Tata MotorsNSE:TMCV -1.93%24 Gross Margin % is 31.02% as of Mar. 2026, which is 1% above its 10-year median of 30.79. GuruFocus rates NSE:TMCV with a GF Score™ of 24/100. The stock has 2 warning signs investors should review. Among 1,308 Vehicles & Parts companies, Tata Motors ranks better than 75% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Tata Motors's Gross Profit for the
three
months ended in Mar. 2026 was ₹80,580 Mil. Tata Motors's Revenue for the
three
months ended in Mar. 2026 was ₹259,740 Mil. Therefore, Tata Motors's Gross Margin % for the quarter that ended in Mar. 2026 was 31.02%.
The historical rank and industry rank for Tata Motors's Gross Margin % or its related term are showing as below:
NSE:TMCV'
s Gross Margin % Range Over the Past 10 Years
Min: 30.53 Med: 30.79 Max: 35.75
Current: 31.12
During the past 3 years, the highestGross Margin % of Tata Motors was 35.75%. The lowest was 30.53%. And the median was 30.79%.
NSE:TMCV's Gross Margin % is ranked better than 75% of 1308
companies
in the Vehicles & Parts industry
Industry Median: 19.8
vs NSE:TMCV: 31.12
Tata Motors had a gross margin of 31.02% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Tata Motors was 0.00% per year.
Tata Motors (NSE:TMCV) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Tata Motors had a gross margin of 31.02% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Tata Motors Gross Margin % Related Terms
Tata Motors Gross Margin % Historical Data
* Premium members only.
The historical data trend for Tata Motors's Gross Margin % 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 Gross Margin % Chart
Tata Motors Annual Data
Trend
Mar24
Mar25
Mar26
Gross Margin %
35.75
30.79
30.53
Tata Motors Quarterly Data
Mar24
Dec24
Mar25
Dec25
Mar26
Gross Margin %
0.00
32.15
32.00
31.24
31.02
NSE:TMCV vs TSLA, GM, F: Gross Margin % Comparison
For the Auto Manufacturers subindustry, Tata Motors's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Tata Motors's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tata Motors's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Tata Motors (NSE:TMCV) has a Gross Margin % of 31.02% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tata Motors and its competitors. This is near median its historical median of 30.79. Over the past decade, Tata Motors' Gross Margin % has ranged from 30.53 to 35.75. According to the industry distribution chart, Tata Motors ranks #327 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 25%.
Is Tata Motors' Gross Margin % too high?
Tata Motors' current Gross Margin % of 31.02% is near median its 10-year median of 30.79. Over the past 10 years, this metric has ranged from a low of 30.53 to a high of 35.75. The Vehicles & Parts industry median Gross Margin % is 19.80. Tata Motors' value of 31.02% is 56.7% above this industry median. Based on the distribution chart, Tata Motors ranks #327 out of 1308 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position 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' Gross Margin % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Tata Motors ranks #327 out of 1308 companies for Gross Margin %. This places Tata Motors in the top 25% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 19.80. Tata Motors' value of 31.02% is 56.7% above this benchmark. Historically, Tata Motors' own Gross Margin % has ranged from 30.53 to 35.75 over the past decade. While the company's 10-year median is 30.79 vs. the industry median of 19.80, Tata Motors has consistently been above 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 Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.80, based on 1,308 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Motors's current Gross Margin % of 31.02% is 56.7% above 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Tata Motors and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Motors's current Gross Margin % is 31.02%, which is near median its own 10-year median of 30.79. 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 Gross Margin % of 31.02%. The current Gross Margin % is 31.02%, which is near median its 10-year median of 30.79 and 56.7% above the Vehicles & Parts industry median of 19.80. 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Tata Motors (NSE:TMCV), the current Gross Margin % is 31.02% 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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