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EquityWireEarnings Review: Tata Motors Q1 Profit After Tax beats view; Year-over-Year growth stunted by costs
Earnings Review

Tata Motors Q1 Profit After Tax beats view; Year-over-Year growth stunted by costs

This story was originally published at 16:55 IST on 12 August 2026
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Earnings-Review-Tata-Motors-Q1-Profit-After-Tax-beats-view-Year-over-Year-growth-stunted-by-costs

Informist, Wednesday, Aug. 12, 2026

 

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--Tata Motors Apr-Jun net profit INR 15.28 bln
--Analysts saw Tata Motors Apr-Jun net profit at INR 13.40 bln
--Tata Motors Apr-Jun revenue INR 193.29 bln
--Analysts saw Tata Motors Apr-Jun revenue at INR 194.58 bln
--Tata Motors Apr-Jun net profit INR 15.28 bln vs INR 14.11 bln year ago
--Tata Motors Apr-Jun revenue INR 193.29 bln vs INR 156.82 bln year ago
--Tata Motors Apr-Jun net profit includes one-time cost INR 1 bln
--Tata Motors Apr-Jun EBITDA margin 11.7% vs 12.3% year ago
--Tata Motors Apr-Jun EBIT margin 9.40% vs 9.60% year ago
--Tata Motors Apr-Jun EBITDA INR 23 bln, up 17% on year
--Tata Motors: Regulatory approvals for Iveco acquisition in final stage
--Tata Motors: Only 1 approval is pending for Iveco acquisition
--Tata Motors: Expect to close Iveco acquisition by early November
 


By Anand JC

 

MUMBAI – Tata Motors Ltd.'s net profit for the June quarter grew by a high-single-digit percentage year-on-year, but at a much slower pace than revenue as rising commodity costs remained a pain point. While revenue growth was slightly below expectations, profit was comfortably above them.

 

Tata Motors reported a net profit of INR 15.28 billion for the June quarter, up over 8% on year but down 36% on quarter. Its revenue for the period was INR 193.29 billion, up 23% on year but down 21% on quarter. Consensus estimates had pegged Tata Motors' net profit at INR 13.40 billion and revenue at INR 194.58 billion. 

 

The company's overall costs grew almost 24% on year to INR 176.68 billion for the quarter under review. A significant chunk of these costs was towards materials consumed, which was INR 122.19 billion, up 23% on year.

 

"Despite severe commodity headwinds, the business delivered resilient profitability owing to disciplined pricing, cost efficiency measures and improved operating leverage," Tata Motors said in a statement. 

 

It reported earnings before interest, tax, depreciation, and amortisation of INR 23 billion, up 17% on year. Its EBITDA margin was 11.7%, down 60 basis points on year and its EBIT margin was 9.4%, down 20 bps.

 

Tata Motors said all but one regulatory approval is in place for its proposed acquisition of European commercial vehicle maker Iveco Group, which it had announced in July last year. The final clearance is now expected by the end of August, and the tender offer is expected to be launched in early September.  

 

Tata Motors sold 108,700 commercial vehicles to dealerships in the June quarter, up 26% on year. Its domestic sales grew 26%, while its exports grew 35% on year. The company had a market share of 56.3% in the heavy commercial vehicle segment as of Jun. 30, 36.9% in the intermediate, light and medium commercial vehicles segment, 27.7% in the small cargo vehicle and pick-up segment, and 41.3% in the passenger carrier segment.

 

The company reported growing orders for its electric commercial vehicles in the June quarter. "The eSCV segment recorded its strongest-ever performance, achieving ~10% salience during May and June and ~47% market share in Q1, underscoring the increasing adoption of electric commercial vehicles and the strength of our integrated EV ecosystem," its Managing Director and Chief Executive Officer Girish Wagh said in a press release. 

 

It reported a positive free cash flow of INR 11.14 billion, up INR 29.10 billion from a year ago. "This performance reflects improved business fundamentals, continued working capital management, and sustained financial discipline across the organisation," Chief Financial Officer G.V. Ramanan said in the release. 

 

The net cash of its standalone business was INR 71.00 billion as of Jun. 30, after it paid a dividend of INR 14.70 billion during the quarter. 

 

On a consolidated basis, it reported a net profit of INR 25.60 billion, up 83% on year. Its consolidated revenue for the quarter was INR 206.67 billion, up 19% on year. The gain in consolidated bottom line was on account of a mark-to-market gain on its investment in Tata Capital Ltd. 

 

Tata Motors said Freight Tiger has now become its subsidiary, following the acquisition of an additional 18.1% equity stake in May, taking its total holding in the company to 63.6%. 

 

Tuesday, its shares ended 1.6% higher at INR 457.05 on the National Stock Exchange. Tata Motors reported its earnings for the June quarter after market hours. End

 

Edited by Saji George Titus

 

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