Tata Motors shares tumble 4% as Q3 profit plunges 48%
What's the story
Tata Motors' shares fell by 4.2% on the BSE today, hitting a low of ₹450. The decline comes after the company reported a staggering 48% year-on-year (YoY) drop in its consolidated net profit for the December quarter. The company's net profit stood at ₹705 crore, compared to ₹1,355 crore in the same period last year.
Revenue rise
Tata Motors's revenue sees significant growth
Despite the dip in profit, Tata Motors witnessed a 16% YoY increase in its revenue from operations. The company's revenue for Q3FY26 stood at ₹21,847 crore, up from ₹18,819 crore a year ago. This is an 18% sequential increase over the ₹18,585 crore reported in July-September quarter of the previous fiscal year.
Financial adjustments
Tata Motors' exceptional items impact financials
In the latest quarter, Tata Motors reported exceptional items such as a ₹603 crore impact related to the new labor codes, ₹962 crore from demerger-related adjustments, and acquisition costs of ₹82 crore. The total impact of these and other items was ₹1,500 crore in standalone financials and ₹1,600 crore at the consolidated level.
Margin improvement
Tata Motors' margins and PBT for Q3
Tata Motors' EBITDA margin improved to 12.5% in the latest quarter, up 30 basis points YoY. The EBIT margin also expanded by 100 basis points YoY to 10.4%. The profit before tax (PBT) for the quarter stood at ₹2,600 crore. As of December 31, 2025, Tata Motors remained net cash positive at ₹6,100 crore including TMF Holdings's gross debt adjusted for market value of its investments in Tata Capital Ltd.
Segment performance
Tata Motors's commercial vehicle segment shows strong growth
In the commercial vehicle (CV) segment, Tata Motors' wholesales stood at 1,16,800 units, a whopping 20% increase. The domestic and export volumes also grew by 18% YoY and an impressive 70% YoY respectively. The company's overall domestic CV VAHAN market share improved sequentially by 100 basis points to a healthy 35.5% in Q3FY26.
Leadership statement
Tata Motors's CEO comments on performance
Commenting on the company's performance, MD & CEO Girish Wagh said their disciplined execution of an agile strategy has resulted in another strong quarter. He credited demand tailwinds from GST 2.0 and the festive season for this success. Wagh also highlighted the launch of 17 next-generation trucks under the 'Better Always' philosophy as a step toward setting new benchmarks in safety, total cost of ownership, and emission-free mobility.