Tata MotorsNSE:TMCV -0.49%24 Current Ratio is 0.76 as of Mar. 2026, which is 18% below its 10-year median of 0.93. GuruFocus rates NSE:TMCV with a GF Score™ of 24/100. The stock has 2 warning signs investors should review. Among 1,335 Vehicles & Parts companies, Tata Motors ranks worse than 94.08% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Tata Motors's current ratio for the quarter that ended in Mar. 2026 was 0.76.
Tata Motors has a current ratio of 0.76. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Tata Motors has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Tata Motors's Current Ratio or its related term are showing as below:
NSE:TMCV'
s Current Ratio Range Over the Past 10 Years
Min: 0.76 Med: 0.93 Max: 0.97
Current: 0.76
During the past 3 years, Tata Motors's highest Current Ratio was 0.97. The lowest was 0.76. And the median was 0.93.
NSE:TMCV's Current Ratio is ranked worse than 94.08% of 1335
companies
in the Vehicles & Parts industry
Industry Median: 1.53
vs NSE:TMCV: 0.76
Tata Motors (NSE:TMCV) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Tata Motors Current Ratio Related Terms
Tata Motors Current Ratio Historical Data
* Premium members only.
The historical data trend for Tata Motors's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Tata Motors Current Ratio Chart
Tata Motors Annual Data
Trend
Mar24
Mar25
Mar26
Current Ratio
0.97
0.93
0.76
Tata Motors Quarterly Data
Mar24
Dec24
Mar25
Dec25
Mar26
Current Ratio
0.97
0.00
0.93
0.00
0.76
NSE:TMCV vs TSLA, GM, F: Current Ratio Comparison
For the Auto Manufacturers subindustry, Tata Motors's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tata Motors Current Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Tata Motors's Current Ratio distribution charts can be found below:
* The bar in red indicates where Tata Motors's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Tata Motors (NSE:TMCV) has a Current Ratio of 0.76 as of Mar. 2026. This is 18% below median its historical median of 0.93. Over the past decade, Tata Motors' Current Ratio has ranged from 0.76 to 0.97. According to the industry distribution chart, Tata Motors ranks #1256 out of 1335 companies in the Vehicles & Parts industry, placing it in the top 94.1%.
Is Tata Motors' Current Ratio too high?
Tata Motors' current Current Ratio of 0.76 is 18% below median its 10-year median of 0.93. Over the past 10 years, this metric has ranged from a low of 0.76 to a high of 0.97. The Vehicles & Parts industry median Current Ratio is 1.53. Tata Motors' value of 0.76 is 50.3% below this industry median. Based on the distribution chart, Tata Motors ranks #1256 out of 1335 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Tata Motors has a GF Score™ of 24/100, reflecting its overall financial health beyond just this single metric.
How does Tata Motors' Current Ratio compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Tata Motors ranks #1256 out of 1335 companies for Current Ratio. This places Tata Motors in the lower half of its industry. The industry median Current Ratio is 1.53. Tata Motors' value of 0.76 is 50.3% below this benchmark. Historically, Tata Motors' own Current Ratio has ranged from 0.76 to 0.97 over the past decade. While the company's 10-year median is 0.93 vs. the industry median of 1.53, Tata Motors has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Vehicles & Parts company?
The median Current Ratio among Vehicles & Parts companies is 1.53, based on 1,335 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Motors's current Current Ratio of 0.76 is 50.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Vehicles & Parts industry, the median Current Ratio is 1.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Motors's current Current Ratio is 0.76, which is 18% below median its own 10-year median of 0.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tata Motors stock overvalued right now?
Tata Motors (NSE:TMCV) has a current Current Ratio of 0.76. The current Current Ratio is 0.76, which is 18% below median its 10-year median of 0.93 and 50.3% below the Vehicles & Parts industry median of 1.53. Tata Motors' overall GF Score™ is 24/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Tata Motors (NSE:TMCV), the current Current Ratio is 0.76 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Tata Motors Ltd is an automobile manufacturer, offering a diverse portfolio of smarter, integrated, and safer mobility solutions. It designs, manufactures, and sells a wide range of automotive vehicles. The company also manufactures engines for industrial applications. Its operating segments consist of: a) Automotive: The Automotive segment consists of Tata Commercial Vehicles and consists of three sub-segments: Commercial Vehicles, Corporate/ unallocable, Intrasegment. b) Others: Others consist of IT services and Insurance Broking services. The majority of revenue is generated from the Tata Commercial Vehicles sub-segment of the Automotive segment. Geographically, the group operates in India, South Korea, and the rest of the world. The majority of its revenue is generated in India.
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