Tata Motors CV Q1 profit surges 83% to ₹2,560 crore; Iveco clearance expected by August-end
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Tata Motors Ltd, formerly TML Commercial Vehicles Ltd, reported an 83% year-on-year increase in consolidated profit after tax to ₹2,560 crore for the quarter ended June 30, 2026, helped by a mark-to-market gain on investments in Tata Capital. Consolidated PAT stood at ₹1,397 crore in Q1 FY26. Consolidated revenue rose 19% to ₹20,667 crore from ₹17,324 crore a year earlier.
The commercial vehicle maker's operating performance also remained strong despite severe commodity headwinds. Total wholesales rose 26% year-on-year to 1.087 lakh units in Q1 FY27, with domestic and export volumes increasing 26% and 35%, respectively.
Tata Motors' overall domestic CV VAHAN market share increased 100 basis points sequentially to 36.8%. Category-wise, its market share stood at 56.3% for HCVs, 36.9% for ILMCVs, 27.7% for SCV pickups and 41.3% for CV passenger vehicles.
Revenue, cash flow growth despite margin pressure
On a standalone basis, revenue rose 23% to ₹19,329 crore, while EBITDA increased 17% to ₹2,300 crore. However, EBITDA margin contracted 60 basis points to 11.7%, reflecting the impact of commodity costs. PBT before exceptional items and tax rose 26% to ₹2,057 crore. Free cash flow improved sharply to ₹1,114 crore, compared with an outflow of ₹1,796 crore in Q1 FY26.
Consolidated EBITDA increased 10% to ₹2,300 crore, although the margin declined 90 basis points to 10.9%. Consolidated PBT before exceptional items and tax climbed 81% to ₹3,049 crore. The company ended the quarter with net cash of ₹13,500 crore.
Girish Wagh, MD & CEO, Tata Motors, said the commercial vehicle industry remained resilient in Q1 FY27, supported by India's economic fundamentals, healthy fleet utilisation and sustained demand across key sectors. He said the company's 26% volume growth was driven by its product portfolio, market interventions and disciplined execution.
Wagh also pointed to stronger momentum in electric commercial vehicles. The company's eSCV segment recorded its strongest-ever performance, with electric vehicles accounting for around 10% of the segment in May and June, while Tata Motors commanded nearly 47% market share in Q1.
EV orders cross 3,400 as portfolio expands
Tata Motors strengthened its electric commercial vehicle portfolio during the quarter, securing more than 3,400 EV orders across segments. It also launched the Ace Gold+ XL, Intra V40 and Intra EV, expanding its small commercial vehicle offering across ICE, CNG and electric powertrains.
GV Ramanan, CFO, Tata Motors, said the company delivered healthy revenue and profitability growth and an EBITDA margin of 11.7% despite commodity headwinds and geopolitical tensions. He highlighted the ₹1,100-crore free cash flow and said the company would use operational efficiencies, pricing discipline and proactive supply-chain management to navigate continuing commodity pressure.
Iveco deal moves closer to final clearance
On the proposed Iveco transaction, Tata Motors said regulatory approvals are in the final stage, with only one approval pending. The company expects to receive the final clearance by end-August 2026. The tender offer is then expected to be launched in early September, with closure targeted for early November.
The company also increased its holding in Freight Tiger to around 63.6% in May after acquiring an additional 18.1% stake for ₹95.66 crore. The move is aimed at integrating Freight Tiger with FleetEdge to create an end-to-end digital ecosystem spanning the logistics value chain.