Tata Motors Limited on Thursday reported its financial results for the quarter, with revenue from operations rising but profit declining due to the impact of exceptional items, including provisions related to the new labour code, demerger costs and acquisition-related expenses.
For the reported period, Tata Motors’ total revenue from operations stood at Rs 21,847 crore, up about 16 per cent from Rs 18,819 crore in the corresponding period earlier. Profit for the period stood at Rs 705 crore, down about 48 per cent from Rs 1,355 crore in the corresponding period last year.
Tata Motors CV Financial Performance
Total income increased by nearly 15 per cent year-on-year to Rs 22,179 crore from Rs 19,211 crore. Total expenses during the period rose around 11 per cent to Rs 19,645 crore from Rs 17,695 crore in the year-ago period.
The company reported an EBITDA margin of 12.4 per cent, slightly lower than the 12.7 per cent recorded in the previous period. EBIT margin stood at 9.6 per cent, compared with 10.6 per cent earlier.
Exceptional Items and Corporate Action
Tata Motors said exceptional items during the period included the impact of the new labour code amounting to Rs 603 crore, demerger-related costs of Rs 962 crore and acquisition costs of Rs 82 crore. The total impact of these and other items stood at Rs 1,500 crore in standalone financials and Rs 1,600 crore in consolidated financials.
The company also announced a key corporate action during the quarter. On November 13, 2025, the Board of Directors approved a composite scheme of amalgamation to merge TMF Holdings Limited and TMF Business Services Ltd, both wholly owned subsidiaries, with Tata Motors Limited.
The proposed scheme will not result in any change in the shareholding of Tata Motors and is subject to approvals from creditors, regulators and other authorities. The company said the amalgamation is expected to lead to a simplified and streamlined group structure once implemented.
Commercial Vehicle Performance
Operationally, Tata Motors reported strong performance in its commercial vehicle business. Commercial vehicle wholesales during the quarter stood at 116.8 thousand units, reflecting a growth of 20 per cent.
Domestic commercial vehicle volumes increased 18 per cent year-on-year, while export volumes rose sharply by 70 per cent year-on-year. The company said its overall domestic commercial vehicle VAHAN market share improved sequentially by 100 basis points to 35.5 per cent for the third quarter of FY26.
Product Launches and Technology
During the quarter, Tata Motors launched 17 next-generation trucks as part of its product strategy. The company said the new launches focus on safety, profitability and technological advancement.
It also introduced the Azura series for the intermediate and light commercial vehicle segment. Tata Motors showcased its electric truck portfolio under the Tata trucks.ev brand, which it described as India’s widest electric truck range.
The company said all its truck platforms, including Prima, Signa, Ultra and Azura, now meet European safety standards under ECE R29 03. In addition, Tata Motors presented a new Euro 6 range of vehicles designed for the Middle East and North Africa markets, aimed at supporting the region’s transition towards cleaner mobility solutions.
Outlook and Management Commentary
Looking ahead, Tata Motors said it expects demand to strengthen further in the fourth quarter of FY26 across most commercial vehicle segments. The company identified the government’s continued focus on infrastructure development and expansion in end-use sectors as key drivers for industry growth in 2026.
Tata Motors said it is focusing on optimising its product portfolio, ensuring better availability, adopting a pricing strategy and increasing customer engagement through market activations to unlock demand across segments.
Commenting on the performance, Tata Motors Managing Director and Chief Executive Officer Girish Wagh said, “Disciplined execution of an agile strategy delivered yet another strong financial performance this quarter, supported by demand tailwinds from GST 2.0 and the festive season.”
Tata Motors Chief Financial Officer G V Ramanan said the company delivered another strong quarter, supported by operational execution and healthy demand across segments. “The quarter marked significant milestones, including our 10th consecutive quarter of double-digit EBITDA margins and achievement of double-digit EBIT margins,” he said.
Ramanan added that strong operating performance and disciplined working capital management resulted in robust free cash flow generation, and the company remains confident of delivering on its stated financial guidance.
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