One-time costs drag TaMo CV net profit; wholesales rise 20%

Managing director and chief executive officer Girish Wagh said steel prices, including those of hot-rolled, cold-rolled and long products, had risen, but their impact had been low compared to non-ferrous metals such as copper and precious metals.

Tata Motors’ commercial-vehicle (CV) business reported a 48 per cent year-on-year decline in net profit to Rs 705 crore in Q3FY26, even as profit before tax (PBT) rose 65 per cent to Rs 2,568 crore.

PBT was impacted by one-time costs related to the labour Code (Rs 603 crore), demerger expenses (Rs 962 crore), and acquisition costs (Rs 82 crore).

Revenue for the quarter increased 16.1 per cent to Rs 21,847 crore.

Tata Motors’ stock ended marginally higher at Rs 470.2 on the BSE.

The margin of earnings before interest, tax, depreciation, and amortisation (Ebitda) remained in double digits for the 10th consecutive quarter at 12.5 per cent, up 30 basis points, supported by higher volumes and improved realisations, though partly offset by rising input costs and the absence of the maiden benefit of production-linked initiative recorded in the prior period.

Capital expenditure guidance remains at 2-4 per cent of revenue.

During periods of major regulatory transition, capex may move towards the upper end of this range, before normalising thereafter.

Managing director and chief executive officer Girish Wagh said steel prices, including those of hot-rolled, cold-rolled and long products, had risen, but their impact had been low compared to non-ferrous metals such as copper and precious metals.

Operationally, the CV business rang up a strong performance, with wholesales rising 20 per cent Y-o-Y to 116,800 units, driven by 18 per cent growth in domestic volumes and a 70 per cent jump in exports.

The domestic CV market share on the VAHAN platform improved 100 basis points sequentially to 35.5 per cent, and management expects the momentum to continue into Q4, supported by demand trends seen through January.

“If consumption growth and infrastructure execution continue on the same trajectory, we expect similar demand momentum to carry into the next financial year as well,” Wagh said.

During the quarter, the firm rolled out 17 next-generation trucks, launched the Azura range for the intermediate and light commercial vehicle segment, and showcased Tata trucks.ev, its widest electric truck portfolio.