Tata Motors Q3FY26 results: Net profit falls 48% to ₹705 cr, revenue up 16%

Tata Motors posted a 48 per cent Y-o-Y fall in profit for Q3FY26 due to exceptional items related to demerger and Labour Code expenses, even as revenue rose more than 16 per cent

Commercial-vehicle maker Tata Motors on Thursday reported a consolidated net profit of ₹705 crore for Q3FY26, marking a sharp 48 per cent decline from the Rs 1,355 crore it recorded in the same period last year. Tata Motors now represents only the commercial vehicle segment of the company, following the hiving off of its passenger vehicle business in October.

 

Revenue from operations rose more than 16 per cent annually to ₹21,847 crore. Operating margins improved to 12.60 per cent in Q3FY26 compared with 12.07 per cent in Q3FY25.

 

The company said in a statement that its focus on cost optimisation, product upgrades and execution efficiency continues, even as it navigates near-term margin pressures.

 

“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,” Girish Wagh, managing director and chief executive officer of Tata Motors, said in the statement.

 

“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,” he added.

 

Tata Motors’ wholesale CV business posted strong operational momentum, with segment wholesales rising 20 per cent year-on-year to 116,800 units.

 

Domestic volumes grew 18 per cent, while exports surged 70 per cent, reflecting improving demand across markets.

 

The company also strengthened its competitive position in India, with overall domestic market share expanding 100 basis points over Q2FY26 to 35.5 per cent in Q3FY26.

 

Consolidated earnings before interest, tax, depreciation and amortisation (Ebitda) margin improved by 30 basis points to 12.5 per cent, despite exceptional costs of ₹1,643 crore, which included ₹962 crore towards demerger-related stamp duty, ₹603 crore arising from accounting for the new Labour Codes, and ₹82 crore linked to acquisition-related expenses.

 

The share price of Tata Motors Commercial Vehicles saw early gains but ended nearly flat on Thursday. The stock closed 0.45 per cent higher at ₹470.20 on the BSE after touching an intra-day record of ₹475.40 ahead of its Q3FY26 results.