Tata Motors CV Q2 Results | Net loss ₹867 crore on Tata Capital MTM impact; revenue up 6%

Tata Motors Ltd on Thursday (November 13) reported a net loss of ₹867 crore for the quarter ended September 2025, compared with a net profit of ₹498 crore in the same period last year.

Revenue rose 6% year-on-year to ₹18,585 crore from ₹17,535 crore. EBITDA fell sharply by 99% to ₹17 crore from ₹1,707 crore in the year-ago quarter, while operating margin contracted to 0.1% from 9.7% previously.

Reported profits were affected by mark-to-market losses of ₹2,000 crore on recently listed Tata Capital investments, leading to PBT (bei) of negative ₹600 crore and net income of negative ₹900 crore. The company remained net cash positive at ₹1,200 crore, including TMF Holdings' gross debt less market value of investments in Tata Capital.

This segment delivered a 12% year-on-year increase in volumes, driven by domestic and export growth, while continuing its focus on profitable operations. EBIT margin rose to 9.8% (+200 bps), aided by higher volumes and favourable realisations. Profit Before Tax (bei) for the quarter was ₹1,700 crore.

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Consistent actions over the years have resulted in strong cash flow generation. Free Cash Flow (FCF) for the quarter stood at ₹2,200 crore, and H1 FY26 FCF was ₹417 crore despite a seasonally weak Q1, marking the highest ever H1 FCF for the business.

Return on Capital Employed (ROCE) grew to 45% for the quarter, compared with 37% in Q2 FY25. As of September 30, 2025, the net debt for the domestic business stood at ₹600 crore.

Corporate actions included the successful demerger of the Commercial Vehicle business, effective October 1, 2025, now listed as Tata Motors Limited on BSE and NSE under ticker “TMCV."

The proposed acquisition of IVECO is progressing with regulatory approvals, targeting an April 2026 closure. Tata Motors also invested an additional ₹134 crore in Freight Tiger, taking the total investment to ₹284 crore to drive AI-led freight transformation.

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Key Updates include CV segment wholesales at 96,800 units (+12%), domestic volumes up 9%, exports up 75%, and steady domestic CV VAHAN market share at 35.3% for H1 FY26. HGV+HMV share was 47.2%, MGV 35.8%, LGV 28.6%, and Passenger 36.5%.

Tata Motors Outlook

Looking ahead, with the festive season underway, improving consumption, and the full impact of GST reforms yet to unfold, Tata Motors anticipates a strong second half for FY26. Construction, infrastructure, and mining activities are expected to gain momentum, further fueling demand for trucks and tippers.

With a robust pipeline of upcoming launches and a richer, more customer-aligned product portfolio, the company aims to accelerate growth and improve market share across all segments. Tata Motors will continue its focus on profitable growth, targeting double-digit EBITDA margins, robust cash flows, and high return on capital employed (ROCE).

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