The company earned about ₹2,100 crore after tax in its standalone business and says it is confident of closing the Iveco deal. Only 35% of shares have been tendered so far.
Tata Motors had one of its strongest quarters in the three months to September. The standalone business, which makes commercial vehicles, reported revenue of about ₹23,900 crore, up 42% on a year ago. Operating profit (EBITDA) rose 31% to about ₹2,800 crore, and profit after tax came to about ₹2,100 crore. Alongside the results, the company gave an update on its biggest move: the planned takeover of Iveco Group. Its offer is €14.4 a share, and settlement is scheduled for 30 October 2026, if the tender is successful.
Sales Surge
Behind the numbers are trucks and buses actually leaving the factory. Wholesales rose 42% to 1,35,088 units. Domestic sales grew 30%, and exports shot up 177%. The company said its share of the domestic commercial vehicle market in the first half of the year was 36.2%, up 110 basis points on FY26. Its share in heavy commercial vehicles was 55.7%. It grew in heavy trucks, small commercial vehicles and buses and vans.
The company says demand was backed by a healthy flow of goods. It cited stronger goods movement, consumption, stocking for the festive season and better industrial activity. Freight recovered from a monsoon slowdown in July, helped by infrastructure work, mining output and festive inventory build-up. Freight rates rose, and the company says transporters have started to earn better.
Margin Story
Profit grew more slowly than revenue, and the reason is cost. The EBITDA margin was 11.7%, down 90 basis points from a year ago, though it held steady from the previous quarter. Commodity costs kept rising. According to Mr. Girish Wagh, MD & CEO, Tata Motors Ltd, “strong operating leverage, disciplined pricing actions, and rigorous cost-efficiency measures” helped it absorb part of the blow.
Cash was strong. Free cash flow was ₹4,606 crore in the quarter and ₹5,721 crore for the first half. The domestic business held net cash of ₹11,348 crore on 30 September. Return on capital employed in the auto business was 65%.
Wider Picture
Taking the whole group together, consolidated revenue rose 36% to ₹25,338 crore. EBITDA was ₹2,770 crore, up 30%, with a margin of 10.9%. Profit after tax was ₹1,253 crore, up 244%. The company points out that this jump looks large partly because last year’s base was low, after a bigger loss on its Tata Capital investment. Net cash on a consolidated basis was ₹15,889 crore.
Electric Gear
Electric vehicles had a rocky start to the quarter, then recovered. Volumes grew more than 140% over last year, and he said, adoption and customer interest are improving.
Iveco Wait
The Iveco deal is the story to watch. Tata Motors calls its €14.4 offer “best and final” and says talks with key stakeholders have been “positive and constructive”. Iveco’s shareholders approved all the resolutions proposed by their board at a recent extraordinary general meeting, which the company calls an important milestone.
The acceptance level is only 35% so far. The company explains that this is typical. “A significant proportion of shares tend to be tendered towards the very end of the acceptance period, particularly in the final 24 to 48 hours,” it said. If the tender succeeds, Iveco will be consolidated from the next quarter, and the priority will be a smooth transition.
Road Ahead
For the coming months, the plan is to build on the demand while making sure supply keeps up. Commodity costs will remain a headwind. It will meet them with cost management, efficiency and “calibrated” price increases, Mr. Wagh added.
