Tata Motors (NSE:TMCV) ROC %: 16.45% (As of Mar. 2026)


NSE:TMCV Tata Motors Ltd NSE:TMCV
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What is Tata Motors ROC %?

Tata Motors NSE:TMCV +4.98% 12 ROC % is 16.45% as of Mar. 2026. GuruFocus rates NSE:TMCV with a GF Score™ of 12/100. The stock has 2 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Tata Motors's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 16.45%.

As of today (2026-06-29), Tata Motors's WACC % is 12.72%. Tata Motors's ROC % is 8.28% (calculated using TTM income statement data). Tata Motors earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Tata Motors  (NSE:TMCV) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Tata Motors's WACC % is 12.72%. Tata Motors's ROC % is 8.28% (calculated using TTM income statement data). Tata Motors earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of 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.

Tata Motors ROC % Related Terms

Tata Motors ROC % Historical Data

* Premium members only.

The historical data trend for Tata Motors's ROC % 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 ROC % Chart

Tata Motors Annual Data
Trend Mar24 Mar25 Mar26
ROC %
2.99 1.97 12.83

Tata Motors Quarterly Data
Mar24 Dec24 Mar25 Dec25 Mar26
ROC % 0.00 1.52 16.22 17.39 16.45
NSE:TMCV
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Tata Motors Ltd NSE:TMCV
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Tata Motors ROC % Calculation

Tata Motors's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2026 is calculated as:

ROC % (A: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2025 ) + Invested Capital (A: Mar. 2026 ))/ count )
=73890 * ( 1 - 35.02% )/( (328260 + 420440)/ 2 )
=48013.722/374350
=12.83 %

where

Invested Capital(A: Mar. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=468510 - 157260 - ( 52670 - max(0, 256710 - 239700+52670))
=328260

Invested Capital(A: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=523090 - 176590 - ( 130600 - max(0, 306030 - 232090+130600))
=420440

Tata Motors's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=101160 * ( 1 - 31.64% )/( (0 + 420440)/ 1 )
=69152.976/420440
=16.45 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=0 - 0 - ( 0 - max(0, 0 - 0+0))
=0

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=523090 - 176590 - ( 130600 - max(0, 306030 - 232090+130600))
=420440

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of 16.45% mean?
Tata Motors (NSE:TMCV) has a ROC % of 16.45% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Tata Motors and its competitors.
Is Tata Motors' ROC % too high?
Tata Motors' current ROC % is 16.45%. The Vehicles & Parts industry median ROC % is 5.09. Tata Motors' value of 16.45% is 223.2% above this industry median. Overall, Tata Motors has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Tata Motors' ROC % compare to TSLA and GM?
Tata Motors' ROC % of 16.45% can be compared against companies in the Vehicles & Parts industry. The industry median ROC % is 5.09. Tata Motors' value of 16.45% is 223.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Vehicles & Parts company?
The median ROC % among Vehicles & Parts companies is 5.09, based on 1,315 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Motors's current ROC % of 16.45% is 223.2% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Tata Motors and its competitors. For the Vehicles & Parts industry, the median ROC % is 5.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Motors's current ROC % is 16.45%. 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 ROC % of 16.45%. The current ROC % is 16.45% and 223.2% above the Vehicles & Parts industry median of 5.09. 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 ROC % calculated?
ROC % is calculated from a company's financial statements. For Tata Motors (NSE:TMCV), the current ROC % is 16.45% 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 Business Description

Other Exchanges 544569:India
Address Bombay House, 24 Homi Mody Street, Mumbai, MH, IND, 400001
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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