Tata Motors PV Q2 Results Highlights: Profit surges 2110% on one-time gain in first earnings post Tata Motors demerger

The overall global situation remains challenging. To respond effectively, we will focus on stabilising production and increasing resilience throughout the extended supply chain. In parallel, we will step up our brand-led actions to drive up demand for our products and accelerate initiatives aimed at enhancing savings and cash flow. Domestic business continues to witness robust demand following the rollout of GST 2.0. and we will drive growth through new product interventions and strong marketing actions. Overall, we expect an all-round improvement in performance in H2 FY26.

— Tata Motors Passenger Vehicles

Shailesh Chandra, Managing Director & CEO, Tata Motors Passenger Vehicles Limited, said: “Q2 FY26 was a landmark quarter for Tata Motors Passenger Vehicles, marked by double-digit year-on-year growth in wholesale volumes and registrations, alongside several record-breaking milestones. Our growth was powered by our multi-powertrain portfolio, with CNG and EV volumes accounting for 45% of our volumes in Q2. EV sales surged by nearly 60% YoY, with nearly 25 thousand units sold in Q2, reaffirming our leadership in sustainable mobility.

Leveraging a reinvigorated demand environment, our agile approach, strong portfolio, and impactful marketing helped us drive this growth trajectory. September was particularly noteworthy, with record overall sales of 60k units and several other milestones. This strong market performance translated into improving revenues and QoQ improvement in profitability.

With a robust booking pipeline and rising consumer confidence, we are poised to sustain this momentum in H2 FY26, guided by our unwavering commitment to innovation and several new launches ahead.”

“We expect to leverage a robust demand pipeline and comprehensive marketing campaigns to sustain retail momentum in Q3 and ensure lean inventories. At the same time, we will continue to drive volume growth on the back of impactful launches for new product interventions – new nameplate Sierra, Harrier/Safari petrol powertrain, and others. Structural cost reductions and improved mix will act as key levers for enhancing profitability in the coming quarters,” says company.

JLR’s performance in the second quarter of FY26 was impacted by significant challenges, including a cyber incident that stopped our vehicle production in September and the impact of US tariffs. JLR has made strong progress in recovering its operations safely and at pace following the cyber incident. In our response we prioritised client, retailer and supplier systems and I am pleased to confirm that production of all our luxury brands has resumed.

“The speed of recovery is testament to the resilience and hard work of our colleagues. I am extremely grateful to all our people who have shown enormous commitment during this difficult time, and I want to thank our clients, retailers, suppliers and everyone in the communities connected with JLR, for their support through this disruption.

“JLR is a great business with strong global brands, a talented workforce and a loyal customer base. We are now set to deliver the outcome of an extraordinary period of British design and engineering, with the arrival of the Range Rover Electric and the new electric Jaguar — cars which will be unrivalled in their performance, design and capability. While we are mindful of the economic, geopolitical and policy challenges that our industry faces, we are resilient and well placed to make strong progress.

“As I approach the end of my 35-year career at JLR, I am immensely proud of what we have achieved together. Leading JLR as CEO over the past three years has been the greatest honour of my career and I am confident that the next chapter will bring continued success for this great business under the leadership of PB Balaji.

— Adrian Mardell, JLR Chief Executive Officer

Decisive actions were taken to restart the business safely, support stakeholders, and recover operations at pace following the recent cyber incident, said the company. Actions included:

• Restart of the systems used to wholesale vehicles, supporting cash generation for JLR
• Restart of JLR’s Global Parts Logistics Centre to help keep customers’ cars on the road
• Fast-track introduction of a supplier financing scheme to provide qualifying JLR suppliers with cash upfront during the production restart phase
• Use of production downtime to accelerate development and testing work for electrification at JLR facilities, such as underbody build validation, implementation of the ADAS testing rig at Solihull, and EMA readiness at Halewood — part of the commitment to invest £18 billion over five years from FY24

Total liquidity as at September 30, 2025 was £6.6b, including undrawn RCF of £1.7b and the new £2.0b bridge facility, signed on September 22, 2025. Additionally, in October a £1.5b UKEF guaranteed commercial loan was secured, providing further support to the balance sheet. To support liquidity in its supply chain, JLR fast tracked a new £500m financing solution to allow qualifying suppliers to receive cash at the point of production scheduling.

