14 May 2025
Profit Grows Even with Lower Revenue and Sales
Tata Motors has entered the new financial year (FY26) with strong belief in the future of its Commercial Vehicle (CV) business. The company feels confident because of better profits, a growing market share, and new product launches, even though overall sales and revenue dropped slightly in the last quarter.
During the January to March 2025 period, Tata Motors’ CV business earned Rs. 21,500 crore in revenue. This was a small drop of 0.5% compared to last year. However, the profit margins improved. EBITDA went up by 20 basis points to 12.2%, while EBIT improved by 10 basis points to reach 9.7%. Profit before tax (excluding special items) stood at Rs. 2,100 crore.
On a yearly basis, the CV business recorded Rs. 75,000 crore in revenue. Also, EBITDA margin increased to 11.8% and EBIT margin rose to 9.1%. Profit before tax (excluding special items) was Rs. 6,600 crore. According to Group CFO P B Balaji, this level of profit despite lower revenue has not happened in the last 25 years.
Market Share Gets Better in Key CV Segments
Tata Motors continued to perform well in the market. It kept a strong market share of 37.1% in the overall domestic CV market. In the Heavy Commercial Vehicle (HCV) segment, the company maintained a 48.8% share. In the Medium Commercial Vehicle (MCV) category, the share grew to 37.3%. Passenger carriers also improved to 37.6%.
However, the Light Commercial Vehicle (LCV) segment still needs work, as its market share stood at 30.5%. Balaji admitted that the company is working to improve this segment.
44 New CV Products Launched, Hydrogen Truck Trials Begin
In FY25, Tata Motors launched 44 new products and 139 variants across different CV categories. These launches helped the company meet new emission norms and customer needs.
One of the major highlights was India’s first hydrogen-powered truck trial. Tata Motors has already started running 16 hydrogen trucks on major freight routes. This is part of its commitment to greener technologies in commercial transport.
SCV Segment Under Focus, Electric CV Portfolio Expands
The Small Commercial Vehicle (SCV) segment is getting special attention from Tata Motors. Balaji shared that this area needs fixing and is a top priority. The company wants to improve this segment quickly to boost growth.
At the same time, Tata Motors is growing its electric commercial vehicle lineup. It recently introduced the Ace EV1000—an improved version of its electric mini truck. This model offers a higher payload and longer range, making it ideal for last-mile delivery. With the growing need for cleaner delivery vehicles, the Ace EV1000 could be a game-changer in the electric pickup and electric 3-wheeler category.
Perhaps, this strong focus on electric auto, SCVs, and future-ready truck will help Tata Motors lead in green mobility for businesses.
Strong Position If Market Recovers
Balaji said that if demand in the economy rises, the CV business could grow much faster. Stable fuel prices, steady interest rates, low steel costs, and fewer loan defaults are creating a good environment for commercial vehicles. These strong fundamentals, along with new products and clean vehicle technology, could help Tata Motors do even better in FY26.
Passenger Vehicle Business Sees Revenue Drop but Better Margins
On the Passenger Vehicle (PV) side, Tata Motors reported Rs. 12,500 crore in revenue during Q4 FY25. This was a drop of 13.1% compared to the same time last year. However, the company managed to improve its EBITDA margin to 7.9%, although the EBIT margin fell to 1.6%. The profit before tax (excluding special items) was Rs. 400 crore.
For the full year, the PV business made Rs. 48,400 crore in revenue, with an EBITDA margin of 6.9%, EBIT margin at 0.9%, and PBT (before exceptionals) at Rs. 1,100 crore.
Balaji said the PV business will stay focused on protecting its profit margins, cutting costs, and growing its share in both traditional and electric car markets.
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