Tata Motors Ltd, the Tata Group’s demerged commercial vehicles business, returned to consolidated profitability in the September quarter, reporting net profits of ₹1,257 crore against a loss of ₹867 crore a year earlier. Consolidated revenue increased 36.3 per cent y-o-y, from ₹18,585 crore to ₹25,338 crore, supported by higher volumes.
Standalone net profit recovered from a loss of ₹1,021 crore to ₹2,138 crore, while revenue increased 41.9 per cent to ₹23,930 crore.
“I’m happy to call out that this has been our highest-ever revenue in any second quarter yet,” Managing Director and Chief Executive Girish Wagh said on a media call on Friday. Standalone EBITDA increased 31 per cent to ₹2,806 crore, trailing revenue growth by nearly 11 percentage points, as commodity inflation weighed on operating profitability. The EBITDA margin narrowed by 90 basis points year-on-year to 11.7 per cent, although it remained flat sequentially.
Wagh said operating leverage, disciplined pricing actions and rigorous cost-efficiency measures helped partially mitigate the impact of commodity inflation.
“Q2 FY27 marked another strong quarter in our journey of consistent, profitable growth. Wholesale volumes grew 42 per cent, with broad-based growth across segments, reflecting healthy underlying demand and disciplined execution,” Wagh said in the earnings release earlier.
Iveco acquisition
Tata Motors expects to consolidate the acquisition of European truckmaker Iveco from the December quarter, subject to completing its proposed €3.91-billion buy, which would significantly expand its international commercial vehicle operations.
The company revised its offer from €14.10 to €14.40 per share on October 9. Regulatory approvals have been received, and Iveco shareholders approved the proposed resolutions during an extraordinary general meeting on October 16. The tender offer closes on October 26, with settlement scheduled for October 30, subject to successful completion.
“On the Iveco transaction, we are progressing steadily towards completion, within the indicated timeline of end October,” Chief Financial Officer GV Ramanan said. “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.”
Domestic growth
Commercial vehicle wholesales increased 42 per cent year-on-year to 1,35,100 units in the September quarter. Domestic volumes rose 30 per cent, while exports increased 177 per cent.
Domestic commercial vehicle market share, measured by Vahan registrations, rose from 35.1 per cent in FY26 to 36.2 per cent in April–September 2026, a gain of 110 basis points.
“We remain well positioned for a robust FY27, even as growth rates are expected to moderate in the second half against a higher base,” Wagh said.
Infrastructure activity and stable fleet utilisation supported freight demand, although diesel prices, interest rates and commodity inflation remained concerns.
Commodity costs
Standalone profit before exceptional items and tax increased 51.4 per cent year-on-year, from ₹1,757 crore to ₹2,660 crore. However, the EBITDA margin narrowed from 12.6 per cent to 11.7 per cent, a decline of 90 basis points.
“Despite significant commodity cost pressures, particularly in steel and rubber, we maintained margins sequentially through rigorous cost management, operating efficiencies and calibrated pricing actions,” Ramanan said.
Standalone free cash flow increased 108.4 per cent year-on-year, from ₹2,210 crore to ₹4,606 crore, leaving the company with approximately ₹11,300 crore in net cash at September-end.
Exceptional items
Consolidated earnings included a ₹708-crore fair-value loss on equity investments, compared with a ₹1,135-crore gain in the preceding quarter.
Standalone earnings included a net exceptional gain of ₹218 crore, largely reflecting a reversal of employee-related provisions. The corresponding quarter last year included a ₹2,355-crore impairment provision against investments in subsidiaries and associates.
Published on October 23, 2026
