Tata Motors reports dismal Q2 performance

Tata Motors reported consolidated net loss of Rs 867 crore in Q2 FY26 compared with net profit of Rs 498 crore in Q2 FY25.

The reported profits adversely impacted by mark-to-market losses on account of recently listed investments in Tata Capital (around Rs 2,000 crore).

Total revenue from operations increased 5.99% YoY Rs 18,585 crore in Q2 FY26. EBITDA margin (including impact of acquisition related due diligence spends) improved 140 bps to 14.02%, while EBIT margin expanded 170 bps to 8.8% during the quarter.

As of September 30, 2025, the company was net cash positive at Rs 1,200 crore (Including TMF Holdings gross debt less market value of TMF Holdings investments in Tata Capital).

The Commercial Vehicles (CV) segment delivered strong Q2 FY26 results driven by a 12% YoY increase in volumes and continued focus on profitable growth. In Q2 FY26, revenue increased 6.6% YoY to Rs 18,370 crore. During the quarter, EBITDA margins improved to 12.2% (up 150 bps) and EBIT margin stood at 9.8% (up 200 bps), aided by higher volumes and favorable realizations.

In Q2 FY26, CV wholesales stood at 96,800 units (up 12% YoY). Domestic volumes were up by 9% YoY, exports were up by 75% YoY. Free cash Flow (FCF) for the quarter stood at Rs 2,200 crore.

Looking ahead, the company expects a strong second half of FY26, supported by festive demand, improving consumption, and the unfolding benefits of GST reforms. Increased construction, infrastructure, and mining activity is expected to further boost demand for trucks and tippers. With a robust pipeline of upcoming launches, and a richer, more customer-aligned product portfolio, Tata Motors well-positioned to accelerate this momentum and drive meaningful, broad-based growth and market share improvement across all segments. The business will continue its focus on profitable growth to deliver double digit EBITDA margin and robust cash flows along with high ROCE.

Girish Wagh, MD & CEO, Tata Motors said: Yesterday, November 12, 2025, marked a historic milestone for Tata Motors as we successfully listed on both the BSE and NSE following the demerger and today, Im pleased to share that weve reported strong Q2 FY26 results. Our financial results underscore a resilient performance, driven by a sound and agile business strategy. After a subdued start, the rollout of GST 2.0 and the onset of the festive season catalyzed a surge in demand across segments. We recorded a 12% year-onyear volume growth, led by enhanced product availability, a refined pricing strategy, and intensified market activations.

On Wednesday, 12 November 2025, shares of Tata Motors commercial vehicle businessofficially listed as Tata Motorsmade a strong debut following its demerger from the passenger vehicle division.

Tata Motors, part of the Tata Group, is a global automobile manufacturer of utility vehicles, pickups, trucks, and buses.

The counter declined 0.94% to Rs 317.25 on the BSE.

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