TATAMOTORS

Eyes Strong H2 After Q2 Profit Surge in Core Busines

adjusted net profit rose to ₹1,159 crore in Q2FY26, more than double the ₹498 crore posted a year earlier. This surge was driven by strong performance in its commercial vehicle (CV) business, which now reports independently post-demerger. The company’s consolidated loss of ₹867 crore was due to a ₹2,027 crore valuation decline in Tata Capital investments. - Revenue and Margin Expansion Reflect Operational Strength Revenue grew 6% YoY to ₹18,757 crore, supported by higher volumes. EBITDA margin improved by 140 basis points to 11.4%, reflecting better operating leverage and cost discipline. This margin expansion signals a healthy recovery in core operations, even as investment-related losses weighed on consolidated results. - Wholesale Growth Across CV Segments Tata Motors’ CV wholesales rose 12% YoY to 97,000 units. Small CVs grew 11% to 31,400 units, medium CVs rose 14% to 16,800 units, and heavy CVs increased 5% to 24,000 units. This broad-based growth underscores rising demand across segments and positions the company well for H2FY26. - Free Cash Flow Turns Positive, Balance Sheet Strengthens The company generated ₹2,000 crore in free cash flow during Q2, reversing a negative cash flow in Q1. Net cash stood at ₹1,200 crore as of September, reflecting improved liquidity and financial discipline amid rising sales and margin gains. - Industry Peers Show Similar Momentum Ashok Leyland posted a 7% YoY PAT growth to ₹820 crore and 13% revenue growth. Mahindra & Mahindra reported a 37% YoY rise in CV sales. These trends affirm the CV sector’s role as a proxy for broader economic recovery. Management expects stronger performance in H2, aided by GST rate cuts and deferred consumer purchases. Tata Motors anticipates continued volume growth as economic activity picks up and tax benefits pass through to end-users.