Tata Motors (TMCV) investor relations material

Executive summary

• Transitioned to a pure-play commercial vehicle company post-demerger, now reporting standalone financials and joint operations with Tata Cummins.

• Launched 17 next-generation trucks and Ace Pro, India's most affordable 4-wheel mini-truck, driving innovation and market expansion.

• Secured major orders, including 70,000 vehicles for Indonesia and over 5,000 buses for Indian state transport undertakings.

• Board recommended a final dividend of INR 4 per share, totaling up to INR 1,500 crores, subject to shareholder approval.

• Regulatory approvals for the Iveco acquisition are nearing completion, expected by Q2 FY27.

Financial highlights

• FY26 standalone revenue reached INR 77,400 crores, up 11% YoY; Q4 revenue at INR 24,500 crores, up 22% YoY.

• EBITDA margin expanded to 13.2% for FY26 (up 120 bps YoY); Q4 EBITDA margin at 13.9%.

• EBIT margin reached 11% for FY26 (up 180 bps YoY); Q4 EBIT margin at 12.1%.

• Profit before tax and exceptional items rose to INR 8,700 crores for FY26, up INR 2,700 crores YoY.

• Free cash flow for FY26 was INR 9,200 crores; year-end net cash position at INR 7,500 crores standalone and INR 13,700 crores consolidated.

Outlook and guidance

• Cautious single-digit growth expected in Q1 FY27, with quarter-by-quarter assessment due to external uncertainties, especially diesel prices and commodity inflation.

• Focus on leveraging new truck portfolio, scaling BEV trucks, and profitable bus segment recovery.

• Investment guidance for FY27 remains at 2%-4% of revenue, prioritizing growth and technology.

• International growth outlook remains cautious due to geopolitical issues in the Middle East and Sri Lanka; Indonesia order to support volumes.

• EBITDA margin guidance remains in the teens, with cost control measures to offset commodity headwinds.