Tata Motors CV Q1 consolidated PAT up 83% YoY to Rs 2,560 cr; revenue up 19%
New Delhi, August 12
Tata Motors Commercial Vehicles Limited reported an 83% year-on-year rise in consolidated net profit to Rs 2,560 crore in Q1 FY27, while revenue from operations increased 19.3% to Rs 20,667 crore, driven by higher commercial vehicle volumes, new product launches and growth across its electric vehicle portfolio.
The company's total revenue from operations, including grant income and incentives, stood at Rs 20,770 crore during the quarter, up from Rs 17,414 crore in Q1 FY26.
Tata Motors said total industry volume (TIV) grew 18% year-on-year in the quarter, while its own volumes increased 26%, supported by healthy demand across trucks, buses, vans and small commercial vehicles. Truck volumes gained from new product launches, while buses and vans benefited from higher retail sales and deliveries against government tenders won in previous quarters.
The company's Ace Diesel LNT and Ace Pro models supported growth in the small commercial vehicle segment, while the launch of Intra EV and bi-fuel variants strengthened its portfolio. Electric vehicle volumes also saw strong traction, with SCV EV retail sales reaching 3,200 units, nearly four times the year-ago level. EV truck volumes rose 277% year-on-year, supported by the launch of Intra EV and 55T EV models and higher diesel prices.
Consolidated EBITDA rose 10% year-on-year to Rs 2,257 crore, although the EBITDA margin narrowed to 10.9% from 11.8% a year earlier. The margin pressure came amid higher employee and other expenses and cost pressures.
The sharp rise in profit was also supported by a Rs 1,135 crore net gain on fair-value changes of investments at FVTPL, compared with no such gain in Q1 FY26. Finance costs declined to Rs 135 crore from Rs 254 crore, further supporting profitability.
Tata Motors said it will focus in Q2 on managing commodity inflation through price increases and cost optimisation, while addressing supply-chain challenges through targeted debottlenecking.
For commercial vehicles, the company plans to accelerate growth through its MY26 portfolio, higher-payload trucks and battery electric vehicles. In the passenger commercial vehicle segment, it expects to execute around 4,500 government, defence and STU orders, including 850 e-buses. The company will also focus on building momentum in Ace and Intra, expanding EV adoption and ramping up deliveries against its Indonesia order.
— ANI
Reader Comments
The EV truck volumes growing 277% YoY is the real story here. With diesel prices staying high, this shift makes complete sense. Also good to see the Ace and Intra models doing well in the small CV segment. This is the future of commercial transport in India.
Happy for Tata Motors but let's not ignore the Rs 1,135 crore FVTPL gain. Without that, profit growth would be much lower. Still, strong volume growth of 26% shows real demand. The 850 e-buses for STUs is a solid win. Need more such orders to sustain the momentum.
Manufacturing sector is picking up and Tata Motors is leading the charge. The 18% TIV growth shows the entire industry is benefiting. But I worry about the cost pressures - margin fell from 11.8% to 10.9%. They need to pass on prices carefully without killing demand.
The SCV EV retail sales being 4x year-ago is such a strong signal. Small business owners are clearly embracing electric. With the Indonesia order and 4,500 government orders lined up, the future looks bright. Way to go Tata! 🇮🇳
Good results, but I'm a bit skeptical about the sustainability of this growth. The government tender-driven demand might taper off. Also, 10.9% EBITDA margin in a growth quarter isn't spectacular. Let's see if they can maintain this with cost pressures. Jainism aside, numbers need careful scrutiny.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.