Tata Motors Q2: CV major posts profit of ₹2,138 crore; EBITDA margin slips 90 bps to 11.7%

Tata Motors Ltd, the commercial vehicle arm of Tata Motors, on Friday, October 23, reported a 42% year-on-year (YoY) jump in standalone revenue to ₹23,930 crore for the September quarter of FY27.

EBITDA rose 31% YoY to ₹2,800 crore, while the EBITDA margin contracted 90 basis points to 11.7%. Sequentially, however, the margin remained stable despite the significant impact of rising commodity costs, the company said.

Tata Motors Ltd added that strong operating leverage, disciplined pricing actions and rigorous cost-efficiency measures helped partially offset the impact of commodity inflation.

Profit before tax (PBT) before exceptional items stood at ₹2,700 crore, up 51% YoY, while profit after tax (PAT) came in at ₹2,138 crore.

The company had reported a loss of ₹1,021 crore in the year-ago period.

Free cash flow for the quarter stood at ₹4,600 crore, up ₹2,400 crore year-on-year, taking the company’s net cash position to ₹11,300 crore as of September 30, 2026.

Auto return on capital employed (ROCE) stood at 65%, compared with 68% in the June quarter (Q1 FY27).

EBIT margin contracted 50 basis points year-on-year to 9.7%.

Consolidated financials

On a consolidated basis, Tata Motors reported a 36% year-on-year (YoY) increase in revenue to ₹25,300 crore for Q2 FY27. EBITDA rose 31% to ₹2,800 crore, while the EBITDA margin contracted 40 basis points to 10.9%.

Profit before tax (PBT) before exceptional items surged 423% YoY to ₹1,800 crore, while profit after tax (PAT) jumped 244% to ₹1,300 crore. The company attributed the improvement in profitability largely to lower mark-to-market losses on its investments in Tata Capital Ltd.

As of September 30, 2026, the company had a strong net cash position of ₹15,900 crore.

Iveco update

Following receipt of all regulatory approvals, the tender offer has commenced and will remain open for acceptance until October 26, 2026. At Iveco’s Extraordinary General Meeting held on October 16, shareholders approved all proposed resolutions. Subject to the successful completion of the tender offer, settlement is scheduled for October 30, 2026.

What top officials said

Girish Wagh, MD & CEO, Tata Motors Ltd. said, “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.

With H1FY27 volumes up 35%, we remain well positioned for a robust FY27, even as growth rates are expected to moderate in the second half against a higher base."

The MD added that core macroeconomic indicators, sustained infrastructure activity and stable fleet utilization continue to support freight demand, while interest rates, diesel prices and the broader economic environment remain key monitorables.

"Commodity cost pressures persisted through the first half and remain a headwind. Against this backdrop, we will stay focused on operational excellence, rigorous cost management, enhancing our customer value proposition and advancing our future-ready portfolio. Our priority remains to deliver sustainable, profitable growth and create enduring value for all stakeholders," Wagh added.

GV Ramanan, CFO, Tata Motors Ltd. said, “Q2 FY27 delivered strong financial performance, with revenues growing 42% and EBITDA increasing 31%, supported by robust operating performance and continued capital discipline. Strong free cash flow generation of ₹4.6K crore further strengthened our balance sheet, taking our net cash position to ₹11.3K crore."

Despite significant commodity cost pressures, particularly in steel and rubber, "we maintained margins sequentially through rigorous cost management, operating efficiencies and calibrated pricing actions," the CFO added.

On the Iveco transaction, "we are progressing steadily towards completion, within the indicated timeline of end October. As we prepare for consolidation from next quarter, our priorities are clear: seamless integration, unlocking strategic opportunities and creating sustained value for the long term," Ramanan said.