Tata Motors Ltd (Auto & Auto Ancl - CV) — fundamental analysis, earnings data, and key metrics. PE: 36.2. This stock is not currently in the Nifty 500 momentum outperformers list.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: Number of launches: 17 new trucks
“we had launched around 17 new next-gen trucks... address almost every category or most important categories for logistics and transportation, and that should help us grow further.”
What: EBIT Margin: 10.6%
Impact: 100 bps YoY improvement
“The CV segment also achieved the milestone of a double-digit EBIT margin for the first time, which now stands at 10.6%.”
What: Demerger cost: ₹960 Cr
“Demerger cost has been around ₹960 crore. And both these are going to be one-time for us. We don't expect this on a recurring basis.”
What: Bus order book: 6,000 units
“In buses, I think we have seen a strong momentum now with multiple tender wins, accounting to total of almost 6,000 units, which we will now deliver”
What: Export growth: 70% YoY
“International business has been doing well. This year the shipments have grown 70% on a year-on-year basis. And the main contributors have been SAARC”
What: EBIT Margin at 10.6%
“The CV segment also achieved the milestone of a double-digit EBIT margin for the first time, which now stands at 10.6%.”
Earnings deceleration risks from management commentary
Trigger: Volatility in PGM and non-ferrous metals prices.
Impact: PAT impact: 50 bps margin hit
Management view: Taken a 1% price increase effective January 1st to offset these costs.
Monitor: commodity
Trigger: Compliance with new national labor regulations.
Impact: PAT impact: ₹603 Cr
Management view: One-time non-recurring provision.
Monitor: labor
Trigger: Tax processes are yet to be fully streamlined, causing some delay in replacement demand.
Management view: Expecting better clarity and smoother procedures in FY27.
Monitor: regulatory
Key quotes from recent conference calls
“Investment expenditure amounts to ₹2,000 crores, which has been pretty consistent with the guidance provided earlier. [Previous Investment Expenditure guidance]”
“our Iveco acquisition is progressing as planned with all the regulatory approvals anticipated to be received by end March... deal should get finalized by Q1 FY '27. [Initiative: IVECO Acquisition]”
“I think the new launches that we have done, they address almost every category or most important categories for logistics and transportation [Initiative: Next-Gen Truck Launch]”
“I think the total hit for us Q3 has been around 50 bps... To mitigate this, we have taken a price increase of 1% in the month of January [Risk (commodity): MEDIUM]”
Headline numbers from the latest earnings call
Revenue
₹21,533 Cr
Why: Revenue growth was primarily driven by higher volumes across all product lines and better realization.
Revenue growth was broad-based with double-digit growth in HCV, ILMCV, and SCV segments.
EBITDA
₹2,724 Cr
Why: Margin expansion was driven by stronger net realization, model mix, and fixed cost savings, partially offset by commodity inflation.
EBITDA margins improved by 30 bps YoY despite the absence of a one-time PLI gain recorded in the previous year.
PAT
₹2,290 Cr (PBT bei)
Why: Profit growth was aided by higher volumes, improved realization, and lower depreciation and amortization expenses.
PBT (before exceptional items) showed strong growth, though reported PAT would be impacted by ₹1,600 Cr in one-time costs.
Other Highlights
• Free Cash Flow of ₹4,752 Cr in Q3, driven by strong cash PAT and significant working capital reversal.
• Net cash position reached ₹3,900 Cr as of December 2025, providing momentum for future growth.
• Exceptional items of ₹1,600 Cr (Consol) due to new labor code, demerger costs, and acquisition expenses.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
HCV Volume Growth (YoY)
23%
Why: Driven by infrastructure projects and post-monsoon activity.
Domestic Market Share
35.5%
Why: Recovery led by strong growth in heavy commercial vehicles and tippers.
HCV Cargo Fleet Utilization
80.4%
Why: Increased demand in sectors like auto and consumer durables post-GST.
EBIT Margin
10.6%
Why: Stronger net realization and fixed cost savings.
Export Volume Growth (YoY)
70%
Why: Recovery in SAARC markets like Sri Lanka and Bangladesh.
Government Bus Order Book
6,000 units
Why: Multiple tender wins from state transport corporations.
E-Buses Deployed
3,600+ units
Why: Ongoing execution of smart city mobility contracts.
Free Cash Flow
₹4,752 Cr
Why: Strong operating profit and efficient working capital management.
Net Cash Position
₹3,900 Cr
Why: Strong FCF generation during the quarter.
SCV Q3 Retail Sales
44,370 units
Why: New launches like Ace Pro and Ace Gold establishing well in the market.
Forward-looking targets from management for H1 FY27
Capex Plan
₹2000 Cr
Expected good growth in H1 FY27
Continue to work on further margin improvement
₹2,000 Cr
New product launches and technology
Bus business expected to grow at higher single-digit
Guidance Changes
Investment Expenditure: ₹2,000 Cr → ₹2,000 Cr
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Tata Motors Ltd's latest quarterly results (Dec 2025) show
Tata Motors Ltd's current PE ratio is 36.2x.
Tata Motors Ltd has a debt-to-equity ratio of N/A.
Tata Motors Ltd currently does not pay a significant dividend (yield 0.00%).
Tata Motors Ltd's shareholding pattern (Dec 2025)
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In Q3 FY26, Tata Motors Ltd's management highlighted
Tata Motors Ltd's management has provided the following forward guidance for H1 FY27
Tata Motors Ltd's most important sub-sector-specific KPIs from the latest concall
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The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
