- Tata Motors CV's Q1 standalone net profit rose 8.3% to Rs 1,528 crore
- Revenue increased 23% to Rs 19,329 crore in the first quarter
- EBITDA grew 9.5% to Rs 2,176 crore year-on-year
Tata Motors' commercial vehicle business reported an 8.3% year-on-year rise in standalone net profit for the June quarter, supported by strong revenue growth and higher operating profit despite continued commodity cost pressures.
Standalone net profit rose to Rs 1,528 crore in Q1 FY27 from Rs 1,411 crore a year earlier. Revenue from operations climbed 23% to Rs 19,329 crore from Rs 15,682 crore, according to the company's results filed on Wednesday.
EBITDA increased 17% to about Rs 2,300 crore, while the EBITDA margin moderated to 11.7% from 12.3% a year earlier. Profit before tax and exceptional items rose 26% to Rs 2,057 crore. Tata Motors attributed the resilient profitability to disciplined pricing, cost-efficiency measures and improved operating leverage despite severe commodity headwinds.
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The company generated positive free cash flow of Rs 1,114 crore during the quarter, an improvement of Rs 2,910 crore from a cash outflow of Rs 1,796 crore in the year-ago period. Domestic business net cash stood at Rs 7,100 crore at the end of June, after a dividend payout of Rs 1,473 crore during the quarter. Auto ROCE stood at 68%, compared with 72% in FY26.
Operationally, Tata Motors reported wholesale volumes of 108,700 units, up 26% year-on-year. Domestic and export volumes rose 26% and 35%, respectively, while its domestic CV VAHAN market share increased 100 basis points sequentially to 36.8%.
Girish Wagh, MD & CEO, Tata Motors, said, "The commercial vehicle industry remained resilient in Q1 FY27, supported by India's strong economic fundamentals, healthy fleet utilization, and sustained demand across key sectors." He added that volumes grew 26% year-on-year, helped by its product portfolio and focused market interventions.
Electrification also gained traction, with more than 3,400 electric vehicle orders across segments. The eSCV segment recorded about 10% salience in May and June and nearly 47% market share in Q1, the company said.
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CFO GV Ramanan said the quarter reflected "improved business fundamentals" and continued working-capital management, while acknowledging that commodity pressure remained.
On the strategic front, regulatory approvals for Tata Motors' Iveco transaction are in the final stage, with the final clearance expected by end-August. The tender offer is expected to launch in early September and close by early November.
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