Tata Motors Q2 FY26 Results: CV Business Delivers Strong 12% Volume Growth, EBITDA Margin Rises to 12.2% Despite Rs 900 Cr Consolidated Loss

Mumbai, November 13, 2025: Tata Motors Limited (formerly TML Commercial Vehicles Ltd) reported a strong operational performance for Q2 FY26, with its Commercial Vehicles (CV) segment driving revenue and margin growth, even as consolidated profits were impacted by mark-to-market losses on investments.

Commercial vehicles performance

The CV division posted revenue of Rs 18,370 crore, up 6.6% year-on-year, supported by a 12% rise in wholesale volumes. EBITDA surged 21% to Rs 2,211 crore, pushing margins to 12.2%, while EBIT margin improved by 200 bps to 9.8%. Profit before tax (before exceptional items) climbed to Rs 1,694 crore, reflecting a Rs 469 crore YoY increase.
Free cash flow stood at Rs 2,211 crore, marking the highest-ever first-half FCF of Rs 417 crore, despite a seasonally weak Q1. The segment’s ROCE improved to 45%, up from 37% last year, while net debt declined to Rs 600 crore.

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Consolidated financial highlights

On a consolidated basis, Tata Motors reported revenue of Rs 18,585 crore, up 6% YoY, with an EBITDA margin of 11.4% and EBIT margin of 8.8%. However, mark-to-market losses of around Rs 2,000 crore on recently listed Tata Capital investments weighed on results, leading to a pre-tax loss of Rs 600 crore and a net loss of Rs 867 crore for the quarter. Despite this, the company remains net cash positive at Rs 1,200 crore, signaling robust liquidity and financial discipline.

Strategic updates

The company completed the demerger of its Commercial Vehicle business, effective October 1, 2025, and listed the new entity “TMCV” on BSE and NSE on November 12, 2025. The proposed acquisition of IVECO Group, valued at Rs 38,200 crore, is progressing toward closure by April 2026. Additionally, Tata Motors increased its investment in Freight Tiger to Rs 284 crore to accelerate AI-led logistics transformation.

Management commentary

Managing Director Girish Wagh termed the quarter a “historic milestone,” highlighting resilient financial results and strong festive-season demand. CFO G.V. Ramanan noted that the firm achieved its highest-ever H1 FCF and remains focused on double-digit EBITDA margins and high ROCE going forward.