Tata Motors posts ₹867 cr loss in Q2, revenue rise 6% to ₹18,585 cr

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Tata Motors, the commercial vehicle (CV) player newly listed, has reported a 6 per cent year-on-year (Y-o-Y) rise in consolidated revenues to ₹18,491 crore in Q2FY26, riding on 9 per cent growth in domestic volumes.

 

The company, however, posted a net loss of ₹867 crore in the quarter, impacted by mark-to-market losses of about ₹2,027 crore on account of recent investment in Tata Capital, which recently listed.

 

The Q2FY26 figures include fair value loss on equity investment measured at fair value loss through profit and loss (fvtpl) of ₹2,027 crore.

 

The margin on earnings before interest, tax, depreciation, and amortisation (Ebitda) stood at 11.4 per cent, up 140 basis points.

 

The stock, which listed on the bourses on Wednesday, was down 2.26 per cent on the BSE.

 

As of September 30, Tata Motors was net cash positive at around ₹1,200 crore.

 

Domestic volumes were up 9 per cent, while exports grew by 75 per cent.

 

TaMo, which has more than 3,800 electric buses plying now, is set to bid for an upcoming tender for 10,900 buses. The tender closes on Friday.

 

The business will focus on profitable growth to secure double-digit Ebitda margins and robust cash flows, along with high returns on capital employed, said Girish Wagh, managing director and chief executive officer. 

 

As such, after reforms in goods and services tax (GST), the business-to-consumer segment, which has seen reduction in prices, has experienced growth and this is benefiting light commercial vehicles, Wagh said, adding that reduction in GST on spare parts and tyres (which leads to a lower cost of ownership) is benefiting all segments. Moreover, as consumption increased after the GST cut, demand for freight has also grown, and this would have a high single-digit positive impact on growth in H2FY26.

 

The industry may cross one million in volumes, beating the FY19 peak.

 

Wagh, however, said in terms of revenue, the industry had beaten the FY19 peak around two years ago.

 

“The proposed acquisition of Iveco, announced on July 30, 2025, is progressing as planned with regulatory approvals underway as we work towards an April 2026 closure,” the company said in a statement. Tata Motors is looking at synergies in revenue growth with the Italian CV maker, as well as capital expenditure, after acquisition. It would also focus on the design-to-value technique to reduce material costs and operational expenditure.

 

G V Ramanan, chief financial officer, said that since Iveco (to be acquired) was a double-digit Ebitda business. After acquisition, the company should be debt-free in around three years. 

 

The combined top line after Iveco acquisition is completed (by April) will be $24 billion for this year.

 

CV industry seeks Bharat Vecto tool to calculate carbon-dioxide emission

 

The CV industry has arrived at a consensus on the upcoming CAFE (corporate average fuel economy/efficiency) norms, and industry body Society of Indian Automobile Manufacturers (Siam) has recommended to the Bureau of Energy Efficiency (BEE) and Ministry of Road Transport and Highways to go for the Bharat Motor Vehicle Energy Consumption Calculation tool for calculating fuel consumption and carbon-dioxide emission for medium and heavy commercial vehicles.

 

Girish Wagh, MD and CEO of TaMo, said the industry body had recommended this tool, which gives a real-life representation of fuel consumption as well as emission, instead of norms on fuel consumption at constant speed and reduction in accordance with those criteria. 

 

“We hope it would be looked at favourably,” he said. As for smaller commercial vehicles, which account for less than 2 per cent of the country’s fuel consumption and lower than 1 per cent of carbon-dioxide emission, Saim has requested exemption of the N1 category (or light CVs) from upcoming CAFE standards, he added. 

 

The BEE has prepared a draft proposal to include the N1 category within the CAFE framework, starting with CAFE-3 norms effective in April 2027.