Tata group stock in focus after winning 148 electric bus order from BMTC

Tata Group stock a leading global automobile manufacturer is in the spotlight after securing an additional order for 148 electric buses from Bengaluru Metropolitan Transport Corporation (BMTC). This move strengthens the company’s position in the growing electric vehicle market. 

Price Movement 

In Thursday’s trading session, the share price of Tata Motors Ltd is currently trading at Rs.742.65 per share on Thursday, falling 1.76 percent from its previous close of Rs.755.70 per share. 

What happened 

Tata Motors has secured an additional order for 148 electric buses from Bengaluru Metropolitan Transport Corporation (BMTC). This order, handled by Tata’s subsidiary TML Smart City Mobility Solutions Ltd., includes the supply, operation, and maintenance of Tata Starbus EV 12-metre low-floor buses for a 12-year term. 

This follows a previous order of 921 electric buses, the majority of which are already in operation in Bengaluru with a commendable uptime of over 95 percent. 

The Tata Starbus EV, known for its cutting-edge design and features, provides a zero-emission and comfortable travel experience. It is equipped with advanced battery systems and next-gen architecture to ensure efficient intra-city mobility. 

Management Commentary 

Asim Kumar Mukhopadhyay, CEO and MD of TML Smart City Mobility Solutions, highlighted the significance of this order, saying, “This is a testament to the success of our Starbus EVs and our commitment to innovation and sustainability.” 

Ramachandran R, Managing Director of BMTC, acknowledged the continued collaboration, saying, “The performance of Tata’s existing electric buses has been exceptional. These additional buses will further enhance our capacity to provide eco-friendly and reliable services to Bengaluru’s citizens.” 

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Business Development 

Tata Motors has made notable strides in advancing electric bus (EV) development in India. The company recently delivered 400 Starbus EVs to the Delhi Transport Corporation and secured a contract for 921 electric buses in Bengaluru. 

With over 2,900 electric buses in operation, these vehicles have collectively traveled more than 16 crore kilometers. Tata Motors is also exploring hydrogen fuel cell technology, having delivered two hydrogen-powered buses to Indian Oil Corporation Ltd. 

By fiscal 2025, Tata plans to expand its electric bus fleet by an additional 3,300 units, contributing to India’s target of adding 50,000 electric buses by 2027 and supporting sustainable urban mobility.

Financial Performance 

Turning towards the financials of the company, Tata Motors Ltd reported Q2 FY25 revenue of Rs.1,01,450 crore, falling 3.5 percent from Rs.1,05,129 crore in Q2 FY24. Profit After Tax (PAT) decreased by 10 percent to Rs.3,450 crore, compared to Rs.3,832 crore in the same period. 

Important Financial Ratios 

The Return on Capital Employed (ROCE) of the company stands at 18.02 percent, while the Return on Equity (ROE) is 32.99 percent. 

The company’s Price-to-Earnings (P/E) ratio is 8.31, which is significantly lower than the industry average of 56.53. Additionally, the company maintains a solid current ratio of 1.22 and a debt-to-equity ratio of 1.05. 

Company Profile 

Tata Motors Limited, established in 1945 and based in Mumbai, is India’s leading automobile manufacturer and a prominent name in the global automotive sector. The company manufactures a diverse range of vehicles, including passenger cars, trucks, buses, and defense vehicles, with operations in more than 175 countries. 

As part of the Tata Group, a renowned conglomerate with a broad portfolio of businesses, Tata Motors benefits from subsidiaries such as Jaguar Land Rover and Tata Daewoo, strengthening its global footprint. 

Written by – Siddesh S Raskar 

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