News

Stay up to date with the latest breaking news, analysis and commentary on Mirae Asset Sharekhan. Find live updates, exchanges, stock news, earning news and more.

Back

Tata Motors Ltd – Revenue, EBITDA inline with estimates, PAT a surprise beat

13 Aug 2026, 12:19PM

Revenue for the quarter was reported at Rs.19,329 crore which is 23.3% y-o-y growth led by strong volume growth of 26.7% y-o-y along with pricing discipline and planned price hikes.
EBITDA grew 9.5% y-o-y to Rs. 2,176 crore on back of operational efficiency, better inventory management and effective cost control. EBITDA margin declined 141bps y-o-y and 227bps q-o-q to 11.3% which is one of the most controlled we have observed across all major OEMs.
PAT grew 8.3% y-o-y to Rs. 1528 crore which is a positive beat over our earnings while PAT margins mirrored the EBITDA margins with a relatively controlled decline of just 109bps y-o-y and 193bps q-o-q to 7.9%.
Strong operational performance and continued efficient working capital management resulted in positive Free Cash Flow of Rs.1.1K Cr (+Rs.2.9K Cr) in the first quarter. Net cash for the domestic business stood at Rs. 7.1K crore as of June 30, 2026, post dividend payout of Rs.1,473 Cr in the quarter. Auto ROCE continues to be robust for the quarter and stood at 68% (72% in FY26).
On the whole a strong set of numbers in a challenging macro environment. We believe that with demand coming in from fleet replacement and increased industrial activity along with new products across all powertrains have aided the company and shall continue to do so. IVECO amalgamation would be a near term catalyst while acquisition of FleetEdge and Freight Tiger will provide better control over digital ecosystem of logistics value chain covering both trucks and trips.

Results Highlights:

Particulars	Q1FY27	Q1FY26	y-o-y	Q4FY26	q-o-q
Volumes	108488	85606	26.7	132465	-18.1
ASP	1781672	1831881	-2.7	1845922	-3.5
Revenue	19329	15682	23.3	24452	-21.0
COGS	12219	9933	23.0	14398	-15.1
Purchase of stock in trade	2108	1763	19.6	2488	-15.3
Changes in inventory	-599	-1175	-49.0	164	-465.2
Gross profit	5601	5161	8.5	7402	-24.3
Employee benefit expense	1275	1164	9.5	1180	8.1
Other expenses	2232	2212	0.9	2932	-23.9
Foreign exchange loss/(gain)	7	-97	-107.2	29	-75.9
Amount transferred to capital and other accounts	-217	-278	-21.9	-293	-25.9
Product development expense	128	173	-26.0	247	-48.2
EBITDA	2176	1987	9.5	3307	-34.2
Depreciation and amortisation expense	447	423	5.7	449	-0.4
EBIT	1729	1564	10.5	2858	-39.5
Finance costs	68	174	-60.9	126	-46.0
Other income	396	245	61.6	240	65.0
EBT	2057	1635	25.8	2972	-30.8
Exceptional items	100	10	900.0	-220	na
Profit before tax from continuing operations	1957	1625	20.4	3192	-38.7
Total tax expense	429	214	100.5	786	-45.4
PAT	1528	1411	8.3	2406	-36.5
EPS	4.15	3.83	8.4	6.53	-36.4

Margin Profile:

Particulars	Q4FY26	Q4FY25	y-o-y	Q3FY26	q-o-q
Gross Profit	29.0	32.9	-393	30.3	-129
EBITDA	11.3	12.7	-141	13.5	-227
EBIT	10.6	10.4	22	12.2	-151
Tax rate	21.9	13.2	875	24.6	-270
PAT	7.9	9.0	-109	9.8	-193