Tata Motors’ consolidated net profit for the third quarter (October–December 2025) fell sharply by 48% year-on-year, coming in at ₹705 crore, compared with ₹1,355 crore in the same quarter last year. The decline was mainly due to one-time exceptional expenses, rather than a slowdown in the company’s core business operations.
Revenue from operations, however, showed strong growth, rising 16% to ₹21,847 crore, up from ₹18,819 crore in Q3 FY25. This reflects continued demand in the commercial vehicle segment and steady sales momentum across its businesses.
The quarter’s results were impacted by exceptional charges totaling around ₹1,600 crore, including ₹962 crore for stamp duty and other costs linked to the ongoing demerger process, ₹603 crore related to the implementation of the new labour code, and ₹82 crore for acquisition-related expenses.
Despite the one-off charges, Tata Motors’ underlying operations remained healthy. EBITDA margins improved, indicating effective cost management and operational efficiency.
Domestic commercial vehicle sales continued to perform well, supported by fleet replacement incentives and government tax benefits. Wholesales rose during the quarter, and the company’s market share in key commercial vehicle categories improved sequentially.
Management stated that although exceptional items affected net profit this quarter, the business fundamentals remain strong. Demand is expected to stay robust in the fourth quarter of FY26, backed by infrastructure spending and steady demand across sectors.
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