Tata Motors Passenger Vehicles Ltd (TMPV) on Thursday reported a 31.72 per cent year-on-year (YoY) decline in consolidated net profit for the fourth quarter ended March 2026 (Q4 FY26), even as revenue from operations registered growth during the period.

The company posted a profit of Rs 5,783 crore in Q4 FY26, compared with Rs 8,470 crore in the corresponding quarter last year.

Revenue from operations rose 7.19 per cent YoY to Rs 1,05,447 crore in the March 2026 quarter from Rs 98,377 crore a year earlier.

Total expenses increased 11.74 per cent to Rs 1,00,047 crore in Q4 FY26 as against Rs 89,535 crore in the year-ago period.

Highlighting the performance of its passenger vehicle and electric vehicle business, the company said, "PV and EV volumes were 201.8K units (+37 per cent YoY), with quarterly revenues of Rs 18.7K Cr (+49 per cent YoY), EBITDA and EBIT margins of 9.4 per cent (+150 bps YoY) and 4.7 per cent (+310 bps YoY), respectively, driven by favourable volumes, mix and operating leverage, despite a challenging pricing and cost environment."

TMPV added, "Looking ahead, domestic demand continues to sustain, led by growth in SUVs, CNG and EV. However, geopolitical developments remain a key monitorable to mitigate potential supply-side and commodity price risks. We will ramp up production to meet demand. We expect to build on the strong momentum of H2 and continue to deliver profitable and industry-beating growth in FY27, supported by a robust demand pipeline, planned pipeline of new products, and established multi-powertrain strategy."

Shailesh Chandra, Managing Director & CEO at TMPV, said, "We achieved our highest ever annual sales of over 6.4 lakh units, delivering industry beating growth of 15 per cent YoY and emerging as the #2 ranked player in H2 FY26. In electric vehicles, we further reinforced our leadership position with a sustained focus on strengthening the overall value proposition of our vehicles and holistically addressing adoption barriers, accelerating the journey towards EVs becoming a mainstream choice for customers. This resulted in robust 43 per cent year on year growth and our highest ever annual EV volumes of over 92,000. Q4 FY26 was an outstanding quarter, in which we registered 37 per cent year on year growth to record our highest ever quarterly sales of over 200,000 units."

He added, "During the quarter, we delivered c.30,000 units of the Sierra and launched the new versions of the popular Punch and Punch.ev, to strong customer acclaim. This consistent growth has helped us drive sequential margin improvement throughout the year. Going ahead, we will continue to build on this strong momentum, deliver industry beating growth and enhance profitability through focused actions, while closely monitoring geopolitical developments to mitigate supply-side risks."

Dividend

Alongside the earnings announcement, the company's Board recommended a final dividend of Rs 3 per equity share of face value Rs 2 each, translating into a 150 per cent payout for the financial year ended March 31, 2026.

"The dividend, if declared at the AGM, shall be paid to the eligible shareholders on or before July 14, 2026," the company stated.

The results and dividend announcement came after market hours on Thursday. Earlier in the day, TMPV shares settled 0.34 per cent higher at Rs 338.