Tata Motors Q4 Profit Jumps 70% To Rs 2,406 Crore, Revenue Rises 22%, Announces Rs 4 Dividend

Tata Motors Q4 Results: Shares of Tata Motors will remain in focus on Thursday, May 14, after the automaker reported a strong jump in standalone profit for the March quarter of FY26, aided by higher volumes, improved realisations and better operational efficiencies.

The company reported a 69.56% year-on-year (YoY) rise in standalone net profit at Rs 2,406 crore for Q4FY26, compared with Rs 1,419 crore in the corresponding quarter last fiscal. On a sequential basis, profit surged more than fourfold from Rs 561 crore reported in Q3FY26.

Its revenue from operations during the quarter rose 22.3% YoY to Rs 24,452 crore, against Rs 19,999 crore in Q4FY25. Sequentially, revenue increased 19.8% from Rs 20,404 crore in the December quarter.

EBITDA during

the quarter jumped 35% YoY to Rs 3,400 crore, while EBITDA margin improved 130 basis points to 13.9%. EBIT margin also expanded 220 basis points to 12.1%, supported by higher volumes, better realisations and continued cost efficiencies, partly offset by higher input costs.

For the full financial year FY26, Tata Motors reported an 11% YoY rise in revenue to Rs 77,399 crore. However, annual profit declined 3.4% YoY to Rs 3,362 crore. EBITDA for the year increased 22% YoY to Rs 10,200 crore, while EBITDA margin improved 120 basis points to 13.2%.

G V Ramanan, CFO, Tata Motors, said, “FY26 marked a strong financial performance with robust EBITDA, profit and free cash flow. EBITDA margins in Q4 FY26 crossed ‘teens’ at 13.9% while full year FCF translated to nearly 12% of revenue, well ahead of our 2027 target.”

“Our robust cash position gives us the flexibility to pursue disciplined capital allocation while continuing to deliver meaningful returns to shareholders. While near-term headwinds, including commodity cost pressures, are expected to persist, we remain confident in our ability to navigate these challenges through operational efficiency, pricing discipline, and proactive supply chain management,” Ramanan added.

The company said strong operational performance and efficient working capital management helped full-year free cash flow rise to Rs 9,200 crore. Net cash for the domestic business stood at Rs 7,500 crore as of March 31, 2026.

Tata Motors added that its disciplined capital allocation strategy helped deliver an industry-leading auto ROCE of 72% in FY26, compared with 61% in FY25.

The board of the company also recommended a final dividend of Rs 4 per share for FY26, subject to shareholders’ approval.

Girish Wagh, MD & CEO, Tata Motors, said, “FY26 marked a clear inflection point for the commercial vehicles industry, with volumes surpassing the pre-FY19 peak, supported by GST 2.0 reforms and sustained infrastructure spending. For Tata Motors Commercial Vehicles, FY26 was a landmark year as we delivered milestones of revenues and profits and reinforced industry leadership and strengthened our market position.”

Shares of Tata Motors Commercial Vehicles on Wednesday fell by 0.72 per cent to Rs 384.25 apiece on the NSE.