Tata Motors Q3 FY26 Earnings Results: Profit Falls 48% to ₹705 Crore, Revenue Rises 16%

Tata Motors Commercial Vehicles (TMCV) reported its financial results for the December quarter after market hours. The company posted a consolidated net profit of ₹705 crore, down 48% year-on-year from ₹1,355 crore in the same quarter last year.

The decline in profit was mainly due to one-time exceptional costs related to labour code changes, business restructuring, and acquisition expenses.

Impact of Exceptional Items

Exceptional charges during the quarter included ₹603 crore linked to the new labour code, ₹962 crore from the demerger, and ₹82 crore in acquisition-related costs. Overall, exceptional items totalled ₹1,600 crore at the consolidated level.

Revenue Growth Remains Strong

Despite the hit to profits, revenue from operations rose 16.23% year-on-year to ₹21,732 crore, compared with ₹18,697 crore in the year-ago quarter, supported by better demand and improved realisations.

Operating Performance Improves

Operating performance remained strong, with EBITDA jumping 45% YoY to ₹2,768 crore.
The EBITDA margin stood at 12.7%, staying in double digits for the 10th consecutive quarter.

Commercial Vehicle Volumes and Market Share

During Q3 FY26, commercial vehicle wholesales rose 20% YoY to 116.8 thousand units. The company’s VAHAN market share increased to 35.5%, up 100 basis points sequentially, reflecting stronger execution and product acceptance.

Management Commentary

MD & CEO Girish Wagh said the company delivered a strong operating performance supported by festive demand and benefits from GST 2.0. He added that the launch of 17 next-generation trucks under the “Better Always” strategy strengthens Tata Motors’ leadership in safety, efficiency, and sustainable mobility.

Outlook for Q4 FY26

Tata Motors expects demand to strengthen further in Q4 FY26, driven by continued government spending on infrastructure and growth in key end-use sectors. The company remains confident of sustaining momentum through better product availability, pricing strategies, and deeper customer engagement.

Also Read: Adani Power Increases Electricity Export to Bangladesh!

Tata Motors Commercial Vehicles Share Price Movement

Tata Motors Passenger Vehicles share price (NSE: TMPV) was trading at ₹350.35 on the NSE at 11:40 am IST on January 30, down ₹1.45 or 0.41% for the day. The stock opened at ₹350.80, touched an intraday high of ₹353.00, and slipped to a low of ₹348.40. The stock has no reported P/E ratio or dividend payout. Over the past year, Tata Motors Passenger Vehicles shares have moved between a 52-week high of ₹419.00 and a 52-week low of ₹335.60.

Conclusion

While Tata Motors’ Q3 FY26 profit declined due to one-time exceptional costs, the underlying business performance stayed strong. 

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