Tata Motors Commercial Vehicles on Wednesday reported record quarterly earnings and its strongest full-year operating performance to date, confirming that the company has moved decisively from FY25’s cyclical slowdown into a broad-based recovery led by heavy trucks, margin expansion and record cash generation.

Profit after tax rose 70 per cent to ₹2,406 crore for the quarter ended March 31, 2026, from ₹1,419 crore in the corresponding quarter last year, while revenue from operations increased 22 per cent to ₹24,452 crore from ₹19,999 crore, according to a regulatory filing with the BSE and NSE. The March quarter EBITDA margin expanded to 13.9 per cent from 12.6 per cent, exceeding the company’s mid-term guidance and reflecting stronger realizations, higher volumes and operating leverage.

For the full year FY26, revenue rose 11 per cent to ₹77,399 crore from ₹69,419 crore in FY25. Profit after tax for the year fell 23 per cent to ₹3,362 crore from ₹4,385 crore, including the impact of ₹3,700 crore of exceptional items related to mark-to-market losses on listed investments in Tata Capital, New Labour Code provisions and demerger-related costs. Excluding these one-time charges, the company delivered record operating profit and free cash flow, reflecting the strength of the domestic truck cycle.

EBITDA margin for FY26 improved to 13.2 per cent from 12.0 per cent. Profit before tax before exceptional items increased 46 per cent to ₹8,682 crore from ₹5,961 crore. Free cash flow rose to ₹9,186 crore, up ₹2,179 crore over the previous year. Net cash in the domestic business stood at ₹7,500 crore as of March 31, 2026, while Auto ROCE improved to 72 per cent from 61 per cent a year earlier. On a consolidated basis, the company ended FY26 with a net cash position of ₹13,700 crore.

Commercial vehicle wholesales rose 25 per cent to 132,000 units in Q4 FY26 and 14 per cent to 428,000 units for the full year. Domestic and export volumes increased 12 per cent and 54 per cent, respectively, while Tata Motors retained a 35.7 per cent share of the domestic CV market, including 55 per cent in heavy commercial vehicles.

“FY26 marked a clear inflection point for the commercial vehicles industry, with volumes surpassing the pre-FY19 peak, supported by GST 2.0 reforms and sustained infrastructure spending,” said Girish Wagh, Managing Director and CEO of Tata Motors Ltd. He described FY26 as a “landmark year” in which the company delivered record revenues and profits while reinforcing its market leadership.

Chief Financial Officer G.V. Ramanan said EBITDA margins in the March quarter crossed “teens” at 13.9 per cent and full-year free cash flow translated to around 12 per cent of revenue, well ahead of the company’s FY27 target. He added that commodity cost pressures are expected to persist in the near term, but the company remains confident of managing them through pricing discipline, operational efficiency and proactive supply-chain management.

During FY26, Tata Motors launched 17 next-generation trucks, introduced the Ace Pro range—described as India’s most affordable four-wheel mini-truck—secured its largest-ever export order for 70,000 Yodha and Ultra T.7 vehicles for deployment in Indonesia, and won more than 5,000 bus orders from State Transport Undertakings across India.

The company said most regulatory approvals for its proposed acquisition of Iveco have already been received and expects to complete the transaction in the second quarter of FY27.

The Board recommended a final dividend of ₹4 per equity share of face value ₹2 each for FY26, subject to shareholder approval at the annual general meeting scheduled for June 29, 2026.

Published on May 13, 2026