Tata Commercial Vehicles Q3 FY25 Results: Revenue Down By 8.4% YoY

Tata Motors has released its quarterly financial results for the third quarter of the current financial year, showing a sequential recovery in the HCV segment and a marginal decline in the SCV segment.

Key Highlights

• Despite an 8.4% YoY drop in revenue in Q3 FY25, Tata Commercial Vehicles improved its EBITDA margin to 12.4%, up by 130 basis points from the previous year.
• The company’s passenger carriers, HCV, and ILMCV segments continue to outperform the industry but the SCV segment declined marginally in Q3 FY25.
• In post FAME 2 scheme, Tata Ace EV sales volume reported a 26% growth with the launch of its new value proposition. 

Tata Commercial Vehicles improved its earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin to 12.4%, a rise of 130 basis points (bps) from the previous year, despite an 8.4% year-over-year (YoY) decline in revenue for its commercial vehicle business in the third quarter of fiscal year 2025 (Q3FY25).

More than 50 commercial vehicles were introduced in this third quarter. With the introduction of a new value proposition in the context of the post-FAME 2 incentive scheme, Tata Ace EV sales volumes increased by 26%. Let’s understand the financial performance of the country’s leading commercial vehicle manufacturer for the last quarter.

Related Link: Tata Motors Releases Commercial Vehicle Sales Report For January 2025

Tata Commercial Vehicle Financial Results For Q3 FY25

Domestic wholesale commercial vehicle (CV) volumes in Q3 FY25 were 91.1K units, a slight decrease from Q3 FY24’s 91.9K units but a notable improvement above Q2 FY25's 79.8K units.  The post-monsoon recovery in mining and construction operations and the demand throughout the festive season drove the HCV (Heavy Commercial Vehicle) segment's strong sequential rise.

Exports decreased 6% year over year to 4.5K units. EBITDA margins rose to 12.4% (up 130 bps YoY) despite revenues declining 8.4% YoY to Rs 18.4K Crore. This improvement was driven by PLI (Production-Linked Incentives) and commodity cost reductions. So far, the CV business has generated a PBT (bei) of Rs 4.6K Crore and an EBITDA margin of 11.6% (+120 bps YoY).

Official Insights By Tata Motors

Highlighting the financial results for Q3 FY25, PB Balaji, Group Chief Financial Officer, Tata Motors, said, “In Q3, the performance of all businesses improved sequentially. For YTD FY25, our business grew 1.6% over the previous year to Rs 323.0K Crore and delivered a robust PBT (bei) of Rs 22.3K Crore (+14.5%). The fundamentals of the business are strong and therefore despite external challenges we are confident of delivering another strong performance this year.”

Speaking on the performance of the commercial vehicle business in this third quarter, Girish Wagh, Executive Director, Tata Motors, stated, “In Q3 FY25, the HCV segment witnessed robust sequential recovery, even as the YoY sales declined 9% due to limited growth in end-use segments. The ILMCV segment and passenger carrier segment witnessed around 3% and 30% YoY growth, whereas the SCV segment experienced a marginal decline due to ongoing financing challenges.” 

He further added, “The business has delivered strong EBITDA and EBIT margins of 12.4% and 9.6%, respectively, with cost control and reflecting PLI incentives. At the Bharat Mobility Expo, we unveiled a bold new era in mobility, showcasing 14 smart vehicles, all integrated with ADAS, alongside 6 cutting-edge intelligent solutions that provide real-time performance insights, and 4 advanced aggregates. With relentless innovation and agility, we will continue to redefine the future of mobility with sustainable, intelligent, and cutting-edge solutions.”

What Tata Commercial Vehicles Expect In Q4 FY25?

Tata Commercial Vehicles anticipates that demand will increase in Q4 FY25 for the majority of categories. The government's emphasis on infrastructure spending and the expansion of end-use segments are the main factors to keep an eye on in 2025 since these factors will be favourable for the commercial vehicle sector. We keep pushing for measures to reduce the effect of cyclicality on its performance and provide robust margins and ROCE (Return on Capital Employed).

Read More

Top 5 Features Of Mahindra Treo Zor In 2025: What Makes It An Ideal Solution?

Bajaj Auto GoGo Electric Three-Wheelers Launched: What Makes Them Unique?