Tata MotorsNSE:TMCV -0.04%12 ROE % is 56.32% as of Mar. 2026, which is 116% above its 10-year median of 26.05. GuruFocus rates NSE:TMCV with a GF Score™ of 12/100. The stock has 2 warning signs investors should review. Among 1,308 Vehicles & Parts companies, Tata Motors ranks better than 90.37% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Tata Motors's annualized net income for the quarter that ended in Mar. 2026 was ₹71,720 Mil. Tata Motors's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₹127,340 Mil. Therefore, Tata Motors's annualized ROE % for the quarter that ended in Mar. 2026 was 56.32%.
The historical rank and industry rank for Tata Motors's ROE % or its related term are showing as below:
NSE:TMCV'
s ROE % Range Over the Past 10 Years
Min: 6.69 Med: 26.05 Max: 37.74
Current: 21.47
During the past 3 years, Tata Motors's highest ROE % was 37.74%. The lowest was 6.69%. And the median was 26.05%.
NSE:TMCV's ROE % is ranked better than 90.37% of 1308
companies
in the Vehicles & Parts industry
Industry Median: 6.62
vs NSE:TMCV: 21.47
Tata Motors (NSE:TMCV) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Tata Motors ROE % Related Terms
Tata Motors ROE % Historical Data
* Premium members only.
The historical data trend for Tata Motors's ROE % 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 ROE % Chart
Tata Motors Annual Data
Trend
Mar24
Mar25
Mar26
ROE %
37.74
6.69
26.05
Tata Motors Quarterly Data
Mar24
Dec24
Mar25
Dec25
Mar26
ROE %
0.00
6.38
50.89
26.77
56.32
NSE:TMCV vs TSLA, GM, F: ROE % Comparison
For the Auto Manufacturers subindustry, Tata Motors's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Tata Motors's ROE % distribution charts can be found below:
* The bar in red indicates where Tata Motors's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Tata Motors (NSE:TMCV) has a ROE % of 56.32% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Tata Motors and its competitors. This is 116% above median its historical median of 26.05. Over the past decade, Tata Motors' ROE % has ranged from 6.69 to 37.74. According to the industry distribution chart, Tata Motors ranks #126 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 9.6%.
Is Tata Motors' ROE % too high?
Tata Motors' current ROE % of 56.32% is 116% above median its 10-year median of 26.05. Over the past 10 years, this metric has ranged from a low of 6.69 to a high of 37.74. The Vehicles & Parts industry median ROE % is 6.62. Tata Motors' value of 56.32% is 750.8% above this industry median. Based on the distribution chart, Tata Motors ranks #126 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 12/100, reflecting its overall financial health beyond just this single metric.
How does Tata Motors' ROE % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Tata Motors ranks #126 out of 1308 companies for ROE %. This places Tata Motors in the top 10% of its industry — outperforming the majority of peers. The industry median ROE % is 6.62. Tata Motors' value of 56.32% is 750.8% above this benchmark. Historically, Tata Motors' own ROE % has ranged from 6.69 to 37.74 over the past decade. While the company's 10-year median is 26.05 vs. the industry median of 6.62, 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 ROE % for a Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.62, based on 1,308 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Motors's current ROE % of 56.32% is 750.8% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Tata Motors and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Motors's current ROE % is 56.32%, which is 116% above median its own 10-year median of 26.05. 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 ROE % of 56.32%. The current ROE % is 56.32%, which is 116% above median its 10-year median of 26.05 and 750.8% above the Vehicles & Parts industry median of 6.62. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Tata Motors (NSE:TMCV), the current ROE % is 56.32% 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.
12GF Score
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