Tata Motors Q2 FY26 Performance Overview
Financial Performance
Consolidated Net Loss:
Tata Motors reported a net loss of ₹867 crore in Q2 FY26 (September 2025 quarter).
This marks a steep decline compared to a ₹498 crore profit in the same quarter last year.
For the overall financial year (FY26), the company registered a consolidated net loss of ₹100 crore.
Reason for the Loss:
The company clarified that the loss was largely driven by mark-to-market (M2M) losses on newly listed investments in Tata Capital.
These M2M adjustments significantly impacted profitability despite a rise in sales and revenue.
Revenue Growth:
Consolidated revenue from operations increased from ₹17,535 crore to ₹18,585 crore, signaling improving market demand.
Demand Drivers: GST 2.0 & festival Season
Slow Start to the Quarter:
According to MD & CEO Girish Wagh, the quarter began on a weak note.
Boost in Demand:
Implementation of GST 2.0 and the beginning of the festival season led to a sharp revival in demand.
The company recorded 12% year-on-year growth thanks to improved product availability and a stronger pricing strategy.
Sales Performance
Wholesale Sales: Up 12% YoY to 96,800 units.
Domestic Sales: Increased by 9%.
Exports: Jumped 75%, indicating robust international demand.
Operational Performance: EBITDA Improvement
Segment Revenue: Climbed to ₹18,370 crore, a rise of 6.6% YoY.
EBITDA Margin: Improved to 12.2%, an increase of 150 basis points.
EBIT Margin: Rose to 9.8%, supported by higher sales and better realizations.
Implication: These improvements reflect strong operational efficiency and sustained core profitability.
Future Outlook
Girish Wagh stated that construction, infrastructure, and mining sectors are expected to maintain strong demand in the second half of FY26.
This will likely provide an additional boost to commercial vehicle sales and overall performance.
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