Looking ahead, JLR remains resilient and well placed to address the economic, geopolitical and policy challenges the industry faces. Investment spend is expected to remain at £18b over the five-year period from FY24. In light of the challenges faced, FY26 guidance has been revised, with EBIT margin in the range of 0% to 2% and free cash outflow of £2.2b to £2.5b.

Loss after tax in the quarter was £(559)m, compared to a profit of £283m in the same quarter a year ago. Exceptional items of £238m in the quarter reflect costs of £196m relating to the cyber incident and voluntary redundancy programme costs of £42m.

The performance was impacted significantly by the cyber incident at JLR. Domestic performance was steady during the quarter but rebounded post-GST reductions, the company said.

The consolidated revenue from operations stood at ₹72,349 crore during the quarter under review, recording a 13.5% YoY decline, as per the exchange filing.

Tata Motors Passenger Vehicles posted a massive 2110% YoY rise in profit to ₹76,170 crore, including a one-time notional gain of ₹82,616 crore. Excluding the gain, Tata Motors has posted a loss of ₹6368 crore as against a profit of ₹3056 crore in the same period a year ago and ₹2597 crore in the June quarter of FY26.

Commenting on the PV business, MOSL analysts said that India's PV volumes rose 10.5% YoY. They expect that PV margins likely picked up in Q2 on a QoQ basis due to improved volumes partially offset by high discounts. They see margins at 4.9%, down 130 bps YoY.

As per Investec's estimates, the PV revenues are expected to grow by +12% YoY to ₹130,573 million. Meanwhile, PV EBITDA could see a 38% YoY jump, with margins expanding by 145 bps.

Tata Motors PV shares witnessed an over 2% decline in trade today. The stock extended losses to hit the day's low of ₹388.70 on the BSE as against its last closing price of ₹398.05. As of 2.30 pm, TMPV share price was down 388.85.

“We expect JLR volumes (excluding the China JV) to decline by 2% YoY, led by weakness in the China market and production-related challenges due to the cyberattack. Overall, we expect revenues (ex-China JV) to fall by 2% YoY in 2QFY26, driven by lower volumes. We also expect ASP to decline by 2% QoQ due to an inferior geographical and model mix, partly offset by lower discounts,” said Kotak Institutional Equities.

Investec sees JLR's EBIT at ₹8,512 million and EBITDA at ₹47939 million, down 77% and 42%, respectively. Meanwhile, EBITDA margins are expected to slide by 345 bps and EBIT margin by 363 bps.

JLR revenues are expected to decline by –18% YoY, as the ~24% YoY drop in volumes (owing to the production shutdown) will be partly offset by an increase in ASP due to a richer mix and FX translation gains, says Investec.

Tata Motors, which now comprises the company’s commercial vehicle operations, reported a consolidated net loss of ₹867 crore for the September quarter, driven largely by mark-to-market losses of ₹2,026 crore related to its investment in Tata Capital.

In contrast, the newly listed firm had posted a net profit of ₹498 crore in the same quarter last year.

Revenue from operations rose to ₹18,585 crore, up from ₹17,535 crore a year earlier, the company said in a regulatory filing.

Kotak Institutional Equities (KIE) expects domestic PV business EBITDA to increase by 18% (+10 bps YoY) in Q2 FY26 driven by (1) operating leverage benefits, (2) richer product mix (higher mix of SUVs) and (3) cost control measures partly offset by (1) commodity headwinds and (2) higher advertisement spends.

Tata Motors PV share price slips nearly 2% ahead of the Q2 results announcement. Tata Motors PV stock was trading at ₹391.60 apiece, down 1.62%. The stock the day's low of ₹391.30.

Tata Motors PV board is slated to meet later today to announce Q2 results 2025. “Pursuant to Regulations 29(1)(a) and 50(1)(c) of the SEBI Listing Regulations, we wish to inform you that a Meeting of the Board of Directors (‘the Board’) of Tata Motors Passenger Vehicles Limited (formerly known as Tata Motors Limited) (‘the Company’) is scheduled to be held on Friday, November 14, 2025, inter alia, to consider and approve the Audited Standalone Financial Results and Unaudited Consolidated Financial Results (with Limited Review) for the second quarter and half year ended September 30, 2025,” the company said in a filing.