Staff Writer
New Delhi: Tata Motors will continue investing in electric and hydrogen-powered technologies for commercial vehicles while pursuing global expansion opportunities, Chairman N Chandrasekaran said, underlining the company’s commitment to cleaner mobility and future-ready transportation solutions.
In his message to shareholders in the company’s FY26 annual report, Chandrasekaran said the transition to sustainable mobility would require a combination of electric, hydrogen and cleaner internal combustion engine (ICE) technologies.
“The transition to cleaner mobility requires a portfolio of electric, hydrogen and cleaner ICE technologies. While we scale the portfolio of zero-emission electric commercial vehicles, we will continue to invest in hydrogen-based technologies for heavier-duty segments,” he said.
He noted that rapid advances in digital technologies and artificial intelligence are reshaping the mobility landscape, while the transition to clean energy, rising safety expectations and the reconfiguration of global supply chains are redefining competitiveness across the industry.
He said geopolitical uncertainties and uneven economic recovery across regions are adding complexity to the business environment, making agility and resilience increasingly important.
Chandrasekaran further expressed confidence that Tata Motors is well-positioned to sustain profitable growth, supported by a strong balance sheet, improving returns and disciplined capital allocation.
“Our focus will remain on delivering industry-leading growth, profitability and returns, supported by a disciplined capital allocation to address emerging mobility trends,” he said.
He noted that the future of commercial mobility will be driven by a combination of digital technologies, connected vehicle ecosystems, advanced driver assistance systems (ADAS), data-enabled fleet management services and next-generation powertrain solutions, all aimed at enhancing safety, efficiency and intelligence across transportation networks.
The company reported its highest-ever revenue of Rs 83,855 crore in FY26, registering a growth of 9.8 per cent over Rs 76,359 crore in the previous fiscal. EBITDA margin stood at 12.3 per cent, while the automotive business delivered a return on capital employed of 72.3 per cent, among the highest in the global commercial vehicle industry.
FY26 also marked a significant milestone for Tata Motors as it began operations as a standalone commercial vehicle company following its demerger and listing in November 2025.
The company sold more than 4.35 lakh commercial vehicles during the fiscal, compared with around 3.85 lakh units in FY25, recording a growth of 13 per cent. Growth was driven by strong demand in the intermediate, light and medium commercial vehicle and small commercial vehicle segments, while its heavy commercial vehicle business achieved its highest market share in a decade at 55 per cent.
The board has recommended a final dividend of Rs 4 per share for FY26, subject to shareholder approval.
Chandrasekaran said the company’s strategy of operating through eight business verticals had begun generating results by creating new revenue streams and reducing dependence on cyclical market conditions. The non-cyclical businesses grew 18.2 per cent during the year, aided by strong performance in spares and services.
Tata Motors’ electric bus arm, TML Smart City Mobility Solutions, crossed 50 crore cumulative kilometres of operations with over 3,800 electric buses deployed across 10 cities, maintaining uptime levels above 95 per cent.
Digital platforms also recorded strong growth, with Fleet Edge surpassing one million connected vehicles and Fleet Verse witnessing increased sales, bookings and customer enquiries.
International operations emerged as a key growth driver, registering a 53.9 per cent increase year-on-year, aided by deeper market penetration and major order wins across Southeast Asia, Africa and the Middle East.
The chairman also highlighted the proposed acquisition of Iveco Group, describing it as a strategic step in Tata Motors’ global expansion plans. The acquisition is expected to strengthen the company’s international footprint, manufacturing capabilities and portfolio of alternative fuel technologies.
With sustained investments in infrastructure, logistics modernisation and freight efficiency in India, Chandrasekaran said the long-term outlook for the commercial vehicle sector remains strong.
“Tata Motors remains well-positioned to sustain its profitable growth journey with a strong balance sheet, improving returns and a clear focus on resilience and innovation,” he said.
