Tata Motors CV Q2 Results: Co swings to black with Rs 1,254 crore profit; revenue jumps 37% YoY

Tata Motors’ commercial vehicle (CV) business on Friday reported a consolidated profit after tax (PAT) of Rs 1,254 crore in Q2FY27, compared with a net loss of Rs 561 crore in the corresponding quarter last year.

The improvement in profitability was driven by lower mark-to-market losses on investments in Tata Capital Ltd. The company reported a strong net cash position of Rs 15,900 crore as of September 30, 2026.

Revenue from operations rose to Rs 25,232 crore in Q2FY27, from Rs 18,491 crore in Q2FY26, marking a year-on-year increase of 36.5%.

Domestic and export volumes drive growth

Tata Motors recorded broad-based growth across its commercial vehicle business during the quarter, with domestic volumes increasing 30% year-on-year and export volumes rising 177%.

For the first half of FY27, the company's overall domestic CV VAHAN market share stood at 36.2%, an improvement of 110 basis points over FY26.

Category-wise market share stood at 55.7% in heavy commercial vehicles (HCV), 36.3% in intermediate, light and medium commercial vehicles (ILMCV), 27.6% in small commercial vehicles and pickups (SCV PU), and 41.1% in CV passenger vehicles.

The company continued to expand its product portfolio and showcase new mobility solutions during the quarter. It presented next-generation passenger mobility solutions at Prawaas 5.0 and launched the new Ultra Prime and Starbus Prime range.

It also showcased its next-generation aggregates portfolio at Bauma CONEXPO India 2026 and won the “Best Truck of the Year” award at the Logistics & Transport Award 2026 in the UAE.

Partnerships and sustainability initiatives

Tata Motors entered into an MoU with Drivn to offer leasing and financing solutions for its electric commercial vehicles. It also collaborated with Petronas to pilot a scalable used-oil recycling model.

In another development, the company partnered with Welspun Renewable Energy Private Limited to develop an 86 MW wind-solar hybrid project.

Management flags moderation in H2 growth

Girish Wagh, MD & CEO of Tata Motors Ltd., said the company had delivered another strong quarter, reflecting healthy underlying demand and disciplined execution.

“Q2 FY27 marked another strong quarter in our journey of consistent, profitable growth,” Wagh said, adding that wholesale volumes had grown 42%, with broad-based growth across segments.

With first-half FY27 volumes increasing 35%, the company remains well positioned for a robust FY27. However, Wagh said growth rates were expected to moderate in the second half against a higher base.

He noted that core macroeconomic indicators, sustained infrastructure activity and stable fleet utilisation continued to support freight demand. Interest rates, diesel prices and the broader economic environment, however, remained key monitorables.

Commodity cost pressures persisted through the first half and continued to weigh on the operating environment, he said.

The company will remain focused on operational excellence, cost management, improving its customer value proposition and advancing its future-ready portfolio, Wagh added.

Commodity costs remain a margin challenge

GV Ramanan, CFO of Tata Motors Ltd., said the company delivered a strong financial performance in Q2 FY27, with revenue growing 42% and EBITDA rising 31%, supported by robust operating performance and continued capital discipline.

He said free cash flow generation of Rs 4.6 thousand crore further strengthened the balance sheet, taking the company's net cash position to Rs 11.3 thousand crore.

Despite significant commodity cost pressures, particularly in steel and rubber, the company maintained margins sequentially through cost management, operating efficiencies and calibrated pricing actions, Ramanan said.

Iveco transaction moves towards completion

Tata Motors said the Iveco transaction was progressing towards completion within the indicated timeline of the end of October.

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.

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As the company prepares for consolidation from the next quarter, management's priorities include seamless integration, unlocking strategic opportunities and creating sustained long-term value.

The company said its focus remained on sustaining profitable growth, managing cost pressures and strengthening its customer proposition while progressing with the Iveco transaction.

Tata Motors shares finished Friday’s trading session at Rs 396 apiece on the NSE, down 4.41% from the previous close of Rs 414.25. The stock has declined 7.89% year-to-date in 2026.

At the current market price, Tata Motors CV commands a market capitalisation of Rs 1,45,838.46 crore on the NSE.