Tata MotorsNSE:TMCV -0.04%12 ROA % is 13.71% as of Mar. 2026, which is 124% above its 10-year median of 6.11. GuruFocus rates NSE:TMCV with a GF Score™ of 12/100. The stock has 2 warning signs investors should review. Among 1,335 Vehicles & Parts companies, Tata Motors ranks better than 66.82% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Tata Motors's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹71,720 Mil.
Tata Motors's average Total Assets over the quarter that ended in Mar. 2026 was ₹523,090 Mil. Therefore, Tata Motors's annualized ROA % for the quarter that ended in Mar. 2026 was 13.71%.
The historical rank and industry rank for Tata Motors's ROA % or its related term are showing as below:
NSE:TMCV'
s ROA % Range Over the Past 10 Years
Min: 1.53 Med: 6.11 Max: 8.65
Current: 5.04
During the past 3 years, Tata Motors's highest ROA % was 8.65%. The lowest was 1.53%. And the median was 6.11%.
NSE:TMCV's ROA % is ranked better than 66.82% of 1335
companies
in the Vehicles & Parts industry
Industry Median: 2.95
vs NSE:TMCV: 5.04
Tata Motors (NSE:TMCV) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Tata Motors ROA % Related Terms
Tata Motors ROA % Historical Data
* Premium members only.
The historical data trend for Tata Motors's ROA % 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 ROA % Chart
Tata Motors Annual Data
Trend
Mar24
Mar25
Mar26
ROA %
8.65
1.53
6.11
Tata Motors Quarterly Data
Mar24
Dec24
Mar25
Dec25
Mar26
ROA %
0.00
1.46
11.44
6.02
13.71
NSE:TMCV vs TSLA, GM, F: ROA % Comparison
For the Auto Manufacturers subindustry, Tata Motors's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Tata Motors's ROA % distribution charts can be found below:
* The bar in red indicates where Tata Motors's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Tata Motors (NSE:TMCV) has a ROA % of 13.71% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Tata Motors and its competitors. This is 124% above median its historical median of 6.11. Over the past decade, Tata Motors' ROA % has ranged from 1.53 to 8.65. According to the industry distribution chart, Tata Motors ranks #443 out of 1335 companies in the Vehicles & Parts industry, placing it in the top 33.2%.
Is Tata Motors' ROA % too high?
Tata Motors' current ROA % of 13.71% is 124% above median its 10-year median of 6.11. Over the past 10 years, this metric has ranged from a low of 1.53 to a high of 8.65. The Vehicles & Parts industry median ROA % is 2.95. Tata Motors' value of 13.71% is 364.7% above this industry median. Based on the distribution chart, Tata Motors ranks #443 out of 1335 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Tata Motors has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Tata Motors' ROA % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Tata Motors ranks #443 out of 1335 companies for ROA %. This puts Tata Motors in the upper half of its industry. The industry median ROA % is 2.95. Tata Motors' value of 13.71% is 364.7% above this benchmark. Historically, Tata Motors' own ROA % has ranged from 1.53 to 8.65 over the past decade. While the company's 10-year median is 6.11 vs. the industry median of 2.95, 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 ROA % for a Vehicles & Parts company?
The median ROA % among Vehicles & Parts companies is 2.95, based on 1,335 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Motors's current ROA % of 13.71% is 364.7% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Tata Motors and its competitors. For the Vehicles & Parts industry, the median ROA % is 2.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Motors's current ROA % is 13.71%, which is 124% above median its own 10-year median of 6.11. 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 ROA % of 13.71%. The current ROA % is 13.71%, which is 124% above median its 10-year median of 6.11 and 364.7% above the Vehicles & Parts industry median of 2.95. Tata Motors' overall GF Score™ is 12/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Tata Motors (NSE:TMCV), the current ROA % is 13.71% 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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