Tata Motors (TMCV) investor relations material

Executive summary

• Q3 FY26 saw strong operational and financial performance, with revenue up 17% YoY to ₹21,533 crore, double-digit margin expansion, and robust sales momentum across all product lines, supported by GST 2.0 and festive demand.

• Launched 17 next-generation trucks, including India's widest electric truck range and the Azura series, expanding sustainable mobility solutions and international presence, especially in SAARC, Middle East, and North Africa.

• Iveco acquisition progressing as planned, with deal finalization expected by Q1 FY27, pending regulatory approvals.

• Consolidated Q3 revenue reached ₹21,847 crore, with EBITDA margin at 12.5% and EBIT margin at 10.4%.

• Free cash flow for Q3 was robust at ₹4,752 crore, and the company ended the period net cash positive.

Financial highlights

• Q3 FY26 revenue rose 17% YoY to ₹21,533 crore, with EBITDA margin at 12.7% (+30 bps YoY) and EBIT margin at 10.6% (+100 bps YoY).

• Standalone profit before tax (excluding exceptional items) for Q3 FY26 was ₹2,318 crore, up from ₹1,757 crore in the previous quarter.

• Free cash flow for Q3 was ₹4,752 crore; net cash at ₹3,900 crore as of December 25.

• YTD FY26 revenue was ₹56,900 crore (+6% YoY), EBITDA margin 12.4% (+80 bps YoY), EBIT margin 10.1% (+130 bps YoY).

• Consolidated profit after tax for Q3 FY26 was ₹705 crore, with basic EPS of ₹1.91.

Outlook and guidance

• Demand is expected to strengthen in Q4 FY26, driven by government infrastructure initiatives and sector expansion, with a focus on ramping up the new truck portfolio and fulfilling a strong government order book for buses.

• Price increase of 1% implemented in January to offset commodity inflation.

• Guidance for CapEx and cash flow remains unchanged; confident of meeting targets and sustaining strong margins, cash flows, and ROCE.

• Anticipate double-digit growth to continue into H1 next year, aided by base effect and robust demand.