow Hits Record Rs 4.8K Crore on Working Capital Discipline
One of the standout achievements of the quarter was Tata Motors’ exceptional cash flow generation.
The CV segment delivered Free Cash Flow (FCF) of Rs 4,752 crore, up by Rs 3,273 crore compared to the same quarter last year.
For the first nine months of FY26, cumulative FCF stood at Rs 5,169 crore, underscoring strong financial resilience.
This surge in cash generation was supported by:
- Strong operating performance
- Efficient inventory and receivables management
- Improved working capital cycles
The domestic CV business ended the quarter with a net cash position of ₹3.9K crore, strengthening the company’s balance sheet significantly.
ROCE Jumps to 53%, Reflecting Capital Efficiency
Return on Capital Employed (ROCE) for the quarter came in at an impressive 53%, compared to 38% in Q3 FY25.
This sharp improvement signals Tata Motors’ enhanced capital productivity and stronger returns from its commercial vehicle investments, aided by sustained profitability and tighter cost management.
Consolidated Financial Performance Remains Solid
On a consolidated basis, Tata Motors posted revenues of Rs 21.8K crore, up 16% YoY.
Key consolidated highlights include:
- EBITDA margin: 12.5%
- EBIT margin: 10.4%
- PBT (bei): Rs 2.6K crore
- PAT: Rs 0.7K crore
As of December 31, 2025, Tata Motors remained Net Cash positive at Rs 6.1K crore, reflecting strong overall financial health.
Finance costs also declined to Rs 198 crore in Q3 FY26 from Rs 256 crore in Q2 FY26, indicating reduced debt burden and improved cost of capital.
Exceptional Items and Corporate Restructuring Plans
The quarter also included exceptional items related to:
- New Labour Code impact: Rs 603 crore
- Demerger-related impact: Rs 962 crore
- Acquisition costs: Rs 82 crore
Total exceptional impact stood at Rs 1.5K crore (standalone) and Rs 1.6K crore (consolidated).
In a key corporate action, Tata Motors’ Board approved a Composite Scheme of Amalgamation to merge TMF Holdings Ltd and TMF Business Services Ltd into Tata Motors, aimed at simplifying the group structure without altering shareholding.
Innovation Push: New Truck Launches and EV Leadership
Tata Motors reinforced its product leadership during the quarter with several major launches:
- 17 next-generation trucks under the “Better Always” philosophy
- Introduction of the Azura series for ILMCV segment
- Showcasing Tata trucks.ev, India’s widest electric truck range
- All truck platforms now compliant with European safety standards (ECE R29 03)
- Launch of Euro 6 range tailored for Middle East and North Africa
These innovations reflect Tata Motors’ growing emphasis on sustainable, intelligent, and future-ready mobility solutions.
Outlook: Demand Expected to Strengthen Further in Q4 FY26
Looking ahead, Tata Motors expects commercial vehicle demand to strengthen further in Q4 FY26, supported by:
- Government infrastructure spending
- Expansion in end-use industries
- Improved freight movement
- Strong replacement demand
MD & CEO Girish Wagh stated that Tata Motors is well-positioned to sustain momentum through innovation and industry leadership, while CFO GV Ramanan reaffirmed confidence in delivering financial guidance backed by strong cash generation and operational execution.
(India CSR)
