Tata Motors Ltd
Tata Motors Ltd
AutomobilesKey Fundamentals
LargecapCommercial VehiclesAutomobilesInsights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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41 extracted metrics + investor summaries across FY23–FY26.
Tapetide Score
Data-driven rating, 0–100. How it works →
Technical Indicators
Key Insights
Strengths
1- Company has reduced debt.
Weaknesses
1- Stock is trading at 13.2 times its book value
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 5d agoTata Motors (TMCV), India's largest commercial vehicle manufacturer post-demerger, trades at a market cap of ~₹1.68 lakh crore with a PE of 55.9x and P/B of 13.3x. The company delivered FY26 revenue of ₹77,400 crore (+11% YoY) with EBITDA margins expanding 120 bps to 13.2%, ended the year with net cash of ₹7,500 crore standalone, and generated free cash flow of ₹9,200 crore.
- FY26 revenue grew 11% YoY to ₹77,400 crore with EBITDA expanding 22% to ₹10,200 crore, demonstrating strong operating leverage
- EBITDA margin reached 13.2% in FY26, up 120 bps YoY, with Q4 FY26 margin at 13.9% — ahead of management's mid-term guidance
- Company is net cash positive at ₹7,500 crore standalone and ₹13,700 crore consolidated, having reduced debt meaningfully
- Free cash flow of ₹9,200 crore in FY26, representing ~12% of revenue, indicating high cash conversion efficiency
- ROCE reached 72% for FY26 full year (53% in Q3 FY26 alone vs 38% in Q3 FY25), reflecting superior capital efficiency
- Record volumes of 428,000 units sold in FY26, with TTM sales growth of 44% indicating robust demand momentum
- India CV industry volumes projected to hit record 12.4 lakh units in FY27 per CRISIL, supported by infrastructure spending, replacement demand, and e-commerce growth
- PBT before exceptional items grew 46% YoY in FY26 to ₹8,700 crore, with TTM profit growth at 15%
- PE ratio of 55.9x is more than double the industry average PE of ~25.6x, pricing in significant future growth
- Stock trades at 13.3x book value — a steep premium that leaves limited margin of safety if growth disappoints
- CV industry growth expected to moderate to just 4-6% in FY27 per ICRA, with M&HCV segment growth slowing to ~3% due to high base effect
- Road logistics sector margins likely to contract 150-200 bps in FY27 due to rising diesel costs (+8% in May 2026), potentially weakening fleet operator demand
- Dividend yield of only 0.87% (₹4 per share final dividend) offers limited income support at current valuations
- Exceptional charges of ₹1,647 crore in Q3 FY26 alone (New Labour Code, demerger adjustments) caused reported PAT to decline 48% QoQ, highlighting execution complexity post-demerger
- Export volumes face near-term disruption from West Asia crisis, limiting international growth optionality
- Supply outpacing demand in freight sector per ICRA, limiting pricing flexibility for fleet operators who are key CV buyers
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 4h ago- UK JLR sales decline YoY Aug 5
UK Jaguar Land Rover sales fell to 3,999 units in July from 4,307 units a year ago, reflecting weakness in the premium segment.
- Commodity cost inflation persists Aug 12
Tata Motors faces ongoing steel and rubber cost challenges, implementing a 2.5% price hike from July 1 to offset input cost inflation.
- EV supply bottlenecks linger Aug 13
EV supply constraints are expected to persist until end of Q2FY27, with resolution dependent on increased procurement orders.
- Q1FY27 profit surges 83% YoY Aug 13
Consolidated net profit jumped 83% YoY to ₹2,556 crore on revenue of ₹20,667 crore, with standalone revenue up 23% to ₹19,329 crore.
- July sales surge 37% YoY Aug 1
Total sales hit 39,641 units in July 2026, up 37% YoY, with international business surging 128% and strong domestic HCV/SCV growth.
- 70,000-unit Indonesia order secured Aug 13
Tata Motors secured a 70,000-unit export order for Indonesia to be delivered across FY27 and FY28, boosting international pipeline.
- PV July sales jump to 63,760 Aug 3
Passenger vehicle sales rose to 63,760 units in July from 40,175 units YoY, marginally missing estimates by just 240 units.
- Strong Q2FY27 CV growth guided Aug 13
Management predicted strong double-digit YoY growth for domestic commercial vehicles in Q2FY27, signaling continued momentum.
