Tata Motors CV Q2 results: Net loss at ₹867 crore, revenue rises 6% to ₹18,585 crore YoY

The commercial vehicles (CV) arm of Tata Motors on Thursday, November 13, reported a consolidated net loss of ₹867 crore in the second quarter of the current financial year (Q2 FY26) as against a net profit of ₹498 crore in the same period last year.

The commercial vehicle maker’s revenue from operations increased 6% year-on-year (YoY) for the quarter at ₹18,585 crore as compared to ₹17,535 crore in Q2 FY25.

Tata Motors reported that its profits were adversely impacted by mark-to-market losses of approximately ₹2,000 crore related to its recently listed investments in Tata Capital. As a result, the company posted a profit before tax (before exceptional items) of ₹(0.6)K crore and a net income of ₹(0.9)K crore for the quarter.

Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) declined 99% YoY to ₹17 crore in Q2 FY26 from ₹1,707 crore in the corresponding quarter of the previous fiscal year.

Its operating margin came in at 0.1% in Q2 FY26 in contrast to 9.73% in Q2 FY25.

Tata Motors posted free cash flow (FCF) of ₹417 crore in H1 FY26, its highest ever for the first half, despite a seasonally weak Q1. The firm highlighted that consistent margins and increased contribution from non-cyclical businesses have supported a steady rise in return on capital employed (ROCE), which improved to 45% in Q2 FY26 from 37% a year earlier.

As of September 30, 2025, net debt for the domestic business stood at ₹600 crore.

Commenting on the earnings, CFO GV Ramanan said, “With the business now generating consistent cash flows, we achieved the highest ever H1 FCF for the business, marking a significant milestone in our financial journey. As a newly listed entity, we are well-positioned for the future and remain committed to delivering long-term value to all our stakeholders.”

As of September 30, 2025, the company was net cash positive at ₹1,200 crore, including TMF Holdings’ gross debt offset by the market value of its investments in Tata Capital Ltd, it said.

In the commercial vehicles (CV) segment, Tata Motors reported wholesales of 96,800 units, up 12% year-on-year. Domestic volumes rose 9%, while exports surged 75% during the period. The company maintained a stable domestic CV VAHAN market share of 35.3% in H1 FY26, with segmental shares of 47.2% in HGV+HMV, 35.8% in MGV, 28.6% in LGV, and 36.5% in the passenger segment.

“We recorded a 12% year-on-year volume growth, led by enhanced product availability, a refined pricing strategy, and intensified market activations. Looking ahead to H2 FY26, we anticipate continued momentum from key demand drivers—construction, infrastructure, and mining. These sectors are poised to fuel growth, and our focus will remain on driving sustainable performance and shaping the future of mobility,” said Girish Wagh, MD & CEO, Tata Motors.

Tata Motors said it expects a strong performance in the second half of FY26, supported by the ongoing festive season, improving consumption trends, and the gradual benefits of GST reforms. The automaker noted that rising activity in construction, infrastructure, and mining is likely to drive higher demand for trucks and tippers.

“With a robust pipeline of upcoming launches and a richer, more customer-aligned product portfolio, we are 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,” the company said in a statement.

New listing

Shares of Tata Motors' commercial vehicles business on Wednesday listed on the stock exchanges with over a 28% premium on the NSE. The scrip began trading at ₹335, up 28.48% from its discovered price on the NSE.

Tata Motors demerger details

Tata Motors' demerger took effect from October 1. In 2024, Tata Motors announced the demerger of its businesses into two separate entities.

As part of the demerger, the commercial vehicles business and related investments were moved into one company, while the passenger vehicles (PV) business, including PV, electric vehicles, Jaguar Land Rover and related investments, formed the other entity.

Tata Motors' passenger vehicle arm was renamed Tata Motors Passenger Vehicles Ltd following the split.