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What is the story about?
Tata Motors Ltd. (Tata Motors CV) business reported a strong performance in the September quarter, with revenue rising 42% year on year to ₹23,930 crore and net profit turning around sharply to ₹2,138 crore, beating CNBC-TV18 poll estimates.
The company had reported a loss of ₹1,021 crore in the year-ago quarter, which included a one-time loss of ₹2,366 crore.
Revenue, however, fell short of the poll estimate of ₹24,800 crore, while earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at ₹2,723 crore against expectations of ₹2,890 crore. EBITDA rose 31.1% year on year from ₹2,077 crore.
The EBITDA margin stood at 11.38%, compared with 12.3% a year ago and the poll estimate of 11.7%. The company said operating leverage, disciplined pricing actions and cost-efficiency measures helped partially offset the impact of commodity inflation.
Strong volumes drive quarterly performance
Total wholesales rose 42% year on year to 135,100 units in Q2 FY27, with domestic and export volumes increasing 30% and 177%, respectively.
Volumes for the first half of FY27 grew 35%, supporting the company’s outlook for continued growth even as the pace is expected to moderate in the second half against a higher base.
He added that core macroeconomic indicators, sustained infrastructure activity and stable fleet utilisation continued to support freight demand, while interest rates, diesel prices and the broader economic environment remained key monitorables. Commodity cost pressures, particularly in the first half, continued to pose a headwind.
The company’s domestic commercial vehicle market share stood at 36.2% in the first half of FY27, up 110 basis points from FY26. Category-wise market shares included 55.7% in heavy commercial vehicles, 36.3% in intermediate and light medium commercial vehicles, 27.6% in small commercial vehicles and pick-ups, and 41.1% in CV passenger vehicles.
Free cash flow strengthens balance sheet
Free cash flow stood at ₹4,600 crore in Q2 FY27, an increase of ₹2,400 crore, taking the business to a net cash position of ₹11,300 crore as of September 30, 2026. Automotive return on capital employed stood at 65%, compared with 68% in the June quarter.
He added, “Despite significant commodity cost pressures, particularly in steel and rubber, we maintained margins sequentially through rigorous cost management, operating efficiencies and calibrated pricing actions.”
On the proposed Iveco transaction, Ramanan said the company was progressing towards completion within the indicated timeline of end-October. As it prepares for consolidation from the next quarter, the focus will be on integration, unlocking strategic opportunities and creating long-term value.
New initiatives across commercial vehicles
During the quarter, Tata Motors showcased its next-generation passenger mobility solutions at Prawaas 5.0 and launched the Ultra Prime and Starbus Prime ranges. It also presented its next-generation aggregates portfolio at Bauma CONEXPO India 2026.
The company signed a memorandum of understanding with Drivn to offer leasing and financing solutions for its electric commercial vehicles and partnered with Petronas to pilot a used-oil recycling model. It also partnered with Welspun Renewable Energy to develop an 86 MW wind-solar hybrid project.
Shares of Tata Motors closed at ₹395.70 on the BSE, down 4.43% or ₹18.35, ahead of the earnings announcement.
The company had reported a loss of ₹1,021 crore in the year-ago quarter, which included a one-time loss of ₹2,366 crore.
Revenue, however, fell short of the poll estimate of ₹24,800 crore, while earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at ₹2,723 crore against expectations of ₹2,890 crore. EBITDA rose 31.1% year on year from ₹2,077 crore.
The EBITDA margin stood at 11.38%, compared with 12.3% a year ago and the poll estimate of 11.7%. The company said operating leverage, disciplined pricing actions and cost-efficiency measures helped partially offset the impact of commodity inflation.
Strong volumes drive quarterly performance
Total wholesales rose 42% year on year to 135,100 units in Q2 FY27, with domestic and export volumes increasing 30% and 177%, respectively.
Volumes for the first half of FY27 grew 35%, supporting the company’s outlook for continued growth even as the pace is expected to moderate in the second half against a higher base.
Q2 FY27 marked another strong quarter in our journey of consistent, profitable growth. Wholesale volumes grew 42%, with broad-based growth across segments, reflecting healthy underlying demand and disciplined execution GIRISH WAGH, MD AND CEO OF TATA MOTORS
He added that core macroeconomic indicators, sustained infrastructure activity and stable fleet utilisation continued to support freight demand, while interest rates, diesel prices and the broader economic environment remained key monitorables. Commodity cost pressures, particularly in the first half, continued to pose a headwind.
The company’s domestic commercial vehicle market share stood at 36.2% in the first half of FY27, up 110 basis points from FY26. Category-wise market shares included 55.7% in heavy commercial vehicles, 36.3% in intermediate and light medium commercial vehicles, 27.6% in small commercial vehicles and pick-ups, and 41.1% in CV passenger vehicles.
Free cash flow strengthens balance sheet
Free cash flow stood at ₹4,600 crore in Q2 FY27, an increase of ₹2,400 crore, taking the business to a net cash position of ₹11,300 crore as of September 30, 2026. Automotive return on capital employed stood at 65%, compared with 68% in the June quarter.
Q2 FY27 delivered strong financial performance, with revenues growing 42% and EBITDA increasing 31%, supported by robust operating performance and continued capital discipline GV RAMANAN, CHIEF FINANCIAL OFFICER OF TATA MOTORS
He added, “Despite significant commodity cost pressures, particularly in steel and rubber, we maintained margins sequentially through rigorous cost management, operating efficiencies and calibrated pricing actions.”
On the proposed Iveco transaction, Ramanan said the company was progressing towards completion within the indicated timeline of end-October. As it prepares for consolidation from the next quarter, the focus will be on integration, unlocking strategic opportunities and creating long-term value.
New initiatives across commercial vehicles
During the quarter, Tata Motors showcased its next-generation passenger mobility solutions at Prawaas 5.0 and launched the Ultra Prime and Starbus Prime ranges. It also presented its next-generation aggregates portfolio at Bauma CONEXPO India 2026.
The company signed a memorandum of understanding with Drivn to offer leasing and financing solutions for its electric commercial vehicles and partnered with Petronas to pilot a used-oil recycling model. It also partnered with Welspun Renewable Energy to develop an 86 MW wind-solar hybrid project.
Shares of Tata Motors closed at ₹395.70 on the BSE, down 4.43% or ₹18.35, ahead of the earnings announcement.
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