Mumbai: Tata Motors Limited (TML) seems to have found the perfect combination of horsepower and balance sheets, as its Commercial Vehicles (CV) business delivered a blockbuster performance in Q3 FY26. With strong volumes, disciplined execution and a sharp focus on profitable growth, Tata Motors has proven once again that it’s not just moving trucks — it’s moving numbers too.
Financials That Deserve a Standing Ovation
For the quarter ended December 31, 2025, Tata Motors’ CV segment clocked revenues of ₹21,500 crore, up 17% YoY, while EBITDA rose 19% to ₹2,700 crore. The company also achieved its 10th consecutive quarter of double-digit EBITDA margins at 12.7%, a streak even sports teams would envy.
Not to be left behind, EBIT margin crossed the double-digit line for the first time at 10.6%, aided by higher volumes and better realisations. Profit Before Tax (before exceptional items) surged to ₹2,300 crore, a jump of ₹609 crore over last year.
And then came the real flex: Free Cash Flow (FCF) of ₹4,800 crore for Q3, and ₹5,200 crore for the nine-month period. The CV business closed the quarter with net cash of ₹3,900 crore, making it one of the few players in the auto industry that’s running debt-free while most are still running EMIs.
Consolidated Numbers: Even the Group is Smiling
On a consolidated basis, Tata Motors reported revenues of ₹21,800 crore (+16%), with EBITDA margins at 12.5% and EBIT margins at 10.4%. PBT (bei) stood at ₹2,600 crore, while PAT came in at ₹700 crore.
As of December 31, 2025, Tata Motors was net cash positive at ₹6,100 crore, including TMF Holdings’ investments — in simple terms, the group has more money in the bank than loans on the books. Not a bad place to be in 2026.
Exceptional Items: The Fine Print
Exceptional items worth ₹1,500 crore (standalone) and ₹1,600 crore (consolidated) were booked, mainly due to:
- New Labour Code impact – ₹603 crore
- Demerger-related costs – ₹962 crore
- Acquisition costs – ₹82 crore
In corporate-speak, these are “one-time adjustments”; in desi terms, “yeh bas paperwork ka kharcha hai.”
Corporate Restructuring: Simplifying the Family Tree
The Board also approved a Composite Scheme of Amalgamation, merging TMF Holdings and TMF Business Services (both wholly-owned subsidiaries) into Tata Motors. The move won’t change shareholding but will simplify the group structure — fewer companies, less complexity, same Tata DNA.
Business Highlights: Trucks, Tech and Market Muscle
Tata Motors’ CV business didn’t just grow — it accelerated:
- 116,800 CV units wholesaled (+20% YoY)
- Domestic & export volumes up 18% and 70% YoY respectively
- Domestic CV market share rose to 35.5%, up 100 bps sequentially
On the product front, Tata went full Bollywood:
- 17 next-generation trucks launched under the “Better Always” philosophy
- New Azura series for the ILMCV segment
- Showcased Tata Trucks.ev — India’s widest electric truck range
- All platforms (Prima, Signa, Ultra, Azura) now meet European ECE R29 safety norms
- Debuted Euro 6 CV range for Middle East & North Africa
In short, Tata is building trucks not just for Indian highways, but for global roads — and future regulations.
Outlook: Road Ahead Looks Smooth
Tata Motors expects demand to strengthen further in Q4 FY26, driven by government infrastructure spending and expansion across key end-use sectors. With an optimised product portfolio, smart pricing and deeper customer engagement, the company believes it is well positioned to ride the next growth wave.
What the Top Brass Said
Girish Wagh, MD & CEO, Tata Motors Ltd:
“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. Our recent launch of 17 next-generation trucks sets new benchmarks in safety, total cost of ownership and smarter, emission-free mobility.”
GV Ramanan, CFO, Tata Motors Ltd:
“This quarter marked significant milestones, including our 10th consecutive quarter of double-digit EBITDA margins and achievement of double-digit EBIT margins. Strong operating performance and disciplined working capital management led to robust free cash flow generation.”
Tata Motors’ CV business in Q3 FY26 didn’t just perform — it overperformed. With rising market share, healthy margins, record cash flows and a pipeline full of future-ready trucks (including EVs), Tata Motors is proving that in the commercial vehicle world, it’s not just about carrying loads — it’s about carrying the industry forward.
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 |
*Q1 FY25 numbers included within YTD FY25 numbers are derived **Standalone+ Joint operation
