Tata Motors Limited reported strong financial results for the second quarter of FY27, with revenue growing 42% year-on-year to ₹23,900 crore. EBITDA increased by 31% to ₹2,800 crore, driven by robust volume growth across all segments and improved realizations. The company also provided updates on its IVECO transaction, product launches, and market share gains, highlighting a positive outlook for the commercial vehicle industry.
Tata Motors Announces Strong Q2 FY27 Financial Performance
Tata Motors Limited has announced its financial results for the second quarter ended September 30, 2026, showcasing significant year-on-year growth. Revenue for the quarter stood at ₹23,900 crore, marking a substantial 42% increase. This performance was propelled by strong volume momentum across its diverse portfolio. EBITDA saw a notable rise of 31%, reaching ₹2,800 crore, with an EBITDA margin of 11.7%. The company also reported an EBIT margin of 9.7% and a profit before tax (PBT) of ₹2,700 crore, up 51% before exceptional items, demonstrating an absolute profit growth that outpaced volume growth.
Key Operational and Strategic Updates
The company highlighted several strategic initiatives and operational achievements. At Prawaas 5.0, Tata Motors unveiled its next-generation passenger mobility solutions, including the new Ultra Prime and Starbus Prime range. It also showcased its next-gen aggregates portfolio at Bauma CONEXPO India 2026. The firm secured the ‘Best Truck of the Year’ award in the UAE, underscoring a strong export performance. Further, a Memorandum of Understanding (MoU) was signed with Drivn to offer innovative leasing and financing solutions for electric commercial vehicles. The company also partnered with Welspun Renewable Energy for a 86-megawatt wind-solar hybrid project.
IVECO Transaction Progress
The IVECO transaction is progressing in line with the expected timeline, having received all required regulatory clearances. The acceptance period for the offer opened on September 7, 2026, and is set to close on October 26, 2026. The offer price was increased from EUR14.10 to EUR14.40 per share as a goodwill gesture. As of October 22, 2026, approximately 35% of shares had been tendered, with settlement anticipated on October 30, 2026, subject to the fulfillment of offer conditions.
Volume Growth and Market Share
In Q2 FY27, total wholesales reached 1,35,100 units, a 42% increase year-on-year and 24% sequentially. Growth was broad-based across segments, with HCV up 41%, ILMCV up 24%, small commercial cargo and pickup up 27%, and CV passenger up 31%. International business saw an impressive growth of 177%, largely driven by deliveries for the Indonesian order. For the half-year ended September 30, 2026, wholesales were 2,43,800 units, up 35%.
Standalone and Consolidated Financials
On a standalone basis, including joint operations with Tata Cummins, revenue grew 42% with EBITDA up 31%. Consolidated revenue for Q2 was ₹25,300 crore, up 36% year-on-year. Consolidated EBITDA stood at ₹2,800 crore, up 31%, with a margin of 10.9%. Consolidated EBIT margin improved by 20 basis points to 8.9%. The company reported a consolidated profit before tax before exceptional items of ₹1,800 crore against a loss in the prior year period.
Outlook and Future Plans
Looking ahead, Tata Motors prioritizes leveraging demand momentum while balancing pricing, cost efficiency, and supply readiness for profitable growth. The company plans to capitalize on demand in the truck segment through portfolio actions focused on customer productivity and cost of ownership. In CV Passenger, opportunities in institutional and passenger mobility will be explored, with a focus on scaling electric buses. For SCV pickups, the strategy involves portfolio enhancement and increased EV adoption. The international business aims to diversify and scale across geographies. Consolidation of the IVECO business is expected to begin next quarter.
Source: BSE