- Iveco deal approval by Aug 2026 Aug 13
Final approval for the Iveco acquisition expected by August 2026, with tender offer scheduled September to November 2026.
- Debottlenecking plan for supply chain Aug 12
Tata Motors announced targeted debottlenecking measures to address supply chain constraints amid rising industry demand.
- Q1FY27 earnings call released Aug 12
Audio recording of Q1FY27 earnings conference call for quarter ended June 30, 2026 made available on company website.
TL;DR: Tata Motors delivered a strong Q1FY27 with 83% profit growth and robust volume momentum across CV and PV segments, supported by a large Indonesia export order. Key risks include commodity cost inflation, EV supply bottlenecks, and softness in UK JLR sales. The overall trend is improving with management guiding double-digit CV growth in Q2FY27 and international business accelerating sharply.
Quarterly Results
| Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|
| Sales | 17,535 | 18,819 | 21,863 | 17,324 | 18,585 | 21,847 | 26,098 | 20,667 |
| Expenses | 15,828 | 16,786 | 19,432 | 15,248 | 16,553 | 19,260 | 22,771 | 17,395 |
| Operating Profit | 1,707 | 2,033 | 2,431 | 2,076 | 2,032 | 2,587 | 3,327 | 3,272 |
| OPM % | 10% | 11% | 11% | 12% | 11% | 12% | 13% | 16% |
| Other Income | 206 | 407 | 72 | 332 | -1,865 | -981 | -28 | 341 |
| Interest | 408 | 352 | 319 | 254 | 256 | 198 | 166 | 135 |
| Depreciation | 541 | 557 | 592 | 480 | 472 | 483 | 510 | 508 |
| PBT | 964 | 1,531 | 1,592 | 1,674 | -561 | 925 | 2,623 | 2,970 |
| Tax % | 48% | 12% | 16% | 17% | 55% | 24% | 32% | 14% |
| Net Profit | 498 | 1,355 | 1,340 | 1,397 | -867 | 705 | 1,793 | 2,556 |
| EPS in Rs | — | — | — | — | — | 1.91 | 4.87 | 6.95 |
Profit & Loss
| Mar 2025 10m | Mar 2026 | TTM | |
|---|---|---|---|
| Sales | 58,217 | 83,855 | 87,197 |
| Expenses | 52,045 | 76,238 | 75,979 |
| Operating Profit | 6,172 | 7,617 | 11,218 |
| OPM % | 11% | 9% | 13% |
| Other Income | 685 | -135 | -2,533 |
| Interest | 1,079 | 874 | 755 |
| Depreciation | 1,690 | 1,945 | 1,973 |
| PBT | 4,088 | 4,663 | 5,957 |
| Tax % | 22% | 35% | — |
| Net Profit | 3,195 | 3,030 | 4,187 |
| EPS in Rs | — | 8.23 | — |
| Div. Payout % | 0% | 49% | — |
Balance Sheet
| Mar 2025 | Mar 2026 | |
|---|---|---|
| Equity Capital | 0 | 736 |
| Reserves | 10,533 | 11,998 |
| Borrowings | 9,925 | 5,615 |
| Other Liabilities | 26,393 | 33,960 |
| Total Liabilities | 46,851 | 52,309 |
| Fixed Assets | 13,664 | 13,962 |
| CWIP | 1,875 | 2,026 |
| Investments | 5,282 | 13,283 |
| Other Assets | 26,030 | 23,038 |
| Total Assets | 46,851 | 52,309 |
Cash Flow
| Mar 2025 | Mar 2026 | |
|---|---|---|
| Operating | 8,547 | 14,981 |
| Investing | 456 | -3,892 |
| Financing | -7,970 | -5,223 |
| Net Cash Flow | 1,033 | 5,866 |
| Free Cash Flow | 7,005 | 12,878 |
| CFO/OP | 139 | 209 |
Ratios
| Mar 2025 | Mar 2026 | |
|---|---|---|
| Debtor Days | 19 | 12 |
| Inventory Days | 43 | 35 |
| Days Payable | 134 | 101 |
| Cash Conversion Cycle | -72 | -54 |
| Working Capital Days | -44 | -89 |
| ROCE % | — | 36% |
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Company Information
Founded in 1945, Tata Motors Ltd is one of India's largest automobile manufacturers and a part of the Tata Group.[1]