Tata Motors has outlined an ambitious growth strategy for its commercial vehicle business, targeting annual sales of more than one million units over the coming years following the proposed acquisition of Italy-based Iveco Group.

Speaking at the company's annual general meeting, Chairman N Chandrasekaran said the combined business would begin with an annual production and sales volume of around 600,000 commercial vehicles and is well positioned to cross the one million mark in the years ahead. The acquisition is expected to significantly strengthen Tata Motors' global commercial vehicle business by expanding its manufacturing footprint, product portfolio, and technological capabilities.

The proposed transaction, which is awaiting final regulatory approvals, is expected to be completed by the second quarter of the current financial year. According to Chandrasekaran, the acquisition will provide access to advanced powertrain technologies and next-generation commercial vehicle platforms while enhancing the company's international market presence.

The integration is expected to elevate Tata Motors among the world's four largest commercial vehicle manufacturers, supporting its long-term strategy to build a globally competitive commercial vehicle business.

The company's expansion plans come after a strong financial performance in FY26, the first full year following the demerger and separate listing of its commercial vehicle business. Tata Motors retained its leadership in the domestic commercial vehicle market with sales exceeding 435,000 units, representing a 13 percent year-on-year increase.

Revenue rose 9.8 percent to a record Rs 83,855 crore during FY26, while EBITDA margin improved to 12.3 percent. Return on capital employed reached 72.3 percent, reflecting strong operational efficiency and profitability.

The board has recommended a final dividend of Rs 4 per share for FY26.

Tata Motors also continued to diversify its revenue base by expanding non-cyclical businesses such as spares and services, which recorded 18.2 percent growth during the year. Its electric mobility business expanded further, with Tata Motors Smart City Mobility Solutions operating more than 3,800 electric buses across 10 Indian cities. Collectively, these buses have covered over 500 million kilometres while maintaining operational uptime exceeding 95 percent.

The company's digital ecosystem also recorded steady growth, with its Fleet Edge platform surpassing one million connected vehicles and Fleet Verse strengthening its digital commerce offerings. International operations grew 53.9 percent during FY26, supported by stronger market penetration and large order wins, providing additional momentum ahead of the planned Iveco integration.