Tata Motors (TMCV) Q1 25/26 earnings summary

Executive summary

• Announced acquisition of 100% of Iveco Group N.V. (excluding defense) via a voluntary tender offer, with a total equity value of EUR 3.8 billion at EUR 14.1 per share, supported by key shareholders and boards.

• Q1 FY26 consolidated revenue declined 2.5% YoY to ₹104.4K Cr, with EBITDA margin at 9.2% and PBT at ₹5.6K Cr, mainly impacted by US tariffs and adverse working capital movements.

• Total income for the quarter ended June 30, 2025, was ₹20,841 crore, up from ₹18,851 crore year-over-year but down from ₹20,206 crore sequentially.

• Profit after tax for the quarter was ₹5,350 crore, a significant increase from ₹2,190 crore year-over-year and ₹1,382 crore in the previous quarter.

• Transaction is highly strategic, creating a global commercial vehicle leader with complementary portfolios and geographies, moving from sixth to fourth in global truck volumes above 6 tons.

Financial highlights

• Iveco Group (excluding defense) reported EUR 14 billion in revenue and EUR 891 million EBIT (6.3% margin) for the latest period.

• Group EBITDA margin contracted 480 bps YoY to 9.2%; EBIT margin at 4.3%.

• Revenue from operations for the quarter was ₹15,682 crore, compared to ₹16,862 crore year-over-year and ₹19,999 crore in the previous quarter.

• Basic EPS for ordinary shares was ₹14.53, up from ₹5.70 year-over-year and ₹3.75 in the previous quarter.

• Net profit margin for the quarter was 34.12%, compared to 12.99% year-over-year and 6.91% in the previous quarter.

Outlook and guidance

• Iveco's "Unlimited Pathways" strategy targets 5% CAGR, EUR 17.5 billion revenue, 7-7.5% EBIT, and EUR 0.8 billion free cash flow by 2028.

• JLR maintains FY26 EBIT margin guidance of 5–7% and expects free cash flow close to zero, improving in FY27 and FY28.

• The Board approved a Composite Scheme of Arrangement to demerge the Commercial Vehicle business and merge the Passenger Vehicle business, pending regulatory approval.

• Synergies expected to free up at least 0.5% of consolidated revenue as free cash flow from FY 2028.

• EPS breakeven projected within two years post-fundraise; acquisition debt to be repaid within four years.