Tata Motors’ commercial vehicle division delivered a strong operational performance in the fourth quarter of FY26, aided by improved volumes, better realisations and disciplined cost management, as the company continued to focus on profitable growth across segments.
The standalone commercial vehicle business, including joint operations with Tata Cummins, reported revenue of ₹24,452 crore in Q4FY26, registering a 22% increase compared to ₹19,999 crore in the year-ago quarter. EBITDA rose 35% year-on-year to ₹3,402 crore, while EBITDA margin expanded to 13.9% from 12.6% last year.
EBIT for the quarter came in at ₹2,972 crore against ₹1,883 crore in Q4FY25, with EBIT margin improving to 12.1% from 9.9%. Tata Motors said the strong quarterly showing was supported by higher volumes, operational efficiencies and improved pricing, though commodity cost pressures remained elevated during the period.
Profit after tax for the quarter stood at ₹2,400 crore, sharply higher than ₹700 crore reported in the same quarter last year.
For the full financial year FY26, standalone commercial vehicle revenue increased 11% to ₹77,399 crore compared to ₹69,419 crore in FY25. EBITDA for the year rose 22% to ₹10,195 crore, while EBITDA margin improved by 120 basis points to 13.2%.
Profit before tax for FY26 stood at ₹8,682 crore against ₹5,961 crore in the previous financial year. The company noted that disciplined capital allocation and strong operational execution helped drive industry-leading returns during the year.
On a consolidated basis, the commercial vehicle business reported Q4 revenue of ₹26,100 crore, up 19% year-on-year, while consolidated EBITDA margin improved to 13.1%. Consolidated net profit for the quarter rose 35% to ₹1,800 crore.
The board has recommended a final dividend of ₹4 per share for FY26, subject to shareholder approval.
Tata Motors also highlighted several milestones achieved during the year. Total commercial vehicle wholesales rose 14% year-on-year to 428,000 units in FY26, while exports surged 54%. The company launched 17 next-generation trucks, secured a major order for over 70,000 buses in Indonesia and won multiple domestic electric and conventional bus orders from state transport undertakings.
The company further stated that regulatory approvals for the proposed Iveco acquisition are progressing well and the transaction is expected to be completed by Q2FY27.
Management said demand fundamentals in the commercial vehicle industry remain resilient despite near-term global uncertainties, supported by infrastructure spending, replacement demand and continued logistics activity.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.