Tata Motors Reports Q2 Consolidated Profit of ₹1,257 Crore, Revenue Rises 36.3%

Tata Motors Ltd returned to consolidated profitability in the September quarter, reporting net profits of ₹1,257 crore compared to a loss of ₹867 crore in the corresponding period a year earlier. Consolidated revenue increased by 36.3 per cent year-on-year, moving from ₹18,585 crore to ₹25,338 crore, driven by higher volumes across segments.

On a standalone basis, the company recovered from a net loss of ₹1,021 crore in the previous year to post a net profit of ₹2,138 crore. Standalone revenue grew 41.9 per cent to ₹23,930 crore. Managing Director and Chief Executive Girish Wagh noted that this marked the company's highest-ever revenue in any second quarter.

Standalone EBITDA increased by 31 per cent to ₹2,806 crore. However, EBITDA growth trailed revenue growth due to commodity inflation affecting operating profitability. The EBITDA margin narrowed by 90 basis points year-on-year to 11.7 per cent, though it remained flat sequentially. Wagh stated that operating leverage, disciplined pricing actions, and cost-efficiency measures helped partially offset commodity inflation pressures, particularly in steel and rubber.

Commercial vehicle wholesales increased by 42 per cent year-on-year to 1,35,100 units during the quarter. Domestic volumes rose by 30 per cent, while exports recorded an increase of 177 per cent. Domestic commercial vehicle market share, tracked via Vahan registrations, improved from 35.1 per cent in FY26 to 36.2 per cent during the April–September 2026 period.

Standalone free cash flow saw a 108.4 per cent year-on-year increase, rising from ₹2,210 crore to ₹4,606 crore. This left the company with approximately ₹11,300 crore in net cash at the end of September. Standalone profit before exceptional items and tax grew 51.4 per cent year-on-year to ₹2,660 crore.

In international operations, Tata Motors is preparing to consolidate European truckmaker Iveco starting from the December quarter. The proposed €3.91-billion acquisition has received regulatory approvals, and Iveco shareholders approved the resolutions during an extraordinary general meeting on October 16. The tender offer is scheduled to close on October 26, with settlement anticipated on October 30, subject to successful completion.

Looking ahead, management noted that while infrastructure activity and stable fleet utilisation continue to support freight demand, growth rates are expected to moderate in the second half of the financial year against a higher base. Key factors to watch include ongoing trends in diesel prices, interest rates, and commodity inflation.

"Tata Motors' financial turnaround reflects robust volume growth and disciplined execution in its core commercial vehicle business. Generating strong free cash flow and maintaining a solid net cash position provides the company with essential financial resilience. As the management prepares to integrate Iveco, the focus must remain on operational synergy and navigating moderate growth rates in the domestic market to sustain long-term value creation." — Dr. Shishir Gupta, Founder & CEO, StartupLanes