Tata Motors shares in focus as Q3 net profit declines 48%; smart uptick in revenue – News Air Insight

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Shares of Tata Motors Limited (TMCV) will be in focus heading into trade on Friday, January 30, after the company reported a 48% YoY decline in consolidated net profit for the December quarter at Rs 705 crore, compared with Rs 1,355 crore in the same period last year. Revenue from operations, however, rose 16% YoY to Rs 21,847 crore in Q3FY26, up from Rs 18,819 crore a year ago.

In the preceding September quarter (Q2FY26), the company had posted a net loss of Rs 867 crore, primarily due to mark-to-market losses of Rs 2,000 crore on its recently listed investments in Tata Capital. On a sequential basis, revenue increased 18% from Rs 18,585 crore reported in the July–September period.

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During the quarter, the company reported exceptional items, including a Rs 603 crore impact related to the New Labor Code, Rs 962 crore arising from demerger-related adjustments, and acquisition costs of Rs 82 crore. The combined impact of these and other items stood at Rs 1,500 crore in standalone financials and Rs 1,600 crore at the consolidated level, according to the company’s exchange filing.

EBITDA margin for the quarter improved to 12.5%, up 30 bps YoY, while EBIT margin expanded by 100 bps YoY to 10.4%. Profit Before Tax for the quarter came in at Rs 2,600 crore.


As of December 31, 2025, the company remained net cash positive at Rs 6,100 crore. This figure includes TMF Holdings’ gross debt adjusted for the market value of its investments in Tata Capital Ltd.

In the commercial vehicle (CV) segment, wholesales stood at 1,16,800 units, marking a 20% increase. Domestic and export volumes rose 18% YoY and 70% YoY, respectively. The company’s overall domestic CV VAHAN market share improved sequentially by 100 bps to 35.5% in Q3FY26.Commenting on performance, MD & CEO Girish Wagh said the company’s disciplined execution of its agile strategy resulted in another strong quarter, aided by demand tailwinds from GST 2.0 and the festive season. He highlighted the recent launch of 17 next-generation trucks under the ‘Better Always’ philosophy, aimed at setting new standards in safety, total cost of ownership, and emission-free mobility. Wagh added that with infrastructure spending gaining pace, the company is well placed to maintain momentum and support continued growth.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)



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