The company shared its outlook for the commercial vehicle business on its investor day on Tuesday.
As per the investor presentation filed with the stock exchanges, Tata Motors expects its EBIDTA margin to be consistently in double-digits throughout the cycle in FY2028.
During the upcycle, the company expects margins to hit teens.
India’s top commercial vehicle maker also expects its investments to scale up to 2-4 per cent of its revenue in FY2028.
The commercial vehicle business is aiming for free cash flow to be between 7-9 per cent of revenue, while its Return on Capital Employed could jump to 30-35 per cent after the Iveco acquisition.
Iveco acquisition is on course for completion by second quarter of FY2027, the company said.
Iveco acquisition opens a new chapter in our global journey opportunity to emerge as the fourth largest commercial player, it added.
The company highlighted robust India GDP growth, fleet electrification mandates, resilient international business as key tailwinds.
It flagged short-term head winds like commodity and input cost volatility, geo-political disruptions and likely interest rate hikes, but said it is manageable.
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