Tata Motors Ltd.’s commercial vehicles (CV) business reported a sharp decline in profitability for the third quarter of the current financial year, even as revenue and operating performance showed strong growth. The company announced its consolidated financial results for the quarter ended December 2025 on Thursday.

According to the results, Tata Motors CV posted a consolidated net profit of ₹705 crore during the quarter, representing a steep fall of nearly 48% compared to ₹1,355 crore recorded in the corresponding period last year. The decline in profit came despite higher sales and improved operating metrics, indicating pressure from costs, margins, or other exceptional factors during the quarter.

Revenue from the commercial vehicles segment rose by 16.1% year-on-year to ₹21,847 crore, compared with ₹18,819 crore in the same quarter of the previous financial year. The growth reflects improved demand conditions and higher realizations in the domestic commercial vehicle market, which has seen gradual recovery in freight movement and infrastructure activity.

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Operating performance, however, showed notable improvement. Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 40.8% to ₹2,881 crore during the quarter, up from ₹2,046 crore a year earlier. The strong rise in EBITDA suggests better operational efficiency and cost management at the operating level.

Market participants are expected to closely watch management commentary for clarity on the factors that led to the sharp fall in net profit despite robust revenue and EBITDA growth. Analysts will also assess the outlook for demand, margin sustainability, and cost pressures in the coming quarters, as the commercial vehicle segment remains closely linked to broader economic activity and infrastructure spending in India.

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