Tata Motors Commercial Vehicles reported a 60.4 per cent YoY decline in quarterly profit, hurt by one-time demerger-related charges and new labour codes. The truck and bus manufacturer reported a profit of Rs 561 crore in Q3 FY26, down from Rs 1,417 crore a year earlier.
While the company’s profit declined, its revenue grew 20 per cent YoY on tax-cut-driven demand. The company posted consolidated revenue of Rs 20,315 crore in Q3 FY26, compared to Rs 16,897 crore in the corresponding quarter of the previous fiscal year.
Tata Motors CV sales
Tata Motors’ sales of commercial vehicles got a shot in the arm after the September cut in taxes on such vehicles to 18 per cent from 28 per cent earlier.
Tata Motors’ CV segment wholesale sales stood at 116,800 units, up 20 per cent. Its domestic and export volumes were up by 18 per cent YoY and 70 per cent YoY, respectively.
“Disciplined execution of an agile strategy delivered yet another strong financial performance this quarter, supported by demand tailwinds from GST 2.0 and the festive season.” Girish Wagh, MD & CEO, Tata Motors, said in a statement.
The company said that demand is expected to strengthen in the fourth quarter across most segments. “”Key drivers in 2026 will include the government’s sustained infrastructure push and expansion in end-use sectors, both of which are expected to fuel positive momentum for the industry,”, It said.
Exceptional cost in Q3
The company took a one-time hit of Rs 1,545 crore, with Rs 962 crore tied to demerger costs and Rs 574 crore to the impact from the labour codes.
Tata Motors split from the group’s passenger vehicles arm in October last year and made its trading debut as a separate entity in November. The company’s profit excluding taxes and the one-time charges jumped 45 per cent to Rs 2,318 crore.
Tata Motors said that with an optimised portfolio ensuring superior product availability, a decisive pricing strategy, and deeper customer engagement through intensified market activations, the commercial vehicle maker is well poised to unlock demand across segments, paving the way for continued success.