Speech delivered by N. Chandrasekaran, Chairman, Tata Motors Ltd. at the company’s AGM for FY2025-26
It is my privilege to present to you the Annual Report of Tata Motors Limited for the financial year ended March 31, 2026 – as a Commercial Vehicles only Company following its successful demerger and public listing on November 12, 2025.
This milestone marks a decisive step in our ambition to build a world class commercial mobility enterprise, with strong leadership in India and a significant presence globally. I would like to thank all colleagues who contributed to the successful execution of the demerger and listing.
The year 2026 began with expectations of steady global growth, soft inflation and easier financial conditions. However, the introduction of US tariffs in May 2025 created significant challenges globally.
India responded by reducing its GST rates to boost domestic consumption which helped prop up domestic growth rates in the second half of the year.
During the year we witnessed positive developments including the signing of the landmark India-EU trade agreement and the interim India-US trade deal. However, by early March, the start of the West Asia crisis brought rising concerns about stagflation—falling output coupled with rising inflation.
Fiscal 2026 Performance
In this context, I am pleased to share that your Company delivered a robust performance in FY26.
In India, as you are aware, your Company has been the undisputed leader in the Commercial Vehicles market, due to the enduring strength of our brands, the capabilities of our people and customer trust earned over decades.
During the year, your Company further consolidated this leadership, driven by focused product interventions, disciplined sales execution and deeper, more meaningful customer engagement, delivering sales volumes of over 4,35,000 vehicles, compared to ~3,85,000 vehicles in the previous year—representing a robust year on year growth of 13%.
This performance was driven by strong momentum across the ‘Intermediate, Light and Medium Vehicle (ILMCV)’ and Small Commercial Vehicles and Pickups (SCVPU) segments. Additionally, we had a notable resurgence in our Heavy Commercial Vehicle (HCV) Segment, which achieved its highest market share to 55% in a decade.
During the year, your Company recorded its highest ever revenues of ₹83,855 crore, compared to ₹76,359 crore in FY25, delivering a robust year on year growth of 9.8%. Profitability strengthened further, with EBITDA margins of 12.3%, reflecting improved operating leverage and disciplined cost management. The automotive business delivered a return on capital employed of 72.3% among the highest in the global commercial vehicles industry. Collectively, these outcomes highlight the resilience of our business model and our ability to perform consistently across cycles through disciplined execution.
Fiscal 2026 Progress
Last year, I had shared how your Company had organised itself into eight verticals to create new revenue streams while de-risking the business from economic cycles. I am pleased to report that these initiatives have translated into strong progress during Fiscal 2026.
The 8-vertical structure has enabled sharper focus, accountability and improved performance and improved profitability. Apart from the 4 vehicular segments, we saw strong traction in the other 4 segments
- Non cyclical segment delivered strong growth of 18.2% with spares and services making a contribution to profitability.
- TML Smart City Mobility Solutions, with over 3,800 electric buses deployed across 10 cities, surpassed the significant milestone of 50 crore cumulative kilometres while consistently delivering uptime above 95%, demonstrating scale, reliability and impact on urban mobility.
- Digital platforms continued to scale, strengthening customer engagement and value delivery. Fleet Edge crossed the milestone of one million connected vehicles while Fleet Verse, our digital commerce platform, recorded robust growth across sales, bookings and enquiries.
- International Business delivered strong year on year growth of 53.9%, driven by deeper market penetration and notable order wins across Southeast Asia, Africa and the Middle East.
During the year, your Company announced the proposed acquisition of the IVECO Group, an important strategic step in our global growth journey. This will bring a strong portfolio of light, medium and heavy commercial vehicles, with operations across European, Latin American and other international markets, annual sales of approximately ~140,000 vehicles and revenues of €13.4 billion in 2025. This will add scale, complementary markets, strong manufacturing and powertrain capabilities along with a strong technology roadmap aligned to evolving emission norms and alternative fuel powertrains.
The year also saw the Company’s continued to focus on renewable energy, circular economy and biodiversity. This year we progressed towards 100% renewable electricity, led the industry’s transition with Battery Electric and Hydrogen trucks and strengthened circularity by bringing several plants closer to Water Neutrality and Zero Waste to Landfill. We also scaled our ProLife and Re.Wi.Re businesses, reinforcing responsible vehicle lifecycle management, while our biodiversity initiatives – projects in the Central Asian Flyway and Maximus received global recognition.
Rooted in Tata Group’s enduring values, our social investments continued to focus on creating sustained, long term impact, benefiting over 2 lakh citizens across 105 districts. With more than 30% of beneficiaries from marginalized communities, these efforts reaffirm our commitment to inclusive and sustainable development, spanning key focus areas such as water conservation, education, skill development and healthcare. Further, our flagship Integrated Village Development Programme (IVDP) has evolved into a scalable model for holistic rural transformation, now spanning 194 villages across five states.
Trends Shaping Mobility
Advances in digital technologies and AI are transforming how mobility products are designed, experienced and supported. The transition to clean energy, heightened expectations on safety and the reconfiguration of global supply chains are redefining competitiveness. Geopolitical and uneven economic recovery are adding further complexity, making agility and resilience as critical capabilities.
In India, these global shifts are reinforced by strong long-term fundamentals. Sustained investments in infrastructure, logistics modernisation and freight efficiency continue to underpin the relevance of commercial mobility.
Looking Ahead
With a strong balance sheet, improving returns and focus on resilience, your Company is well positioned to sustain its profitable growth journey. Our focus will remain on delivering industry leading growth, profitability and returns, supported by a disciplined capital allocation to address emerging mobility trends including digital led solutions, connected vehicle technologies, advanced driver assistance systems, data driven fleet services and new age powertrains—capabilities that will shape the future of safe, efficient and intelligent commercial mobility.
Guided by Project Aalingana, the Tata Group’s vision for a greener, cleaner and more equitable future, sustainability is integral to your Company. The transition to cleaner mobility requires a portfolio of electric, hydrogen and cleaner ICE technologies. While we scale the portfolio of zero emission electric CVs, we will continue to invest in hydrogen-based technologies for heavier-duty segments.