Tata Motors Q3 Preview: Profit, revenue and key factors to watch in Dec qtr

Tata Motors Q3 Preview: Nomura notes that MHCV volumes rose 24 per cent Y-o-Y, leading to a similar 24 per cent increase in revenues on both a Y-o-Y and Q-o-Q basis.

Tata Motors Q3 Preview: Tata Motors Commercial Vehicles (Tata Motors) is set to announce its December quarter (Q3FY26) earnings on Thursday, January 29, marking its second quarterly result after the demerger. 

 

Brokerages expect a strong quarter, driven by sharp volume growth in the standalone commercial vehicle (CV) business, operating leverage benefits and margin expansion.  

 

Analysts broadly anticipate double-digit growth in revenue, Ebitda and profit on a sequential basis.  CATCH STOCK MARKET LIVE UPDATES TODAY

Meanwhile, here’s what brokerages predict ahead on Tata Motors CV Q3 show:

 

Kotak Institutional Equities: Operating leverage to lift margins

 

Analysts at Kotak Institutional Equities expect consolidated revenues to rise 22 per cent quarter-on-quarter (Q-o-Q), led by a 23 per cent Q-o-Q increase in standalone business revenues on the back of a 22 per cent Q-o-Q jump in volumes during Q3FY26. The brokerage forecasts consolidated Ebitda margins to expand by 200 basis points Q-o-Q to 13 per cent, aided by operating leverage benefits in the standalone segment.

 

 

As a result, analysts estimate Tata Motors’ revenue at ₹22,649.9 crore, up 21.9 per cent Q-o-Q. Adjusted profit after tax (PAT) is seen at ₹1,905.5 crore, marking a sharp 62.2 per cent Q-o-Q increase. Ebitda is projected to rise 44.1 per cent Q-o-Q to ₹2,951.7 crore, with margins at 13 per cent.

 

Motilal Oswal: CV demand remains robust

 

Motilal Oswal highlights strong growth in India’s commercial vehicle market during the quarter. According to the brokerage, CV volumes rose 21 per cent year-on-year (Y-o-Y), supported by GST cuts and a low base from last year. Medium and heavy commercial vehicle (MHCV) volumes grew faster at 24 per cent Y-o-Y, compared with an 18 per cent Y-o-Y increase in light commercial vehicles (LCVs).

 

The brokerage expects Tata Motors’ margins to improve by 100 basis points Y-o-Y to 13.2 per cent, driven by operating leverage. It estimates revenue at ₹20,798.8 crore, up 23.4 per cent Q-o-Q. Ebitda is pegged at ₹2,751.8 crore, up 32.1 per cent Q-o-Q, while PAT is seen rising 37 per cent Q-o-Q to ₹1,842.4 crore.

 

Nomura: MHCV volumes drive revenue growth

 

Nomura notes that MHCV volumes rose 24 per cent Y-o-Y, leading to a similar 24 per cent increase in revenues on both a Y-o-Y and Q-o-Q basis. The brokerage expects margins to improve by 88 basis points Q-o-Q to 13 per cent.

 

Nomura estimates revenue at ₹22,917.5 crore, up 24 per cent Q-o-Q, and Ebitda at ₹2,977.6 crore, reflecting a 33 per cent Q-o-Q rise.

 

 

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