The company was net cash-positive at ₹6,100 crore as of December 31, 2025. This included TMF Holdings’ gross debt adjusted for the market value of its investments in Tata Capital.Tata Motors on Thursday reported a 48 per cent year-on-year decline in consolidated profit after tax (PAT) to ₹705 crore for the quarter ended December 31, 2025, compared with ₹1,355 crore in the same period last year.
Revenue from operations for the quarter stood at ₹21,847 crore, an increase of 16 per cent from ₹18,819 crore in the corresponding quarter of the previous financial year.
On a sequential basis, revenue rose 18 per cent from ₹18,585 crore reported in the July–September quarter.
The company said profitability was affected by exceptional items, including a ₹603 crore impact related to the New Labour Code, a ₹962 crore impact arising from demerger-related adjustments, and an acquisition cost of ₹82 crore.
The total impact of exceptional items stood at about ₹1,500 crore on a standalone basis and around ₹1,600 crore on a consolidated basis.
In the preceding quarter, the company had reported a net loss of ₹867 crore due to a mark-to-market loss of about ₹2,000 crore on its recently listed investments in Tata Capital.
Profit before tax, before exceptional items, for the December quarter stood at ₹2,600 crore.
The company was net cash-positive at ₹6,100 crore as of December 31, 2025. This included TMF Holdings’ gross debt adjusted for the market value of its investments in Tata Capital.
Steady demand conditions
The company said topline growth reflected higher volumes and stable demand in the CV segment during the festive period.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) margin for the quarter stood at 12.5 per cent, up 30 basis points year-on-year. The EBIT margin was reported at 10.4 per cent, an increase of 100 basis points over the year-ago period.
The company said operating performance remained steady despite the impact of exceptional charges on net profit.
Commercial vehicle volumes and market share
Commercial vehicle wholesales during the quarter stood at 1,16,800 units, registering a 20 per cent increase year-on-year. Domestic and export volumes rose 18 per cent and 70 per cent, respectively.
The company’s domestic CV market share, based on VAHAN data, improved by 100 basis points sequentially to 35.5 per cent in Q3 FY26.
The board approved a composite scheme of amalgamation to merge TMF Holdings Limited and TMF Business Services Limited, both wholly owned subsidiaries, with Tata Motors Limited. The company said the proposed scheme would not result in any change in Tata Motors’ shareholding pattern.
“Our disciplined execution of an agile strategy delivered another strong quarter, supported by demand tailwinds from GST 2.0 and the festive season. With infrastructure spending accelerating, we are well-positioned to sustain momentum and drive continued growth,” said Girish Wagh, Managing Director and Chief Executive Officer.
