Tata Motors Limited, the newly listed commercial vehicles entity following its demerger from the passenger vehicles business, reported a standalone net loss of ₹1,021 crore for the quarter ended September 30, 2025, compared to a profit of ₹643 crore in the same period last year.
Revenue from operations for Q2 FY26 stood at ₹16,861 crore, up 8.6% from ₹15,518 crore in Q2 FY25.
The company’s loss was primarily driven by a one-time provision of ₹2,355 crore for impairment of investments in subsidiary and associate companies, along with mark-to-market losses of approximately ₹2,000 crore on recently listed investments in Tata Capital.
Excluding exceptional items, the commercial vehicles segment showed improved performance. EBITDA for the quarter reached ₹2,200 crore with margins at 12.2%, up 150 basis points year-on-year. EBIT margin stood at 9.8%, an increase of 200 basis points.
Profit before tax and exceptional items (PBT bei) was ₹1,694 crore, up ₹469 crore from the previous year.
The company generated free cash flow of ₹2,211 crore in Q2, compared to ₹984 crore last year. For H1 FY26, free cash flow was ₹417 crore despite a weak Q1, marking the highest ever half-year FCF for the business.
Commercial vehicle wholesales reached 96,800 units, a 12% increase year-on-year. Domestic volumes grew 9% while exports jumped 75%.
The company maintained a domestic market share of 35.3% in H1 FY26 based on VAHAN data. Segment-wise market share stood at 47.2% in heavy goods and heavy motor vehicles, 35.8% in medium goods vehicles, 28.6% in light goods vehicles, and 36.5% in passenger carriers.
As of September 30, 2025, the company was net cash positive at ₹1,200 crore, including TMF Holdings gross debt less the market value of TMF Holdings investments in Tata Capital Limited. Domestic business net debt stood at ₹600 crore.
Corporate Developments
Tata Motors completed the demerger of its commercial vehicle business on October 1, 2025, with the entity listing on BSE and NSE on November 12, 2025, under the ticker “TMCV.”
The proposed acquisition of IVECO, announced on July 30, 2025, is progressing with regulatory approvals underway. The company is targeting an April 2026 closure for the deal valued at approximately ₹38,200 crore.
The company invested an additional ₹134 crore in Freight Tiger, taking total investment to ₹284 crore.
Girish Wagh, MD & CEO, said the company recorded 12% year-on-year volume growth driven by enhanced product availability, refined pricing strategy, and market activations following the rollout of GST 2.0 and the festive season.
GV Ramanan, CFO, highlighted the company’s double-digit EBITDA margins and 45% ROCE for the quarter.
The company extended the full benefit of GST reduction to customers through price cuts across its product range. New launches during the quarter included Ace Gold+ Diesel, Winger Plus, LPT 812, and LPO 1822.
The company signed an MoU with Green Energy Mobility Solutions to supply 100 Magna EV intercity coaches. It billed 1,300 units of Ace Pro EV within four months of launch.
The company expects a firm second half for FY26, supported by the festive season, improving consumption, and the full impact of GST reforms. It anticipates increased demand from construction, infrastructure, and mining activities.