Tata Motors Shows Resilience Amidst Challenges in Q2 FY26

Tata Motors Passenger Vehicles Limited announces its first independent Q2 FY26 results post-demerger, reporting a drop in consolidated revenues and profitability due to various challenges. The company sees growth in EV sales and expects further domestic demand improvements. JLR struggles with revenue decline, citing cyber incidents and global pressures.

Tata Motors Passenger Vehicles Limited reported its Q2 FY26 outcomes, marking its inaugural earnings release as a stand-alone entity post-demerger. According to filings, the company saw consolidated revenues fall to Rs 72.3K crore, a 13.5% decline, while it logged an EBIT loss of Rs 4.9K crore. The quarter reported a PBT (bei) loss of Rs 5.5K crore as well.

The firm recorded a net profit of Rs 76.2K crore, buoyed by an Rs 82.6K crore notional gain from disposal of discontinued operations. For the first half of FY26, PBT (bei) suffered a Rs 1.5K crore loss, dropping Rs 13.9K crore from the previous year. Despite global challenges, domestic efforts remained stable, augmented by GST reductions. Tata Motors' standalone performance showed revenue growth of 15.6%, driven by festive demand and GST 2.0 incentives. EBITDA margins rose to 5.8%, with EBIT margins at 0.2%.

MD & CEO Shailesh Chandra praised a strong quarter with wholesale volumes and registrations experiencing double-digit growth. CNG and EV models contributed 45% of sales, with EVs rising nearly 60% YoY, while September reported record sales of 60,000 units. Prospects for H2 FY26 remain buoyant, supported by a promising booking pipeline and new launches. Group CFO PB Balaji acknowledged hardships but emphasized a commitment to resurgence post-cyber incident. Despite global demand hurdles, JLR confronts a 24.3% revenue plunge, citing a cyber incident and US tariffs. CEO Adrian Mardell reported production resumption and commended recovery efforts and readiness for future electric models.

(With inputs from agencies.)