Tata Motors Q2 FY27 results: net profit ₹1,254 crore vs ₹867 crore loss, revenue up 36.3%

How did Tata Motors perform in Q2 FY27?

Tata Motors reported consolidated revenue of ₹25,338 crore for the July–September 2026 quarter, up 36.3% from ₹18,585 crore in Q2 FY26 and 22.6% from ₹20,667 crore in Q1 FY27. EBITDA was ₹1,940 crore, compared with ₹17 crore a year earlier and ₹3,272 crore in the previous quarter. The EBITDA margin was 7.7%, up from 0.1% year on year but down from 15.8% sequentially.

Profit before tax was ₹1,955 crore, against a loss of ₹549 crore in Q2 FY26 and profit of ₹2,946 crore in Q1 FY27. The company reported a net profit of ₹1,254 crore, versus a net loss of ₹867 crore in Q2 FY26 and a net profit of ₹2,556 crore in Q1 FY27. Basic EPS was ₹3.41. On the standalone basis, including joint operations with Tata Cummins, revenue was ₹23,930 crore and profit after tax was ₹2,138 crore.

What changed in Tata Motors' costs and profit?

Total expenses increased to ₹24,037 crore from ₹19,296 crore in Q2 FY26, with cost of materials up ₹4,410 crore, employee cost up ₹133 crore and depreciation up ₹67 crore. Finance costs fell by ₹156 crore, while other expenses declined by ₹513 crore. Other income rose by ₹264 crore to ₹436 crore, and the quarter included a ₹218 crore exceptional gain, compared with a ₹10 crore exceptional charge in Q2 FY26.

The company’s standalone margin analysis attributed the commodity headwind to steel and rubber inflation and said operating leverage, cost efficiency and improved realisation almost entirely offset it. The filing showed tax of ₹744 crore for Q2 FY27, up ₹438 crore from ₹306 crore in Q2 FY26, and reported PBT of ₹1,955 crore. No separate explanation for the tax increase was given in the filing excerpts.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹46,005 crore, up 28.1% from ₹35,909 crore in H1 FY26. Total income rose 28.7% to ₹46,837 crore, while profit before tax increased from ₹1,085 crore to ₹4,901 crore.

Profit after tax for H1 FY27 was ₹3,810 crore, compared with ₹530 crore in H1 FY26, and basic EPS was ₹10.37 versus ₹1.44. The consolidated first-half figures therefore showed higher revenue and a shift to higher profit compared with the corresponding period.

What do the balance sheet and cash flow show?

At 30 September 2026, consolidated total assets were ₹57,453 crore, compared with ₹52,309 crore at 31 March 2026, while total equity was ₹15,363 crore versus ₹12,734 crore. Borrowings fell to ₹2,942 crore from ₹4,817 crore, and cash declined to ₹5,828 crore from ₹6,899 crore. Inventories were ₹8,217 crore, trade receivables ₹3,620 crore and trade payables ₹20,265 crore.

Operating cash flow for H1 FY27 was ₹4,464 crore, compared with ₹1,534 crore in H1 FY26. Investing cash flow was negative ₹1,573 crore, against positive ₹1,646 crore a year earlier, while financing cash flow was negative ₹3,829 crore versus negative ₹2,391 crore. Capital expenditure was ₹737 crore, compared with ₹680 crore in H1 FY26.

How has Tata Motors done over the last 5 quarters?

Across the reported quarters, revenue rose from ₹18,585 crore in Q2 FY26 to a peak of ₹26,098 crore in Q4 FY26 before falling to ₹20,667 crore in Q1 FY27 and recovering to ₹25,338 crore in Q2 FY27. Profit moved from a net loss of ₹867 crore to ₹705 crore in Q3 FY26 and ₹1,793 crore in Q4 FY26, then reached ₹2,556 crore in Q1 FY27 before declining to ₹1,254 crore.

EBITDA margin was lowest at 0.1% in Q2 FY26 and highest at 15.8% in Q1 FY27. It fell to 7.7% in Q2 FY27. The latest quarter therefore showed higher revenue than Q1 FY27, while profit and EBITDA margin were lower than in the previous quarter.

Which businesses drove the quarter?

Commercial Vehicle revenue was ₹25,004 crore in Q2 FY27, up 36.1% from ₹18,370 crore in Q2 FY26, and EBIT was ₹2,323 crore versus ₹1,764 crore. The segment’s reported EBIT margin was 9.3%.

Others reported revenue of ₹325 crore, up 54.0% from ₹211 crore, and EBIT of ₹21 crore, compared with ₹86 crore. Corporate/Unallocable revenue was ₹10 crore, up 100.0% from ₹5 crore, while EBIT was negative ₹82 crore compared with negative ₹193 crore. Less: Intra segment revenue showed revenue of ₹0 crore and EBIT of negative ₹12 crore.

What else did the company announce?

In the same-day filings, Tata Motors said its board approved the audited standalone financial results, the auditor’s report, the unaudited consolidated results and the limited review report for the quarter and half year ended 30 September 2026. The company also submitted an investor presentation for analysts and investors.

The filings provided an update on Iveco: all required regulatory clearances had been obtained, the tender acceptance period opened on 7 September 2026 and was scheduled to close on 26 October 2026, and settlement was scheduled for 30 October 2026 subject to offer conditions. The offer price had been increased from €14.10 to €14.40 per share. The filing also said all offer-related resolutions had been approved at Iveco’s extraordinary general meeting on 16 October 2026. No dividend, fund raise or appointment was specified in the same-day filing excerpts.

What did Tata Motors' management say?

Management expected very high-single-digit to early-double-digit year-on-year overall volume growth in Q3 FY27, with ILMCV and CV passenger at double digits and HCV and SCV in the higher single digits. It guided to a commodity cost headwind of around 150-200 bps in Q3 FY27, with steel and rubber the largest drivers, and said supply constraints and pricing actions also affected the outlook.

Management expected positive free cash flow in Q3 and Q4 FY27 but provided no normalised FY27 free-cash-flow figure. It maintained investment spending at 2%-4% of revenue, with Q2 investment spending at approximately 2.5%. It also said SCV EV salience could reach up to 20% by Q4 FY27 after approximately 12% in Q2.

Management said international volumes rose 177% year on year as the Indonesia order ramped at about 4,500-5,000 units a month. It said part of the Q2 working-capital release was timing-related and expected to reverse. On Iveco, management said the best-and-final offer was EUR14.40 per share, about 35% had tendered by 22 October, settlement was due on 30 October and consolidation was expected to begin in Q3 FY27. The earnings call transcript did not provide analyst concerns in the supplied material.

How did Tata Motors shares react?

Tata Motors fell 1.9% five minutes after the filing, was down 0.2% after 15 minutes and up 2.1% after 30 minutes. On the reaction day, the stock fell 3.5% from the previous close, compared with a 0.8% fall for the industry median and a 0.7% rise for the Nifty 100. By the next day’s close, it was up 0.9% from the pre-results close, and by the fifth day it was up 1.5%, compared with industry-median moves of 2.1% and 1.5% respectively. Earlier results-day moves were 3.8% on 12 August 2026, negative 1.3% on 13 May 2026, negative 2.7% on 29 January 2026 and 3.4% on 13 November 2025.