Tata Motors Limited (formerly TML Commercial Vehicles Ltd), the commercial vehicles segment, on January 29, reported a consolidated net profit of ₹705 crore for the third quarter of the financial year 2026, a 48% (YoY) fall from ₹ 1,355 crore net profit reported in the same period last year.
The CV-maker’s revenue from operations meanwhile rose more than 16% YoY to ₹ 21,847 crore during the quarter. Operating margin improved to 12.60% in Q3 FY26 from 12.07 percent in Q3 FY25, while profit margin reduced to 3.23%.
The company, meanwhile, said EBITDA margin was in double digits for the tenth consecutive quarter at 12.7% (+30 bps) while EBIT margin also crossed the double-digit milestone to reach 10.6% (+100 bps) aided by higher volumes and improved realisations. This was partially offset by rising input costs and the impact of the maiden PLI benefit recorded in the prior period.
The exceptional items include impact on account of the New Labor Code (₹603 Cr), demerger (₹962 crore) and acquisition cost (₹82 crore). The impact of these and other items stood at ₹1,600 crore in consolidated financials.
Girish Wagh, MD & CEO, Tata Motors Ltd said: “Disciplined execution of an agile strategy delivered yet another strong financial performance this quarter, supported by demand tailwinds from GST 2.0 and the festive season. Our recent launch of 17 next-generation trucks under the ‘Better Always’ philosophy sets new benchmarks in safety, total cost of ownership, and smarter, emission-free mobility, reinforcing our commitment to innovation and industry leadership. With infrastructure spending accelerating, we are well positioned to sustain momentum and drive continued growth.”
Going forward, the company expects demand to further strengthen in Q4FY26 across most commercial vehicle segments. Key drivers in 2026 will include the government’s sustained infrastructure push and expansion in end-use sectors, both of which are expected to fuel positive momentum for the industry. With an optimised portfolio ensuring superior product availability, a decisive pricing strategy, and deeper customer engagement through intensified market activations, the company is well- poised to unlock demand across segments, paving the way for continued success.
GV Ramanan, CFO, Tata Motors Ltd, said: “We delivered another strong quarter, translating robust operational execution and healthy demand across key segments into meaningful financial outcomes. The quarter marked significant milestones, including our 10th consecutive quarter of double-digit EBITDA margins and achievement of double-digit EBIT margins. This strong operating performance coupled with disciplined working capital management, led to robust free cash flow generation. With this trajectory, we remain confident of delivering on our stated financial guidance.”