Tata Motors Reports Rs 1,254 Crore Profit for Q2 FY27
Tata Motors sees a significant turnaround with a consolidated net profit of Rs 1,254 crore in Q2 FY27, driven by a 36% revenue increase.
Consolidated revenue reached Rs 25,338 crore, up 36% year-on-year.
Commercial vehicle sales surged by 42%, with domestic sales rising 30%.
Tata Motors is progressing towards completing its acquisition of Iveco Group.
Tata Motors has announced a consolidated net profit of Rs 1,254 crore for the second quarter of FY27, a remarkable recovery from a net loss of Rs 867 crore in the same quarter last year. The financial results, released for the period ending September 30, 2026, indicate a robust revenue growth of 36%, attributed to increased sales in the commercial vehicle segment.
The company's consolidated revenue from operations for the quarter was reported at Rs 25,338 crore. Earnings before interest, tax, depreciation, and amortization (EBITDA) also saw a significant rise of 31% year-on-year, reaching approximately Rs 2,800 crore. However, the EBITDA margin slightly decreased to 10.9%, down 40 basis points compared to the previous year. The improvement in profit was largely due to a reduction in mark-to-market losses on investments in Tata Capital.
In the first half of FY27, Tata Motors achieved a consolidated revenue of Rs 46,005 crore, marking a 28% increase. The net profit for this period surged to Rs 3,810 crore from just Rs 530 crore in the same timeframe last year. The company reported a consistent EBITDA margin of 10.9% for the first half, although it was down 60 basis points year-on-year. The sales of commercial vehicles rose by 42%, with domestic sales increasing by 30% and exports soaring by 177%.
Girish Wagh, the managing director and CEO of Tata Motors, highlighted the broad-based growth across various segments, indicating strong underlying demand. He noted that while the first half of FY27 showed promising growth, the company anticipates a moderation in growth rates in the latter half due to a higher comparison base. He emphasized the importance of monitoring macroeconomic indicators, including interest rates and diesel prices, which could impact freight demand.
Additionally, Tata Motors is moving forward with its acquisition of the Italian commercial vehicle manufacturer Iveco Group. The all-cash tender offer has commenced following the necessary regulatory approvals and is open for acceptance until October 26, with settlement expected by October 30. The offer price has been adjusted to €14.40 per share, raising the total offer value to approximately Rs 42,561 crore.
