Tata Motors Q3 Results: Net profit falls 48% to Rs 705 crore on one-time cost, revenue up 16%

Tata Motors CV Q3 Results

Tata Motors, which now represent the company’s commercial vehicle business, on January 29 reported a consolidated net profit of Rs 705 crore for the third quarter of the financial year 2026. This marks a 48 percent year-on-year (YoY) fall from the Rs 1,355 crore net profit reported in the same period last year.

The CV-maker’s revenue from operations meanwhile rose more than 16 percent YoY to Rs 21,847 crore during the quarter under review. Operating margin improved to 12.60 percent in Q3 FY26 from 12.07 percent in Q3 FY25, while profit margin reduced to 3.23 percent.

Tata Motors reported a 30 bps increase in consolidated EBITDA to 12.5 percent during the October-December quarter of the ongoing FY26.

Commercial vehicles are used for a wide range of activities, from construction and freight to public transport and mining. Lower prices helped fleet operators go for long-delayed replacement of older vehicles, analysts quoted by Reuters said.

Exceptional costs:

The earnings however were impacted by some exceptional losses. The firm incurred a one-time cost of Rs 962 crore to account for the stamp  duty charges payable to various local authorities to effect transfer of registration of land acquired as part of the its demerger scheme.

Additionally, the company also incurred a one-time cost of Rs 603 crore due to the implementation of the new labour codes, which took effect last year, along with Rs 82 crore for acquisition.

Overall, the company incurred exceptional costs worth Rs 1,643 crore during the quarter.

Sales:

The tax cuts helped boost domestic sales of commercial vehicles by 22 percent during the December quarter, with Tata's rising 18 percent, Reuters reported.

The company's overall sales grew 21% in the October-December period, boosting revenue to Rs 20,315 crore from Rs 16,897 crore the year before.

Tata Motors said its CV segment wholesales stood at 1,16,800 units, marking a 20 percent rise. Domestic and export volumes were up by 18 percent YoY and 70 percent YoY, respectively.

"Overall domestic CV VAHAN market share grew 100 bps sequentially to 35.5% for Q3FY26," the firm said.

What lies ahead?

Going forward, Tata Motors expects demand to further strengthen in Q4 FY26 across most commercial vehicle segments. Key drivers in 2026 will include the government’s sustained infrastructure push and expansion in end-use sectors, both of which are expected to fuel positive momentum for the industry, the company said.

"With an optimized portfolio ensuring superior product availability, a decisive pricing strategy, and deeper customer engagement through intensified market activations, Tata Motors is wellpoised to unlock demand across segments, paving the way for continued success," it added.

Here's what the management said:

Speaking about the company's performance during the quarter, Tata Motors MD & CEO Girish Wagh said, "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. Our recent launch of 17 next-generation trucks under the ‘Better Always’ philosophy sets new benchmarks in safety, total cost of ownership, and smarter, emission-free mobility, reinforcing our commitment to innovation and industry leadership. With infrastructure spending accelerating, we are well positioned to sustain momentum and drive continued growth."

The company's CFO GV Ramanan meanwhile said, "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. This strong operating performance coupled with disciplined working capital management, led to robust free cash flow generation. With this trajectory, we remain confident of delivering on our stated financial guidance."

Follow all LIVE updates on Q3 results here.