Q1 2027 Tata Motors Ltd Earnings Call Transcript

Aug 12, 2026 / 01:00 PM GMT

Release Date Price: ₹456.85 (+1.59%)

Transcript

Key Points

Positve

Strong volume growth of 26% YoY, with broad-based double-digit growth across all product lines.
Significant improvement in free cash flow, swinging from negative INR 1,796 crore to positive INR 1,114 crore YoY.
Robust demand environment supported by healthy e-way bill growth (12.4%) and diesel consumption, indicating strong freight activity.
EV momentum accelerating, with EV volumes tripling YoY and SCV pickup EV penetration reaching double-digits in May and June.
Market share gains in heavy commercial vehicles (56.3%) and small commercial vehicles, driven by new product launches and strong execution.
Successful execution of the Indonesia order, with deliveries initiated and ramping up, supporting export growth of 35% YoY.
Strong operating leverage and realization improvements offsetting most of the commodity cost headwinds, keeping EBIT margin decline minimal.
Healthy net cash position of INR 7,100 crore (standalone) and INR 13,500 crore (consolidated) despite dividend payout.
Positive outlook for Q2 with expected double-digit growth, supported by new model launches and continued demand strength.
Improving EV financing environment with growing financier confidence and battery warranties boosting customer comfort.

Negative

EBITDA margin declined 60 bps YoY to 11.7% due to commodity-led cost pressures, primarily steel, aluminum, and copper.
Variable costs increased by INR 649 crore, representing a 340 bps headwind to EBIT margin, with further commodity inflation expected.
Supply chain challenges persist, particularly for sheet metal, castings, and forgings, and EV battery cells from China, leading to longer lead times.
Q1 fleet utilization slightly below Q1 of last year, though not considered a concern, but indicates some softness.
Regulatory delays in PLI certificates for EV vehicles are impacting profitability, as some deliveries are made without full PLI benefits.
Price increases have been significant, and there is uncertainty about the ability to pass through further hikes given the sharp surge in steel and rubber.
ILMCV market share saw a slight drop due to supply chain challenges, especially in the Western zone.
Cash tax outflows are now a recurring item, with INR 500 crore paid in Q1, impacting cash generation.
The strong Q1 FCF was partly aided by an advance from the Indonesia order, which is a one-off benefit.
EV profitability remains lower than ICE trucks due to low scale, though expected to improve with localization and scale.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

TATM.NS - Tata Motors Ltd
Q1 2027 Tata Motors Ltd Earnings Call
Aug 12, 2026 / 01:00PM GMT

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Presentation
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Unidentified_1 [1]
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Welcome to Tata Motors Q1 FY27 results call. My name is Neha Gawankar. I head investor relations and communications.

Joining me are Mr. Girish Wag, managing director and CEO and the investor relations team.

Before we begin, I would like to inform you that our CFO Mr. GV Ramanan is unable to join today's call.

Personal exigency in the family.

Sends his regrets for being unable to attend.

His absence I will be taking you through. The financial highlights section of the presentation, following which Mr. Wagh will give the business and strategic overview.

He will then move to Q&A.

As a reminder, all participants will be in listen-only mode and will be taking your questions via

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