Tata Motors Q3 net slides 48% to ₹705 cr.

Commercial Vehicles major Tata Motors Ltd. (TML) for the third quarter ended December 31, 2025 reported a 48% fall in consolidated net profit to ₹705 crore as compared with ₹1,355 crore in the year ago period due to one-time impacts of Labour Code and de-merger.

For the quarter the company’s revenues grew 16% to ₹21,732 crore from ₹18,697 crore a year ago.

The exceptional items include impact on account of the New Labour Code (₹603 crore) demerger (₹962 crore) and acquisition cost (₹82 crore). 

The impact of these and other items stood at ₹1,500 crore in standalone financials and at ₹1,600 crore in consolidated financials.

The Board of Directors of Tata Motors has approved a Composite Scheme of Amalgamation to merge TMF Holdings Ltd and TMF Business Services Ltd., both wholly owned subsidiaries, with TML. 

The proposed scheme will not result in any change to the shareholding of TML and is subject to receipt of the necessary creditors, regulatory and other approvals. Once effective, it will result in a simplified and streamlined group structure, the company said.

Girish Wagh, MD & CEO, Tata Motors Ltd said,“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.”

“Our recent launch of 17 next generation trucks under the ‘Better Always’ philosophy sets new benchmarks in safety, total cost of ownership, and smarter, emission free mobility, reinforcing our commitment to innovation and industry leadership. With infrastructure spending accelerating, we are well positioned to sustain momentum and drive continued growth,” he added z 

GV Ramanan, CFO, Tata Motors Ltd. said, “We delivered another strong quarter, translating robust operational execution and healthy demand across key segments into meaningful financial outcomes. The quarter marked significant milestones, including our 10th consecutive quarter of doubledigit EBITDA margins and achievement of double-digit EBIT margins.”

“This strong operating performance coupled with disciplined working capital management, led to robust free cash flow generation. With this trajectory, we remain confident of delivering on our stated financial guidance,” he added.