Tata Motors PV Q2 FY27 results: Net loss at ₹5,531 crore YoY; margin impacted on commodity cost pressures

The company had posted a net profit of ₹775 crore in the previous quarter.

The carmaker’s total revenue from operations, however, grew 34% year-on-year (YoY) to ₹96,920 crore in Q2 FY27 from ₹72,349 crore in the year-ago period.

The operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), stood at ₹4,866 crore as compared to a loss of ₹1,404 crore in the corresponding period of the previous financial year.

The EBITDA margin for Q2 stood at 6.2%, up 630 basis points YoY, while the EBIT margin rose 790 basis points to 1.1%.

Tata Motors PV said that the yearly improvement mainly reflects recovery from the cyber incident at JLR in the same period last year. Sequentially, margins were impacted due to adverse mix and continuing commodity cost pressures.

“We registered a Y-o-Y revenue growth of 51% and our highest ever quarterly revenues of ₹20.4K Cr in Q2FY27. While steep commodity cost pressures remained a headwind, we responded through calibrated pricing and focused cost actions. Looking ahead, we remain focused on sustaining industry-beating growth, capitalizing on growing EV-penetration, ramping up production capacity and strengthening profitability,” said Shailesh Chandra, Managing Director & CEO, Tata Motors Passenger Vehicles.

Tata Motors Passenger Vehicles reported 40% YoY growth in volumes during Q2, outperforming the industry amid robust demand across its portfolio. Electric vehicle volumes increased 90% annually, contributing to a 380 bps QoQ improvement in market share and further strengthening the company’s industry leadership.

However, margins remained under pressure due to the adverse impact of commodity prices and foreign exchange movements.

JLR updates

Jaguar Land Rover (JLR) reported Q2 revenue of £5.9 billion, up 20.3% YoY, while revenue for the first half of the fiscal year (H1 FY27) rose 3.2% to £11.9 billion. Its profit before tax and exceptional items stood at £6 million for Q2 and £115 million for H1, compared with losses of £485 million and £134 million, respectively, in the corresponding periods last year.

The company attributed the quarter-on-quarter performance to adverse market and model mix.

JLR reported exceptional items of £530 million during the quarter, reflecting restructuring activities, including separation costs and write-downs of intangible assets under development and other assets. Free cash outflow stood at £540 million, with a closing cash balance of £1.8 billion.

In view of ongoing market challenges, geopolitical risks and exceptional costs recognised during the quarter, JLR revised its full-year guidance to an adjusted EBIT margin of 2-3% and free cash outflow of approximately £1.25 billion.

The company said it remains in good shape to navigate geopolitical, inflationary and regulatory challenges, supported by its previously announced growth objectives and recent product launches.

“JLR delivered positive operating profits in the second quarter and first half of the financial year, despite ongoing global challenges. With the proposed arrival of Range Rover GT and a new electric Defender product in the new year, we are entering a phase of exciting product launches. This, together with our growth plans for the US and disciplined execution of the Enterprise Missions to reduce our breakeven volumes to 300k units, positions us well to deliver consistent, cash-accretive growth in the coming years,” said PB Balaji, Chief Executive Officer, JLR.

On Friday, shares of Tata Motors PV closed at ₹287.40 apiece on the National Stock Exchange, falling 3.31%. The earnings, however, came after market hours.