Tata Motors Limited reported a strong financial performance for the third quarter of FY26, driven by disciplined execution and a sustained focus on profitable growth in its Commercial Vehicles (CV) business.
For the quarter ended December 31, 2025, Tata Motors’ CV segment recorded revenues of ₹21.5 lakh crore, up 17% year-on-year, while EBITDA rose 19% to ₹2.7 lakh crore. EBITDA margins remained in double digits for the 10th consecutive quarter at 12.7%, reflecting improved volumes and better realisations. EBIT margin also crossed the double-digit mark to reach 10.6%, aided by operating leverage, despite pressures from higher input costs.
Profit before tax (before exceptional items) for the quarter stood at ₹2.3 lakh crore, an increase of ₹609 crore or 36% year-on-year. Strong operating performance and efficient working capital management resulted in robust free cash flow of ₹4.8 lakh crore during the quarter and ₹5.2 lakh crore over the nine-month period. Return on capital employed (ROCE) improved sharply to 53%, compared to 38% in Q3 FY25. The domestic CV business ended the quarter with a net cash position of ₹3.9 lakh crore.
On a consolidated basis, Tata Motors reported revenues of ₹21.8 lakh crore, up 16% year-on-year. EBITDA margin improved to 12.5%, while EBIT margin rose to 10.4%. Profit before tax (before exceptional items) stood at ₹2.6 lakh crore, while profit after tax was ₹0.7 lakh crore. As of December 31, 2025, the company remained net cash positive at ₹6.1 lakh crore.
Exceptional items during the quarter included impacts related to the New Labour Code, demerger-related costs and acquisition expenses, amounting to ₹1.5 lakh crore in standalone financials and ₹1.6 lakh crore at the consolidated level.
During the quarter, the Board approved a composite scheme of amalgamation to merge TMF Holdings Limited and TMF Business Services Ltd—both wholly owned subsidiaries—into Tata Motors Limited. The move is aimed at simplifying the group structure and is subject to regulatory and shareholder approvals.
Operationally, CV wholesales stood at 116,800 units, reflecting a 20% year-on-year growth. Domestic and export volumes rose 18% and 70% respectively, while Tata Motors’ domestic CV market share increased sequentially by 100 basis points to 35.5%.
The company also strengthened its product portfolio during the quarter, launching 17 next-generation trucks under its ‘Better Always’ philosophy, introducing the Azura series for the intermediate and light commercial vehicle segment, and showcasing its widest electric truck range under Tata trucks.ev. All truck platforms—Prima, Signa, Ultra and Azura—now meet stringent European safety standards, and a new Euro 6 range was unveiled for Middle East and North Africa markets.
Commenting on the performance, Girish Wagh, Managing Director and CEO, Tata Motors, said disciplined execution of an agile strategy helped deliver another strong quarter, supported by demand tailwinds from GST 2.0 and the festive season. He added that accelerating infrastructure spending positions the company well to sustain growth momentum.
Chief Financial Officer GV Ramanan said the company’s consistent operational execution has translated into strong financial outcomes, highlighted by the achievement of double-digit EBIT margins and robust free cash flow generation.
Looking ahead, Tata Motors expects demand to strengthen further in Q4 FY26, supported by continued government infrastructure spending and expansion across end-use sectors, positioning the company for sustained growth across commercial vehicle segments.
