Mumbai: Tata Motors reported a 17.5 percent sequential rise in consolidated revenue to Rs 21,847 crore in Q3 FY26, while net profit rebounded to Rs 705 crore from a Rs 867 crore loss in Q2. On a year-on-year basis, revenue grew 16 percent, although profit declined 48 percent from Rs 1,355 crore in Q3 FY25.
The company’s quarterly trajectory-Rs 1,355 crore profit in Q3 FY25, a dip to Rs (867) crore in Q2 FY26, and a sharp recovery in Q3-reflects operational resilience despite exceptional charges of Rs 1,643 crore.
Strong Quarterly Turnaround In Profitability
Tata Motors Limited delivered a solid consolidated performance in Q3 FY26, with revenue rising to Rs 21,847 crore from Rs 18,585 crore in Q2 and Rs 18,819 crore a year earlier. The net profit came in at Rs 705 crore, rebounding from a loss of Rs 867 crore in the previous quarter, though lower than Rs 1,355 crore in Q3 FY25.
The turnaround was supported by sustained revenue growth, margin improvements, and steady operating performance across commercial vehicles and subsidiaries.
Sequential Growth Builds Despite One-Off Charges
Operating margins continued to hold firm, with EBITDA margin at 12.5 percent and EBIT margin at 10.4 percent. While PBT (before exceptionals) improved to Rs 2,600 crore, exceptional items-primarily due to the new labor code (Rs 603 crore), a demerger charge (Rs 962 crore), and acquisition-related costs (Rs 82 crore)-weighed on the bottom line.
Finance costs declined QoQ to Rs 198 crore from Rs 256 crore, and free cash flow surged to Rs 4,400 crore from Rs 2,000 crore in Q2, supported by tight working capital control.
Nine-Month Performance Reflects Volume-Led Growth
For the nine months ended December 2025, Tata Motors reported consolidated revenue of Rs 57,757 crore, up 59 percent from Rs 36,354 crore last year, driven by strong volume traction and improved realizations. However, cumulative net profit dropped 33 percent YoY to Rs 1,236 crore due to exceptional items.
The company ended the quarter net cash positive at Rs 6,100 crore, signaling continued financial stability.
Disclaimer: This report is based on unaudited financial results disclosed by the company. All financial figures are verified against the official filing. Readers should not interpret this as investment advice.
