Tata Motors’ Commercial Vehicles (CV) business posted a strong performance in Q3 FY2025-26, driven by disciplined execution, healthy demand and a sharp focus on profitable growth. The company reported quarterly revenue of ₹21,500 crore, up 17% year-on-year, while EBITDA rose 19% to ₹2,700 crore. EBITDA margin came in at 12.7%, marking the tenth consecutive quarter of double-digit performance. Supported by higher volumes and better realisations, EBIT margin crossed the double-digit mark for the first time, rising to 10.6%. These gains were partly offset by higher input costs and the absence of the PLI benefit recorded in the same quarter last year. Profit before tax (before exceptional items) stood at ₹2,300 crore, up 36%.
Strong operating discipline and tighter working capital management drove free cash flow to ₹4,800 crore in Q3, while nine-month FCF stood at ₹5,200 crore. Return on capital employed improved significantly to 53%, compared to 38% in the year-ago quarter. As of 31 December 2025, the domestic CV business remained in a net cash position of ₹3,900 crore. On a consolidated basis, revenue reached ₹21,800 crore, EBITDA margin stood at 12.5%, and EBIT margin rose to 10.4%. Consolidated PBT (before exceptional items) was ₹2,600 crore, while PAT came in at ₹700 crore. The company ended the quarter with a consolidated net cash position of ₹6,100 crore, inclusive of TMF Holdings’ gross debt offset by the market value of its Tata Capital investments.
Exceptional items for the quarter totalled ₹1,500 crore on a standalone basis and ₹1,600 crore on a consolidated basis, reflecting costs related to the New Labour Codes, the ongoing demerger process and acquisition-linked expenses. The Board also approved a Composite Scheme of Amalgamation to merge TMF Holdings and TMF Business Services with Tata Motors. As wholly owned subsidiaries, the merger will not alter the company’s shareholding but will simplify and streamline the Group’s structure, subject to mandatory approvals.
In operational performance, the CV division reported wholesales of 116,800 units, an increase of 20% year-on-year. Domestic and export volumes grew 18% and 70% respectively. Domestic VAHAN market share rose 100 basis points sequentially to 35.5%. During the quarter, the company strengthened its product portfolio with a series of launches under its “Better Always” philosophy. These include 17 next-generation trucks with enhanced safety, efficiency and profitability, the new Azura series for the Intermediate and Light Commercial Vehicle segment, and India’s widest range of electric trucks under the Tata trucks.ev umbrella. All truck platforms—Prima, Signa, Ultra and Azura—now comply with European ECE R29 03 safety standards. Tata Motors also unveiled a new Euro 6-compliant range tailored for the Middle East and North Africa to support the region’s clean mobility transition.
The company expects demand to further strengthen in Q4 across most CV segments, supported by the government’s sustained infrastructure spending and accelerating activity in end-use industries. Along with an optimised product portfolio, sharper pricing discipline and deeper market engagement, Tata Motors believes it is strongly positioned to unlock demand and sustain its growth momentum.
Mr. Girish Wagh, MD and CEO, Tata Motors, said the company’s agile strategy and disciplined execution helped deliver another strong quarter, boosted by the GST 2.0 tailwind and festive demand. He added that the latest fleet of next-generation trucks sets new benchmarks in safety, total cost of ownership and green mobility.
Mr. GV Ramanan, CFO, Tata Motors, said the company’s tenth straight quarter of double-digit EBITDA and its first-ever double-digit EBIT underline the strength of operational execution and demand fundamentals. He added that robust free cash flow and working capital discipline reinforce confidence in meeting the company’s financial commitments for the year.