Tata Motors Ltd, India’s largest commercial-vehicle maker, posted solid revenue and profit growth in the June quarter (Q1FY26) on the back of strong domestic demand, overcoming high fuel prices triggered by the ongoing conflict in West Asia.
The Mumbai-based automaker’s consolidated net profit surged 83% year-on-year to ₹2,556 crore, driven by investment gains in Tata Capital. Excluding these gains, standalone net profit rose 8% to ₹1,528 crore, though the operating margin narrowed by 90 basis points to 10.9% due to rising commodity costs.
Revenue for the period jumped 19% to ₹20,667 crore owing to higher sales, which allowed the company to post growth in net profit even as inflation dragged margins down. The company also hiked prices and has plans for more as it looks to pass on the impact of inflation to its consumers.
“I think demand momentum does remain strong as we have seen in the month of July. Especially in heavy trucks, heavy commercial vehicles, we see that large fleet owners are actively replacing the aging vehicles to capture better fuel economy, lower maintenance and superior total cost of ownership,” Girish Wagh, managing director and chief executive at Tata Motors, said on Wednesday.
Tata Motors is the second CV maker to release its June-quarter results, after SML Mahindra Ltd did so last month. The Group’s CV business clocked 13% revenue growth to ₹958 crore while profit declined 4% to ₹63 crore from the year ago period. Mahindra’s light commercial vehicle business is housed in Mahindra Last Mile Mobility.
The maker also recorded market-share gains owing to its new product launches across segments such as large and small trucks. According to its investors presentation, the company gained 100 basis points in market share compared to the March quarter.
Despite the market share gains, Wagh said Tata Motors remains focused on disciplined execution and won’t chase such gains at the cost of profitability. “I think the market-share gain is essentially because of delivering better customer value propositions, which would be in terms of the products that we are delivering or at times the service offerings that we are giving with the products. We will remain focused on the strategy and will not use cash from one quarter for any other purpose,” Wagh said.
While demand has remained strong, the company reported that it had to battle supply-side constraints to ensure growth. The company’s shares gained 1.6% on Wednesday, as against a 0.3% decline in Nifty Auto. The results were declared after market hours.
Management noted that the company is still working to secure approvals for its $4.4-billion acquisition of Italian commercial vehicle maker . The deal has now been delayed twice, pushing its expected closure from June to November, as regulatory clearances remain pending.
According to the latest update, the company has received final approval from Spanish authorities and is only awaiting approval from French authorities, following which it will launch the tender offer to officially acquire Iveco.
“For the proposed acquisition of Iveco, regulatory approvals are in the final stage with only one pending approval to be received by the company. All the queries of the competent authority have been addressed and the final clearance is expected to be received by the end of August 2026,” Wagh said during the call.
