Tata Motors reported its Q3 FY25 earnings for the commercial vehicle (CV) segment, revealing an 8.4% year-on-year (YoY) decline in revenue to ₹18.4K crore. However, the company managed to improve its EBITDA margin to 12.4%, an increase of 130 basis points, supported by cost savings and incentives under the Production Linked Incentive (PLI) scheme. EBIT margin stood at 9.6%, rising 100 basis points YoY.
Financial Performance
- Revenue: ₹18.4K crore (-8.4% YoY)
- EBITDA Margin: 12.4% (+130 bps)
- EBIT Margin: 9.6% (+100 bps)
- PBT (bei): ₹1.7K crore
For the nine months of FY25, Tata CV segment’s revenue stood at ₹53.6K crore, down 6.4% compared to the previous year. However, EBITDA improved to 11.6%, up 120 basis points YoY. Profit before tax (PBT) for the nine-month period stood at ₹4.6K crore.
The company reported a domestic market share of 37.7% in the Vahan database for YTD FY25, with the HGV+HMV category leading at 49.1%.
Product Innovations & Key Developments
At the Bharat Mobility Expo 2025, Tata Motors introduced several smart vehicles integrated with Advanced Driver Assistance Systems (ADAS) and cutting-edge intelligent solutions, including:
- Prima E.555: A battery-electric prime mover aimed at logistics decarbonization.
- Prima H.28: A hydrogen-powered ICE truck with a range of 550 km.
- Prima G.55S: India’s first LNG prime mover with an extended range of 2,400 km.
- Ace Flex-Fuel: A new fuel powertrain addition to the Tata Ace lineup.
- Intra EV Pickup: India’s most advanced electric pickup targeting diverse applications.
Market Outlook
The company expects demand to improve in Q4 FY25, particularly with government infrastructure spending and recovery in end-use segments. Growth is anticipated across heavy commercial vehicles (HCV), intermediate light medium commercial vehicles (ILMCV), and passenger carriers.
Girish Wagh, Executive Director, Tata Motors, commented,
“In Q3 FY25, HCV witnessed robust sequential recovery despite a 9% YoY decline in sales due to lower growth in end-use segments. ILMCV and passenger carriers showed 3% and 30% YoY growth, respectively, while small commercial vehicles (SCVs) faced financing challenges. With the launch of new smart vehicles and ADAS-integrated solutions, we remain committed to redefining the future of sustainable mobility.”
