Tata Motors Limited (formerly TML Commercial Vehicles Limited) reported its strongest-ever quarterly and annual performance for its commercial vehicles business, with revenues, margins, and free cash flows all hitting new highs. The Board also recommended a final dividend of ₹4 per share (200% on face value of ₹2) for FY26.

Q4 FY26 Results

Standalone (Including Joint Operations with Tata Cummins)

Tata Motors CV delivered a successful fourth quarter, with revenue from operations jumping 22% year-on-year to ₹24,452 crore, up from ₹19,999 crore in Q4 FY25. Total income rose to ₹24,692 crore.

Profit after tax rose approx 70% to ₹2,406 crore. Profit before exceptional items and tax surged 58% to ₹2,972 crore from ₹1,883 crore in Q4 FY25. Free Cash Flow for the quarter stood at ₹4,016 crore.

EBITDA margin expanded sharply to 13.9%, up 130 basis points year-on-year, crossing the "teens" threshold the company had set as a mid-term target — ahead of schedule. EBIT margin came in at 12.1%, a strong 220 bps improvement over the year-ago quarter.

Consolidated

On a consolidated basis, Q4 FY26 revenue grew 19% to ₹26,098 crore. EBITDA margin came in at 13.1% (+150 bps), while EBIT margin expanded to 11.5% (+230 bps). Finance costs dropped sharply to ₹166 crore from ₹319 crore in Q4 FY25 — nearly halved.

Full Year FY26 Results

Standalone (Including Joint Operations with Tata Cummins)

For the full year ended March 31, 2026, standalone revenue grew 11% to ₹77,399 crore from ₹69,419 crore in FY25. EBITDA margin for the year was 13.2%, up 120 bps, with absolute EBITDA rising 22%. EBIT margin improved 180 bps to 11.0%.

PBT bei for the full year rose 46% to ₹8,682 crore, versus ₹5,961 crore in FY25. Profit after tax came in at ₹3,362 crore.

Full year Free Cash Flow jumped to ₹9,186 crore, up ₹2,179 crore over FY25, translating to approximately 12% of revenue — well ahead of the company's own 2027 target. Net cash for the domestic business stood at a healthy ₹7,500 crore as of March 31, 2026. Auto ROCE reached an industry-leading 72% in FY26, up from 61% in FY25.

Consolidated

Consolidated revenues for the full year stood at ₹83,855 crore. EBITDA margin was 12.3% and EBIT margin was 10.2%. Full year PBT bei rose 7% to ₹6,091 crore. Profit after tax was ₹3,030 crore, down 24% from FY25, weighed down by ₹1,428 crore in exceptional items including ₹2,418 crore in fair value losses on equity investments held by a subsidiary (partly offset by reversals), demerger-related costs, and Labour Code impacts.

Consolidated net cash as at March 31, 2026 was ₹13,700 crore (including TMF Holdings gross debt net of market value of TMF Holdings' investments in Tata Capital). Consolidated Free Cash Flow for the full year was ₹12,400 crore, including an advance received for the landmark 70,000-vehicle Indonesia order — more than double the ₹5,900 crore generated in FY25.

Key Business Highlights

CV segment wholesale volumes for Q4 FY26 stood at 132,000 units (+25%), with full year volumes of 428,000 units (+14%). Domestic volumes grew 12% and exports surged 54% year-on-year.

Overall domestic CV VAHAN market share for FY26 stood at 35.7%, with Heavy CV market share at 55.0%, ILMCV at 39.5%, SCV at 26.8%, and Passenger at 36.4%.

During the year, the company launched 17 Next-Generation Trucks, the Ace Pro range (India's most affordable 4-wheel mini-truck), and secured its biggest-ever single order of 70,000 Yodha and Ultra T.7 vehicles for deployment in Indonesia.

Girish Wagh, MD & CEO, noted that FY26 marked a clear inflection point for the commercial vehicles industry, with volumes surpassing the pre-FY19 peak supported by GST 2.0 reforms and sustained infrastructure spending. He flagged that while demand fundamentals remain resilient, near-term geopolitical uncertainties signal some moderation ahead.

GV Ramanan, CFO, highlighted that EBITDA margins crossed 'teens' in Q4 FY26 and full year FCF translated to ~12% of revenue, well ahead of the 2027 target. He noted that near-term headwinds including commodity cost pressures are expected to persist but expressed confidence in navigating them through operational efficiency and pricing discipline.