TaMo PV posts Rs 5,531 crore Q2 loss, revenue rises 34%

Mumbai: Tata Motors Passenger Vehicles swung to an unexpected loss in the second quarter, against a profit in the year-earlier period that was boosted by a one-time gain from the demerger of its commercial vehicle business. The company posted a ₹5,531 crore consolidated loss attributable to shareholders in the quarter ended September 30, against a profit of ₹76,170 crore a year earlier. The loss was its steepest in 22 quarters.

Analysts View

Consolidated revenue from operations rose 34% to ₹96,920 crore from ₹72,349 crore a year earlier, marginally missing market estimates. Analysts tracked by Bloomberg on average expected the company to post a consolidated net profit of ₹1,811 crore on revenue of ₹1 lakh crore.

The owner of Jaguar Land Rover pared the outlook on the British subsidiary's operating margin for the current fiscal year, as it faces market challenges and restructuring costs. JLR, the group's largest revenue contributor, continues to recover from last year's cyberattack, which disrupted production and deliveries.

The ongoing restructuring and investment in its next-generation vehicle portfolio are also weighing on earnings and cash flow. The carmaker now expects an adjusted operating (earnings before interest and tax) margin of 2-3% in FY27, down from its earlier forecast of around 4%.

"We're in good shape to face the continuing geopolitical inflationary and regulatory challenges this industry faces. We have updated the guidance to be 2-3% EBIT for the full year. We've included everything (in the guidance) that we know about," JLR chief financial officer Richard Molyneux said in a post-earnings media call.

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Exceptional Items

Before exceptional items and tax, Tata Motors PV posted a loss of ₹6,335 crore. Exceptional charges accounted for ₹6,738 crore: employee separation costs of ₹3,776 crore and asset impairment of ₹2,856 crore, largely reflecting charges at JLR. The year-earlier profit included an exceptional gain of ₹82,616 crore arising from the disposal of the commercial vehicle undertaking as part of the demerger. Excluding this discontinued operation and the exceptional gain, the company had reported a loss from continuing operations of ₹6,368 crore in the September 2025 quarter.

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Margins Impact

The profitability was impacted by an adverse model mix and commodity inflation, said Dhiman Gupta, group chief financial officer at Tata Motors Passenger Vehicles.

The domestic passenger vehicle business (standalone) posted its highest-ever quarterly revenue of ₹20,423 crore, up 51% year-on-year, driven by a 40% increase in sales volumes to more than 200,000 units. Its Ebitda margin declined 180 basis points to 4%, while EBIT margin was a negative 0.3%, against a negative 0.1% a year earlier. Profit before tax and exceptional items was ₹25 crore, compared with ₹156 crore in the year-ago quarter.

The company ended the quarter as the country's second-largest passenger vehicle maker with a 14.3% market share, said chief executive Shailesh Chandra.

Tata Motors PV shares closed 3.4% lower at ₹287 on the BSE Friday. The results were announced after market hours.