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Tata Motors Ltd
NSE: TMCV Industrials Infra 🔎 Screen
NIFTY Next 50 NIFTY 100 NIFTY 200 NIFTY 500 Manufacturing
₹140,021 Cr
Market Cap
25.4
P/E
25.40
PEG
111.0%
ROCE
43.4%
ROE
0.25
D/E
11.0%
OPM
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Ratio Health
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About

Tata Motors Commercial Vehicle Limited is the flagship Company of the Tata group, having a long-standing presence in all kinds of small, medium and heavy commercial vehicle segment

✓ Strengths

No strengths data yet.

! Concerns 1
  • Stock is trading at 10.8 times its book value
Key Ratios Snapshot
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3-Statement Financial Model
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Strong beat: Revenue +22% YoY to ₹24,451 Cr, EBITDA margin expanded 130bps to 13.9% ahead of mid-term target, driven by double-digit volume growth and favorable mix. quarter Investor Presentation One-Pager Mar 2026
Revenue
₹24,451 Cr
+22% YoY (Q4 FY25: ₹19,998 Cr)
EBITDA Margin
13.9%
+130bps YoY (Q4 FY25: 12.6%)
PAT (Standalone)
₹2,409 Cr
+70% YoY (Q4 FY25: ₹1,416 Cr); FY26 PAT declined to ₹3,364 Cr (vs ₹4,345 Cr) on exceptional items
Free Cash Flow (Standalone)
₹4,016 Cr
Q4; Full-year FCF ₹9,186 Cr; Net cash at ₹7,500 Cr
What Went Right
  • Wholesales up 25% YoY to 131.8K units (Q4); full-year up 14% to 428.1K units.
  • EBIT margin expanded 220bps YoY to 12.1% (Q4); full-year EBIT margin 11.0% (+180bps).
  • Auto ROCE improved to 72.3% for FY26 (vs 61.3% in FY25), industry-leading.
  • Non-cyclical business grew 1.6x cyclical business, aiding margin resilience.
  • Net cash position at ₹7,500 Cr (standalone) / ₹13,700 Cr (consolidated) as of Mar 2026.
What to Watch
  • Full-year standalone PAT fell 23% to ₹3,364 Cr (FY26) from ₹4,345 Cr (FY25) due to exceptional items (demerger costs, MTM loss on Tata Capital, labour code provisions).
  • Overall CV domestic market share declined 140bps to 35.7% in FY26; SCV&PU share dropped 220bps to 26.8%.
  • Consolidated PAT for FY26 fell 25% to ₹3,000 Cr vs ₹4,000 Cr in FY25.
  • Iveco acquisition pending final regulatory approvals; expected closure by Q2 FY27 adds execution uncertainty.
  • Near-term headwinds flagged: broad-based commodity inflation (steel, aluminum, copper) and subdued MENA export sentiment.
Management Guidance
  • Mid-term EBITDA margin guidance of 'teens' delivered ahead of target (13.9% in Q4, 13.2% full-year).
  • FY27 investment spending expected in similar range to FY26 (~₹3,000 Cr, 2-4% of revenue).
  • Final dividend of ₹4 per share (200% face value) recommended, subject to shareholder approval (cash outflow ₹1,473 Cr).
Investor Lens
Thesis remains intact on margin expansion and robust cash generation, with standalone EBITDA margins above 13% and net cash of ₹7,500 Cr. However, market share erosion in SCV&PU (down 220bps) and a 23% full-year PAT drop due to exceptional items temper the headline beat. The Iveco acquisition closure and commodity cost trends are key near-term monitorables. Q1 FY27 focus will be on sustaining volume momentum amid inflationary pressure and recovering share in small commercial vehicles.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Net profit surges 69.6% YoY to ₹2,406 Cr; OPM expands to 14%.
Revenue
Revenue rose 22.3% YoY to ₹24,452 Cr, with strong sequential growth of 19.8% QoQ.
Profitability
Net profit jumped 69.6% YoY to ₹2,406 Cr, EPS at ₹6.53. QoQ PAT surged 328.9%.
Margins
OPM improved to 14% from 12% YoY and 13% QoQ, indicating better operational efficiency.
Cash Flow
No cash flow data provided.
Balance Sheet
Borrowings stood at ₹3,375 Cr, reserves at ₹12,663 Cr, D/E low at 0.25, indicating a healthy leverage profile.
Key Risks
High PE of 24.1 suggests premium valuation. Dependence on sustained demand to maintain volume growth. Interest cost of ₹126 Cr and depreciation of ₹449 Cr are significant.
Outlook
With strong revenue and profit growth trends and low leverage, the company appears well-positioned. However, valuation and macro risks need monitoring.
Generated by AI · Mar 2026 results · Not investment advice
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