Tata Motors Limited has reported a strong performance in its Commercial Vehicles (CV) segment for the quarter ended December 31, 2025, driven by higher volumes, improved realizations and disciplined cost management. The CV business recorded revenue of ₹21,533 crore in Q3 FY26, up 17% year-on-year, while EBITDA rose 19% to ₹2,700 crore. EBITDA margin improved to 12.7%, marking the 10th consecutive quarter of double-digit margins, while EBIT margin crossed the double-digit mark to 10.6%. Profit before tax (before exceptional items) increased by ₹609 crore to ₹2,290 crore. Free cash flow surged to ₹4,752 crore during the quarter.
Strong operating performance and efficient working capital management lifted return on capital employed to 53%, compared with 38% a year ago. Net cash for the domestic CV business stood at ₹3,900 crore as of December 31, 2025. On a consolidated basis, revenues grew 16% to ₹21,800 crore, with PBT (before exceptional items) at ₹2,600 crore. The company remained net cash positive at ₹6,100 crore.
CV wholesales rose 20% year-on-year to 116,800 units, with domestic and export volumes growing 18% and 70% respectively. Domestic CV market share improved sequentially by 100 basis points to 35.5%. The board also approved a composite scheme to merge TMF Holdings and TMF Business Services with Tata Motors, aimed at simplifying the group structure. Looking ahead, the company expects demand to strengthen further in Q4 FY26, supported by infrastructure spending and expansion in key end-use sectors.