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Informist, Thursday, Jan. 29, 2026

 

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--Tata Motors Oct-Dec net profit INR 5.61 bln
--Analysts saw Tata Motors Oct-Dec net profit at INR 19.63 bln
--Tata Motors Oct-Dec revenue INR 204.04 bln
--Analysts saw Tata Motors Oct-Dec revenue at INR 212.76 bln
--Tata Motors Oct-Dec net profit includes one-time cost INR 15.45 bln
--Tata Motors Oct-Dec profit excluding exceptional cost is INR 21.06 bln
--Tata Motors Oct-Dec labour code implementation one-time cost INR 5.74 bln
--Tata Motors Oct-Dec stamp duty one-time cost  INR 9.62 bln
--Tata Motors Oct-Dec net profit INR 5.61 bln vs INR 14.17 bln year ago
--Tata Motors Oct-Dec revenue INR 204.04 bln vs INR 170.40 bln year ago
--Tata Motors Apr-Dec net profit INR 9.56 bln
--Tata Motors Apr-Dec revenue INR 529.47 bln
--Tata Motors Oct-Dec operating margin 13.45% vs 13.00% year ago
--Tata Motors Oct-Dec consol EBITDA margin 12.5%, up 30 bps on year
--Tata Motors Oct-Dec consol EBIT margin 10.4%, up 100 bps on year
--Tata Motors: Expect demand to strengthen in Q4 across most CV segments
--Tata Motors CFO: Confident of delivering on stated financial guidance
--Tata Motors: Q3 EBIT margin improved on higher volumes, better realisations
--Tata Motors: Q3 EBIT margin rise offset by rising input cost, base effect

 

By Anand JC and Nandini Sinha 

 

MUMBAI – Tata Motors Ltd., formerly known as TML Commercial Vehicles Ltd., reported a sharp year-on-year fall in its bottom line for the December quarter, dragged down by a sizeable one-time expense related to implementation of the new labour laws, and demerger and acquisition costs. 

 

Its net profit for the reporting quarter was INR 5.61 billion, 60% lower than INR 14.17 billion in the year-ago quarter. Analysts had pegged the company's bottom line at INR 19.63 billion.

 

Its bottom line was weighed down by exceptional items cost of INR 15.45 billion, which constituted costs worth INR 5.74 billion incurred towards implementation of the four new labour codes, and INR 9.62 billion paid as stamp duty to transfer land as part of its demerger from passenger vehicle operations. Adding back this one-time cost, the company's net profit improves to INR 21.06 billion – higher than consensus estimate.

 

The company's top line was INR 204.04 billion for the December quarter, up almost 20% on year. Analysts had expected the company's top line to improve to INR 212.76 billion.

 

"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," said Managing Director and Chief Executive Officer Girish Wagh in a press release. 

 

"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," Chief Financial Officer G.V. Ramanan said.

 

Tata Motors' consolidated earnings before interest, tax, depreciation, and amortisation margin was 12.5%, up 30 basis points on year. EBIT margin for the reporting quarter grew 100 bps on year to 10.4%.

 

The company's total income for the December quarter rose to INR 206.76 billion, up over 19% on year and nearly 21% sequentially.

 

Total expenses for the December quarter were INR 183.58 billion, up nearly 17% on year. The cost of materials consumed was INR 120 billion, up over 23% on year. Purchase of products for sale was INR 19.54 billion, up nearly 12% on year. The cost of changes in inventories of finished goods, work-in-progress, and products for sale rose to INR 3.17 billion, up over 38% on year.

 

The company's finance costs, depreciation and amortisation expense, and product development/engineering expenses, all fell on year to INR 1.43 billion, 4.17 billion and INR 1.59 billion, respectively. The company's other expense rose nearly 9% on year to INR 24.43 billion.

 

The company reported a net profit of INR 9.56 billion and a revenue of INR 529.47 billion for the nine months to December.

 

The board of the company has approved the merger of TMF Holdings Ltd. and TMF Business Services Ltd., both wholly-owned subsidiaries, with Tata Motors, the company said.

 

Tata Motors said it expects demand to further strengthen in the March quarter across most commercial vehicle segments, with key drivers being the government's infrastructure push and expansion in end-use sectors.

 

Shares of Tata Motors closed at INR 470.20 on the National Stock Exchange Thursday, up 0.48%. The company announced its earnings after market hours.  End

 

Edited by Tanima Banerjee

 

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