Staff Writer
Mumbai: Commercial vehicle major Tata Motors Limited on Wednesday reported its highest-ever quarterly and annual standalone earnings for FY26, driven by strong volume growth, improved realizations, operating leverage and continued cost efficiencies amid robust demand in the domestic commercial vehicle market.
The company posted a 22 per cent rise in standalone revenue for the January-March quarter of FY26 at ₹24,452 crore compared with ₹19,999 crore in the corresponding quarter last fiscal.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter rose 35 per cent to ₹3,400 crore, while EBITDA margin improved by 130 basis points to 13.9 per cent, surpassing the company’s medium-term guidance.
Profit before tax (before exceptional items) for the quarter jumped 58 per cent to ₹2,972 crore against ₹1,883 crore in the year-ago period, while profit after tax climbed 70 per cent to ₹2,400 crore.
For the full financial year FY26, the company’s standalone revenue stood at ₹77,399 crore, up 11 per cent from ₹69,419 crore in FY25.
Annual EBITDA rose 22 per cent to ₹10,200 crore with EBITDA margin improving to 13.2 per cent from 12 per cent in FY25. EBIT margin expanded 180 basis points year-on-year to 11 per cent.
Profit before tax (before exceptional items) for FY26 rose 46 per cent to ₹8,682 crore from ₹5,961 crore in the previous fiscal.
However, annual profit after tax declined 23 per cent to ₹3,400 crore due to exceptional items amounting to ₹3,700 crore related to mark-to-market losses on listed investments in Tata Capital, costs linked to the new labour code and demerger-related expenses.
The company said strong operational performance and efficient working capital management helped generate free cash flow of ₹9,186 crore during FY26, an increase of ₹2,179 crore over the previous year.
Net cash for the domestic business stood at ₹7,500 crore as on March 31, 2026, while auto return on capital employed (ROCE) improved sharply to 72 per cent from 61 per cent a year ago.
On a consolidated basis, revenue for Q4 FY26 stood at ₹26,100 crore, up 19 per cent year-on-year. EBITDA margin improved to 13.1 per cent while EBIT margin rose to 11.5 per cent.
Consolidated profit before tax (before exceptional items) for the quarter rose 29 per cent to ₹2,400 crore, while profit after tax increased 35 per cent to ₹1,800 crore.
For the full year, consolidated revenue stood at ₹83,900 crore with EBITDA margin at 12.3 per cent and EBIT margin at 10.2 per cent.
Consolidated annual profit before tax (before exceptional items) increased 7 per cent to ₹6,100 crore, while profit after tax fell 24 per cent to ₹3,000 crore owing to exceptional expenses of ₹1,400 crore.
The company said consolidated free cash flow for FY26 rose sharply to ₹12,400 crore, including advance receipts related to a large Indonesia order, compared with ₹5,900 crore in FY25.
Finance costs for the fourth quarter declined significantly to ₹166 crore from ₹319 crore in the same period last fiscal.
As of March 31, 2026, the company remained net cash positive at ₹13,700 crore, including leases of ₹798 crore.
The Board of Directors recommended a final dividend of ₹4 per share for shareholder approval.
The company also said regulatory approvals for the proposed acquisition of Iveco are progressing, with most approvals already secured. Tata Motors expects to complete the transaction by the second quarter of FY27.
During FY26, commercial vehicle wholesales grew 14 per cent year-on-year to 428,000 units, while fourth-quarter wholesales rose 25 per cent to 132,000 units.
Domestic and export volumes for the full year increased 12 per cent and 54 per cent respectively.
The company said its overall domestic commercial vehicle VAHAN market share for FY26 stood at 35.7 per cent, including 55 per cent in heavy commercial vehicles, 39.5 per cent in intermediate and light commercial vehicles, 26.8 per cent in small commercial vehicles and 36.4 per cent in passenger carriers.
During the year, Tata Motors launched 17 next-generation trucks and introduced the Ace Pro mini-truck range targeted at small entrepreneurs. The company also secured an order for 70,000 Yodha and Ultra T.7 vehicles from Indonesia and won bus orders exceeding 5,000 units from various state transport undertakings.
Managing Director and CEO Girish Wagh said FY26 marked an inflection point for the commercial vehicle industry as volumes surpassed the pre-FY19 peak, supported by GST 2.0 reforms and sustained infrastructure spending.
He said Tata Motors Commercial Vehicles delivered record revenues and profits during the year while strengthening its market leadership position.
Chief Financial Officer GV Ramanan said the company’s EBITDA margins crossed “teens” in the fourth quarter and full-year free cash flow reached nearly 12 per cent of revenue, ahead of its FY27 target.
He added that despite commodity cost pressures and near-term headwinds, the company remains confident of sustaining profitability through operational efficiency, pricing discipline and proactive supply chain management.
