First Read: Tata Motors "Q4FY26: Execution remains solid amid headwinds" (Buy)

研报英文原文证据摘录

First Read: Tata Motors "Q4FY26: Execution remains solid amid headwinds" (Buy)

03/27E 17.61 16.89 -4 19.19

margins expanded by 120 bps YoY, supported by savings in other expenses and staff 03/28E 19.59 19.32 -1 22.46

costs, reflecting the company’s strong cost control and execution capabilities.

Additionally, the company reported FY26 free cash flow of Rs 91bn, exceeding our Pramod Kumar

estimate of Rs 71bn. Analyst

pramod.kumar@ubs.com

+91-22-6155 6063

Key earnings call highlights

1) Management has guided for a single digit volume growth in Q1FY27; 2) Iveco Vedant Kshatriya

Associate Analystacquisition approvals largely in place; closure expected by Q2FY27; 3) Capex guidance

vedant.kshatriya@ubs.com

for FY27 retained to be in 2-4% range of revenue; 4) The first shipment of the Indonesia +91-22-6155 6008

order is already on the seas with other supplies of the order expected to ramp up rapidly;

5) EV penetration in the HCV pick-up segment stood at ~4% for the full year; however, it

increased to ~7% in the last few months toward the end of the year; 6) International

business has been impacted due to reduced fuel availability in Sri Lanka and disruptions

to shipments in the Middle East. However, the Indonesia order is expected to provide

some offsetting support.

Valuation: Maintain Buy; PT unchanged at Rs555

We value the company on a SoTP basis and ascribe Rs13/share value for stake in Tata

Capital. We incorporate CY25 actual financials of Iveco and additionally roll-forward our

estimates to include FY28E.

Highlights (Rsm) 03/25 03/26E 03/27E 03/28E 03/29E 03/30E

Revenues 755,290 830,360 908,396 977,918 1,014,806 1,064,991

EBIT (UBS) 72,631 86,840 86,020 98,388 108,580 112,368

Net earnings (UBS) 53,678 69,250 62,198 71,141 78,511 81,249