Tata Motors Q4 Results: Net profit grows 70%, revenue jumps to ₹24,452 crore YoY; check FY26 dividend details

Tata Motors posted a 70% growth in its standalone net profit for the fourth quarter of the financial year 2025-26 (Q4 FY26) to ₹2,406 crore on Wednesday, May 13, as compared to ₹1,419 crore recorded in the year-ago period.

The company's revenue from operations jumped 22% on a year-on-year (YoY) basis to ₹24,452 crore in the January to March quarter as against ₹19,999 crore seen in Q4 FY25.

The auto major’s operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), surged 36% to ₹3,307 crore as against ₹2,438 crore in the corresponding period last year.

Its EBITDA margin expanded to 13.52% annually in contrast to 12.19% in the year-ago period.

“Tata Motors Standalone delivered a record Q4 FY26 performance and a strong full year, underpinned by disciplined execution and focus on profitable growth,” the company said in a statement.

FY26 financials

For financial year 2026 (FY26), Tata Motors’ revenue stood at ₹77,400 crore, up 11% YoY, while EBITDA was ₹10,200 crore, rising 22%, with an EBITDA margin of 13.2%, up 120 basis points. It added that the EBIT margin for the year stood at 11.0%, an increase of 180 bps.

The commercial vehicle manufacturing firm further stated that profit after tax for FY26 was ₹3,400 crore, down 23%, including an impact of ₹3,700 crore due to exceptional items such as mark-to-market losses on listed investments in Tata Capital, the new labour code, and demerger-related costs.

Tata Motors’ strong operational performance and efficient working capital management during the year led to consistent growth in full-year free cash flow, which stood at ₹9,200 crore, up by ₹2,200 crore. The auto major said that net cash for the domestic business was ₹7,500 crore as of March 31, 2026, while its disciplined capital allocation approach resulted in an auto ROCE of 72% in FY26 compared with 61% in FY25.

Commenting on the earnings, Tata Motors’ Managing Director and CEO Girish Wagh said, “FY26 marked a clear inflection point for the commercial vehicles industry, with volumes surpassing the pre-FY19 peak, supported by GST 2.0 reforms and sustained infrastructure spending. For Tata Motors Commercial Vehicles, FY26 was a landmark year as we delivered milestones of revenues and profits and reinforced industry leadership and strengthened our market position. Looking ahead, the underlying demand fundamentals remain resilient despite geopolitical uncertainties signalling some moderation in the near term.

Dividend details

Along with the earnings, Tata Motors' board of directors has also recommended a final dividend of ₹4 per equity share of face value ₹2 each (200%) for the financial year ended March 31, 2026. The dividend, if approved at the AGM, will be paid to eligible shareholders on or before July 2, 2026.

The company further said that its board has fixed June 29, 2026, as the date for the second annual general meeting (AGM).

Iveco deal update

Alongside the earnings, Tata Motors said that regulatory approvals for the proposed acquisition of Iveco are currently underway, with most approvals already received.

“Last pending approvals are being actively pursued for the earliest closure. Given this, Tata Motors expects to complete the transaction by Q2 FY27,” the company added.

Tata Motors' business updates for FY26

Tata Motors reported CV segment wholesales of 132,000 units in Q4 FY26, up 25%, while total wholesales for FY26 stood at 428,000 units, up 14% annually. Domestic and export volumes for the full year increased by 12% and 54% YoY, respectively. The overall domestic CV VAHAN market share stood at 35.7%, with HCV at 55.0%, ILMCV at 39.5%, SCV at 26.8%, and passenger at 36.4%.

During the year, the automaker launched 17 next-generation trucks and secured its largest order for 70,000 Yodha and Ultra T.7 vehicles for deployment in Indonesia. It also won pan-India orders of over 5,000 buses from multiple state transport undertakings.

“Our robust cash position gives us the flexibility to pursue disciplined capital allocation while continuing to deliver meaningful returns to shareholders. While near-term headwinds, including commodity cost pressures, are expected to persist, we remain confident in our ability to navigate these challenges through operational efficiency, pricing discipline, and proactive supply chain management,” said GV Ramanan, CFO, Tata Motors.

On Wednesday, shares of Tata Motors closed at ₹384.25 apiece on the National Stock Exchange, falling 0.72%. The earnings were announced after the market hours.