Tata Motors Managing Director and CEO Girish Wagh
Tata Motors Ltd reported a 83 per cent year-on-year rise in consolidated profit after tax at ₹2,600 crore in the June quarter, aided by a mark-to-market gain on its Tata Capital investment, while consolidated revenue rose 19 per cent to ₹20,667 crore.
Consolidated EBITDA rose 10 per cent to about ₹2,300 crore, but its margin contracted 90 basis points to 10.9 per cent. EBIT margin fell 80 basis points to 8.5 per cent. Profit before exceptional items jumped 81 per cent to ₹3,049 crore.
The sharp bottom line growth was led by the mark-to-market gain on Tata Capital investments. The company ended June with consolidated net cash of ₹13,500 crore. The management also indicated that it is expecting the final regulatory clearance for its Iveco acquisition by August-end, allowing the tender offer to start in early September and potentially close by early November.
Commodity pressure
The commercial vehicle maker has an order pipeline of more than 3,400 electric vehicles, but warned that commodity pressures that squeezed margins in Q1 are likely to persist into the September quarter. Tata Motors faced a commodity impact of around 3.8 per cent in Q1, said Managing Director and CEO Girish Wagh during the company’s post-results media conference call. The company raised prices by 2 per cent from April 1 and followed it with another increase of around 2.5 per cent from July 1.
“Commodity inflation does remain a major headwind,” said Wagh, adding that the company was seeing further increase in Q2. Tata Motors would first seek to offset inflation through cost reductions before considering further price increases.
Wagh said margin improvement would depend on three variables — how commodity pressures taper, how the latest price increase settles in the market and the trajectory of volume growth.
EV order pipeline
The company has more than 3,400 units of electric CV orders across trade, logistics and passenger mobility. This includes an electric bus order book of around 850-900 units from government and private customers, with orders from Chennai, Ahmedabad, Odisha and Hyderabad. Deliveries have started and are expected to run through Q2 and Q3, with some extending into Q4.
Electric small commercial vehicle penetration has reached close to 10 per cent, with Wagh saying higher diesel and CNG prices have brought EV total-cost-of-ownership parity earlier in the vehicle’s life, making electric models more attractive. EV demand is also spreading beyond metros into Tier-II and Tier-III cities.
Tata Motors’ Q1 CV wholesales rose 26 per cent to 108,700 units, with domestic volumes up 26 per cent and exports 35 per cent higher. Domestic Vahan market share increased 100 basis points sequentially to 36.8 per cent.
Wagh said heavy commercial vehicle demand remained broad-based, with large fleet operators replacing ageing trucks to benefit from better fuel economy, lower maintenance costs and improved total cost of ownership.
Strong demand has, however, created supply bottlenecks in sheet metal, castings and forgings, while the EV business has faced shortages of imported battery cells. Tata Motors expects the constraints to progressively ease by the end of Q2.
Published on August 12, 2026
