Tata Motors Reports Record Q4 FY26 Results With 22% Revenue Growth and Strong Profitability

Bengaluru, India, May 13, 2026: Tata Motors announced record financial results for the quarter and financial year ended March 31, 2026, driven by strong commercial vehicle demand, higher volumes, improved realizations, and continued operational efficiencies.

The company reported standalone revenue of ₹24,452 crore for Q4 FY26, marking a 22% year-on-year increase compared to ₹19,999 crore in the corresponding quarter last year. EBITDA for the quarter rose 35% to ₹3,400 crore, while EBITDA margin improved to 13.9%, surpassing the company’s medium-term guidance.

Tata Motors Q4 FY26 Profit Jumps 70%

Tata Motors posted a quarterly Profit Before Tax (before exceptional items) of ₹2,972 crore, up 58% year-on-year. Profit after tax for Q4 FY26 surged 70% to ₹2,400 crore.

The company’s EBIT margin also expanded significantly to 12.1%, supported by higher sales volumes, better realizations, and cost management initiatives despite rising input costs.

For the full financial year FY26, standalone revenue climbed 11% to ₹77,399 crore, while EBITDA rose 22% to ₹10,200 crore. Full-year EBITDA margin improved to 13.2%.

However, annual profit after tax declined 23% to ₹3,400 crore due to exceptional items worth ₹3,700 crore, including mark-to-market losses related to listed investments in Tata Capital, costs linked to the new labour code, and demerger-related expenses.

Strong Free Cash Flow and Net Cash Position

Tata Motors reported strong cash generation during FY26, with standalone free cash flow rising to ₹9,186 crore, up ₹2,179 crore year-on-year.

The company’s domestic business ended the year with a net cash position of ₹7,500 crore, while consolidated net cash stood at ₹13,700 crore as of March 31, 2026.

The automaker also achieved an industry-leading Auto Return on Capital Employed (ROCE) of 72% in FY26, compared to 61% in FY25.

Commercial Vehicle Business Delivers Strong Growth

The company’s commercial vehicle business remained a major growth driver during the year.

Total CV wholesales for Q4 FY26 stood at 132,000 units, up 25% year-on-year, while FY26 wholesales increased 14% to 428,000 units.

Tata Motors maintained a strong domestic CV market share of 35.7% in FY26, including:

HCV segment: 55.0%
ILMCV segment: 39.5%
SCV segment: 26.8%
Passenger carrier segment: 36.4%

During the year, Tata Motors launched 17 next-generation trucks and introduced the Ace Pro range, positioned as India’s most affordable four-wheel mini-truck.

The company also secured a major international order for 70,000 Yodha and Ultra T.7 vehicles for deployment in Indonesia, alongside winning pan-India bus orders exceeding 5,000 units from multiple state transport undertakings.

Iveco Acquisition Expected to Close by Q2 FY27

Tata Motors provided an update on its proposed acquisition of Iveco, stating that most regulatory approvals have already been received.

The company expects the transaction to be completed by Q2 FY27, subject to final pending approvals.

Management Commentary

Girish Wagh said FY26 marked a significant turning point for the commercial vehicle industry, supported by infrastructure spending and GST 2.0 reforms.

“FY26 was a landmark year as we delivered milestones of revenues and profits, reinforced industry leadership, and strengthened our market position,” Wagh said.

Meanwhile, GV Ramanan highlighted the company’s strong EBITDA performance and free cash flow generation.

“EBITDA margins in Q4 FY26 crossed teens at 13.9%, while full-year free cash flow translated to nearly 12% of revenue, well ahead of our 2027 target,” Ramanan said.