Tata Motors Passenger Vehicles Ltd (BOM:500570) Q4 2026 Earnings Call Highlights: Strong ...

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• Revenue:INR105,000 crores for the quarter, up 7% year-on-year.

• PBT (Profit Before Tax) Before Exceptionals:INR7,200 crores for the quarter.

• Free Cash Flow (FCF):INR11,000 crores for the quarter.

• Full Year PBT:INR2,500 crores, excluding INR4,100 crores of exceptionals.

• Dividend:INR3 per share, with a cash outflow of INR1,100 crores.

• Net Debt:INR30,000 crores at year-end.

• JLR Revenue:Nearly GBP7 billion for Q4.

• JLR EBIT:9.2% for Q4.

• JLR Cash Generation:GBP829 million in Q4.

• JLR Full Year Cash Loss:Just over GBP2.2 billion.

• Wholesale Volumes:308,000 units for JLR full year.

• EBITDA Margin:9.4% for Q4.

• EBIT Margin:4.7% for Q4.

• Full Year Top Line Growth:15%.

• PLI Accruals:INR1,000 crores for FY26.

• CapEx:INR4,300 crores for the year, 7.5% of revenues.

• EV Sales:92,000 units, 43% year-on-year growth.

• CNG Volumes:27% of portfolio, over 1.7 lakh vehicles sold.

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Release Date: May 14, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Tata Motors Passenger Vehicles Ltd ( BOM:500570 ) achieved a strong comeback in H2 FY26, consistently ranking number two in Vahan market share.

• The company reported a 50% year-on-year top-line growth, driven by strong demand for its popular brands and new launches.

• Tata Motors Passenger Vehicles Ltd ( BOM:500570 ) recorded a 43% growth in EV sales, maintaining over 40% market share despite increased competition.

• The company announced a dividend of INR3 per share, reflecting an increase over the previous two years.

• Tata Motors Passenger Vehicles Ltd ( BOM:500570 ) ended the year with a 9.4% EBITDA margin for Q4, showing sequential improvement in profits.

Negative Points

• The full-year financial metrics were impacted by two lost quarters of production at JLR, resulting in a PBT of INR2,500 crores.

• Commodity headwinds have been significant, with a 5% to 6% impact on revenue, and the company has not been able to pass on price increases.

• JLR faced a challenging year with a cash loss of over GBP2.2 billion, and corrective actions are necessary.

• The geopolitical situation, including the Middle East conflict, poses risks to demand and supply chain resilience.

• The company faces supply challenges, particularly with the Sierra model, due to issues with suppliers and ramping up production.

Q & A Highlights

Q: Could you give us a sense of the commodity headwind and how Tata Motors plans to address it? A: Shailesh Chandra, CEO of Tata Motors Passenger Vehicles Ltd, explained that the commodity headwind impact is between 5% to 6% of revenue. The company has not been able to pass on price increases due to low consumer sentiment and government GST rate reductions. Intense cost reduction efforts have yielded a 2% revenue reduction, and a 0.5% price increase was implemented in April. Further price increases are being considered.