Tata Motors Passenger Vehicles Limited

Consumer Cyclical — Auto Manufacturers · NSE

₹286.85−₹0.20 (−0.07%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Tata Motors Passenger Vehicles Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Tata Motors Passenger Vehicles Limited designs, develops, manufactures, and sells various automotive vehicles. The company offers passenger and electric vehicles, as well as related spare parts and accessories. It also manufactures engines for industrial applications.

IndustryAuto Manufacturers

SectorConsumer Cyclical

Employees60,332

Annual revenue₹3.33 L Cr

How does it make money?

Turns over ₹3.33 L Cr a year. Of every ₹100 of sales, about ₹25 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 60,332 employees supports ₹5.53 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5.53 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TATA MOTORS LIMITED, MAHINDRA & MAHINDRA LTD, BAJAJ AUTO LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 0.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE30.3%

What is the outlook?

16 analysts covering the stock expect revenue to grow about 500.2% and earnings to grow about 70.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+500.2%

Est. earnings growth+70.8%

Analysts16

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -3% while net margin moved +3410% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-3%

Margin effect+3410%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Debt/Equity of 0.70x is manageable
✗ Current ratio of 0.84 — short-term liabilities exceed short-term assets
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only 0.4x — little room if profits dip
✓ Debt has been reduced by 15.9% a year

Quality vs. Valuation

Company Quality

54/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

54/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

6.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 40% over 3 years.
Return on equity is rising
ROE has improved from 5.3% to 73.5%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 7.5% to 0.6% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 2 high · 5 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 0.4x — little room if earnings dip.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 8.3x to 0.4x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹23,241 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 3.7 points over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 23% against revenue up -3% — stock may not be moving.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.84 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 40% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 11.1% to 7.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 5%✓ 7.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹23,241 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 0.4x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 0.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 2 neutral · 6 weak

Market Cap

₹1.06 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.94x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-9.17

Loss-making

Negative earnings per share — the business is losing money

ROE

73.5%

Strong

Strong capital efficiency

ROCE

0.6%

Weak

Low return on total capital employed

Debt/Equity

0.70x

Moderate

Moderate leverage

Revenue Growth (YoY)

-8.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-80.3%

Falling

Profits are shrinking

Dividend Yield

1.05%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹23,241 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

6.1x

Operating Margin

2.7%

Weak

Thin margins leave little room for error

Net Margin

22.8%

Good

Strong bottom-line conversion

Current Ratio

0.84

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.84

Market-like

Moves roughly in line with the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

287.8 / 307.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3.43 L Cr	₹4.31 L Cr	₹3.63 L Cr	₹3.33 L Cr	-0.9%
EBITDA	₹37,896 Cr	₹65,658 Cr	₹55,490 Cr	₹24,615 Cr	-13.4%
EBITDA Margin	11.1%	15.2%	15.3%	7.4%	—
PAT (Net Profit)	₹2,414 Cr	₹31,399 Cr	₹27,830 Cr	₹82,390 Cr	+224.4%
EPS	₹6.29	₹81.88	₹78.75	₹-0.61	—
ROE	5.3%	37.0%	24.0%	73.5%	—
ROCE	7.5%	19.4%	15.3%	0.6%	—
Total Debt	₹1.37 L Cr	₹1.10 L Cr	₹74,004 Cr	₹81,395 Cr	-15.9%
Free Cash Flow	₹17,292 Cr	₹36,501 Cr	₹25,060 Cr	-₹23,241 Cr	—

🟡 Revenue has been broadly flat over 3 years (-0.9% a year).

🔴 EBITDA has shrunk at 13.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.1% to 7.4% over 3 years (-3.7 pts).

🟢 PAT (Net Profit) has grown at 224.4% a year over 3 years.

🔴 EPS has turned negative, from ₹6.29 to ₹-0.61.

🟢 ROE has risen from 5.3% to 73.5% over 3 years (+68.2 pts).

🔴 ROCE has fallen from 7.5% to 0.6% over 3 years (-7.0 pts).

🟢 Total Debt has shrunk at 15.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹17,292 Cr to -₹23,241 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3.82 L Cr

Total Liabilities

₹2.63 L Cr

Cash & Equivalents

₹22,880 Cr

Operating Cash Flow

₹13,041 Cr

Capex

-₹36,282 Cr

Shareholding (proxy)

Institutional Holding

25.4%

Insider Holding

44.1%

Corporate Actions

Next Earnings

19 Nov 2026

Dividend Rate

₹3

Ex-Dividend Date

19 Jun 2026

Analyst Consensus

Recommendations

11 Buy · 6 Hold · 8 Sell

Target Price (Mean)

₹355.44

+23.9% vs CMP

Target Range

₹252 – ₹490

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TATA MOTORS LIMITED	37.1x	32.8%
MAHINDRA & MAHINDRA LTD	17.8x	19.7%
BAJAJ AUTO LIMITED	24.7x	30.3%

Recent News

2 mixed4 general

India's Tata Motors PV shares fall after profit plunges, warns on margins

Reuters, 14 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Stellantis, Tata Motors PV join hands for vehicle tech, product development

Business Standard, 12 Oct

Is Now An Opportune Moment To Examine Tata Motors Passenger Vehicles Limited (NSE:TMPV)?

Simply Wall Street, 02 Jul

Why Tata Motors Passenger Vehicles Share Price Is Rising

Equitymaster, 03 Aug

Tata Motors Passenger Vehicles Share Rallies Nearly 3% After Company Announces Price Hike Across Passenger Vehicle Range

HDFC Sky, 12 JunPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Tata Motors Share Price - Live NSE: TMPV Stock Price & Chart

Upstox, 05 May

Watch Items

Revenue growth is negative (-8.2%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongProfitability

MiddlingGrowth · Valuation · Risk

WeakBusiness Quality · Financial Health

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

4 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