Tata Motors CV shares slip 4%: CEO flags multiple headwinds due to West Asia crisis; key points

The stock price slipped as much as 4.35% to ₹367.50 apiece on the NSE against the previous close of ₹384.25.

While the company has not revised its capex of around ₹3,000 crore for FY27, there could be "some timing difference" going ahead, Wagh told reporters in an earnings conference.

Despite headwinds, Wagh said the domestic commercial vehicle industry is expected to grow in the single digit in FY27 as the underlying demand driver still continues to be robust.

"This war has certainly created the necessity to revisit the playbook because this external event has led to multiple headwinds," he said when asked if the company has been forced to have a relook at its expansion plans due to the US-Israel war against Iran.

Serious commodity inflattion

There has been a "serious commodity (price) inflation" due to the war, Wagh said, adding that while the underlying demand still remains pretty robust, "the sentiment is something which is a bit considerate".

Customers may be thinking twice before purchasing, but since the demand for commercial vehicles is there, they are going ahead with the purchases, he added.

"Because of this uncertainty, we have also looked at our expenditure plan, and we are going a bit cautiously at this moment," Wagh said, adding that "it would not be wrong to say that we are actively watching some of the important external and macro indicators to ensure that we are able to align our plans immediately, but the Playbook has certainly changed a bit".

Capex plan

When asked if Tata Motors has revised its capex for FY27, the MD said, "Whatever capex we had planned for the year, we stay with that. There may be some timing difference as we go ahead".

He said the company's capex for a year ranges between 2% and 4% of revenue. For FY27, it is around ₹3,000 crore.

Growth outlook

On the growth outlook for the CV industry, he said, "I think the underlying demand driver still continues to be pretty robust...we are still positive that we would see a single-digit growth for the entire year FY27".

The boost that the market got after the GST rate cuts in September last year continues, he noted.

Key monitorable

Wagh, however, highlighted that a possible hike in the price of diesel, which accounts for 20-50% of the total cost of ownership for different types of commercial vehicles, along with commodity prices and rainfall, remains a key monitorable, which could have an impact on demand.

When asked about the impact on exports due to the West Asia war, Wagh said markets in West Asia and North Africa have been affected, but the West Asia market is expected to recover fast once the war is over, as there is a requirement for infrastructure.

Also, SAARC markets of Bangladesh, Nepal, and Sri Lanka, which had done well last fiscal for the company, are also now facing headwinds. Sri Lanka has taken the maximum hit due to the non-availability of fuel, Wagh added.

Views on austerity measures

Asked about Prime Minister Narendra Modi's calls for austerity measures in the wake of the West Asia war, Wagh said Tata Motors is fully aligned with it.

"We have, in fact, taken some of the steps right from April to ensure that we are better prepared to address the headwind that we are facing," he said, adding that the company has already rolled out austerity measures in terms of travelling and pooling.

Wagh further said, "We are also keeping a close control over what we call controllable expenses".

Tata Motors CV earnings

Tata Motors Ltd on Wednesday reported a 33.8% rise in consolidated net profit at ₹1,793 crore in the fourth quarter ended March 31, 2026 (Q4 FY26), driven by strong volume growth.

The company had posted a consolidated net profit of ₹1,340 crore in the corresponding quarter of the preceding financial year, Tata Motors said in a regulatory filing.

Total revenue from operations in the fourth quarter stood at ₹26,098 crore as against ₹21,863 crore seen in the year-ago period. Vehicle wholesales in the quarter stood at 1.32 lakh units, up 25% from the year-ago period.

Total expenses in the quarter under review were higher at ₹24,134 crore, compared to ₹24,134 crore in the same period a year ago, the company said.

For FY26, consolidated net profit stood at ₹3,030 crore, compared to ₹3,195 crore in FY25. It was impacted by exceptional items pertaining to the new labour code and demerger-related costs, the company said. Total revenue from operations for FY26 stood at ₹83,855 crore, compared to ₹58,217 crore in the preceding financial year, the company said.

Tata Motors demerger

Tata Motors underwent a major restructuring exercise under which its commercial vehicle (CV) and passenger vehicle (PV) businesses were separated into two independently listed entities.

The demerger was aimed at allowing both businesses to pursue sharper strategic focus, improve operational agility, and unlock shareholder value by enabling investors to evaluate the CV and PV segments separately.

The demerger was completed in November 2025, with the final step — the listing of the commercial vehicles business on BSE and NSE.

FY27 will be the first fiscal year after the demerger, making it a crucial period for tracking the standalone performance and growth trajectory of the two entities.